Centralization and

Decentralization
Meaning of Centralization
 the process of transfer of administrative authority from a lower
to a higher level of organisation is called centralization (L.D.
White).

 it signifies the concentration of authority and decision –

making power at the top of the administrative pyramid. The
top level may be the chief executive or the headquarters.

 the field agencies are merely executing and implementing

agencies without any power to act on their own initiative.

 centralizationinclines toward power and domination of the

headquarters over field stations.
Reasons for Centralization
Personality Factors:
◦ lack of trust in the aptitude of employees at the subordinate level
◦ insecure personality of the chief executive
◦ ‘I am the best’ syndrome with most chief executives

Political Factors:
◦ sharing power
◦ obstruction to speedy disposal of business
◦ urban bias
◦ military budget and defence spending
◦ technology and security issues
◦ legacy of colonialism

Economic Factors:
◦ big budget policies
◦ Foreign aid
◦ control over the social security spending
Advantages of Centralization
 effective control over the entire administration system

 uniform policies, methods and procedures of

administration

 effective central control of administration checks:

◦ the abuse of authority
◦ misuse of administrative powers

 avoids expensive duplication of work

Disadvantages of Centralization
 middle and lower levels powerless and weak
 overburdened central authority
 autocratic control over subordinates
 leads to delay in arriving at decisions
 makes decisions without any knowledge of local
conditions
 not provide any opportunity to the people participation
Meaning of Decentralization
 the process of transfer of administrative power from a
higher to a lower level of government is called
decentralization (L.D. White).
 Decentralizationimplies the establishment of relatively
autonomous field and regional offices and delegation of
decision – making powers and functions to them.
 Decentralization signifies the central authority divesting
itself of certain powers, which are given away to the
autonomous local authorities
Dimensions and Forms
Distinction by hierarchy and function:
1. Territorial Decentralization: transfer of
centrally produced and provided public goods &
services to local level units in the govt. hierarchy of
jurisdiction.

2. Functional Decentralization: transfer of

authority to perform specific tasks to specialized
organizations.
Dimensions and Forms
1. Political Decentralization: transfer of diction making
power to citizens or their elected representatives.

2. Spatial Decentralization: reducing excessive urban

concentration in a few large cities by promoting regional growth
poles having potential to become centers of manufacturing &
agricultural marketing.

3. Market Decentralization: creating conditions that allow

public goods & services to be produced & provided by market
mechanisms.

4. Administrative Decentralization: hierarchical and

functional distribution of powers & functions between central and
non-central governments.
Types of Administrative Decentralization

Degree of administrative decentralization:

1. De-concentration
2. Delegation
3. Privatization
4. Deregulation
5. Devolution
De-concentration
the least extensive form of decentralization
◦ transfer of authority by administrative means to
different levels under jurisdictional authority of
central govt.
◦ Ministries retaining power
◦ Transferring the implementation roles
◦ Shifting of workload
◦ Field administration
◦ Local administration
Delegation
a more extensive form of decentralization than de-
concentration.
 transfer of decision-making and management
authority for specific function to organizations.
 indirect control of the central government / ministries.
 legally accountable
 public corporations, regional planning and area
development authorities, etc.
 transfer or creation of broad authority to plan and
implement decision concerning specific activities
within specific spatial boundaries.
Deregulation & Privatization
 Reduce the legal constraints on private participation in
service provision or allows competition among private
suppliers for service that in the past had been provided by
government or by regulated monopolies.

 In recent years privatization and deregulation have become

more attractive alternatives to government in developing
countries. Local governments are also privatizing be
contracting out service provision or administration.

 Privationand deregulation are usually. But not always

accompanied by economic liberalization and market
development policies.
Devolution
 the most extensive form of decentralization

 Implies divestment of functions by the central

government and creating of new units of governance
outside the control of central authority.

 It is the strongest form of a measure against

centralization. It is irreversible and is complete
decentralization.

 The subordinate officials obtain the legal authority to

design and execute local developmental programmes
and projects
Rationale of Decentralization
 rising demand for public goods & services
 shifting emphasis in development strategies
 widespread participation in planning & decision making
 preparation and implementation of projects in accordance with local
needs base
 use of scarce resources more efficiently
 opportunities for co-ordination & co-operation among decision
makers & local people
 improvement of socio-economic condition of the people
 involvement of people in the decision making process
 making the govt. officials accountable to peoples representatives
 bridging gap between people and administration
Condition for Successful Decentralization
 favorable political and administrative control
◦ strong political commitment and support from national leaders
◦ commitment of central bureaucracy to transfer authority local units

 organization factors conductive to decentralization

◦ appropriate allocation of planning and administrative functions
◦ concise and definite decentralization laws, regulations and directives

 behavioral and psychological supporting decentralization

◦ change attitude and behavior
◦ effective means of overcoming resistance

 resource condition required for decentralization

◦ transfer authority to obtain sufficient financial resources, equipment
◦ adequate financial infrastructure, transportation and communication
Advantages of Decentralization
 democratic participation
 improved management
 penetrate national policies to remote areas
 representation of various groups
 capacity building and developing local leadership
 utilization of local resources
 reduce cost and time
 access to basic social services
 closer contact between officials and local people
 ensure human development
 relieve central govt. from routine tasks
 expansion of economic activities
Challenges of Decentralization
committed political leadership
rigid control (institutional & financial)
bureaucratic dominance
distrust among parties involved
lack of comprehensive planning
change may not be acceptable
election of local bodies are not proper
problem of communication
political stability / change of policy
lack of coordination / dual instruction
inadequate authority power
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