GOVERNANCE E Q U I TA B L E G R O W T H , F I N A N C E & I N S T I T U T I O N S N OT E S The World Bank’s Support for Decentralization in India: Lessons Learned from Enhancing Local Government and Service Delivery Projects Petar Georgiev Stoykov and Serdar Yilmaz © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Cover design and layout: Maria Lopez / lopez.ten@gmail.com >>> Overview This note presents lessons learned from the World Bank’s decentralization projects in four Indian states – Karnataka, Bihar, Kerala and West Bengal – between 2006-2019 (see Table 1 for project summary and Table 2 for full project details). The note synthesizes the main evaluation findings from the World Bank’s implementation completion and results reports and implementation completion report reviews of these projects. > > > T A B L E 1 - Projects Summary Karnataka Panchayat Bihar Panchayat Kerala Local West Bengal Institutional PROJECT NAME Strengthening Project Strengthening Project Government and Strengthening of Gram (P078832) (P102627) Service Delivery Project Panchayats (GPs) (P102624) (P105990) LEAD GLOBAL Governance Governance Social, Urban, Rural and Social, Urban, Rural and PRACTICE Resilience Resilience INSTRUMENT Specific Investment Investment Project Investment Project Specific Investment Loan Financing Financing Loan ACTUAL COST (US$M): 140.39 (US$M): 54.18 (US$M): 248.78 (US$M): 198.70 BOARD 06/29/2006 09/27/2012 03/29/2011 06/08/2010 APPROVAL CLOSING DATE 03/30/2014 12/30/2019 12/29/2017 06/30/2016 IEG OUTCOME Moderately Satisfactory Moderately Satisfactory Satisfactory Highly Satisfactory RATING In India, decentralization of service delivery responsibilities to 1992 gave Constitutional status to Panchayati Raj Institutions state and local governments is a major policy tool to reduce (PRIs) and urban local bodies (ULBs), paving the way for poverty and to strengthen mechanisms for improving basic political as well as administrative empowerment of both rural service delivery. Decentralization is expected to make the and urban local governments. Over time, strengthening local government more accessible, accountable and transparent governments became one of the most important governance by bringing policy makers and those responsible for service challenges to inclusive growth and effective service delivery delivery closer to the communities they serve. In addition, given the low levels of capacity at the local level. On the decentralization is expected to provide opportunities to resolve operational side, analysis of the Bank’s portfolio in India local conflicts faster and empower the most vulnerable and indicates that a substantial portion of investment lending disadvantaged groups. operations are wholly or partly implemented either through PRIs/rural local bodies or its sub-committees and user groups. There were both strong operational and policy level justifications Therefore, there was a need to strengthen local governments for the Bank’s involvement in these four projects. On the policy to reduce bottlenecks to project implementation. side, the 73rd and 74th Constitutional Amendment Acts of Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 1 These four projects contributed to achieving the government’s accounting at the local level, as well as procurement reforms development objective of establishing robust local government aimed at improving transparency in tendering of local contracts, systems to improve service delivery. Although they were led played an important role in the attainment of key results. by two different Global Practices—Governance and Social, Urban, Rural and Resilience—their design properties, such When it comes to differences in design elements, unlike the as the project development objective (PDO), the project other three projects, the Bihar project didn’t include block or components and results indicators, were quite similar. All four performance grants; it aimed to create physical infrastructure projects aimed at strengthening the institutional capacity of (which is a common intervention instrument in fragile the local governments to deliver services and undertake basic contexts). The Karnataka project was innovative in using administrative and governance functions in a more effective, a block grant program to develop institutional capacity and inclusive, accountable and sustainable manner. promote the use of digital technology through satellite studios used for training purposes, a.k.a. SATCOMs. The West It is worth mentioning that although similar in their objectives, Bengal project implemented a successful capacity building these four projects differed notably in certain project design program and disbursed performance-based grants based on elements and in their local context. Kerala, for example, is annual performance assessments (APA). The Kerala project a highly decentralized state and the project focused on both disbursed performance-based grants through a two-phased rural and urban local bodies while the other three projects approach. The administrative and institutional systems covered only rural local bodies. In addition, the political will to necessary for the introduction of a full-fledged performance decentralize was far greater in states like