Decentralization

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YOUR SITE HERECentralization is the process by which the activities of an organization, particularly those regarding decision-making, become concentrated within a particular location and/or group. In political science, this refers to the concentration of a government's power - both geographically and politically, into a centralized government. What is Centralization?

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YOUR SITE HERECentralization is a situation in which decision-making power is at the top of an organization and there is little delegation of authority. What is Centralization?

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YOUR SITE HERECentralization and decentralization are really a matter of degree. Full centralization means minimum autonomy and maximum restrictions on operations of subunits of the organization. As an organization grows in size and complexity, decentralization is generally considered to be effective and efficient.What is Centralization?

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YOUR SITE HEREDecentralization is the opposite of Centralization. It is a shift of power from center whose jurisdiction is relatively large to a center or set of centers of smaller jurisdiction. In organizational theory, decentralization is the policy of delegating decision-making authority throughout an organization, relatively away from a central authority. What is Decentralization?

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YOUR SITE HEREDecentralization can also mean as delegation of decision-making to the subunits of an organization. It is a matter of degree. The lower the level where decisions are made, the greater is the decentralization. Decentralization is most effective in organizations where subunits are autonomous and costs and profits can be independently measured. What is Decentralization?

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YOUR SITE HEREThe benefits of decentralization include: Decisions are made by those who have the most knowledge about local conditions Greater managerial input in decision-making has a desirable motivational effect; and Managers have more control over results Benefits of Decentralization

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YOUR SITE HEREMost writers distinguish two main forms of decentralization:

Devolution (largely political) De-concentration (largely administrative)Forms of Decentralization

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YOUR SITE HERE DevolutionDevolution entails a clear transfer of political responsibility. Henceforth, the smaller center will enjoy a measure of autonomy in policymaking that will not be easily be reclaimed by the developer. There is, however, a striking irony in all devolutions, for the greater the amount of policymaking power being decentralized, the greater the accretion of centralized regulatory power is likely to be. Forms of Decentralization

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YOUR SITE HEREForms of Decentralization DevolutionDevolution is the transfer of powers from a central to a local, regional, or peripheral authority. In the twentieth century,, the most obvious example of the devolution of power is contained in the process of decolonization.

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YOUR SITE HEREForms of DecentralizationDevolutionWith the winning of independence from the British Crown by India and Pakistan in 1947, there began an unprecedented concession of political and economic control to the successor regimes nurtured during the latter stages of empire. Decolonization is, however, as extreme example of devolution.

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YOUR SITE HEREForms of DecentralizationDevolution

For the most part, devolutionists argue about tax-raising rights, regional autonomy, educational integrity, linguistic purity, and cultural safeguards.

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YOUR SITE HEREForms of DecentralizationDeconcentration There are two principal types of deconcentration: intra-organizational (as with delegations of authority to field officers) and inter-organization (as when the central government, without relinquishing political responsibility, contracts local authorities and non-government organizations to act as its agents).

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YOUR SITE HEREForms of DecentralizationDeconcentrationIt is often claimed that deconcentration enhances organizational effectiveness. Increasing the discretionary powers of the field the officers of a central bureaucracy is likely to increase responsiveness to local interests, as will the negotiation of agency agreements with local authorities.

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YOUR SITE HEREForms of DecentralizationDeconcentration It will lead to more effective service delivery only if the individual recipients, and not the local elites, are most silent for the field officers. Even if they are so salient, the capacity of the field officer to deliver will depend critically on the internal politics of the organization.

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YOUR SITE HEREThe Problems of Decentralization To some decentralization is parochial, inegalitarian and unconcerned with the privileges and exploitation built into local power structures.

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YOUR SITE HEREThe Problems of Decentralization It ignores the possibility that the holders of economic power at the local level will dominate local institutions and perpetuate hierarchy and oppression. It can produce inefficiencies and diseconomies in developed and developing states, capitalist and socialist economies.

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YOUR SITE HEREThe Measurement of Decentralization1. Government functionsThe first measure of decentralization relates to governmental functions. The tasks assigned to area governments have to be analyzed to distinguish between whole functions (e.g., education), part functions (e.g., primary education) and low-level policy making (e.g., school buildings).

