Editing Decentralization (section)

== Overview ==
=== Systems approach ===
[[File:Decentralization.jpg|thumb|Graphical comparison of centralized and [[decentralized system]]]]
Those studying the goals and processes of implementing decentralization often use a [[systems theory]] approach, which according to the [[United Nations Development Programme]] report applies to the topic of decentralization "a whole systems perspective, including levels, spheres, sectors and functions and seeing the community level as the entry point at which holistic definitions of development goals are
from the people themselves and where it is most practical to support them. It involves seeing multi-level frameworks and continuous, synergistic processes of interaction and iteration of cycles as critical for achieving wholeness in a [[decentralized system]] and for sustaining its development."<ref>"Decentralization: A Sampling of Definitions", 1999, p. 13.</ref>

However, it has been seen as part of a systems approach. Norman Johnson of [[Los Alamos National Laboratory]] wrote in a 1999 paper: "A decentralized system is where some decisions by the agents are made without centralized control or processing. An important property of agent systems is the degree of connectivity or connectedness between the agents, a measure global flow of information or influence. If each agent is connected (exchange states or influence) to all other agents, then the system is highly connected."<ref name=NLJohnson>{{cite conference | first = Norman L. | last = Johnson | title = Diversity in Decentralized Systems: Enabling Self-Organizing Solutions | year = 1999 | citeseerx=10.1.1.80.1110 | publisher = Theoretical Division, Los Alamos National Laboratory, for [[University of California Los Angeles]] 1999 conference "Decentralization Two"}}</ref>

[[University of California, Irvine]]'s Institute for Software Research's "PACE" project is creating an "architectural style for trust management in decentralized applications." It adopted [[Rohit Khare]]'s definition of decentralization: "A decentralized system is one which requires multiple parties to make their own independent decisions" and applies it to [[Peer-to-peer]] software creation, writing:
{{Blockquote|In such a decentralized system, there is no single centralized authority that makes decisions on behalf of all the parties. Instead each party, also called a peer, makes local autonomous decisions towards its individual goals which may possibly conflict with those of other peers. Peers directly interact with each other and share information or provide service to other peers. An open decentralized system is one in which the entry of peers is not regulated. Any peer can enter or leave the system at any time&nbsp;...<ref>[http://www.isr.uci.edu/projects/pace/decentralization.html PACE Project "What is Decentralization?" page] {{webarchive|url=https://web.archive.org/web/20130329030322/http://www.isr.uci.edu/projects/pace/decentralization.html |date=2013-03-29 }}, [[University of California, Irvine]]'s Institute for Software Research, Last Updated – May 10, 2006.</ref>
}}

=== Goals ===
Decentralization in any area is a response to the problems of centralized systems. Decentralization in government, the topic most studied, has been seen as a solution to problems like economic decline, government inability to fund services and their 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.<ref name=Daun>Holger Daun, ''School Decentralization in the Context of Globalizing Governance: International Comparison of Grassroots Responses,'' Springer, 2007, [https://books.google.com/books?id=nYHXnyzGggkC&dq=goals+of+decentralization&pg=PA28 pp. 28–29] {{webarchive|url=https://web.archive.org/web/20160617152055/https://books.google.com/books?id=nYHXnyzGggkC&pg=PA28 |date=2016-06-17 }},
{{ISBN|978-1402047008}}</ref> The following four goals or objectives are frequently stated in various analyses of decentralization.

; Participation

In decentralization, the principle of [[subsidiarity]] is often invoked. It holds that the lowest or least centralized authority that is capable of addressing an issue effectively should do so. According to one definition: "Decentralization, or decentralizing governance, refers to the restructuring or reorganization of authority so that there is a system of co-responsibility between institutions of governance at the central, regional and local levels according to the principle of subsidiarity, thus increasing the overall quality and effectiveness of the system of governance while increasing the authority and capacities of sub-national levels."<ref>"Decentralization: A Sampling of Definitions", 1999, pp. 2, 16, 26.</ref>

