Looking beyond decentralization : local institutional innovations for rural water supply in Kerala, India

Abstract

With deterioration and neglect of large, centrally planned rural water schemes, alternative institutional arrangements for rural water management have focused on devolution of authority for decision making, design and operations to local governments. The aims of this reform are, in part, to increase the responsiveness of rural water providers to customers' demand preferences, as well as to increase transparency of operations, in order to reduce corruption. An in-depth analysis of three devolved rural water schemes under the People's Plan policy framework in Kerala, India provides evidence to suggest that achieving greater responsiveness and transparency is a result of more complex institutional arrangements that are neither purely devolved nor purely central. Localizing decision making holds promise for incorporating beneficiaries in decision making processes, thus providing better demand information to the provider and creating incentives for the provider to respond to this information. Monitoring of local service providers must be a concerted effort of many different sources, including users as well as external bodies, in order to provide a credible deterrent to misconduct.