State Restructuring and Federalism Balananda Paudel

Why federalism in Nepal? To come together? To hold together? Big population? Big geography? Is it ends? NO

Why federalism in Nepal? To federalize state power? To resolve conflict? To manage diversity? To make system inclusive? Is it means? To make governance effective and efficient? YES

Drivers of Federalism in Nepal Diversity Inclusion Conflict management Effectiveness & efficiency

Arguments against Federalism Expensive Complexity of the system Lack of capacity Dilemma in public regarding service delivery Blame game Conflict

Federalism - Origin Federalism is derived from 'Federation‘ Originating from a Latin word  foedus = a treaty or agreement. Meaning, The instrument by which a federation is brought about in a treaty or agreement between independent governments, national/central which they agree to create and hence created a new state to which each sovereign state surrender their sovereignty and agree to become its sovereign parts.

Asymmetric and Symmetric Federalism Asymmetric: A type of federalism where constituent units have different sets of rights and obligations which are not necessarily equal. Symmetric: A type of federalism where all constituent units hold equal powers and facilities under the federal constitution.

 Dual Federalism Limited but countable powers to the central government; foreign policy, national security and national economy, etc. All remaining powers given to federal states; resource mobilization, policy formulation, etc. Power: Central government > State but effort to balance the power. This is currently how the United States system works.

Cooperative Federalism power sharing among federal, state & local government. All works are combined to find effective solutions for the national problems. Nepal’s federal structure is perceived to be cooperative federalism.

संघीय स्वरुप समन्वय संघ सहकारीता सहअस्तित्व ७. प्रदेश ७५३ गाउँपालिका/ नगरपालिका सहकारीता सहअस्तित्व समन्वय

७५३

संघीयता एउटै भुगोल र एउटै जनतालाई फरक फरक बिषयमा भिन्न भिन्न तहका सरकारले शासन गर्ने व्यवस्था नै संघीय व्यवस्था हो

संघीयता किन? नजिकको शासन समावेशिता कार्यदक्षता कार्य प्रभावकारीता जवाफदेहिता विवीधताको व्यवस्थापन

शासन व्यवस्था संघ संविधान र कानुनको अधिनमा रही नेपालको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा मन्त्रीपरिषदमा हुनेछ। (७५-२) प्रदेश संविधान र अन्य कानुनको अधिनमा रही प्रदेशको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा प्रदेश मन्त्रीपरिषदमा रहनेछ। (१६२-२) स्थानिय तह संविधान र अन्य कानुनको अधिनमा रही गाउँपालिका र नगरपालिकाको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा गाउँ कार्यपालिका र नगर कार्यपालिकाको हुनेछ। (२१४-३)

राज्यको मुल संरचना तीन तहको हुने छ (५६-१) संघ प्रदेश र स्थानीय तह

गाउँपालिका नगरपालिका र जिल्ला सभा स्थानीय तह (३०६ (१) ढ) गाउँपालिका नगरपालिका र जिल्ला सभा

राज्य शक्तीको प्रयोग (५६-२) संघ प्रदेश र स्थानीय तह

राज्य शक्ती (३०६-१-ज) राज्यको कार्यपालिका, व्यवस्थापिका र न्यायपालिका सम्बन्धी अधीकार, सो शब्दले अवशीस्ट अधिकार समेतलाई जनाउछ।

राज्य शक्तिको बाँडफाँड संघ- अनुसुची- ५,७ र ९ प्रदेश- अनुसुची- ६,७ र ९ स्थानिय- अनुसुची- ८ र ९

राज्य शक्तीको बाँडफाँड विधायनी कार्यकारीणी न्यायिक संघ संघीय व्यवस्थापिका (प्रतिनिधि सभा र राष्ट्रिय सभा) नेपाल सरकार सर्वोच्च अदालत प्रदेश प्रदेश सभा प्रदेश सरकार उच्च अदालत स्थानिय - गाँउ सभा - नगर सभा - गाँउ कार्यपालिका - नगर कार्यपालिका - जिल्ला अदालत - स्थानीय अदालत - न्यायिक समिती

राज्य शक्तीको बाँडफाँड राज्य शक्तीको बाँडफाँड अनुसुची- ५ संघ अनुसुची-६ प्रदेश अनुसुची-८ स्थानिय अनुसुची ७ अनुसुची ९

