Decentralization and devolution

Introduction

From the 1980s onwards, many countries decentralized government, hoping to bring decisions closer to people, improve services and deepen democracy. Pakistan's 2001 devolution and the 18th Amendment are major examples.

Forms of administrative decentralization (Rondinelli)

• Deconcentration: transfer of responsibilities to field offices of the central government; the weakest form, as control remains central.
• Delegation: transfer of responsibility to semi-autonomous organizations, such as development authorities or public corporations.
• Devolution: transfer of power to elected, autonomous local governments with their own revenue and authority; the strongest form.
• Divestment or privatization: transfer of functions to the private sector or NGOs.

Dimensions of decentralization

• Political decentralization: elected local representatives with decision-making powers.
• Administrative decentralization: control over staff and service delivery.
• Fiscal decentralization: own revenues and transfers to local governments.
• Market decentralization: shifting functions to markets and private providers.

Advantages

• Decisions closer to people and better suited to local needs.
• Greater participation and accountability.
• Reduced burden on the central government.
• Training ground for democratic leadership.
• Innovation through local experimentation.

Risks

• Elite capture by local influentials.
• Inequality between rich and poor regions.
• Weak local capacity.
• Duplication and coordination problems.
• Corruption may be decentralized rather than reduced.

Conclusion

Decentralization is not automatically good or bad; its success depends on design, resources, capacity and accountability. Genuine devolution, with funds, functions and functionaries, is the most effective form.