Kerala, Karnataka grant were established over the first two years of the project. and West Bengal which have strong grassroot political From year three onwards, a performance-based qualification to systems and were already regarded as highly decentralized receive a grant based on an annual performance assessment states. These were also the states which were first selected was applied. for Bank lending. Subsequently, Bihar was added into the portfolio, in line with the Country Partnership Framework’s Тhe lessons learned from these projects can be useful vision to operate in lagging states. for shaping future decentralization projects in India and elsewhere, particularly those seeking to improve service The operational design features of these projects were a fast- delivery systems and core governance institutions. In its first disbursing block grant component combined with technical part, this note summarizes the most valuable and transferable assistance (TA) on capacity building. Block grants based lessons learned from these four projects. The lessons are on eligibility criteria to incentivize the local governments to thematically grouped and apply for more than one project. The implement much needed reforms in the area of public financial second part of the note contains a table outlining the PDOs management (PFM) and procurement became an important and main components of each project in detail, followed by a part of the success story of these projects. The combination document references section (Table 3). of PFM reforms aimed at clearing audit backlog and improving Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 2 >>> General Recommendations and 18 Lessons Learned: Aligning PDO with the government’s vision and priorities An effective project design should adopt a blended contributes to success. A major success factor in achieving approach of ensuring increased financing alongside PDO is the alignment of project design with the state strengthening capacity. Providing institutional and capacity governments’ declared priorities. It is important that the projects building at various levels together with performance-based support a long-term-vision of state governments for inclusive, block grants resources helps with the successful design responsive and accountable local governance, and that they of projects. However, capacity building efforts need to be encompass a critical mass of grassroots political leaders in tailored, appropriately targeted and implemented to realize order to promote development, social justice and cohesion. In the full potential of the block grant system. In doing so, it both Kerala and West Bengal, the project design was aligned is helpful to carry out a detailed capacity needs and gaps with the state governments’ development objectives of further assessment prior to developing capacity development plans. strengthening local systems and services. Because of this In Bihar, a survey-based joint assessment provided evidence alignment and the advanced stage of decentralization reforms that capacity building had translated into improved service in these states, both projects delivered strong results. delivery responsiveness. The survey collected information about: (i) the availability of functionaries at the GP office; (ii) Aligning the PDO with the World Bank’s strategic vision the availability of application forms and e-services submission and country program is a key anchor. Alignment of the facility; and (iii) visits required for submission of a service PDO with the current Country Partnership Framework ensures specific application. The blended approach was also effectively consistency with the Bank’s overall support for the country’s implemented in Karnataka where the project provided block development. Decentralization was a key pillar of the India grants to Ggram panchayats (GPs - village councils)1 in the 39 Country Strategy and these four projects supported state poorest rural blocks (Taluks). At the same time, the capacity governments in establishing a framework for decentralization of all three levels of panchayats to manage resources, collect of service delivery responsibilities. own revenues and deliver services was increased through measures such as (a) creating GP resource cells at the Taluk Continuous dialogue with stakeholders in all stages of the level; (b) developing a service delivery monitoring system; (c) project enhances commitment. Project design should be providing training programs for officials working in panchayats based on the Bank’s continued dialogue with all stakeholders. through the State Institute of Rural Development; (d) adopting Expanding the notion of ownership by proactively engaging a computerized financial management system for GPs; and (e) stakeholders in the early stages of project design and putting in place environmental guidelines for GPs. Additionally, establishing partnerships with all stakeholders, such as local systems were put in place at the state level to enable the state self-government institutions, elected representatives and civil government to oversee, facilitate and manage the panchayat society organizations, broaden and deepen project ownership, system in general. creating demand outside of