Page 377 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 30: Implementation of Economic Policies: Role of Panchayats and Pressure Groups
Dilfraz Singh, LPU

Unit 30: Implementation of Economic Policies: Notes
Role of Panchayats and Pressure Groups

CONTENTS
Objectives
Introduction
30.1 Role of Panchayats
30.2 Pressure Groups
30.3 Summary
30.4 Key-Words
30.5 Review Questions
30.6 Further Readings

Objectives

After reading this Unit students will be able to:
• Explain the Role of Panchayats.
• Discuss the Pressure Groups.
Introduction

The role of bureaucracy in the implementation of economic policies and has seen that it is not up to
the mark. Thus, we can make use of Local Level initiatives, that is, Panchayats, NGOs and Pressure
Groups which are closer to the people. Effective implementation of economic policy can be ensured
through people’s participation. To understand the importance of this we can discuss the potentialities
and problems of local institutions and suggest solutions to make them more effective in the process.
It may be noted that decentralisation at local level is needed to encourage local initiatives and run the
socio-economic programmes efficiently partly due to the pressure of work at the union and state
levels and partly due to corruption at the high places. For the purpose, decentralisation is needed to
involve local people for whom the programme is prepared. Such objectives could be achieved through
Democratic Decentralisation.
30.1 Role of Panchayats

Decentralisation is the transfer of authority, responsibility, and accountability from Central to Local
Governments. Decentralisation can take various forms, commonly described in public administration
terms as deconcentration, devolution, and delegation. Decentralisation also has several dimensions
that reflect, in general terms, increasing and often sequential stages of progress in achieving the
governance objectives of decentralisation. These stages are : Administrative decentralisation (functional
responsibility), financial decentralisation (access to resources) and Political decentralisation
(accountability). The Political dimension is especially critical for democratic decentralisation because
it reconstitutes the state in a democratic way. It provides a process at the local level through which
diverse interests can be heard and negotiated and resource allocation decisions can be made based
on public discussions. Genuine political power sharing is a key element often missing in the political
dimension of decentralisation.
Democratic local governance is autonomous levels of local Government, vested with authority and
resources that function in a democratic manner. That is, they are accountable and transparent, and
involve citizens and the institutions of civil society in the decision-making process. Democratic local
governance It emphasises the presence of mechanisms for fair political competition, transparency,

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