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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 Government of India Act 1858 created the office of Secretary of State for India in 1858 to oversee the affairs of India, which was advised by a new Council of India with 15 members (based in London). The existing Council of Four was formally renamed as the Council of Governor-General of India or Executive Council of India.
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.
India is a member of the British-organized Commonwealth of Nations. India successfully practices a democracy with regular elections inspired by western countries. Following Gandhi independent India worked to increase the status of women, who became citizens with the franchise and the right to divorce.
MIT Professor Thomas W. Malone explains that "decentralization has three general benefits: encourages motivation and creativity; allows many minds to work simultaneously on the same problem; accommodates flexibility and individualization; Decentralized decision-making, Malone says, tends to create less rigidity and flatter hierarchies in ...
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.
State List consists of 61 items (earlier 66 items). Uniformity is desirable but not essential on items in this list: maintaining law and order, police forces, healthcare, transport, land policies, electricity in the state, village administration, etc. The state legislature has exclusive power to make laws on these subjects.