Decentralization

The concept of decentralization refers to the allocation of power in organizations or social structures usually from the higher to the lower-level structure(s)/organization(s). It can describe either an existing structure in which smaller or peripheral units have effective powers or a process of structural change implying a shift of power from the center to these units. The structure concerned can be a network differentiated into a center and a periphery, a hierarchical organization internally differentiated into sectors or subdivisions, or a territorial organization differentiated into levels of geographical space.

In political science, decentralization usually refers to multilevel structures of government or administration. It results from (re)allocation of power to elect or denominate policymakers of legislative or administrative competences or of fiscal resources from higher to lower levels. Given interdependencies between levels, decentralization is to be regarded as a relational concept. The effects of policies made by lower-level units depend on the power of the center, and shifts of power toward lower levels usually affect the degree of centralization or decentralization, while only major reforms change the character of a political system, for example, by turning a unitary into a federal system. Nevertheless, regard less of its extent, decentralization affects governance and democratic legitimacy. For this reason, it is not only a matter of multilevel power games but also contested for normative reasons.

For long, decentralization was not a salient concept in political theory. History of government was about centralization of power to manage conflicts of competing local elites and social groups. The modern state evolved in a process of center formation. The 20th century saw a trend toward inter- or transnational governance. However, these developments never went in only one direction. Centralization was also often thwarted by countervailing powers from below. In the final decades of the 20th century, a general trend toward more decentralization gained ground in many developed states. At the same time, decentralization became a kind of paradigm for governance in developing countries.

In political theory and practice, decentralization is now mostly regarded as a preferable alternative to centralization. As a principle guiding the organization of government, it is justified by different normative theories. All of them can be traced back to different political theories and ideas, but all are under dispute, as is exemplified by the writings of Johannes Althusius and Jean [Page 546]Bodin or the controversies between the American Federalists and anti-Federalists.

The first reason for decentralization is derived from the principle of subsidiarity. Rooted in the political philosophy of reformed Protestantism in the early 17th century and in social theory of the Catholic Church of the 19th century, it defends the priority of small social communities against large societies and a centralized, bureaucratic state. While this collectivist view reemerged in communitarist theories, the principle has a strong impact in discourses on constitutional design. Here, subsidiarity has turned into a legal principle stipulating a prerogative for decentralization in case of dispute.

To justify this prerogative, two main arguments are relevant: The first holds that decentralization improves democracy. If government is closer to the people, communication between citizens and their representatives should be more effective and individual preferences should have better chances to be considered in political decisions. Moreover, decentralization is said to reflect plurality and regional differentiation of societal interests. Liberalist theories prefer decentralization as a device against dictatorship either of autocrats or of majorities. Against these assumptions, empirical studies have revealed, that governance at lower levels is often more elitist and exclusive compared with representative democracy in larger territorial units and that it may, under particular conditions, support regional conflicts or separatism.

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