Local Governance (Amendment) Bill, 2071

 Dr Bipin Adhikari

Local governance is a set of institutions, mechanisms and processes through which citizens can express their interests and needs, mediate differences, and exercise their rights and obligations at local levels. 



Local governance includes not only the machinery of state but also other actors and their interactions with local government institutions. Civil society organizations, non-government organizations, local bodies, private sectors, international community and government at the centre have important roles in local governance.



Historically, some form of local governance was evident in Nepal from the Lichhavi era (300-700 A.D.). Subsequently, the Malla dynasty, which stretched from (1100- 1678 A.D.) also inherited aspects of local governance. However, those practices were seized understandably during the unification period led by Prithvi Narayan Shah. Subsequently, during the Rana regime, the practices of local governance were re-introduced, albeit at a rudimentary level. Despite the efforts made at a political level to establish an efficient local governance mechanism, the current situation in Nepal has seen too much power vested in the central government with little to no autonomy for the local entities. As a result, the regions outside of the centre have been alienated and disillusioned from the process.



Subsequently, the Local Governance Act 1999 evolved the conceptualizations of decentralization. It provided much needed clarity and geared towards devolutionary type decentralization. Similarly, the act provided for the continuation of a two tier system with some modifications. It established provision for the establishment of a council and executive committee in each of the VDCs, municipalities and DDC in its organizational structure. Similarly, the act provided for the roles, responsibilities and rights of each unit. It advocated for the representation of the weaker sections from the perspective of equity. It also strongly provided for the acceptance of the participatory planning process. It established provisions for the establishment of a local service and provided autonomy and legitimacy to local entities. Moreover, it established accountability mechanisms to make the process more transparent and encourage people’s participation.



Some of the major amendments proposed by the bill are as follows:



a) Section 10: Currently, The Ministry of Local Development has proposed that at least 40 percent women representations be ensured in local bodies such as the District Development Committee, Village Development Committee, Municipality committees and ward committees. The existing provision ensures women just one seat in each body at all levels.



b)Section 7 : Amendment to Sec. 75. Incorporation of two female members during the formation of committee rather than one.



c)Section 8. Amendment to Sec. 76. Inclusion of Dalits, Marginalized, Differently Able, Vulnerable groups. Minimum representation set at 2/3rd of the total members. In addition, 40% women representation within the “special group” ensured.



In light of the amendments proposed in the bill, the importance of efficient local governance mechanisms is critical during the massive restructuring of the nation. Firstly, there is a need for the mechanism for appropriate allocation of roles, responsibilities and personnel at the local level. Further, there is a need to identify aspects of local governance that need to be incorporated in the Constitution and separate them from provisions that can be regulated through legislations. Proximately, there is a need to establish a transparent electoral system to elect the members of the local bodies. Also, the need for the CA members to discuss the rights that should be provided to local bodies to enable them to function without political, infrastructural, or any other kinds of obstructions is key. Similarly, mechanisms to make the recruitment of local body members more inclusive are necessary. Finally, experts have proposed for adequate mechanisms for progress reports and transparent annual audits to make the local bodies accountable to the people they represent.



Some of the suggestions for amendment to the Bill are as follows:



a) Section 56 (Ga): The use of the word “Disabled” should be amended to ” differently able” to make it more politically correct.



b) The financial allocations and planning guidelines or directives provided by the government and NPC limits the freedom of the local bodies/authorities with regard to their planning responsibilities and authorities. Similarly, financial independence and audits for local bodies should be initiated.



c)The local leaders, because of fear of becoming unpopular among the voters prefer to have more grants coming from the government than on relying on their own resources. The income pattern has the direct bearing on the service delivery capacity of the local bodies. From the available information it becomes clearly evident that the VDCs and DDCs are dependent on the government for carrying out the development activities.



d)The LSGA has ensured the participation of the women, weaker and ethnic groups in the local bodies/authorities. Yet the number to be nominated is very small. Furthermore, it is not clear as to on what basis they have to be nominated.



e)If the present system of nominating the experts in the working committee of the DMIC from among ‘our persons’ by the minister from which political party s/he has been appointed can be cited as the example, the real interest of the weaker sections of the society would not be represented in the local body/authority no matter whatever the law requires as the qualification for the nomination.



f)In accordance with the LSGA, projects undertaken by the government or corporate sectors could be transferred to the local government units, which are to manage as per the transfer agreement. It would be quite interesting to observe how much the local bodies would be interested to take over the completed development projects other than the assets like the buildings etc.



g)In most of the districts where government has not been effective or local bodies/authorities are yet to reach, traditional organisations representing the interest of various groups including the gender or ethnic or occupational groups have been effective. Such organisations could have been used as the mechanisms to use in the nomination of the different groups in the respective council of the local body/authority.



Nepalese society is a power-oriented society. Therefore people go around those who hold the authentic chair. The changes recommended by the Bill are commendable. However there are inherent problems that have deep roots in Nepali traditions. There are problems relating to implementation of the modifications promulgated by the Bill. For example, despite timely auditing of accounts of local body/authority and actions by the respective councils against the irregularities shown in the audit reports emphasized by the Act, in practice, regular auditing of the accounts of the local government authorities has always been a major issue.

In light of this, appropriate implementation mechanisms to empower the local leaders and promote accountability are absolutely critical. 

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