The Meaning of Decentralization of Power
Decentralization is the transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sector. It can also be seen as the process of redistributing or dispersing functions, powers, people or things away from a central location or authority. That is to say it is the sharing of power between the central government and the other constituent units, within a political system. Thus, the distribution of powers culminates in the creation of numerous centres of power.
Forms of Decentralization
The forms of decentralization include the following:
Deconcentration
Deconcentration, which is often considered to be the weakest form of decentralization and is used most frequently in unitary states, redistributes decision making authority and financial and management responsibilities among different levels of the central government. It can merely shift responsibilities from central government officials in the capital city to those working in regions, provinces or districts, or it can create strong field administration or local administrative capacity under the supervision of central government ministries.
Delegation
Delegation is a more extensive form of decentralization. Through delegation, central governments transfer responsibility for decision-making and administration of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it. Governments delegate responsibilities when they create public enterprises or corporations, housing authorities, transportation authorities, special service districts, semi-autonomous school districts, regional development corporations, or special project implementation units. Usually these organizations have a great deal of discretion in decision-making. They may be exempt from constraints on regular civil service personnel and may be able to charge users directly for services.
Devolution
A third type of administrative decentralization is devolution of powers: It transfers all responsibility for decision-making, finance and implementation of certain public functions to the sub-national level, such as a regional, local, or state government. That is to say, when governments devolve functions, they transfer authority for decision-making, finance, and management to quasi-autonomous units of local government with corporate status. Devolution usually transfers responsibilities for services to municipalities that elect their own mayors and councils, raise their own revenues, and have independent authority to make investment decisions. In a devolved system, local governments have clear and legally recognized geographical boundaries over which they exercise authority and within which they perform public functions. It is this type of administrative decentralization that underlies most political decentralization.
Divestment
Divestment, also called privatization, may mean merely contracting out services to private companies. Or it may mean relinquishing totally all responsibility for decision-making, finance and implementation of certain public functions. Facilities will be sold off, workers transferred or fired and private companies or not-for-profit organizations allowed to provide the services. Many of these functions originally were done by private individuals, companies, or associations and later taken over by the government, either directly, or by regulating out of business, entities which competed with newly created government programs.
Merits and Demerits of Decentralization
Merits of Decentralization
The following are the merits or advantages of decentralization:
Demerits of Decentralization
The following are the demerits or disadvantages of decentralization:
EVALUATION
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