For its own convenience, the government has made provisions several times for the regional administration. However, they were never considered as a part of the constitutional process. There is a distinct role of the State to be carried out at the regional level. A federal system will legitimize that role constitutionally. This is the most important aspect. In this context, it is necessary to use the opportunity created by the recent political development in making decentralization work more effectively.
The local government failed to penetrate deeper. It is not likely that transfer of power from the national government to the local level will help to deepen decentralization. The reasons are:
• The national government is too busy to deal with the local issues.
• There are no binding obligations for the center to give adequate attention.
For a long period, the need for regional administration has been felt. Federal system of the government will fill in the gap. It will allow the local government to deepen decentralization. The empowerment of the people at the local level means the power should be devolved to the action level. It is likely that under a federal system, power will be more easily devolved deeper to the grassroots. It should aim at bringing people nearer to governance and not distancing them from it. Things that need to be brought to the local level can be brought more easily with this system.
In the process of the ongoing transformation of the Nepali society, the following points should be addressed:
• Whether it is a federal system or a unitary system, the share of the power at the action level should not be reduced.
• Some of the works now done at the local or national level should be directed to the federal level.
• The sharing of power and responsibility among different levels of government is crucial.
• Federal structure should not cause any additionality in terms of inputs and costs.
The risk factor is whether the central government is prepared to share power with sub national governments. The trend so far has been to resist the process through bureaucratic means. Activities that the center cannot or should not do must be transferred to either the lower levels or the private sector. There are several ways that regional administration will foster decentralization. However the most important element is to make the center understand that the center simply cannot execute most of the works by itself. Once the responsibilities are devolved to lower levels, this should be strictly followed.
The regional level will also allow a careful scrutiny of development projects. The ability of the center to monitor development works at the local level is increasingly questioned. Federal government will be able to better monitor the local level works and actions.
Another advantage is related with the unwillingness of the key personnel to leave the capital. This is natural because power as well as key government functions, at present, are concentrated at the center. The federal system will reduce the attraction of the center with the dispersal of its power and functions.