government. Early dialogue is also crucial for ensuring genuine client commitment to decentralized Institutional strengthening is important for improving service delivery. These four projects were designed after service delivery and enhancing citizen satisfaction. a period of policy dialogue with state governments. For Institutional improvements result in better utilization of funds, example, in the case of Bihar, the project design was based on which translates to better fund and project implementation the Bank’s continuous dialogue during the previous six years. ratios and improved levels of citizen satisfaction (see figure 1 1. Gram Panchayat is a basic village governing institute in Indian villages. It is a democratic structure at the grass-roots level. It is a political institute, acting as cabinet of the village. (Source: Gram panchayat - Wikipedia) Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 3 below). Experience from the Kerala project shows that incentive-based allocations promote better planning, PFM, and governance across a broad range of core areas. Compared to the baselines, there are significant improvements in the quality of planning documents (procurement plans, revenue enhancement plans, planning and budgeting for maintenance and operations), fund absorption capacity (not only the performance-based grants, but also of all untied grants), and project completion rates, as well as in the involvement of citizen groups in local planning and implementation. > > > FIGURE 1 Institutional strengthening Use of grants increases, Service delivery improvements and CB (training, system implementation ratios and enhanced citizens’ development, performance increases, contributions satisfaction incentives etc.) improved from citizens Building on the foundation of strong ownership and results measurement framework with solid indicators and mitigating risks due to political changes are important establishing a sound monitoring and evaluation (M&E) system for successful project implementation. Strong top-down are important factors in creating momentum for the successful commitment is critical to the implementation of decentralization implementation of a project. A results-based focus requires projects. Even with political support at the top, it is also a sound and objective performance measurement system, essential to minimize disruptions to project implementation an incentive system that is incremental and progressive, due to changes in the political and executive leadership. This and a robust independent verification system outside of the underlines the need to fully understand the political economy government. In the Bihar project, the results-based approach of decentralization and to find measures to mitigate potential consisted of the introduction of a series of disbursement political risks. It also underlines the importance of ensuring linked indicators (DLIs) to provide incentives for the state a strong policy framework and enabling environment for government to properly equip the newly constructed Bhawans decentralization reforms in parallel to bottom-up strengthening. (local government offices of the Panchayats) and staff them In the case of the West Bengal project, the state government with key personnel. GPs with newly constructed Panchayat had a strong commitment to project implementation. The Sarkar Bhawans (PSBs - local administration buildings) were PDO was well aligned with the state government’s vision to considered functional only when they had key public officials deepen the devolution of powers and functions to rural GPs. in place, and two positions available part-time for fixed office Although the project was prepared at a time when various hours. Gram Sabhas2 were to be held in accordance with the decentralization processes had already been underway in Panchayati Raj Institutions Act. Standing Committees had to the state and there was a change in the state government be constituted and performing mandated duties. Bhawans at the initial phase of the project, the project implementation had to be equipped with adequate furniture, fixtures, and continued without disruption because of the project team’s computers and other peripherals for smooth functioning, and proactive dialogue with government counterparts. In addition, the publishing of basic information. The verification protocol the national and panchayat-level elections during the project was agreed upon with the government, and the DLIs were implementation did not affect the achievement of the PDO. verified by a third-party agency before disbursement. Adopting a results-based approach by focusing on It is important to seek synergies that complement existing selected development outcomes that are decided government mechanisms. Given their size, Bank projects in collaboration with project stakeholders (state have limited impact unless they can contribute to mainstream government departments) is critical in achieving results. government programs. Sometimes programs can also be In the context of result-based lending, designing a robust designed not as stand-alone projects, but instead to work 2. The Gram Sabha work as the general body of the Gram Panchayat. The members of the Gram Panchayat are elected by the