In contemporary development models, decision-making and problem-solving responsibilities are not located…

Question

In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development. Critically evaluate.

Ghissu Editorial · Accepted Answer

The statement is largely valid, because uniform scheme norms, panchayats without their own revenue and targets set far away have repeatedly defeated development, though national campaigns show the centre still matters. RBI's 2024 study found panchayats' own revenue barely 1.1% of their total revenue.

**Introduction**

Hayek's "knowledge problem" and the principle of subsidiarity, endorsed by the 2nd ARC (2007), hold that decisions work best near the information. Three decades after the 73rd and 74th Amendments, much of India's development decision-making still sits far from where needs are known.

**Why Distant Decision-making Defeats Development**

SKETCH: flow | How Local Knowledge Gets Lost
- Village need
- District data
- State department
- Union ministry
- Uniform norm
- Mismatched delivery

1. **Uniform schemes**: Centrally sponsored schemes fix unit costs and designs nationally, which is why States' flexi-funds were raised to 25% in 2016 to let them adapt schemes to local terrain.
2. **Funds without autonomy**: RBI's 2024 study found panchayats' own revenue barely 1.1% of their revenue, leaving the tier that knows village priorities dependent on tied transfers decided above it.
3. **Ignored local warnings**: The M.C. Mishra Committee flagged Joshimath's fragility in 1976, yet distant approvals continued until the town subsided in 2023.

**Where the Statement Overreaches**

1. **Scale needs the centre**: National campaigns eradicated polio (WHO certification, 2014) and ran over 220 crore COVID-19 vaccine doses through CoWIN.
2. **Elite capture**: Ambedkar's warning of the village as "a sink of localism" echoes in today's "sarpanch-pati" proxy rule, and many panchayats lack engineers and accountants.
3. **Hybrids work**: The Aspirational Districts Programme (2018) pairs national indicators with Collector discretion, and Kerala's People's Plan Campaign (1996) devolved plan funds with clear gains.

**Conclusion**

The statement is largely valid, but the answer is subsidiarity, not abandoning the centre. Activity mapping, untied funds and local capacity would decentralise decisions while keeping standards national, delivering genuinely citizen-centric development.

In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development. Critically evaluate.

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