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Decentralization: an effective method of financial management at the grassroots (evidence from India)

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  • Sumana Datta

    (Tata Energy Research Institute, India)

  • V. Varalakshmi

    (Tata Energy Research Institute, India)

Abstract

Haryana is among the 20 Indian states currently implementing the Joint Forest Management Programme (JFMP). Protection and management of degraded forests by village level institutions - hill resource management societies (HRMSs) - in partnership with the Haryana Forest Department could be described as a significant step in delegation and to an extent in devolution of forest protection and management roles and responsibilities. A significant outcome of JFM to the HRMSs has been the enormous funds that have been generated at the village level. These have been expended to fulfil community needs. A study conducted in five HRMSs to understand the mechanism of fund utilization revealed that major portions have been utilized for human development and lesser amounts for forest development activities. The process adopted has been one of consensus with well established mechanisms for regulating misuse. The success of the study villages has been presented as evidence in support of successful decentralization and financial management at the grassroots and the potential of many HRMS type institutions to develop into strong institutions with a high degree of institutional and financial sustainability. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Sumana Datta & V. Varalakshmi, 1999. "Decentralization: an effective method of financial management at the grassroots (evidence from India)," Sustainable Development, John Wiley & Sons, Ltd., vol. 7(3), pages 113-120.
    • Handle: RePEc:wly:sustdv:v:7:y:1999:i:3:p:113-120
    DOI: 10.1002/(SICI)1099-1719(199908)7:3<113::AID-SD106>3.0.CO;2-X
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    1. World Bank, 1997. "World Development Report 1997," World Bank Publications - Books, The World Bank Group, number 5980.
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    1. Pia Sethi & Hilaluddin Khan, 2001. "Structuring financial empowerment for localized development within Joint Forest Management (JFM): examples from Madhya Pradesh, India," Sustainable Development, John Wiley & Sons, Ltd., vol. 9(2), pages 87-102.
    2. Anupam Pandey, 2010. "Greening Garhwal through stakeholder engagement: the role of ecofeminism, community and the state in sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 18(1), pages 12-19.
    3. Jagannadha Matta & John Kerr, 2007. "Barriers Beyond the Partners: Bureaucratic and Political Constraints to Implementing Joint Forest Management in Tamil Nadu, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 9(4), pages 465-479, November.
    4. Misra, Dinesh & Kant, Shashi, 2005. "Economic efficiency and shadow prices of social and biological outputs of village-level organizations of joint forest management in Gujarat, India," Journal of Forest Economics, Elsevier, vol. 11(3), pages 141-160, December.

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