Gram Sabha. (Source: Gram panchayat - Wikipedia) Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 4 through the government system, if the financial management ones, such as: (i) permanent offices constructed at a location systems of the government are sufficiently reformed and offer according to the choice of the community are more accessible enough assurances for the Bank’s fiduciary requirements. In than temporary offices; (ii) females feel much safer visiting terms of the support to the grant system, all projects, except for permanent functional offices with waiting areas, separate the Bihar project, provided block grants to the GPs in addition toilets and breastfeeding rooms; (iii) local governments with to the general State Finance Commission (SFC) and Central permanent functional offices are more responsive in accepting Finance Commission (CFC) grants. In its second phase, the applications; and (iv) issuance time of relevant certificates is West Bengal project has linked the project resources to the shorter in permanent offices. other block grant funding sources in an integrated scheme for performance-based grants. It has developed a system Establishing female-friendly physical facilities is a strong in which there is a direct link between each performance boosting factor for social inclusion. The Bihar project has enhancement (performance measure point) and the actual become a symbol of women’s emancipation and the inclusion allocation for each GP. In addition, the project managed to of vulnerable peoples. The project integrated feedback and consolidate grant management measurement schemes at the input from women in the villages on how the offices are state level—all block grants to the GPs are now following one designed and where they are located. The project ensured common system of performance assessment. This unified that these local offices are equipped with separate toilets for grant management scheme is rolled out to the entire state, women which are not located in a remote corner of the village. covering 3,342 GPs, with joint guidelines and government Therefore, the office toilets are constructed with due attention rules and regulations for all kinds of grants. Furthermore, to accessibility, safety, and connectivity. Office spaces include seeking synergies with existing government systems helps a place for young mothers to breastfeed and a meeting avoid conflicts and consequent delays during implementation. room for women’s self-help groups. The whole experience of In the case of the Kerala project, the project implementation creating these local offices stands in sharp contrast to the past arrangements involved multiple agencies and the project when the elected representatives (all men) functioned either reporting relationships conflicted with governmental reporting from their homes or from limited spaces provided in schools or systems. This led to institutional coordination issues and community centers. resulted in substantial delays. To ensure the long-term sustainability of local Local elite capture is always a risk that needs to be government and service delivery projects, capacity mitigated in decentralization reforms. In fact, at times building of local governments should be an integral part it may result in displacing exclusionary practices from the of the project design. In the case of the Kerala project, the center to the local level, where local elites take control of the project supported the Kerala Institute of Local Administration new power and resources offered by the decentralization and the State Institute for Rural Development through process. In the case of the Bihar project, some believe that infrastructure augmentation and systems modernization for the availability of buildings for PRI functions has mitigated delivery of training programs, curriculum development, and local elite capture and strengthened participation and the strengthening HR capacities. Involvement of the local capacity outreach of services to the wider population. In addition, the building institutions was one of the key sustainability measures project chose to invest significant operational energy in raising put in place to ensure that the project-supported capacity awareness and building the capacity of citizens and leadership building interventions (preparation of manuals, training needs from disadvantaged groups to meaningfully participate in local assessment, training curriculum and calendar) so that support governance and undertake collective action that benefits them would be continued beyond the project on a sustainable basis. as well as the broader community. In this regard, working with local training and capacity building institutions is essential for the continuous capacity building of When local government institutions have a permanent local officials. functioning office, the cost of accessing services from GPs is reduced for local residents. In Bihar, two surveys Ensuring coherence and continuity of the project demonstrated that the construction of a local government implementation team is of prime importance for office, equipped with personnel, furniture, fixtures, and successful project implementation and M&E. In the other peripherals, helped build