The two major modalities for fostering local participation are community development and decentralization of resources and authority to local governments. Community development supports efforts to bring villages, urban neighborhoods, and other household groupings into the process of managing development resources, without relying on formally constituted local governments. Community development projects are labeled as community-driven development, community based development, community livelihood projects, and social funds. In recent years, the effort to expand community engagement in service delivery has also introduced participatory education and health projects, which have some of the same features as community-driven and community-based development projects. Designs for this type of aid can range from community-based targeting, in which only the selection of beneficiaries is decentralized, to projects in which communities are also involved to varying degrees in project design, project management, and the management of resources. Decentralization refers to efforts to strengthen village and municipal governments on both the demand and supply sides. On the demand side, it strengthens citizens’ participation in local government—by, for example, instituting regular elections, improving access to information, and fostering mechanisms for deliberative decision making. On the supply side, it enhances the ability of local governments to provide services by increasing their financial resources, strengthening the capacity of local officials, and streamlining and rationalizing administrative functions.

In India, Kerela and West Bengal are good examples of ‘transformative’ development at the local level. Credit however, goes to the strongly reformist agenda of the communist governments in these states, which went in for paradigm shift instead of ad hoc attempyts at peoples’ participation which