1. State Restructuring and Federalism
Balananda Paudel

3. 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.

4. 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.

5.  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.

6. 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.

7. Why federalism? To come together? To hold together? Big population?
Big geography?
To federalize state power?
To manage diversity?
Is it ends?
Is it means?

9. Federal System Federation Province no. 3 KTM Metropolitan City
Coordination
Cooperation
Coexistence

10. 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

11. 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

12. 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

13. Ultimate Destination:
Prosperous Nepal

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

15. 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

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

17. 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

18. 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

21. 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

22. 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

23. 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

24. 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

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

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

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

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

29. 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

30. 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”

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

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

33. 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

34. 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

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

36. 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

37. 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 (

39. 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

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

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

43. Yarsagumba (Caterpillar fungus) based Yarsamandering

44. Mr. Gerry of Gerrymandering

45. Issue 10 Provincial Headquarters

46. 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

47. 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?

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

49. Issue 13: Inertia- SinghaDurbar
Unitary system of governance

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

51. Issue 14: Ineffective Bureaucracy

52. खाने धेरै
काम थोरै

53. परिवर्तन कसरी ल्याउने?
थोरै खाने
धेरै काम गर्ने

54. Issue 15:
Blame Game

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

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

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

58. 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।

59. Issue 16: A mismatch among ability and job assignment

60. Issue 17: Silo Mentality
Province
Federation

61. 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

62. 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

63. Issue 18: Harmonization and Coordination
स्थानीय प्रदेश

64. मुलुकको सम्रिद्दीको डुङ्गा
संघ स्थानीय

65. मुलुकको सम्रिद्दीको डुङ्गा
संघ प्रदेश

66. गाउँपालिका र नगरपालिकाको सम्रिद्दीको डुङ्गा
उपमेयर मेयर

67. गाउँपालिका र नगरपालिकाको सम्रिद्दीको डुङ्गा
वार्ड सदस्य वार्ड अध्यक्ष

68. मुलुकको सम्रिद्दीको डुङ्गा
योजना:
स्थानीय प्रदेश संघ
आवधिक लक्ष्य दुरद्रिष्टी

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

70. Issue 19: Unfinished Tasks

71. 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

72. 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

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

74. 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

75. 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

76. Perspective
दृष्टिकोण

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

86. 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.

87. धन्यवाद