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Welcome. September 26, 2012. Decentralization. Governance: Concept and Issues Unit 5/D. Centralization. The concentration of political power or government authority at the national level. Decentralization

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  1. Welcome September 26, 2012

  2. Decentralization Governance: Concept and Issues Unit 5/D

  3. Centralization • The concentration of political power or government authority at the national level. Decentralization • The expansion of local autonomy through the transfer of powers and responsibilities away from national bodies.

  4. Comparison Centralization Decentralization • Macro • National Unity • Uniformity ( laws and services- health, services, education) • Equality ( resource distribution) • Prosperity ( infrastructures, currency, tax and spending policies • Micro • Participative (Closer to people) • Responsiveness (More sensitive) • Legitimacy ( intelligible-understood) • Liberty Dispersing power/ less chances of being tyranny

  5. Democracy and Decentralization Real democracy requires the people themselves to be involved in shaping their own lives. And decentralization is the only means of devolving authority from the center to the local units of governance. It also enlarges the area for decision-making freeing the grassroots from the straitjacket of central directives.

  6. Evolution Newly evolve conditions focus on people's preference and priorities, ownership, equity and participation in policies, institutions and processes in policy making.

  7. Local Self- Government Act-1999 • People’s Participation in Governance • Institutionalize the Process of Equitable Development • Capacity Building of Local Bodies • Development of Local Leadership • Partnership with Civil Society • Involvement of Private Sector

  8. Factors • The balance between centralization and decentralization within a state is shaped by a wide range of historical, cultural, economic and political factors.

  9. Factors • The Openness of the Polity (Concerned ones) • Country’s Geography • Global Economic Decentralization • Evolution in Management Areas

  10. Why decentralization? Any complex society requires a diverseand heterogeneous decision making structure to carry out its multiple tasks in a coherent, explicit and predictable manner. Management efficiency cannot be had without a substantial devolution of central power, responsibilities and resources to sub-national units of government.

  11. Types A. Horizontal Decentralization Disperses power among institutions at the same level Check and Balance mechanism

  12. Vertical Decentralization Transfer some of the powers of the central government to downward among the tiers of authority A. De-concentration– the Ministry and Embassies B. Delegation-Power and decision making authority which can be taken back if necessary C. Devolution- State and local government ( minimalist approach) Full autonomy to the local bodies in formulating self- governance

  13. Perspectives It is designed to reach people and make them participative in their social and economic welfare, thus decentralization is based on social interest. To attain this wider goal there are at least 3 disciplinary perspectives of decentralization. • Administrative Perspective • Political Perspective • Economic Perspective

  14. Administrative Decentralization It is the transfer of responsibility of planning, management, and the generation and allocation of resources from central government to the field units of government. i.e. National Planning Commission and District Dev. Committee, Ministry of Finance and District Revenue office

  15. Political Decentralization The basic objectives of political decentralization are to increase the efficiency of local political units, citizen representation and participation in decision-making and their freedom of choice in the process of deciding the matter of their primary concern.

  16. Economic Decentralization • Denationalization Selling government owned assets to the private sectors • De-bureaucratization Cutting down the size of the bureaucracy and create private opportunities • Deregulation Tariff, labor market, price • Privatization Reducing the role of the government or increase the role of the private sectors

  17. Reference Dahal, D. R., et al, (2001) Good Governance and Decentralization in Nepal ( Lalitpur: FES) Heywood, A. (2007) Politics ( New York: Palgrave)

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