Decentralization improves governance outcomes...

In the terms of an economy, decentralization means redistribution of the power of decision making from Center to the lower levels of government in the hierarchy. For example, the redistribution of power from center or central-government to the panchayats in the states. Decentralization has always attracted historians as theme of their writings.  Poor economic condition, rise in government expenditure and free-market ideology contributed to reinforce the idea of decentralization of government functions. It aims to foster competitions between different services, seek help of the private sector and privatize some services and functions. Government decentralization has two parts, the political part and the administrative part. Political decentralization means more power to citizens or their elected representatives. There are many types administrative decentralization, delegation, de-concentration, devolution and disinvestment, but, here, we are concerned with devolution. In devolution the power of decision-making, finance and many functions are handed over to local and state government. Fiscal decentralization means shift of the power to raise revenue and expenditure from center to the lower level of the government. Better health for socially and economically challenged sections of the society is one of the objectives of Millennium-Development-Goals underscored by United-Nations in the year 2000. Poor health is one of the impeding factors which affect education and the quality of human-capital in many developing countries; thereby any investment made to improve health of the vulnerable segment of the country is likely to have a positive impact on human capital, national income and per-capita income. Decentralization of power from the central-government to the local government can improve the health outcomes in a region. Several studies have showed the importance of decentralization of governance and is a subject of debate among social scientists, historians, policy-makers and politicians...