Decentralization in Nepal: An Analysis of Post-1990 Processes on Transferring Responsibility, Authority and Accountability to the Local Bodies

Analytical concepts of path dependency offers insight on explaining why the institutional design and practices of formatting stage or of evolved through a longer period, often, tend to occurring of similar phenomena persistence, even if new attempt of institution or policy reforms are induced., if such inducement is not backed by stronger and deeper dynamics of transformation. Similarly, the concept of public choice offers insights why the condition of agency problem occurs, such that in the context of constraints in oversights of the principal. Since, the process of transferring responsibility, authority and accountability encompasses politics; decentralization is more open and complex field of inquiry. As the initial context of decentralization often shifts, the process of decentralization also seems to be shifting. Further, decentralization reform process initiated with bigger promises and high sounding technical analysis often characterised as facing more or less similar challenges of overlapping of authority, functions not followed by the appropriate source of fund and functionaries, lip service of political commitment, poor accountability of the local government, weaker institutional capacity and lack of coordination in reform process among the line ministries at the centre. This study also shows the similar characteristics in the process of transferring responsibility, authority and accountability to the local bodies in Nepal. Declining public accountability seemed more striking in Nepal, mainly because of the long obstruction of local election. Since, there are no elected representatives in the LBs and overall governance of the country is plagued by the transition, agency problem in the LBs seemed more striking.