responsive, inclusive, and Kerala project, implementation arrangements could have accountable institutions. The surveys found a number of been better supported if the Project Monitoring Unit (PMU) advantages of permanent offices compared to temporary had a longer-serving project director and other staff in key Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 5 positions. Implementation arrangements could also have been In the case of the Bihar project, the initial PDO, results supported by stronger systems for monitoring, evaluation and framework and operational design did not sufficiently take into reporting through a bottom-up information flow approach. account the scale of the challenge, the capacity constraints, These posed challenges in monitoring the progress of sub- and the poor governance context of the state. Under difficult project implementation at the local level. Eventually, the circumstances, the project team remained flexible, adopted project had to rely on the office of the district coordinator, innovative solutions and achieved unexpected results. An which presented its own constraints and challenges in terms example of this was the ability to use newly constructed PSBs of information flow. In essence, M&E systems are key for as temporary COVID-19 isolation centers. The provision of success, as decentralization programs by definition multiply toilets, water, and electricity was originally thought of as a way the number of administrative units involved in implementation. of enhancing the inclusion of women and other underserved M&E systems must include well-defined and easy to measure citizens. However, they became important for providing indicators and the ability to access them in real-time to the basic necessities and hygiene required for quarantine, inform project management. Additionally, in the case of West especially for migrant workers temporarily unable to return to Bengal, separation of the executing and evaluating agencies their homes. helped ensure the objectivity and integrity of performance assessment. This was accomplished through the use of Innovative and tailored tools and approaches are needed consulting firms managed by the implementing agency rather for long-lasting impact. A challenging context does not than the executing agency for the external audit of the annual necessarily imply that governance focused projects cannot performance assessments. Maintaining the integrity of the be delivered. Success depends on the tools and approaches performance evaluation system was key to the success of applied, which should be relatively innovative, simple, the project. engaging and tailored to the context. In the case of Bihar, the construction of the PSBs could have been subjected to Strong leadership and stable project teams in the a greater level of transparency and citizen engagement in implementing agency as well as at the Bank, and close the design and construction of the buildings, which would collaboration between the two teams are key to effective have made them more transformative. This would have project implementation. This was clearly demonstrated complemented the innovative mechanisms already applied, in the West Bengal project. There was continuity in the such as the e-Project Management System, other ICT tools and leadership roles both on the bank side and the borrower the third-party verification and quality audit. The project could side. The same project task team leader (TTL) led the project have been more innovative in this sense and sought to identify preparation activities, appraisal, and negotiations. On the approaches to strengthen transparency and accountability borrower side, there was stability in the state leadership. The in the public sector, and possibly have built budget literacy. same state Minister of Panchayats, Principal Secretary and Embracing such approaches is critical to making governance- the Project Manager were part of the project preparation from oriented reforms harder to reverse and more sustainable. In the beginning. This enabled the two teams to build mutual trust the case of West Bengal, the team implemented an innovative and collaborative relationship. In addition, continuity of staff approach with a selected group of higher-capacity GPs that in State Coordination Unit (SCU) and District Coordination resulted in spill-over effects on non-participating GPs. The Units (DCUs) as well as mentoring teams working with GPs project only selected a third of the GPs within the state, which resulted in their growing familiarity with project requirements had better capacity and performance to begin with. This was and procedures and compliance with them. After a steep meant to mitigate the risk of GPs with low capacity not being learning curve in the beginning, the staff were able to perform able to meet the requirements of a performance-based block project implementation and management tasks in a skillful and grant system. The project had spillover effects on non-project efficient way. GPs: increased interest in and accumulated knowledge of performance-based financing; exchange of knowledge When implementation delays threaten the achievement and expertise between project and non-project GPs; and of results, proactivity and