Principles of State Restructuring and Federalism in Nepal Right to autonomy Self-rule Ending all forms of discrimination and oppression created by the feudalistic, autocratic, centralized, unitary system of governance Protecting and promoting social and cultural solidarity, tolerance and harmony

Principles of State Restructuring and Federalism in Nepal Eliminate caste based untouchability Committed to socialism Based on democratic norms and values Competitive multi-party system of governance Civil liberties Fundamental rights Human rights Adult franchise Periodic elections Full freedom of the press Independent impartial and competent Judiciary Rule of law

Principles of State Restructuring and Federalism in Nepal Unity in diversity by recognizing the multi-ethnic multi-lingual, multi religious, multi cultural and diverse regional characteristics Build an egalitarian society founded on the proportional, participatory and inclusive principles Ensure economic equality, prosperity and social justice Eliminating discrimination based on class, caste, region, language, religion and gender

Ultimate Destination: Prosperous Nepal

State restructuring(local level) Function Geography Population Socio-Cultural Structure Access Resources Geographical Continuity conurbation

Principles of Restructuring(local level) Economies of scale Principle of subsidiarity Principle of exception Inclusion Consolidation of structure on the basis of consolidation of function Principle of representation

Restructuring Process LLRC set the standards for the process Technical committees were formed in every districts who facilitated the process The process was participatory

Local level restructuring Limitations of the process: The criteria given by the government changed at the middle of the work of the Commission Restructuring was to be done within the boundary of the district and the province Wards of VDCs and Municipalities were not allowed to be splited Availability of data Limited time frame

Issue 1: Size and No. of local government Balancing functional responsibility and minimum efficient scale Balancing scale and proximity to the people Feeling of loss of political power

Issue 2: Interrelation between Federation, State and Local Level Hierarchical versus co-operative Are local governments a hierarchical units of the provincial level or federation? According to the constitution, each level has its own functions and responsibilities. The relations between the federation, states and local level shall be based on the principles of cooperation, co-existence and co-ordination

Issue 3: Determination of No Issue 3: Determination of No. and Boundaries of Special, Protected and Autonomous Regions Criteria set by the government were changed amidst the work No. and boundaries of rural municipalities and municipalities were not public even during the last phases of the tenure of the commission Availability of data posed a major constraint Minorities and marginalized communities were not rigidly defined The restructuring was to be done within the boundary of local level, district and province

Issue 3: Determination of No Issue 3: Determination of No. and Boundaries of Special, Protected and Autonomous Regions Boundary based structure and non-territorial structure Exclusive structure and proportional inclusive principle Cultural, social and economic rights of the structure was ambiguous

Issue 4: Separation of powers and checks and balances Executive, legislative and judicial wing of the local government shall be led by the same representative The functioning and regulation of the local bodies comes under the purview of the following constitutional bodies: Commission for the Investigation of Abuse of Authority (CIAA) Auditor General ( Regularity, economy, efficiency, effectiveness and the propriety) Public Service Commission

Issue 5: Clarity on Functional Assignment -(i) Concurrent functions and exclusive functions Exclusive functions at different level eg: Tourism fee

Allocation of power Schedule-5 Federation Schedule-8 Local Schedule 7 Schedule-6 Province Schedule-8 Local Schedule 7 Schedule 9

EDUCATION HEALTH AGRICULTURE Federation Province Local Basic Health Basic and Secondary Education Basic Health Management of Agriculture Extension

Issue 5: Clarity on Functional Assignment -(ii) Fundamental rights International conventions Directive principles, policies and obligations of the state

Issue 6: Fiscal Federalism Expenditure assignment Revenue assignment Inter-governmental fiscal transfer (Basis and Modality) Equalization grant Matching grant Conditional grant Special grant Borrowing Fiscal commission

Issue 7: Transitional Management ( Adjustment of Civil Servants) Nepal government can adjust civil servants at federal, state and local level (302-2) Employee’s interest and institution’s interest Issue of mobility of civil servants Issue of benefits Issue of previous local level staff and civil servants Issue of knowledge, skill and attitude of employees Capacity development programs No “ If and But”

Issue 7: Transition Management (Handover and take over) Physical facilities Programs and projects Process/ Procedure Out standings Audit irregularities Handover to the elected government

Issue 7: Transition Management (Continuity of service and delivery) Implemented by the government From headquarters From ward center

Issue 7: Transition Management (Clarity about Ward Service Centre) This is service delivery unit not the governing unit The role of ward committee regarding ward service Centre Functions of Ward Service Centre Service delivery unit below the Ward Service Centre

