Decentralization and Human Development Trends in South Asia

• In Event: Decentralization and Sub-National Development

Abstract

Most countries today have some degree of decentralization that entails power-sharing between federal and lower governmental levels. This is the case in South Asia as well and we see variation in the extent of decentralization among countries in the region. This variation, I argue, affects human development trajectories of South Asian countries.

This proposal focuses on two primary research questions. What are the decentralization trends in South Asian countries? How do different facets of decentralization influence human development outcomes, such as health and education, among countries in the region? Decentralization is a multidimensional concept and needs to be studied as such to understand its consequences on well-being outcomes. The proposal aims to study the effects of different facets of decentralization, namely political, fiscal, and administrative attributes, as well as oversight mechanisms among South Asian countries of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

There is a vast body of research on decentralization. Extant literature identifies the benefits as well as the drawbacks of decentralization and reflects disagreement among scholars about its consequences. A plausible reason for this could be the focus on individual aspects of decentralization. Contrary to the approach adopted in existing research, this proposal adopts a comprehensive conceptualization of decentralization by studying the different dimensions of decentralization collectively. I argue that decentralization, when implemented comprehensively (i.e. when it includes political, administrative, fiscal decentralization, and oversight mechanisms) improves human development outcomes. These different facets of decentralization bring governments closer to the people, enhance governmental capacity to meet local needs, and ensure accountability of subnational government officials.

I test this theory by gathering observational measures for each facet of decentralization and oversight mechanisms over time for each South Asian country. Based on these measures, an additive decentralization index for each country will be created and used to study the effect of decentralization on human development outcomes. A mixed methods strategy that combines quantitative time-series-cross-national analysis along with qualitative case narratives on individual countries will be utilized to address the research questions. This project will be one of the few studies that collectively analyzes the consequences of different dimensions of decentralization of power from national to regional or local governments across South Asian countries.

The focus on South Asia is important for two reasons. First, it is a relatively understudied region in comparative politics as compared to other regions in the developing world. Even though there is a large and growing body of research on India, South Asia as a region is not studied as extensively as other regions. Second, this study takes a disaggregated approach toward human development as well as decentralization. This is important as it will help us identify specific policy solutions to address core societal needs. The study will identify which dimension of decentralization plays a particularly important role improving human development outcomes among South Asian countries. Third, this study will enable us to understand the role of decentralization in a region with a history of different political regimes. South Asian countries include a former monarchy (Bhutan), democracy (India, Maldives), and semi-democratic regimes (Bangladesh, Nepal, Pakistan, and Sri Lanka). Fourth, most of these countries are in the lower-middle-income bracket barring Maldives, which is an upper-middle income country. Understanding the role of decentralization among countries in the lower-income-bracket can provide policy relevant information for other countries in the same income group.

This research has broader implications beyond health and education outcomes in South Asia. Most countries today have some degree of decentralization and the role of decentralized governments is especially apparent in the context of the pandemic where local and regional governments are involved in addressing the myriad on-the-ground challenges associated with the pandemic. This research will shed light on how decentralized governments are dealing with the pandemic in South Asia as well as in other countries and regions.

Author

• Nisha Mukherjee Bellinger, Boise State University