The path to inclusive India lies in decentralization

India has emerged as one of the fastest growing major economies in the post-Covid period. The United Nations Development Program (UNDP) confirms that 415 million people in India emerged from multidimensional poverty between 2005-2006 and 2019-2021. However, Covid-19 disruption has wiped out some of the gains. For the bottom quintiles, the recovery is still underway. Monthly per capita consumption expenditure (MPCE) has increased. However, per capita income remains low. Social indicators have improved after 2005, but there is still a long way to go.

Political democracy has flourished, with individuals belonging to vulnerable social groups reaching high office. However, the constitutional provisions for decentralization have not ensured that funds, functions and officials are mandatorily accountable to local governments and communities. There are indications that this is jeopardizing the journey towards more shared growth.

Eight challenges to inclusion require a more deliberate and decentralized approach: Income of the bottom quintiles (wages of dignity); semi-skilled and skilled employment with productivity; learning outcomes in schools (education for employability); improved child nutrition; quality healthcare for all and public health capacity; dignified life for the urban working class; green growth, a healthy air quality index and climate-resilient agriculture; and nano, micro, small and medium enterprises with adequate credit access.

Southern states have reduced income poverty and multi-dimensional poverty through high participation of adolescent girls in upper secondary/tertiary education, decline in fertility, improvement of health care, formation of women self-help groups (SHGs), diversification of livelihood through skills and abilities. collateral-free bank linkage for SHGs. A genuine effort to emulate the social capital development of women’s collectives is currently taking place across the country under the Deendayal Antyodaya Yojana National Rural Livelihood Mission (DAYNRLM). When this happens, private investment in manufacturing and services will also follow, as human capital and skills are crucial for investment decisions and productivity.

There is evidence that higher decentralization leads to greater gains in human development and a reduction in multidimensional poverty or an increase in MPCE. It is time to encourage decentralization, with professionals and community resource persons (CRPs), within local governments. The responsibilities mentioned for gram panchayats in the Eleventh Schedule and for urban local bodies in the Twelfth Schedule should be transferred to them. The compensatory presence of vibrant social capital from women’s collectives will improve accountability and community connection.

If the same set of twenty indicators of human well-being is monitored in real time, from the gram panchayat level to the prime minister, with unfettered financial resources to meet community needs, India will be a very different country. The Mission Antyodaya framework for monitoring and planning for panchayats is already in place. It can be customized even further. Employable education and skills alone will unlock the demographic dividend. While governance reforms are needed, there are also arguments for additional financial resources for human development channeled through local governments. Creating credible decentralized public (community managed and led) human capital systems is key to accelerating the transformation of lives and livelihoods.

We need to connect households to frontline health workers and institutions with local government-led primary health care governance. Improved systems for high-quality generics with batch testing and digitalized warehouses will improve transparency. Family medicine courses for doctors at the Health and Wellness Center will be very helpful. Pandemic preparedness requires increased spending on healthcare infrastructure and human resources.

India needs to improve learning outcomes as a top priority. Children have reached school, but learning is a serious challenge. They need blended learning that uses e-learning materials and teachers who have been trained for this; emphasis on life skills, sports, cultural activities, co- and extra-curricular activities; TV screens and loudspeakers in classrooms; no teacher shortage at school; panchayats and women’s collectives, responsible for schools; and equal access to e-learning. We need better management of the school system and a system for evaluating teacher performance.

The decline of 8 points in stunting in Sikkim, 6.6 points in UP and 5 points in Bihar between the National Family Health Survey (NFHS)-4 (2015-16) and NFHS-5 (2019-21), is evidence that the nutritional standards are ambitious but achievable. A community-led movement under the local government for early breastfeeding, clean drinking water, diversity in food intake, growth monitoring, basic medicines on time, sanitation, housing, low pollution and collectively led interventions by women is paving the way for transformation. Daycare centers will be needed in very poor regions.

Equivalence of skills and training is needed. Short-, medium- and long-term interventions are needed that improve the employability of young people, in collaboration with industry and the service sector. Good teachers and healthcare providers from India have a global demand. General graduate courses must provide employable opportunities on a certificate/diploma/internship basis prior to graduation.

The urban poor need assured public services. The housing problem needs a solution. Elected leaders at the basti level will enhance direct community-led action, along with the mobilization of women’s collectives. Urban infrastructure in emerging rural areas, including urban and rural planning legislation for rural areas, will ensure norms and standards-based development.

Green growth should not be an afterthought. We must draw on the evidence to promote climate-resilient agriculture, regulate cars and construction, promote less polluting construction technologies and public transport, low carbon emissions, community-led action on lifestyle changes, to reduce consumption.

Decentralization for an inclusive India is the path to shared growth and human capital.

Amarjeet Sinha is a retired civil servant. The opinions expressed are personal