Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614 Volume 5, No.11, November 2016 © The Author © Blue Ocean Research Journals www.borjournals.com Open Access Journals Blue Ocean Research Journals 328 Causes For Decentralization And Its Upshot On Poverty In India S. Thowseaf, Research Scholar, Alagappa Institute of management, Alagappa University, Karaikudi K. Karthick, R. Karthick, Abstract Decentralization was always been myopically debated topic when comes to administration, though it has its own merits and demerits. Although effective management can be made possible through decentralization, corruption and misappro- priation is indeed doable. Decentralization is all about delegation of power and authority to local bodies for effective exe- cution of programs. India having 2nd largest population around the world can never manages its people by giving solu- tions to every economic problems operating from centre, hereby it adopted democratic decentralization for the purpose of effective administration of country. Vocalizations about important economic problem of India i.e. poverty, the decentrali- zation and various Amendments such as 73rd and 74th should produce an effect on poverty, but unfortunately the impact value is slightly above threshold limit or not up to expectation on closer insight. The study was conducted by considering three types of decentralization that exist in India namely; political, administrative and fiscal, and its impact on poverty reduction is made through various secondary data and literature reviews. Hereby exploratory research design was adopt- ed, thus a conceptual framework based on review of literature has been proposed and with the framework as a base the study was proceeded. The study conducted in lights of political, administrative and fiscal spheres of decentralization cumu- latively have fairly less impact on poverty reduction in India. While considering individual spheres, decentralization im- pact value on poverty reduction is unrecognizable. Cognitive on considered sphere indicates; corruption, misappropria- tion of public resources by local bodies, more than required employees and employers as public agent and admin, week coordination between state and central government, tall political and administrative structure and weak fiscal policies towards education, health and agriculture are found to be major issues. Ke ywor ds : Decentralization, Decentralization in India, Decentralization and Poverty reduction Introduction Decentralization can be interpreted as a political process wherein the responsibilities in relation to public adminis- trative and utilization of public resources are reassigned to lower level governmental bodies or non-governmental bodies, such as Non-Governmental Organizations (NGOs) or private sectors from Central government au- thority (Manor, 1998). Consequently, reassigning of such powers will provide the acquired bodies to make decision in regards to allo- cation and distribution of public resources, elevate the power to implement policies and programs, afford au- thority to spend public revenue. Technically these three powers are classified as political, administrative and fis- cal decentralization (World-Bank, 2000). Critically, democratic decentralization indicates more than delega- tion of power, to the authority down the line. Thereby the citizens residing within the system are provided with the rights elect their public officials through election, grievance meetings and by other democratic means (Blair, 2000). Thus, Democratic decentralization can be defined as a meaningful authority developed for local governance which is accountable and accessible by the citizenry therein. Afar, these basic principles, democratic legislation entails wide set of norms, customs and rules through which citizen could exercise effective control over the appointed public officials. The effective control are laid through independent judiciary, free press, trans- parency in system operations and freedom of association and speech (R. Luckham, 2000) Causes For Decentralization In relative context discussed by (Besley, 1997) who thrown an ideas for poverty reduction through techno- cratic and institutional was the base for conceptual de- sign made for the purpose study. The study conducted, emphasized on exploring and targeting programs that hinders the poor and individuals from backward society from getting resources that is of greatest need. The study was not intact in portraying basic amenities need but the political power and administrative incompetence, which are hinders to weaker section of individuals due to cor- ruption. Poverty reduction thereby requires developing institutions, change in political structure from the unit level, improved governance and attitude change towards