From Bureaucratic Rule to Self-Governance

Why is self-governance the key to development?

Mian Ashiq Hussain argues that local self-governance is the main way to mobilise a population and raise its productivity. Efficient self-rule can secure peace and stimulate economic activity. He traces democracy itself to local government in the Greek city states and in the American colonies of the 17th century.

1. Local self-governance is the key factor for mobilising the population and optimising its productivity. With its tremendous potential of securing peace and stimulating economic activity, efficient self-rule may thoroughly transform a society. Genesis of democracy, too, is traceable in the history of early local governments in Greek city states. In 17th century, local self-governments in American colonies were a major factor in the rise of democratic republic of the United States of America.

How are cities driving the world economy?

The author notes that urban economies now rival some national ones, with cities acting as engines of growth and global connection. He cites projections that 600 cities would produce nearly 60 percent of world GDP by 2025, and New York's reforms under Mayor La Guardia as an example of well-run city government paying off.

i. Presently, urban economic power is fast outgrowing some state economies. Municipalities are acting as the driving engine of modern economies. One of the manifestations of efficient management of cities is phenomenal economic leaps and global connectivity. McKinsey Global Institute projected that by 2025, the GDP of 600 cities will be $64 trillion, nearly 60% of global GDP. The urban centres are going to be the hub of business activity and worldwide interaction which is becoming the fountainhead of economic activity. Estimated GDPs of Tokyo Metropolitan Government and the Government of New York City in 2020 were US$ 1602 billion and $1561 billion, respectively. In the 1930s, ‘New York mayor, Fiorello La Guardia, created a cross-partisan coalition to replace a corrupt network which had controlled the city for nearly eight decades. Over his three terms, he expanded the use of competitive examinations to recruit public officials, adopted new administrative practices … and help set up a public agency to provide urban housing … such investments have paid off, as demonstrated by the fact that the city has per capita income that is 172 percent higher than the national figure’.

How did local governments transform rural China?

In the author's account, decentralised decisions and support from local governments let Township and Village Enterprises transform rural China, cutting poverty and inequality and driving rapid urbanisation. He gives Shenzhen as the example: a small fishing village in 1978 that became a metropolis known as China's Silicon Valley.

ii. Local governments in the People’s Republic of China played decisive role in the phenomenal development of its rural areas. Decentralisation of decision-making, specialisation and improved productivity of rural population enormously reduced poverty and economic disparity. With the active support of local governments, Township and Villages Enterprises (TVEs) took giant leaps in the development of rural China; resultant rapid urbanisation transformed the entire economy. For instance, in 1978, Shenzhen was a small fishing village. TVEs brought about the economic miracle. Shenzhen is now a modern metropolis with GDP at 3, 238 billion RMBs in 2022; it is dubbed as “the Silicon Valley of China”.

What does Karachi reveal about Pakistan's local government system?

The author argues that the familiar claim that provincial money alone cannot develop Karachi exposes a deeper malaise. Karachi's municipal government depends on federal and provincial transfers even for basic services such as water and waste collection, which he sees as a sign of fundamental flaws in the local government system.

iii. Immense economic power is itself the source of freedom of thought and actions. Huma Yusuf in her article “Urban sovereignty” reported that “138 cities are committed to renewable energy while more than 438 city mayors have joined an alliance for climate progress at odds with (the US) federal policy” at that time. The cities are not only running local self-governments but also developing global networks. In such a backdrop, the popular proposition that ‘Provincial funding alone cannot develop Karachi’ is a reflection on the deep-rooted malaise ailing the socio-political system of the country. Karachi Municipal Corporation’s over-dependence on the federal or provincial funds’ transfers for supply of day-to-day services like water supply and solid waste management indicates some fundamental flaws in the local government system.

What happens when local government fails?

iv. On the other hand, the inefficacy of the state’s local government policies to tap infinite potential of self-governance may lead to Robert Kaplan’s nightmarish vision of precarious cities hit hard by environmental degradation and overwhelmed by migrants with endless slums overpopulated by jobless youth ‘driven to violence and the gory conflicts

Frequently asked questions

Where does the author trace the origins of democracy?

To local self-government: first in the city states of ancient Greece, and later in the self-governing American colonies of the 17th century, which he credits as a major factor in the rise of the democratic United States.

How did Shenzhen grow so fast?

The author attributes it to Township and Village Enterprises backed by local governments. Shenzhen went from a small fishing village in 1978 to a modern metropolis, with GDP he puts at 3,238 billion RMB in 2022.

Why can't Karachi rely on provincial funding alone?

Because, as the author sees it, a city of its size should have the self-governing capacity to fund its own services. Its municipal corporation's dependence on federal and provincial transfers for daily services points to fundamental flaws in Pakistan's local government system.

What risk does the author see if local government is neglected?

He warns of Robert Kaplan's vision of fragile cities hit by environmental damage, overwhelmed by migration and filled with slums of jobless young people drawn into violence, if the state fails to tap the potential of self-governance.

Related Minds

• Local Self-Government: Nordic, Indian and Pakistani Lessons
• Provincial Autonomy in Pakistan: Beyond Legislative Lists
• The 18th Amendment in Pakistan: Devolution Compared
• Fiscal Federalism: Lessons from Five Federations

Read the full argument in the book How Constitutions Flourish or Fail by Mian Ashiq Hussain.