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YOUR SITE HEREThe Measurement of DecentralizationDistinctions have to be drawn between the structures of decentralized administration, since some functions can be assigned to either developed councils or field officers. Purely central tasks (e.g., inspection and audit) performed at the local level have to be distinguished from executive functions which can be either developed or deconcentrated.

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YOUR SITE HEREThe Measurement of DecentralizationDecentralization can be measured by the distribution of expenditure between the center and different forms developed methods the more decentralized the system will be. Centralization can thus be reduced by expanding the range of decision areas (or jurisdiction) of local governments.

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YOUR SITE HEREThe Measurement of Decentralization2. Taxation The second measure relates to taxation. Areas and systems of decentralization may be compared according to their powers of revenue raising. Two features need particular attention. One is the proportion of total state revenue which is raised locally. The second is the extent to which local revenues are allowed to expand faster than the rate of inflation.

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YOUR SITE HEREThe Measurement of DecentralizationA considerably decentralized system of government would be one in which there is no legal restriction on the level of local tax rates and where there is a tax base which can expand in line with the growth of the economy and the rate of inflation.

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YOUR SITE HEREThe Measurement of Decentralization3. Field offices of central government Thirdly it is necessary to measure the level of decentralization within the field offices of central government, to enable a more precise estimate to be made of the grater centralization involved in field administration than local government.

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YOUR SITE HEREThe Measurement of DecentralizationThe variables relating to field administrations contribution to the level of decentralization include the number of levels in the field organizations hierarchy; the responsibilities assigned to field personnel in terms of both tasks and varying degrees of autonomy within them (such as the approval of schemes under a certain cost);

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YOUR SITE HEREThe Measurement of Decentralization the form of inter departmental coordination used; the frequency with which field officers have to refer matters to headquarters for decision; the way conflict between generalists and specialists is handled;

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YOUR SITE HEREThe Measurement of Decentralization the policies of transferring personnel between headquarters and field stations and between the field districts; methods of communication between headquarters and the field and methods of headquarters control over field staff, such as review, reporting and inspection.

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YOUR SITE HEREThe Measurement of Decentralization4. DelegationFourthly, the amount of delegation to area political authorities can be measured by reference to three factors: local authorities with a general competence can be regarded as more decentralized than those subject to the rule of ultra vires;

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YOUR SITE HEREThe Measurement of Decentralizationthe greater the number of local decisions which are centrally influenced rather than controlled, the greater the decentralization; and whether central control tends to take the form of initiation or veto.

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YOUR SITE HEREThe Measurement of DecentralizationIt seems reasonable to assume that it is more, rather than less, decentralized to give area governments the statutory right to do whatever they judge to be in the best interest of their areas rather than be required to find statutory confirmation of the right to take decision.

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YOUR SITE HEREThe extensive variation between states in methods of control and influence makes comparative analysis difficult. There is a need to assess the relative significance for decentralization of different types of control, for example, approval for budgets vs. selective financial controls, and the motives behind such controls.

The Measurement of Decentralization

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YOUR SITE HEREThe Measurement of Decentralization5. Methods of creating areaFifthly, the methods of creating area governments and delegating power to them constitute a measure of decentralization. Greater decentralization is involved if area authorities have statutory powers and duties assigned by the legislature than if the same powers are first assigned to the executive which then delegates to area governments acting as agents of the center.

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YOUR SITE HEREThe Measurement of DecentralizationIt is important to know whether local governments have a legal existence independent of the central executive.

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YOUR SITE HEREThe Measurement of Decentralization6. Expenditure Sixth, the level of total local expenditure as a proportion of total public spending may be used when the aim is to compare states or a single political system over a period of time. The greater the proportion of total public spending incurred by area governments the greater the decentralization.

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YOUR SITE HEREThe Measurement of Decentralization7. StructureSeventhly, there is the next question of whether the system of decentralization entails a single tier structure of unitary authorities or a multi-tiered structure. So far there can be only speculation as to how far either pattern affects the level of decentralization, since conflicting conclusions may be deducted from each arrangement.

