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Decentralization can make national policy coordination too complex; it may allow local elites to capture functions; local cooperation may be undermined by any distrust between private and public sectors; decentralization may result in higher enforcement costs and conflict for resources if there is no higher level of authority. [150]
The main concept of decentralization is that many problems and matters are better solved at the local level. Additionally, at the local level, people can directly participate in making decisions. This promotes democratic participation and encourages people to get involved. In 1992, a significant step was taken towards decentralization.
The committee recommended the establishment of the scheme of ‘democratic decentralization’, which finally came to be known as Panchayati Raj. This led to the establishment of a three-tier Panchayati Raj system: Gram Panchayat at the village level, Panchayat Samiti at the block level, and Zila Parishad at the district level.
However, this 'compelled' decentralization primarily focused on municipal administration. The panchayat was dismantled by the East India Company when it was granted the office of Diwan in 1765 in Bengal by the nawab, as part of reparation following his defeat at Buxar. As Diwan, the Company made two key decisions.
The Balwant Rai Mehta Committee was a committee originally appointed by the Government of India on 16 January 1957 to examine the working of the Community Development Programme (2 October 1952) and the National Extension Service and to suggest measures for their better working.
Greater centralization of the Bitcoin network may be required if Bitcoin is ever going to tip into the mainstream.
The main recommendations of the committee were: The 3-tier system of Panchayati Raj should be replaced by the 2-tier system: Zilla Parishad at the district level, and below it, the Mandal Panchayat consisting of a group of villages covering a population of 15000 to 20000.
The economic liberalisation in India refers to the series of policy changes aimed at opening up the country's economy to the world, with the objective of making it more market-oriented and consumption-driven. The goal was to expand the role of private and foreign investment, which was seen as a means of achieving economic growth and development.