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. It refers particularly to some constituent units having more powers than other constituent units and this may be done constitutionally or through ordinary laws. 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 Inertia (जडता) सिंहदरबार

49. Inertia (जडता) स्थानिय तह

50. Issue 13 अप्रभावकारी कर्मचारीतन्त्र

51. खाने धेरै
काम थोरै

52. परिवर्तन कसरी ल्याउने?
थोरै खाने
धेरै काम गर्ने

53. Issue 14 Capacity Capacity Individual Organizational Institutional
Functional
Technical
Organizational
Institutional
Societal
Supply side
Demand side

54. The way forward…
Currently, about 26 countries in the world have a federal system. In almost all of the countries with a successful federal system, the unification had been of separate independent states like in, Switzerland, America, Canada. Federal system hasn’t always succeeded in countries transforming from unitary to federal system like, Sudan, Nigeria, Ethiopia. Nepal had been in unitary system from as long as the unification by King Prithvi Narayan Shah. Thus, transforming a unitary country into federal is challenging.

55. Constitutional Provisions on Administrative Federalization
Schedule- 5, S.N. 10
Federal civil service
Judicial service
Other government services
Schedule- 6, S.N. 5
State civil service
Schedule- 8, S.N. 5
Management of the local services

56. Constitutional Provisions on Administrative Federalization
Article 302
The Government of Nepal shall make necessary provisions for the delivery of services at the State and Local levels.
The Government of Nepal may, in making provisions under clause (1), arrange for the delivery of services by making adjustment of the employees serving in the government services at the time of commencement of this Constitution with the Federal, State and Local levels in accordance with law.

57. Civil Servant Adjustment Act 2074
Legal Provision
Civil Servant Adjustment Act 2074
For the adjustment of civil servants into the federation, province and local level.
Provisions for:
O & M survey
Basis for adjustment
Career development and job security
Pul Darbandi
Voluntary retirement schemes

58. Questions
Not only does structure follow a function but also the way a function is executed
The way a function is executed is determined only by the local and provincial government
So, without proper consultation with these governments, the definitions of the structures can be irrelevant.

59. 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

60. 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.

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

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

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

64. संघीयता एउटा तहले अर्को तहलाई दोष देखाएर पंछीने व्यवस्था हैन

67. THANK YOU