Centralization vs.

decentralization

I. Definitions

Centralization the process by which the activities

of an organization, particularly those regarding
planning and decision-making, become concentrated
within a particular location and/or group keeping all
of the important decision-making powers within head
office or the center of the organization
Decentralization the process of redistributing or
dispersing functions, powers, people or things away
from a central location or authority
to make a decision
decision-making
decision-maker

 Decentralization in any area is a response to the

problems of centralized systems.
Decentralization in government has been seen as a
solution to problems like economic decline,
government inability to fund services and the general
decline in performance of overloaded services, the
demands of minorities for a greater say in local
governance, the general weakening legitimacy of the
public sector and global and international pressure on
countries with inefficient, undemocratic, overly
centralized systems.
to respond response overload
decline synonyms
(to have) a say
to fund
governance

(il)legitimate
(in)efficient (in)efficiency

II. Objectives of decentralization

1. Participation the principle of subsidiarity: the

lowest/least centralized authority which is capable of
addressing an issue effectively should do so
Decentralization often linked to concepts of
participation in decision-making, democracy, equality
and liberty from higher authority
Decentralization enhances the democratic voice
2. Diversity plays an important role in decentralized
systems like social groups, large organizations, political
systems
defined as unique properties of entities, agents, or
individuals that are not shared by the larger group,
population, structure
subsidiary subsidiarity
-ing)
to enhance
issue

capable of / able to (see inf. vs.

3. Efficiency: decentralization of government programs is

said to increase efficiency and effectiveness due to
reduction of congestion in communication, quicker reaction
to unanticipated problems, improved ability to deliver
services, improved information about local conditions, and
more support from beneficiaries of programs
(Jerry M. Silverman, Public Sector Decentralization: Economic Policy and
Sector Investment Programs, vol. 188, World Bank Publications, 1992, p. 4 )
4.
Conflict
resolution: economic and/or political
decentralization can help prevent or reduce conflict because
they can reduce actual or perceived inequities between
various regions or between a region and the central
government
efficient efficiency
effective effectiveness
to prevent prevention

to deliver delivery
to resolve resolution
(to) support

III. Administrative Decentralization

4 major forms

1. Deconcentration the weakest form of decentralization

It
shifts
responsibility
for
decision-making,
finance
and
implementation of certain public functions from officials of central
governments to those in existing districts or, if necessary, new ones
under direct control of the central government.
2. Delegation passes down responsibility for decision-making,
finance and implementation of certain public functions to semiautonomous organizations not wholly controlled by the central
government, but ultimately accountable to it.
It involves the creation of public-private enterprises or corporations,
or of authorities, special projects or service districts; all of them will
have a great deal of decision-making discretion and they may be
exempt from civil service requirement and may be permitted to
charge users for services
accountable to sb. for sth. require(ment)
exempt from
discretion
charge
civil service

3. Devolution transfers all responsibility for

decision-making, finance and implementation of certain
public functions to the sub-national level, such as
regional, local, or state government
4. 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 non-profit
organizations allowed to provide the services.
to devolve devolution
to relinquish
to divest (from) divestment
to provide
provision(al)
to contract out to externalize