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YOUR SITE HEREThe Measurement of DecentralizationIf there are many levels in the hierarchy there may be discretionary gaps and leakages of authority, thus increasing discretion at the lower levels. On the other hand a system be regarded as more decentralized the more there is a strict coincidence of community area and governmental authority. So a simple, unitary system should be more decentralized than a complex, tiered system.

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YOUR SITE HEREThe Measurement of Decentralization8. Ratio of revenueEighth, the ratio of local government revenues to total government revenues may be used as a measure of decentralization especially since the dominant view seems to be that as central funding grows so does central control. So the proportion of local revenues coming from central grants would seem an excellent indicator of decentralization.

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YOUR SITE HEREThe Measurement of Decentralization9. PersonnelNinth, the personnel of local institutions need to be classified. Are they locals? Are they elected or selected locals? What proportion of the local public servants are the employees of central agencies and what of local governments?

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YOUR SITE HEREThe Measurement of DecentralizationAdjustments need to be made to the central-local personnel ratio to take into account the labor intensity of local services.

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YOUR SITE HEREThe Causes of DecentralizationCauses for less decentralized A system will be less decentralized if there is conflict within the regime to an extent which threatens the dominance of the current political leadership. Where the bureaucracy can be said to mediate between interests within the dominant class it will be reluctant to see alternative power bases constructed in the provinces.

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YOUR SITE HEREThe Causes of DecentralizationA system will be less decentralized if an authoritarian regime is seeking ways to mobilize and incorporate the lower classes in support of the regimes policies without permitting the operation of national political organizations which might threaten the current political leadership.

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YOUR SITE HEREThe Causes of DecentralizationIf the level of decentralization coincides with that of the field administration, then a regime concerned with maintaining political stability will tend to adopt for political purposes a prefectoral system and so operate a less decentralized form of local administration.

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YOUR SITE HEREThe Causes of DecentralizationThe greater the relative competence of the officials of central institutions, the less decentralized will be the overall system.

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YOUR SITE HEREThe Causes of DecentralizationThe more centralized and unified, ideologically and organizationally, are the national political party or parties, the less the decentralization. The more socially homogeneous the population, the less the decentralization. The greater the involvement of the national government in the economy, the less the decentralization.

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YOUR SITE HEREThe Causes of DecentralizationCauses for more decentralizedA system will be more decentralized if the dominant ideology is pluralist. Local communities will be seen as pressure groups in their own right. The local power structure will be regarded as legitimate.

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YOUR SITE HEREThe Causes of DecentralizationAs a prefectoral system becomes redundant and the administration turns to functional field administration, the system will become more decentralized. A system of local administration will become more decentralized as concern for political stability declines and as autonomous methods of political interest aggregation and articulation are developed.

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YOUR SITE HEREThe Causes of DecentralizationIn less developed countries strong devolution, the existence of self governing institutions, will not exist unless there is strong central control over local authorities. The argument is that as individual authorities prove their abilities, controls are relaxed on a selective basis. But the original devolution of power will take place only if the central government has covered itself by way of central controls.

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YOUR SITE HEREThe Causes of DecentralizationThe larger the country, in territory and population, the greater the decentralization. The delegation of power is often a response to geographical and demographical size, and it is often assumed that smaller states and other political entities tend to be more centralized.

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YOUR SITE HEREThe Causes of DecentralizationFinally, decentralization may be strengthened by historical factors such as the existence of ancient cities or regions with political status predating the nation of which they form constituent parts.

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YOUR SITE HEREConclusionDecentralization is a complex subject with many dimensions. As a variable factor in the design of governmental and administrative machinery it needs to be measured. It should be treated as a matter of formal organizational relationships, separable from the concept of local or community autonomy.

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YOUR SITE HEREConclusionOnly then can be progress be made in the evaluation of changes designed to alter the balance of power within states between the center and periphery. Variations in decentralization can then be related to the political and administrative factors which produce them flow from them.

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All the Best!

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