The Organizational Structures at the Grassroots Level: Theoretical Overview

1

The Organizational Structures at the Grassroots Level

Theoretical Overview

DrTKrishnamohan

Senior Lecturer in Political Science

Department of Social Sciences

Eastern University Sri Lanka

Chenkalady

Sri Lanka

EMail tkmatura29gmailcom

URL wwwpoliticalmanaccom

httpstkmaturawordpresscom

Abstract

This Article presents a range of definitions and descriptions from recent sources and elaborates

on the concept of decentralization again drawn from secondary sources Thus it elaborates on

decentralization in the context of alternative services delivery an area of increasing application

world-wide and presents a preliminary assessment of the strengths and weaknesses of the

definitions It elaborates on selected aspects of decentralization Several different ways of

classifying forms of decentralization have been promoted over the past few decades by those

making a clear distinction between centralization and decentralization What is common to

these classification systems is that they recognize the need for a definition that is grounded on

more than legal concerns Six forms of approaches can be identified in the literature

Key Words Decentralisation Delegation De-Concentration Devolution

2



1 Introduction

Many Governments in the third world have attempted to introduce new organizational

structures at the grassroots level in the expectation that these will stimulate participation of the

people in local developmental activities Realization that the process of decentralization is

fundamental for securing involvement of the people has led them in this direction While

decentralization has undoubtedly gained popularity within the last two decades it is not a new

concept The term attracted attention in the 1950s and 1960s when British and French colonial

administrations prepared colonies for independence by devolving responsibilities for certain

programmes to local authorities In the 1980s decentralization came to the forefront of the

development agenda alongside the renewed global emphasis on governance and human-

centered approaches to human development1Today both developed and developing countries

are pursing decentralization policies

Under appropriate conditions all forms of decentralization can play important roles in

broadening participation in political economic and social activities in developing countries

Where it works effectively decentralization helps alleviate the bottlenecks in decision making

that are often caused by central government planning and control of important economic and

social activities Decentralization can help to cut complex bureaucratic procedures and it can

increase government officials sensitivity to local conditions and needs Moreover

decentralization can help national government ministries reach larger numbers of local areas

with services allow greater political representation for diverse political ethnic religious and

cultural groups in decision-making and relieve top managers in central ministries of routine

tasks to concentrate on policy In some countries decentralization may create a geographical

focus at the local level for coordinating national state provincial district and local programs

more effectively and can provide better opportunities for participation by local residents in

decision making Decentralization may lead to more creative innovative and responsive

1 Robertson 2002 Overview of Decentralization Worldwide A Stepping Stone to Improved

Governance and Human Development 2nd International Conference on Decentralization

Federalism The Future of Decentralizing States Manila UNDP New York P5 Available on

wwwundporggovernancedocsDLGUD_Pub_overview-decentralisation-worldwide-paperpdf

3

programs by allowing local experimentation It can also increase political stability and

national unity by allowing citizens to better control public programs at the local level

According to Western liberal tradition decentralization promotes democracy in numerous

ways By bringing government closer to citizens decentralization allows people to participate

more effectively in local affairs including identification of community priorities Local leaders

can be held increasingly accountable for decisions that affect citizenrsquos lives Citizens and their

elected leaders gain experience in the practice of democracy2

2 Definitions and Key Clarifications

To give some meaning to the term qualitative definitions of Decentralization have emerged -

such as administrative decentralization or democratic decentralization - and these are likely to

expand as the understanding and application of decentralization expands Decentralization and

democracy are essential to effective development programming in the world For this purposes

the different terms are defined as follows

21 Decentralization

Decentralization is mainly a process of transferring power to popularly elected local

governments It brings about change in the operation of institutions and almost invariably

occurs gradually Decentralization requires the existence of elected local governments because

local officials do not have meaningful autonomy unless they answer to their constituents

Appointed local officials must ultimately act according to the interests of those in the national

capital who gave them their jobs they are effectively agents of the national government A

local system in which government officials are appointed then is a centralized system that has

not begun to decentralize As Robert Ebel points out in his overview of Decentralization

ldquoThe western world sees decentralization as an alternative to provide public

services in a more cost-effective way Developing countries are pursing

decentralization reforms to counter economic inefficiencies macroeconomic

instability and ineffective governance Post-communist transition countries

are embracing decentralization as a natural step in the shift to market

economies and democracy Latin America is decentralizing as a result of

2 USAID 2000 Decentralization and Democratic Local Governance Programming Handbook

Technical Publication series Centre for Democracy and Governance Bureau for Global Programs

Field Support and Research US Agency for International Development Washington DC P5

Available on wwwusaidgov-our_work-democracy_and_governance-publications-pdfs-pnach300

4

political pressure to democratize African states view decentralization as a

path to national unityrdquo3

There are many different reasons why governments pursue decentralization and there are

numerous forms and degrees that decentralization can take on

Decentralization is any perform in which a central government formally cedes powers to actors

and institutions at lower levels in a political-administrative and territorial hierarchy4

