Some suggestions for local govt reforms

The new government formed three months ago had announced that it wanted to conduct a review of the Constitution promulgated almost a decade ago (in 2015) by exploring areas for amendments. The two largest political parties in the Parliament—the Nepali Congress (NC) and the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML)—joined hands to form the government that enjoyed the support of almost two-third members of the parliament—ostensibly to push constitutional reforms.

As per the constitution, any amendment can pass only with a two-third majority. Therefore, the public pledge made by the two largest parties during the formation of the latest coalition was viewed seriously by everyone. The parties had promised to first conduct objective analysis of the constitutional performance and suggest amendments.

Almost a decade has passed since the promulgation of the constitution, so it is an opportune time to take stock of its performance, examine its contributions and failings, and prescribe reforms for its improvement.

The constitution has embraced some fundamental changes like federalism, republic and inclusion, which cannot be compromised. But their workings can be refined to better address the aspirations of the general public.

The major parties have been suggesting that one reason why the constitution needs reforms is the current setup, which, according to them, prevents a single party from forming a majority government, leading to perennial instability in governance.

While that may be the case, it is utterly important to also pay attention to other aspects of the new constitution such as strengthening local governance.

The constitution had intended to empower the local government and recognize them as the primary vehicles for the delivery of public service and governance to the people.

As per the constitution, there are currently 753 local governments, including six metropolitan cities, 11 sub-metropolitan cities, 276 municipalities and 460 rural municipalities. Part 17 of the constitution provides for the formation of Local Executive, Part 18 provides for the Local Legislative, Part 19 provides for the Local Financial Procedure and Part 20 provides for relations between federal, province and local levels. Article 217 of the constitution has also provided for the judicial powers of the local government.

In the past, there were around 4,000 local bodies, which were reduced to 753 local governments. In the last one decade, the local governments have been strengthened with adequate powers to prove their worth by becoming immediate centers of power to the local people and the deliverer of most basic of public services. The chiefs and deputy chiefs of the local governments have become powerful in terms of their influence in budget allocations, resource mobilization and service delivery issues.

The local governments also have the power of formulating local laws. They also have separate judicial committees to provide local level justice in specified areas. Many local disputes are now being submitted for settlements at local levels.

In terms of development resources, too, the local levels have been able to use a huge chunk of the national budget. The annual budgets of local levels are in the range of Rs 400m to Rs 28bn (Kathmandu Metropolitan City). They are also found active in providing basic recommendations such as for citizenship, passport, national identity, etc. They are also becoming the first point of responders in times of disasters such as during earthquakes, disease outbreaks like Covid-19 and natural disasters like floods and landslides.

However, they still face a number of challenges to prove their worth—many of which have the root in laws and the constitution.

Legal reforms: The number of local levels needs to be reduced to less than 500 in order to make them agile and effective. The wards should be made more powerful. For example, presently, the wards are responsible for only providing recommendations for citizenship whereas it is issued by the district administration office. Laws and constitution can be changed to ensure that the people get the citizenship issued from district administrative offices delivered at the wards themselves. Processes can be interlinked between wards and district offices for this purpose.

Currently, local governments also have authority to formulate laws but in the last one decade, there has been concern that they lack skills to formulate quality laws. Therefore, this authority probably could be given to the provinces, where such skills can be available. Besides, it is also better for provinces to have uniform laws for all their local governments.

Budgetary reforms: Presently, the federal government bears almost 80 percent of the budget of the local government. There is a need to conduct reforms enabling local governments to generate more budgets for themselves, and there is also a need to change the sequence of budget-making. Ideally, local governments should be allowed to first pass their annual budgets, followed by the province and the federal government, respectively instead of the current sequence, which is just the opposite.

HR reforms: Although one decade has passed, the proper staff management has not been achieved. Local government staff should be recruited by local governments themselves within the mandate prescribed by the concerned province. Such staff should be able to transfer within the province and they should have ample opportunities for career growth.

Election reforms: Many have questioned the appropriateness of holding local government elections on a party basis. Since they are designed for service delivery to citizens, it is thought that their elections should not be guided by partisan politics. Rather, they should have independent candidates. This can facilitate smooth functioning of the local government without petty politics and political disruptions.

These reforms should be kept in mind when the government and the major political parties conduct a study for constitutional reforms.