Issue 7: Transition Management (Risk Management) Political risk Contested political environment Adversarial politics Administrative risk Poor capacity Resistance Inertia/ Legacy Operational risk Proper sequencing of transition Lack of skill

Issue 8: Service Delivery Improvement Joint Service Arrangement Local level headquarters Ward service center Service centre below the ward if necessary

Issue 8: Service Delivery Improvement Public administration cannot be transformed overnight Multi-skilled and multi-tasked staffing Smart civil servant Efficient staffing Continuous training Training for all

Issue 9 Gerrymandering Political Gerrymandering When someone in authority changes the borders of an area in order to increase the number of people within that area who will vote for a particular party or person (http://www.freesearch.co.uk/dictionary/gerrymandering)

Two Types Packing: Putting as many members of one party into one constituency to limit the amount of seats they win Cracking: Splitting voters of the opposing party into two different constituency

What Are The Effects? Less accurate representation Less incentive to vote Can erase the political impact of certain groups

Issue 9 Gerrymandering Political Gerrymandering Resource based Gerrymandering Forest Water Land-fill site Grazing land Center based Gerrymandering Cultural Gerrymandering

Yarsagumba (Caterpillar fungus) based Yarsamandering

Mr. Gerry of Gerrymandering

Issue 10 Provincial Headquarters

Issue 10 Provincial Headquarters Geographically Centroid Province 1: Dhankuta and Bhojpur Province 2: Mahottari and Sarlahi Province 3: Kathmandu Province 4: Kaski Province 5: Pyuthan and Dang Province 6: Jumla Province 7: Doti

Issue 11 मिरमिरे बिहानी/गोधुली साँझ (Twilight) यो रुपक(Metaphor) किन? पुरानो गैसकेको छैन नयाँ आउन बाँकी छ Twilight गोधुली साँझ Evening twilight(dusk) मिरमिरे बिहानी Morning twilight(dawn) यो समयमा के गर्ने? नखाने? पूजा पाठ गर्ने? कुसंस्कारलाई छोड्ने?

Issue 12 Capacity Capacity Individual Organizational Institutional Functional Technical Organizational Institutional Societal Supply side Demand side

Issue 13: Inertia- SinghaDurbar Unitary system of governance

Inertia (जडता) स्थानिय तह संघिय व्यवस्था अनुकुल कार्य सम्पादन गर्ने प्रयास

Issue 14: Ineffective Bureaucracy

खाने धेरै काम थोरै

परिवर्तन कसरी ल्याउने? थोरै खाने धेरै काम गर्ने

Issue 15: Blame Game

सरकार संचालन गर्न सक्ने क्षमता खै? साधन, श्रोत, हस्तान्तरण खै? संघ प्रदेश

हामीले काम सुरु गर्न पाएको खै? सेवा सुविधाको कानुन बनाइदिएको खै? प्रदेश स्थानीय

सरकार संचालन गर्न सक्ने क्षमता खै? साधन, श्रोत, हस्तान्तरण खै? संघ स्थानीय

संघीयता एउटा तहले अर्को तहलाई दोष देखाएर पंछीने व्यवस्था हैन संविधानले दिएको भूमिका पुरा गर्नको लागि तिनै तहको बिचमा सहकार्य र समन्वय गर्ने व्यवस्था हो।

Issue 16: A mismatch among ability and job assignment

Issue 17: Silo Mentality Province Federation

अन्तर सरकारी वित्त व्यवस्थापन सम्बन्धमा व्यवस्था गर्न बनेको ऐन २०७४ स्थानिय सरकार संचालन ऐन २०७४ १) प्रदेशले सवारी साधन कर उठाउँदा स्थानीय तहले सवारी साधनमा लगाएको कर समेत उठाउने १) सवारी साधन करको दर निर्धारण र संकलन प्रदेशले गर्ने तर गाउँपालिका र नगरपालिकाले टाँगा, रिक्सा, अटो रिक्सा र ई-रिक्साको सवारी करको दर निर्धारण र संकलन आफ्नो कोषमा जम्मा गर्न सक्नेछ । २) स्थानीय तहले घर जग्गा रजिष्ट्रेशन शुल्क उठाउँदा प्रदेशले लगाएको घर जग्गा रजिष्ट्रेशन शुल्क समेत उठाउने २) घर जग्गा रजिष्ट्रेशन शुल्कको दर प्रदेशले निर्धारण गर्ने र सोको संकलन गाउँपालिका वा नगरपालिकाले गर्ने

