Panchayats,Communities,and the Rural Poor in India

Abstract

Despite large outlays, poverty alleviation measures have not made a significant dent in rural poverty in India. Disillusionment with these measures culminated in the 73rd Constitutional (amendment) Act in 1993, designed to revitalise the Panchayat system (consisting of elected Panchayats at different levels) in India. The focus of the present study is on its poverty alleviating potential. Emphasising that decentralisation is essentially a political process, the political economy considerations in the framing of this Act and the state conformity Acts, and their implementation are critically reviewed. The nature of the organisational structure of the Panchayats that has evolved is of considerable importance in assessing their role as implementing agencies of anti-poverty and other rural development programmes. Yet another major concern is that the community's imperfections act as an impediment in poverty alleviation. Although there are important informational and administrative advantages of community involvement in the design and implementation of anti-poverty and other related programmes, some limitations must not be overlooked (e.g., "capture" of the Panchayats by a few locally influential persons). Finally, some key strategic options are identified based on a detailed review of recent empirical evidence. Of particular significance is a strong coalition of the rural poor. Although, in general, prospects of collective action on the part of the rural poor (who are divided by caste and religion) are limited, it is argued that there are some grounds for optimism. The overall conclusion is that, although the Panchayat system has not benefited the poor except in a few cases, its potential for poverty alleviation is hard to dispute.