Decentralization is often linked to concepts of participation in decision-making, democracy, equality and liberty from a higher authority.<ref>Subhabrata Dutta, ''[https://books.google.com/books?id=O8X_NxDWDq4C&q=decentralization+Dutta Democratic decentralization and grassroot leadership in India] {{webarchive|url=https://web.archive.org/web/20150319044525/http://books.google.com/books?id=O8X_NxDWDq4C&printsec=frontcover |date=2015-03-19 }}'', Mittal Publications, 2009, pp. 5–8, {{ISBN|978-8183242738}}</ref><ref>Robert Charles Vipond, ''[https://books.google.com/books?id=_iTJdiemMoUC&dq=Vipond+Liberty+and+Community&pg=PA252 Liberty & Community: Canadian Federalism and the Failure of the Constitution] {{webarchive|url=https://web.archive.org/web/20160624053945/https://books.google.com/books?id=_iTJdiemMoUC&pg=PA252 |date=2016-06-24 }}'', [[SUNY Press]], 1991, p. 145, {{ISBN|978-0791404669}}</ref> Decentralization enhances the democratic voice.<ref name=Warner/> Theorists believe that local representative authorities with actual discretionary powers are the basis of decentralization that can lead to local efficiency, equity and development."<ref>{{cite journal|last=Ribot|first=J|s2cid=55187335|title=Democratic Decentralisation of Natural Resources: Institutional Choice and Discretionary Power Transfers in Sub-Saharan Africa|journal=[[Public Administration and Development]]|year=2003|volume=23|pages=53–65|doi=10.1002/pad.259}}</ref> [[Columbia University]]'s [[Earth Institute]] identified one of three major trends relating to decentralization: "increased involvement of local jurisdictions and civil society in the management of their affairs, with new forms of participation, consultation, and partnerships."<ref name=EarthInstitute/>

Decentralization has been described as a "counterpoint to globalization [which] removes decisions from the local and national stage to the global sphere of multi-national or non-national interests. Decentralization brings decision-making back to the sub-national levels". Decentralization strategies must account for the interrelations of global, regional, national, sub-national, and local levels.<ref>"Decentralization: A Sampling of Definitions", 1999, pp. 12–13.</ref>

; Diversity
[[Norman L. Johnson]] writes that diversity plays an important role in decentralized systems like [[ecosystems]], [[social groups]], large organizations, [[political systems]]. "Diversity is defined to be unique properties of entities, agents, or individuals that are not shared by the larger group, population, structure. Decentralized is defined as a property of a system where the agents have some ability to operate "locally." Both decentralization and diversity are necessary attributes to achieve the self-organizing properties of interest."<ref name=NLJohnson/>

Advocates of political decentralization hold that greater participation by better informed diverse interests in society will lead to more relevant decisions than those made only by authorities on the national level.<ref name=WorldBank>[http://www1.worldbank.org/publicsector/decentralization/political.htm#2 Political Decentralization] {{webarchive|url=https://web.archive.org/web/20130409101601/http://www1.worldbank.org/publicsector/decentralization/political.htm |date=2013-04-09 }}, Decentralization and Subnational Economies project, [[World Bank]] website, ''accessed February 9, 2013''.</ref> Decentralization has been described as a response to demands for diversity.<ref name=EarthInstitute/><ref>Therese A McCarty, [http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.1993.tb02422.x/abstract Demographic diversity and the size of the public sector] {{webarchive|url=https://web.archive.org/web/20140522094501/http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.1993.tb02422.x/abstract |date=2014-05-22 }}, [[Kyklos (journal)|Kyklos]], 1993, via [[John Wiley & Sons#Wiley Online Library|Wiley Online Library]]. Quote: "if demographic diversity promotes greater decentralization, the size of the public
sector is not affected 10 consequently."</ref>

; Efficiency
In business, decentralization leads to a [[management by objectives|management by results]] philosophy which focuses on definite objectives to be achieved by unit results.<ref>"Decentralization: A Sampling of Definitions", 1999, p. 11.</ref> Decentralization of government programs is said to increase efficiency – and effectiveness – due to reduction of congestion in communications, quicker reaction to unanticipated problems, improved ability to deliver services, improved information about local conditions, and more support from beneficiaries of programs.<ref>Jerry M. Silverman, ''Public Sector Decentralization: Economic Policy and Sector Investment Programs, Volume 188'', [[World Bank Publications]], 1992, [https://books.google.com/books?id=XtoXuSHMclIC&dq=efficiency+decentralization&pg=PA4 p. 4] {{webarchive|url=https://web.archive.org/web/20160528203217/https://books.google.com/books?id=XtoXuSHMclIC&pg=PA4 |date=2016-05-28 }}, {{ISBN|978-0821322796}}</ref>

Firms may prefer decentralization because it ensures efficiency by making sure that managers closest to the local information make decisions and in a more timely fashion; that their taking responsibility frees upper management for long term strategics rather than day-to-day decision-making; that managers have hands on training to prepare them to move up the management hierarchy; that managers are motivated by having the freedom to exercise their own initiative and creativity; that managers and divisions are encouraged to prove that they are profitable, instead of allowing their failures to be masked by the overall profitability of the company.<ref>Don R. Hansen, Maryanne M. Mowen, Liming Guan, ''Cost Management: Accounting & Control'', Cengage Learning, 2009, [https://books.google.com/books?id=10eIDgRH3EgC&dq=reason+for++decentralization&pg=PA338 p. 338] {{webarchive|url=https://web.archive.org/web/20160513052225/https://books.google.com/books?id=10eIDgRH3EgC&pg=PA338 |date=2016-05-13 }}, {{ISBN|978-0324559675}}</ref>

