Abstract

As the discourse on economic development has expanded its focus to a broader set of interrelated economic, social, and political variables, an important conclusion has been that sustainable and inclusive development requires not only economic and social policies, but also political empowerment to foster a deliberative and participatory development process. The state versus market led development debate has been increasingly conducive to the role of state since 1990s mainly due to the developmental state experiences in East Asia in particular, and the high social costs of pursuing market oriented reforms or Structural Adjustment Programs in many developing countries. The growth spurts and the successive downturns delivered little on account of sustainable and inclusive growth. The nature of an ideal state, in contemporary times, can be argued to be developmental and democratic; characterized by redistributive growth, broad-based participation, pro-poor policies, and responsiveness of public policy to local needs. Given the intricacies of the contemporary world where Keynesian and neo-liberal values contest for space simultaneously, the (re)configuration of the role of the state while fostering democratization is an important dimension to consider. In this context, it is increasingly argued that subnational democracy is important in revitalizing and reinvigorating democratic systems, as well as promoting better public governance. This thesis attempts to examine the concepts of Decentralization and the Democratic Developmental State, the political incentives that determine the substantiveness of decentralization reforms, and whether subnational empowerment through decentralization is conducive to democratic developmentalism.