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[Pages:215]THE IMPACT OF DECENTRALIZATION ON DEVELOPMENT: A STUDY ON THE PROVINCIAL

COUNCIL SYSTEM IN SRI LANKA

Thesis submitted to Meiji University in fulfillment of the requirement for the award of the degree of

DOCTOR OF PHILOSOPHY

Student No: 5311071005

ABEYSINGHE MUDIYANSELAGE NIROS CHAMINDA

Graduate School of Political Science and Economics Meiji University Tokyo

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Dedication Dedicated to the memory of my late father

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Acknowledgements

In the process of making this research a reality and a success, I was fortunate to have the support of several people and several sources. I feel it is my bounden duty to remember them here, and express my sincere gratitude to them all.

Although one's debt to one's teachers cannot be repaid, I wish to convey my heartfelt gratitude to my supervisor, Professor Yumi Hirikane, not only for her constant encouragement and invaluable guidance to make this work a success, but also for her deep understanding and sensitivity regarding the problems that can be faced by a foreign student.

I also extend my sincere gratitude to Professor Akira Nakamura, who guided me in the initial stages of the research project, and Professor Minamoto Yuriko, who helped me in many ways during my studies at Meiji University, as well as other Faculty staff for their unstinted help when called upon.

I am immensely thankful to Professor Y. M. Sunanada Madduma Bandara, former Dean of the Faculty of Social Sciences, University of Kelaniya, who motivated me and helped me by providing necessary facilities to continue my study program. Moreover, I extend my gratitude to Professor Nimal Dangalla, Professor U. A. Chandrasena, Dr. Rakesh Batabbyal, Professor Mahalakshimi, a n d Mr. C. S. Ranasinghe, for their valuable insights, and Dr. Lalith Ananda, who assisted me in editing and providing necessary moral support to make the study a success. I am grateful to Professor Upali Hettiarchchi, Professor Prema Podimanike, Professor K. Karunathilake, Dr. W. M. Semasinghe, Mr. A. G. Amarasinghe, Mr. Oshantha Thalpawila, Mrs. Seetha Bandara, Dr. L. D. Sarath Vitharana, Mr. Nishan Sakalasooriya, Mr. Namal Balassoriya, Mr. Priyantha Mudalige, Mr. Senarathna, Ms. Sandya Gunasekera, and other colleagues in the Faculty of Social Sciences a t the University of Kelaniya for the support they extended. Apart from my faculty colleagues at Kelaniya University, my friends Padmasiri Dissanayeke and Mohmed Fazil helped me tremendously, and I deeply appreciate their support during my studies. Also, I wish to convey my heartiest thanks to Mr. Kulassooriya, Additional Secretary in the Planning and Provincial Education Department in Kurunegala, for his sincere cooperation.

While working on this thesis, I maintained a close association with my friends in Tokyo, Mr. Ogawa Jayawardene, Mr. Katsuyuki Tanaka, and my colleagues Mr.

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Mizuzawa and Miss Suri, all of whom extended great moral support to me, and whom I can never forget. My gratitude also goes to my parents, and brothers, sister, brother-inlaw, and other relatives, for their tender care and encouragement. I am greatly indebted to my beloved wife Manju, for cheerfully tolerating many attendant inconveniences and rendering immeasurable support, and my two sons Akira and Lakira, who were always a source of inspiration to me. Finally, I express my indebtedness to my father, who was always with me during these studies, but unfortunately could not live to see the completion of this thesis.

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Dedication Acknowledgements Table of Contents List of Tables List of Charts Abbreviations

Table of Contents

Chapter One

Introduction

1.1

Background

1.2

Problem Statement

1.3

Objectives of the Study

1.4

Research Questions

1.5

Conceptual Framework

1.6

Research Methodology

1.7

Organization of the Thesis

Chapter Two

The Impacts of Decentralization: Theory and Practice

2.1

Introduction

2.2

Definition of Decentralization

2.3

Classification of Decentralization

2.4

Theoretical Background of Decentralization

2.5

Reasons for Decentralization Reforms

V

II-II III-IV V-IX X ?X XI-XII XIII-XV

01-14 01-04 04-06 06-07 07-07 07-09 09-13 13-14

15-37 15-15 15-17 17-19 19-22 22-22

2.5.1 2.5.2 2.6 2.7 2.7.1 2.7.2 2.7.3 2.7.4

2.8

Internal Causes External Causes Outcomes of Decentralization in Theory Outcomes of Decentralization in Practice Decentralization on Efficiency and Economic Growth Decentralization on Macroeconomic Stability Decentralization on Local Autonomy and Democracy Impact of Decentralization on Corruption, Accountability and Responsiveness Chapter Conclusions

23-24 24-26 26-28 28-28 29-30 30-31 31-33

34-36 36-37

Chapter Three

Decentralized Governance and Provincial Council System in Sri Lanka

3.1

Introduction

3.2 3.2.1

Post-Independent Political and Economic Perspectives on Devolved Governance Growing Inequity and Consequences

3.3 3.3.1

The Introduction of Provincial Council Reform and its Objectives Resolving Protracted Civil War by Democratic Power-Sharing

3.3.2 Mitigation of International Pressure

3.3.3 Achieving Balanced Regional Development

3.4

The Provincial Council System

3.4.1 3.4.2

Provincial Council, Chief Minister, Board of Ministers and Governor Power-Sharing

3.4.3 Central-Province Relations

3.4.4 Provincial Council Administration

3.4.5 Provincial Court (High Court)

3.4.6 Financial Devolution

38-77 38-39

39-46 46-48 48-49 49-50 50-52 52-52 52-53

53-55 56-57 58-59 59-62 62-62 63-65

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3.4.6.1 The Central Transfers

3.5

Problems and Concerns

3.5.1 Inadequacy of the Provincial Legal Framework

3.5.2 Excessive Dependence on Central Finance Sources

3.5.3 Lack of Capacity and Capability to Draft Statues

3.5.4 Central Control of Provincial Discretion

3.5.5 Parallel Administrations and Their Consequences

3.6

Chapter Conclusions

66-69 69-69 69-70 70-72 72-72 72-74 74-75 75-76

Chapter Four

Impact Evaluation of Decentralization on Development: Case Studies of the

Western and North-Western Provinces in Sri Lanka

4.1

Introduction

77-133 77-77

4.2

Selection of the Cases

77-79

4.3

Data Collection

79-80

4.4

Rationale for the Selection of the Proxy Functions

80-82

4.4.1 Peoples' Participation in Democratic Governance in Sri Lanka

82-82

4.4.2 The Education System in Sri Lanka

82-86

4.4.3 Road Development in Sri Lanka

86-88

4.5 4.5.1

Structural Changes in Democratic Governance, Education and Road Development Changes in Democratic Governance

88-88 88-92

4.5.2 Changes in Educational Administration

92-94

4.5.3 Changes in Road Development Administration

94-96

4.6 4.6.1

Impact of PC Reform on Peoples' Participation, Education and Road Development Impact of the PCs Reform on Peoples' Participation

96-96 97-102

4.6.2 Impact of the PCs Reform on Educational Development

102-108

VII

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