Q17 · UPSC Civil Services Mains 2025 · GS II · 15 marks · 4 min read

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"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.

Topic: Governance and Policy. Syllabus: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Same official PYQ from year-wise 2025 and Governance and Policy.

Revision summary

The quote names a split: knowledge at the bottom, decisions at the top, execution in between. CSS, SPVs and parallel bodies bypass 73rd/74th institutions that the Constitution empowered. 2nd ARC and Punchhi already diagnosed fragmentation of the local State. The critique fits toilets, housing and MGNREGA planning; it fits less for vaccines, tax and defence. Repair: subsidiarity, untied local finance, elected control of SPVs, shared MIS with the Gram Sabha.

Model answer

Copper italics in this answer — like this — are the key facts. Each one is unpacked in the Facts & figures rail.

Introduction

Development outcomes improve when decision-making is close to the source of information and execution, as local actors possess contextual knowledge and can respond to ground realities. However, contemporary development models often separate centralised policy design from decentralised implementation, creating an information–decision–execution gap that can undermine responsiveness and inclusiveness.

Body

How the Disconnect Defeats Development

  • 1. One-size-fits-all planning: Centralised policies may overlook local social, cultural and geographical realities. The Community Development Programme illustrated this problem when interventions failed to account for local preferences and social structures.
  • 2. Information asymmetry: Local communities and frontline administrators possess ground-level knowledge that distant planners may not capture through aggregate databases. This weakens the relevance of centrally designed interventions.
  • 3. Technocratic welfare and digital exclusion: Data-driven systems can treat citizens as database entries rather than rights-holders. Biometric failures, connectivity problems and rigid e-KYC systems can exclude genuine beneficiaries. The Jharkhand ration-card case, where an Aadhaar-related failure contributed to a starvation death, illustrates the danger of technology becoming a gatekeeper without effective human discretion.
  • 4. Weak local institutions: The 73rd and 74th Constitutional Amendments sought to decentralise development, but inadequate Funds, Functions and Functionaries often leave Panchayats and Municipalities without the capacity to take effective decisions.
  • 5. Parallel implementation structures: Special Purpose Vehicles under the Smart Cities Mission can create parallel structures that bypass elected Urban Local Bodies, separating project execution from democratic local accountability.
  • 6. Capability deficit: Development is not merely about resource provision. Amartya Sen's Capability Approach emphasises expanding people's real freedoms and capabilities, which requires policies to respond to their actual social and economic circumstances.

Why Some Centralisation Is Necessary

The statement should not be interpreted as an argument for complete decentralisation.

  • 1. National coordination: Issues such as climate change, disaster management, national security and cross-border infrastructure require coordination beyond local jurisdictions.
  • 2. Economies of scale: Centralised systems can reduce duplication and ensure common standards. PM Gati Shakti, for instance, requires coordination across ministries and jurisdictions for integrated infrastructure planning.
  • 3. Technological efficiency: Centralised digital systems can reduce leakages and improve delivery. DBT under PM-KISAN and PAHAL demonstrates how centralised technology can improve targeting and reduce intermediaries.
  • 4. Local capacity constraints: Many local institutions lack adequate technical expertise, finance and administrative personnel. Devolution without capacity-building can therefore shift responsibility without creating the ability to deliver.

Way Forward: Multi-Level Governance

  • 1. Apply subsidiarity: Decisions should be taken at the lowest competent level, while higher levels should intervene where scale, externalities or national standards require coordination.
  • 2. Strengthen the 3Fs: Devolve the Funds, Functions and Functionaries required for Panchayats and Municipalities to exercise their constitutional responsibilities.
  • 3. Combine central data with local knowledge: Central databases should be continuously validated through community-level information. Pratham's ASER demonstrates how grassroots data can reveal realities that aggregate official statistics may miss.
  • 4. Promote participatory planning: Kerala's People's Campaign for Decentralized Planning demonstrates how greater local participation and resource devolution can make development planning more responsive.
  • 5. Make technology human-centric: Digital systems should facilitate rather than replace local discretion. When databases or algorithms fail, accessible grievance redress and human intervention should prevent exclusion.
  • 6. Build local capacity: Decentralisation must be accompanied by training, professional staff, financial resources and institutional support so that proximity to information translates into effective execution.

When decision, knowledge and work are split across Delhi, the district and a contractor, development becomes compliance. The 73rd and 74th Amendments named the repair. Missions and SPVs have often undone it. Keep national minima; return design to the place that holds the information.

Flow diagram

Flow diagram

Conclusion

The statement is substantially valid but not absolute. Excessive distance between decision-makers and the source of information can produce rigid, exclusionary and poorly implemented development, but complete decentralisation can create fragmentation and capacity deficits. The appropriate solution is multi-level governance based on subsidiarity, combining central resources, technology and coordination with local knowledge, participation and accountable execution.

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