The same principles can be applied to the government. Decentralization promises to enhance efficiency through both inter-governmental competitions with market features and fiscal discipline which assigns tax and expenditure authority to the lowest level of government possible. It works best where members of the subnational government have strong traditions of democracy, accountability, and professionalism.<ref name=Warner/>

; Conflict resolution
Economic and/or political decentralization can help prevent or reduce conflict because they reduce actual or perceived inequities between various regions or between a region and the central government.<ref>David R. Cameron, Gustav Ranis, Annalisa Zinn, ''Globalization and Self-Determination: Is the Nation-State Under Siege?'', Taylor & Francis, 2006,    [https://books.google.com/books?id=bO-FSUEPO6MC&dq=%22conflict+resolution%22+decentralization&pg=PA202 p. 203] {{webarchive|url=https://web.archive.org/web/20160503044314/https://books.google.com/books?id=bO-FSUEPO6MC&pg=PA202 |date=2016-05-03 }}, {{ISBN|978-0203086636}}</ref> Dawn Brancati finds that political decentralization reduces intrastate conflict unless politicians create political parties that mobilize minority and even extremist groups to demand more resources and power within national governments. However, the likelihood this will be done depends on factors like how democratic transitions happen and features like a regional party's proportion of legislative seats, a country's number of regional legislatures, elector procedures, and the order in which national and regional elections occur. Brancati holds that decentralization can promote peace if it encourages statewide parties to incorporate regional demands and limit the power of regional parties.<ref>Dawn Brancati, [https://books.google.com/books?id=g7eLksrA8LAC Peace by Design:Managing Intrastate Conflict through Decentralization], [[Oxford University Press]], 2009, {{ISBN|978-0191615221}}</ref>

=== Processes ===
; Initiation
The processes by which entities move from a more to a less centralized state vary. They can be initiated from the centers of authority ("[[wikt:top-down|top-down]]") or from individuals, localities or regions ("[[Top-down and bottom-up design|bottom-up]]"),<ref name=Lkhagvadorj>Ariunaa Lkhagvadorj, ''Fiscal federalism and decentralization in Mongolia'', [[University of Potsdam]], Germany, 2010, [https://books.google.com/books?id=gDK4fsCj7ZYC&dq=top+down+bottom+up+decentralization&pg=PA23 p. 23] {{webarchive|url=https://web.archive.org/web/20160610015545/https://books.google.com/books?id=gDK4fsCj7ZYC&pg=PA23 |date=2016-06-10 }}, {{ISBN|978-3869560533}}</ref> or from a "mutually desired" combination of authorities and localities working together.<ref>Karin E. Kemper, Ariel Dinar, ''Integrated River Basin Management Through Decentralization'', Springer, 2007, [https://books.google.com/books?id=k0BMK_M9gN4C&dq=top+down+bottom+up+decentralization&pg=PA36 p. 36] {{webarchive|url=https://web.archive.org/web/20160425193730/https://books.google.com/books?id=k0BMK_M9gN4C&pg=PA36 |date=2016-04-25 }}, {{ISBN|978-3540283553}}.</ref> Bottom-up decentralization usually stresses political values like local responsiveness and increased participation and tends to increase political stability. Top-down decentralization may be motivated by the desire to "shift deficits downwards" and find more resources to pay for services or pay off government debt.<ref name=Lkhagvadorj/> Some hold that decentralization should not be imposed, but done in a respectful manner.<ref>"Decentralization: A Sampling of Definitions", 1999, p. 12.</ref>

; Appropriate size
Gauging the appropriate size or scale of decentralized units has been studied in relation to the size of sub-units of hospitals<ref>Robert J. Taylor, Susan B. Taylor, ''The Aupha Manual of Health Services Management'', Jones & Bartlett Learning, 1994, p. 33, {{ISBN|978-0834203631}}</ref> and schools,<ref name=Daun/> road networks,<ref>Frannie Frank Humplick, Azadeh Moini Araghi, "[http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1996/09/01/000009265_3961214192049/Rendered/PDF/multi_page.pdf Is There an Optimal Structure for Decentralized Provision of Roads?]", [[World Bank]] Policy Research Working Paper, 1996, p. 35.</ref> administrative units in business<ref>Abbass F. Alkhafaji, ''Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment'', [[Psychology Press]], 2003, p. 184, {{ISBN|978-0789018106}}</ref> and public administration, and especially town and city governmental areas and decision-making bodies.<ref>Ehtisham Ahmad, Vito Tanzi, ''Managing Fiscal Decentralization'', Routledge, 2003, [https://books.google.com/books?id=qzcVmaqpitwC&dq=%22appropriate+size%22+government+decentralization&pg=PA182 p. 182] {{webarchive|url=https://web.archive.org/web/20160527064232/https://books.google.com/books?id=qzcVmaqpitwC&pg=PA182 |date=2016-05-27 }}, {{ISBN|978-0203219997}}</ref><ref>Aaron Tesfaye, ''Political Power and Ethnic Federalism: The Struggle for Democracy in Ethiopia'', [[University Press of America]], 2002, [https://books.google.com/books?id=XD9oFjvFurAC&dq=%22appropriate+size%22+government+decentralization&pg=PA44 p. 44] {{webarchive|url=https://web.archive.org/web/20160502070342/https://books.google.com/books?id=XD9oFjvFurAC&pg=PA44 |date=2016-05-02 }}, {{ISBN|978-0761822394}}</ref>

