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The purpose of this paper is to provide a background to the special issue on welfare schemes in India. After 25 years of decentralization of governance and structural adjustments implemented in the 1980s and 1990s, have welfare schemes implementation and execution become more accountable and efficient? This paper seeks a critical look at the welfare schemes and its relationship with decentralization and stakeholders’ dynamics.

The paper is based on a review of studies post 1990s. Papers representing all main stakeholders are reviewed, namely, politicians and political parties, bureaucrats, beneficiary, and civil society organizations. The inclusion/exclusion decision for the papers was taken on two criteria: the paper/document had to explicitly investigate decentralization, and had to include welfare scheme as the overall theme under which decentralization was investigated.

The paper summarizes the new complexities in the system. Stakeholder behaviour is driven by several factors external to the traditional social and economic diversities that signify the Indian sub continent. For example, the authors see the lobbying process shifting to the local level, increasing importance of the local politician and the significance of forming local coalitions and partnerships for better resource allocation.

The paper attempts to provide an overview by going beyond a critique of development to focus on the perils of operating within a socio-economically complex society.