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A city called Porto Alegre in Brazil has carried out an extraordinary experiment in combining decentralisation with participative democracy. ‘The city has set up a parallel organisation operating alongside the municipal council,  enabling local inhabitants to make real decisions for their city. Nearly 13 lakh people in the city get to participate in making the budget for their city. The city is divided into many sectors or what we call wards. The Bach sector has a meeting, like that of the gram sabha, in which anyone living in that area can participate. There are some meetings to discuss issues that affect the entire city. Any citizen of the city can participate in those meetings. The budget of the city is discussed in these meetings. The proposals are put to the municipality, which takes a final decision about it. About 20,000 people participate in this decision-making exercise every year. This method has ensured that the money cannot be spent only for the benefit of the colonies where rich people live. Buses now run to the poor colonies, and builders cannot evict slum-dwellers without resettling them. In India, a similar experiment has taken place in some areas in Kerala. Ordinary people have participated in making a plan for the development of their locality.

In India, a decentralised experiment similar to that of Porto Alegre has taken place in the state of