flexibility in restructuring are mainstreaming of ISGPP frameworks and tools. of central importance to bring the project back on track. Lending operations need to calibrate their expected outcomes Effective communication and good documentation are and results framework against the situation on the ground both two critical tools for improving transparency and citizen in terms of capacity, previous experiences, political economy participation. The impact evaluation of the West Bengal constraints and the specific problem they seek to address. project showed that providing information to community Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 6 members resulted in their increased and active participation designed APA system resulted in credible allocation of grants, in various GP meetings. Dissemination of project information while improved planning processes and increased community to GP residents through various channels, such as GP participation also helped to enhance effective utilization of information booklets, TV commercials, radio spots, notice the block grants. In addition, mentoring, as a key element boards, hoardings and wall writings, ensured that community of capacity building, is a prerequisite for enhancing project members were well informed and could participate effectively achievements. The mentoring model for capacity building in the GP platforms. The original target of reaching 1000 proved to be very effective due to the close interaction with key GPs was exceeded by 235% as project information was stakeholders. It gave GP officials and elected representatives disseminated in all 3347 GPs within the State of West Bengal. the confidence to successfully utilize the block grants to implement the service delivery elements of the project. The combination of capacity building and block grants can deliver powerful support for meaningful decentralization In conclusion, as the practice of decentralization is taking provided the focus is on all 3 Fs - functions, funds and root all over the world, the number of projects addressing functionaries. An effective and efficient system for resource different aspects of decentralization is increasing in the World transfers from the central to the state and local government Bank’s portfolio. By analyzing these four projects in India, should be established as a conducive factor for successful key transferable lessons were synthesized that can be widely decentralization and improved performance of local applied across Bank operations. In short, these lessons include: governments. Unconditional grants are key in this respect, as the importance of political will, ownership and continuity of their importance underpins meaningful participation. The West senior management (on both Bank and client side); proper Bengal project experience demonstrated that this combined design of M&E systems; and project flexibility, adaptation and approach enabled GPs to improve their performance on innovation. These lessons are all relevant to the wider Bank institutional aspects, especially on the timely preparation of teams. Employing the recommendations outlined in this note annual plans and budgets, execution of sub-projects, citizen will enhance the Bank’s operational effectiveness and will engagement, accounting, and monitoring and reporting. A well- allow the institution to deliver better solutions for its clients. > > > T A B L E 2 - Detailed Information on the Selected Decentralization Projects in India Karnataka Panchayat Bihar Panchayat Kerala Local West Bengal Institutional PROJECT NAME Strengthening Project Strengthening Project Government and Strengthening of Gram (P078832) (P102627) Service Delivery Project Panchayats (GPs) (P102624) (P105990) LEAD GLOBAL Governance Governance Social, Urban, Rural and Social, Urban, Rural and PRACTICE Resilience Resilience INSTRUMENT Specific Investment Investment Project Investment Project Specific Investment Loan Financing Financing Loan ORIGINAL (US$M): 133.33 (US$M): 84 (US$M): 260 (US$M): 200 COMMITMENT ACTUAL COST (US$M): 140.39 (US$M): 54.18 (US$M): 248.78 (US$M): 198.70 BOARD 06/29/2006 09/27/2012 03/29/2011 06/08/2010 APPROVAL CLOSING DATE 03/30/2014 12/30/2019 12/29/2017 06/30/2016 Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 7 Karnataka Panchayat Bihar Panchayat Kerala Local West Bengal Institutional PROJECT NAME Strengthening Project Strengthening Project Government and Strengthening of Gram (P078832) (P102627) Service Delivery Project Panchayats (GPs) (P102624) (P105990) PROJECT To improve the To support Bihar’s To enhance and To develop institutionally DEVELOPMENT effectiveness of service capacity to promote strengthen the strengthened Gram OBJECTIVE delivery by Karnataka and strengthen institutional capacity of Panchayats in the Gram Panchayats inclusive, responsive, the local government Recipient’s State of (village governments) and accountable Gram system in Kerala West Bengal. particularly with respect Panchayats in selected to deliver services to the management of districts across the and undertake basic public resources and state. administrative and the delivery of relevant governance functions services that the rural more effectively and in a people prioritize. sustainable manner. PROJECT Component 1: Component 1 Component 1: Component 1: COMPONENTS Block grants to Gram (US$49.1m): Performance Grants Grants to Gram Panchayats (US$ Panchayat Sarkar (US$238.6m). This Panchayats (US$ 113.33m): Providing Bhawan (PSB - component provided an 263.60m) block grants to 1,343 local administration annual, performance- Gram Panchayats in the buildings): Construction based grant to all 978 Subcomponent 1.1. 