In creating [[Planned community|planned communities]] ("new towns"), it is important to determine the appropriate population and geographical size. While in earlier years small towns were considered appropriate, by the 1960s, 60,000 inhabitants was considered the size necessary to support a diversified job market and an adequate shopping center and array of services and entertainment. Appropriate size of governmental units for revenue raising also is a consideration.<ref>Harry Ward Richardson, ''Urban economics'', Dryden Press, 1978, [https://archive.org/details/urbaneconomics0000rich <!-- quote="appropriate size" . --> pp. 107, 133, 159] {{webarchive|url=https://web.archive.org/web/20160513073909/https://books.google.com/books?ei=Gr0bUerHCofB0QG6v4Ag&id=d9YpAQAAMAAJ&q=%22appropriate+size%22+ |date=2016-05-13 }}.</ref>

Even in [[bioregionalism]], which seeks to reorder many functions and even the boundaries of governments according to physical and environmental features, including [[Drainage basin|watershed]] boundaries and [[soil]] and [[terrain]] characteristics, appropriate size must be considered. The unit may be larger than many decentralist-bioregionalists prefer.<ref>Allen G Noble, Frank J. Costa, ''Preserving the Legacy: Concepts in Support of Sustainability'', Lexington Books, 1999, [https://books.google.com/books?id=QVDd6tQLZ9kC&dq=Bioregionalism+appropriate+size&pg=PA214 p. 214] {{webarchive|url=https://web.archive.org/web/20160513194245/https://books.google.com/books?id=QVDd6tQLZ9kC&pg=PA214 |date=2016-05-13 }}, {{ISBN|978-0739100158}}</ref>

; Inadvertent or silent
Decentralization ideally happens as a careful, rational, and orderly process, but it often takes place during times of economic and political crisis, the fall of a regime and the resultant power struggles. Even when it happens slowly, there is a need for experimentation, testing, adjusting, and replicating successful experiments in other contexts. There is no one blueprint for decentralization since it depends on the initial state of a country and the power and views of political interests and whether they support or oppose decentralization.<ref>"Decentralization: A Sampling of Definitions", 1999, p. 21.</ref>

Decentralization usually is a conscious process based on explicit policies. However, it may occur as "silent decentralization" in the absence of reforms as changes in networks, policy emphasize and resource availability lead inevitably to a more decentralized system.<ref>H.F.W. Dubois and G. Fattore, [http://www.tandfonline.com/doi/abs/10.1080/01900690902908760 Definitions and typologies in public administration research: the case of decentralization], ''International Journal of Public Administration'', Volume 32, Issue 8, 2009, pp. 704–27.</ref>

; Asymmetry
Decentralization may be uneven and "asymmetric" given any one country's population, political, ethnic and other forms of diversity. In many countries, political, economic and administrative responsibilities may be decentralized to the larger urban areas, while rural areas are administered by the central government. Decentralization of responsibilities to provinces may be limited only to those provinces or states which want or are capable of handling responsibility. Some privatization may be more appropriate to an urban than a rural area; some types of privatization may be more appropriate for some states and provinces but not others.<ref>"Decentralization: A Sampling of Definitions", 1999, p. 19.</ref>

=== Determinants ===
The academic literature frequently mentions the following factors as determinants of decentralization:<ref>{{Cite book|title=Globalization and Self-Determination|last1=Cameron|first1=David R.|last2=Ranis|first2=Gustav|last3=Zinn|first3=Annalisa|date=2006-04-12|publisher=Routledge|isbn=978-0415770224|doi=10.4324/9780203086636}}</ref>
* "The number of major ethnic groups"
* "The degree of territorial concentration of those groups"
* "The existence of ethnic networks and communities across the border of the state"
* "The country's dependence on natural resources and the degree to which those resources are concentrated in the region's territory"
* "The country's per capita income relative to that in other regions"
* The presence of [[self-determination]] movements