ABSTRACT
The prevailing development process has failed to arrest the continuing phenomenon of poverty, regional disparity and social inequalities in Odisha. In Odisha, regional disparity on social development indicators remains conspicuous despite some improvement. Precisely because of that reason, formation of local government system was initiated after 1988 and recommendation of giving 30 per cent seats for women was accepted for the first time, though it was earlier rejected in 1975. A focus on the locally suitable and sustainable development model with the involvement of local people, more particularly, women, will have far-reaching positive effects in the backward regions, and thereby, will reduce regional as well as gender divide in development outcomes in the State. Women's local knowledge and social interaction should be integrated in regional development strategies to achieve sustainable development. Interestingly the Fourteenth Finance Commission has paid more attention to the local government system and allocated 42 per cent of the total tax receipts of the central government.