अन्तर सरकारी वित्त व्यवस्थापन सम्बन्धमा व्यवस्था गर्न बनेको ऐन २०७४ स्थानिय सरकार संचालन ऐन २०७४ ३) स्थानीय तहले विज्ञापन कर उठाउँदा प्रदेशले लगाएको विज्ञापन कर समेत उठाउने ३) विज्ञापन करको निर्धारण र संकलन गाउँपालिका वा नगरपालिकाले गर्ने ४) स्थानीय तहले मनोरन्जन कर उठाउँदा प्रदेशले लगाएको मनोरन्जन कर समेत उठाउने प्रशासनिक खर्च: उठेको करको दुई प्रतिशत बाँकी रकम: सम्बन्धित तहको संचित कोष ४) मनोरन्जन करको दर र संकलन गर्ने तरिका प्रदेशले निर्धारण गर्ने र सोको संकलन गाउँपालिका वा नगरपालिकाले गर्ने

Issue 18: Harmonization and Coordination स्थानीय प्रदेश

मुलुकको सम्रिद्दीको डुङ्गा संघ स्थानीय

मुलुकको सम्रिद्दीको डुङ्गा संघ प्रदेश

गाउँपालिका र नगरपालिकाको सम्रिद्दीको डुङ्गा उपमेयर मेयर

गाउँपालिका र नगरपालिकाको सम्रिद्दीको डुङ्गा वार्ड सदस्य वार्ड अध्यक्ष

मुलुकको सम्रिद्दीको डुङ्गा योजना: स्थानीय प्रदेश संघ आवधिक लक्ष्य दुरद्रिष्टी

स्थानीय तहको सम्रिद्दीको डुङ्गा योजना: वार्ड अध्यक्ष वार्ड सदस्य उपमेयर मेयर आवधिक लक्ष्य दुरद्रिष्टी

Issue 19: Unfinished Tasks

राजस्व बाँडफाँड संघीय संचित कोष (७०%) प्रादेशिक विभाज्य कोष (१५%) संघीय विभाज्य कोष मुल्य अभिव्रिद्दी कर/अन्त शुल्क (१००%) संघीय संचित कोष (७०%) प्रादेशिक विभाज्य कोष (१५%) ७ वटा प्रदेश स्थानिय विभाज्य कोष (१५%) ७५३ स्थानिय तह

राजस्व बाँडफाँड संघीय विभाज्य कोष प्राकृतिक स्रोतमा प्राप्त रोयल्टी (१००%) संघीय संचित कोष (५०%) प्रादेशिक विभाज्य कोष (२५%) ७ वटा प्रदेश स्थानिय विभाज्य कोष (२५%) ७५३ स्थानिय तह

Issue 20 Restructuring of provinces Ability/capability? Identity? Efficiency?

General Composition of seven Provinces No. of districts Area(sq. km) Area (%) Population Population(%) One 14 25,905 17.60 4,534,943 17.12 Two 8 9,661 6.56 5,404,145 20.40 Three 13 20,300 13.80 5,529,452 20.87 Gandaki 11 21,504 14.61 2,413,907 9.11 Five 12 22,288 15.14 4,891,025 18.46 Karnali 10 27,984 19.01 1,168,515 4.41 Seven 9 19,539 13.28 2,552,517 9.63 Nepal 77 147,181 100 26,494,504

Number of provincial assembly members Size of provincial assemblies and governments Province Number of local government Number of provincial assembly members FPTP PR Total Numbr of ministers as 20% PPA !oR constituencies One 137 56 37 93 18 28 Two 136 64 43 107 21 32 Three 119 66 44 110 22 33 Gandaki 85 36 24 60 12 Five 109 52 35 87 17 26 Karnali 79 16 40 8 Seven 88 53 10 Total 753 330 220 550 108 165

Perspective दृष्टिकोण

The Case of Nigeria Federalism was demanded in Nigeria on the basis of ethnicity & 3 states were formed in 1963. Gradually, other tribes demanded their own state. 3 states has now become 36 states the debate continues

System: A perspective System is just the means and not the ends No system is good or bad in itself, but rather the way it is utilized that determines the end result A system never fails, it’s only the people who fail to exercise it efficiently.

धन्यवाद