39 poorest rural blocks and making functional Gram Panchayats Block Grants (Taluks) of the State of PSBs in approximately and 60 Municipalities Karnataka. 300 GPs. (collectively referred to Subcomponent 1.2. as ‘local governments’) State Funded Untied Component 2: Component 2 in Kerala. Grants Capacity Building and (US$2.4m): Information Systems Capacity building Component 2: Component 2: for Constituents for Panchayati Raj Capacity Building Capacity building for (US$ 1.43m): Institutions: through: (US$11.2m). This GPs (US$10.73m) Supporting community a) Institutional component provided organizations (such strengthening, capacity building inputs Subcomponent 2.1. as women’s self-help building the core to strengthen and Systems development groups), watershed institutional capacity of supplement the existing support associations, drinking panchayats, including systems and human water committees, and in basic administrative, resources of local Subcomponent 2.2. others) in participating planning and financial governments to enhance Mentoring support in the new Panchayat management capacity; their institutional planning process, voice and b) Nurturing performance. Subcomponent 2.3. their demands from development-oriented Formal training government, and access panchayat leadership Component 3: services and programs, and local initiatives in Enhancing State Subcomponent 2.4. as well as in providing the following areas: Monitoring of the Local Demand-led support relevant and easy-to- nutritional status of Government System understand information women and children, (US$3.4m). This Subcomponent 2.5. to constituents. quality of drinking water, component supported Exposure visits and village sanitation. the strengthening of Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 8 Karnataka Panchayat Bihar Panchayat Kerala Local West Bengal Institutional PROJECT NAME Strengthening Project Strengthening Project Government and Strengthening of Gram (P078832) (P102627) Service Delivery Project Panchayats (GPs) (P102624) (P105990) Component 3: Component 3 the state’s performance Subcomponent 2.6. Building the capacity (US$0.5m): monitoring systems for Strengthening of the GP of Panchayats (US$ Strengthen State Local Self Governments internal audit function, 14.97m): Increasing Government capacity (LSGs) in Kerala. the capacity of all three to manage a gradual Component 3: levels of Panchayats in decentralization Component 4: State oversight and managing resources, and empowerment Project Management monitoring of PRIs collecting revenues and process through: a) (US$6.8m). This (US$1.76m) delivering services. The establishment of a component supported regulatory framework the Project Management Component 4: Component 4: for Panchayati Raj Unit (PMU) within the Program Management Building the capacity of Institutions (PRIs); Local Self-Government and Implementation the State (US$ 3.0m): b) Monitoring of Department (LSGD) for (US$7.78m) Putting in place systems panchayat finance and overall coordination, at the state level to performance; and c) implementation, Subcomponent 4.1. enable it to oversee, Expanded annual audit monitoring and Project Information, facilitate and manage coverage. evaluation of the project. Education and the Panchayat system Communications (IEC) in general and the Component 4 Karnataka Panchayats (US$ 0) - Dropped: Subcomponent 4.2. Strengthening Project in Panchayat Project Management particular. Performance Grant Support to reward panchayats with exceptional Subcomponent 4.3. performance. Project Reporting Component 5 (US$4.1m): Project Management and Coordination. The implementation agency - Bihar Gram Swaraj Yojana Society had four critical roles: catalyst for the Government of Bihar’s vision for empowering PRIs, technical support, coordination of activities and fiduciary responsibility. Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 9 > > > T A B L E 3 - Project Documents References 1. Karnataka Panchayat Strengthening Project (P078832) 2. Bihar Panchayat Strengthening Project (P102627) Project Appraisal Document (PAD) Project Appraisal Document (PAD) Implementation Completion and Results Report (ICR) Implementation Completion and Results Report (ICR) Implementation Completion Report Review (ICRR) Implementation Completion Report Review (ICRR) 3. Kerala Local Government and Service Delivery Project 4. West Bengal Institutional Strengthening of Gram (P102624) Panchayats (GPs) (P105990) Project Appraisal Document (PAD) Project Appraisal Document (PAD) Implementation Completion and Results Report (ICR) Implementation Completion and Results Report (ICR) Implementation Completion Report Review (ICRR) Implementation Completion Report Review (ICRR) Equitable Growth, Finance & Institutions Notes | The World Bank’s Support for Decentralization in India <<< 10