Local Self Government Institutions and Interventions in the Manufacturing Sector: A Comparative Analysis of Two Gram Panchayats in Kerala, India

Abstract

A distinguishing feature of the democratic decentralisation process in
Kerala, following the 73rd and 74th Constitutional Amendments, is the
economic role assigned to Local Self Government Institutions (LSGIs).
The envisaged devolution of 35 per cent to 40 per cent of the State plan
fund to LSGIs was expected to be supplemented with household savings
and to be channelised into production to revive the stagnant productive
sector of the economy. The present study maps out the experiences of
two Gram Panchayats in their intervention in the manufacturing sector. A
comparative analysis of the mode of intervention of two neighbouring Gram
Panchayats in Kerala revealed that commodity characteristics supplemented
with organisational skills played a pivotal role in influencing the outcome
of the intervention of LSGIs in the production sector. However, either
from the State level or from District Planning Committees (DPCs), there
were little efforts made until now to scientifically draw a road map on the
type of commodities in which LSGIs could effectively intervene. It is
suggested that the DPCs in every district should guide the LSGIs to identify
the feasible areas of interventions in the productive sector for an effective
implementation of democratic decentralisation.