Decentralisation can be defined as the transfer of responsibility for planning management and

resource raising and allocation from the central government and its agencies to the lower levels

of government Decentralisation is closely linked to the concept of subsidiary which proposes

that functions (or tasks) be devolved to the lowest level of social order that is capable of

completing them5 As the UNDP states

ldquoDecentralizing governance is the restructuring 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 subsidiary thus

increasing the overall quality and effectiveness of the system of governance

while increasing the authority and capabilities of sub-national levelsrdquo6

The English language definition of word lsquodecentralizersquo is straightforward enough ldquoTo move

the control of an organization or government from a single place to several smaller onesrdquo7

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

3 Ebel Robert D and Serdar Yilmaz 2001 Concept of Fiscal Decentralisation and Worldwide

Overview International Symposium Quebec Commission of Fiscal Imbalance P5 Available on


4 See for further details Mawhood Philip Local Government in the Third World in John Wiley

Chichester and Smith Brian C (Eds) 1985 Decentralization The Territorial Dimension of the

State George Allen London P238

5 UNDP 2001 A Key Concept for Regional Development Policy New Regional Development

Volume 3 P5 Available on wwwundporggovernancedocsDLGUD_Pub_overview-

decentralisation-worldwide-paperpdf

6 Ibid P6

7 Kate Woodford and Guy Jackson(Eds) 2003 Cambridge Advanced Learnerrsquos Dictionary

Cambridge University Press Version 10 P4 Available on wwwDictionaryCambridgeorg

5

central regional and local levels according to the principle of subsidiary thus increasing the

overall quality and effectiveness of the system of governance while increasing the authority

and capacities of sub-national levels Decentralization could also be expected to contribute to

key elements of good governance such as increasing peoples opportunities for participation in

economic social and political decisions assisting in developing peoples capacities and

enhancing government responsiveness transparency and accountability8

While decentralization or decentralizing governance should not be seen as an end in itself it

can be a means for creating more open responsive and effective local government and for

enhancing representational systems of community-level decision making By allowing local

communities and regional entities to manage their own affairs and through facilitating closer

contact between central and local authorities effective systems of local governance enable

responses to peoples needs and priorities to be heard thereby ensuring that government

interventions meet a variety of social needs The implementation of sustainable human

development strategies is therefore increasing to require decentralized local participatory

processes to identify and address priority objectives for poverty reduction employment

creation gender equity and environmental regeneration9

Decentralization stimulates the search for program and policy innovation first of all because it

is per se an innovative practice of governance Second because through its implementation

local governments are required to assume new and broader responsibilities in order to provide

public services for all The assumption of new responsibilities through decentralization often

requires improved planning budgeting and management techniques and practices the adoption

of new tools and the development of improved human resources to operate the decentralized

programmes10

Decentralization is a complex phenomenon involving many geographic entities societal actors

and social sectors The geographic entities include the international national sub-national and

8 UNDP 1997 Decentralized Governance Programme Strengthening Capacity for People -

Centered Development Management Development and Governance Division Bureau for

Development Policy P4 9 UNDP 1998 Decentralized Governance Monograph A Global Sampling of Experiences

Management Development and Governance Division Bureau for Policy Development P6 10

United Nations (DDSMS and UNDP) 1996 Report of the United Nations Global Forum on

Innovative Policies and Practices in Local Governance Gothenburg Sweden P26

6

local The societal actors include government the private sector and civil society The social

sectors include all development themes - political social cultural and environmental In

designing decentralization policies and programmes it is essential to use a systems-approach

encompassing these overlapping social sectors and the different requirements which each

makes Decentralization is a mixture of administrative fiscal and political functions and

relationships In the design of decentralization systems all three must be included11

22 Cohen and Peterson work

A recent work carried out by Cohen and Peterson contains a major section on the evolution of

decentralization as both a concept and as a means for development The authors identify six

major forms of decentralization In their own words

ldquoSeveral different ways of classifying forms of decentralization have been

promoted over the past few decades by those making a clear distinction

between centralization and decentralization What is common to these

classification systems is that they recognize the need for a definition that is

grounded on more than legal concerns Six approaches to identifying the

forms of decentralization can be identified in the literaturerdquo12

The following forms of decentralization are quoted directly from their work

The first approach classifies forms on the basis of historical origins A focus on history has led

one specialist to assert there were four basic decentralization patterns French English Soviet

and Traditional Today this system of classification is viewed as both too simplistic and

analytically weak13

A second approach distinguishes the forms of decentralization by hierarchy and function

According to this view lsquoterritorial decentralizationrsquo refers to the transfer of centrally produced

and provided public goods and services to local-level units in the government hierarchy of

jurisdictions lsquoFunctional decentralizationrsquo refers to the transfer of such central responsibilities

to either para-states under the control of the government or to units outside governmental

control such as NGOs or private firms The problem with this classification is that it is too

11

UNDP 1998 Factors to Consider in Designing Decentralized Governance Policies and

Programmes to Achieve Sustainable People - Centered Development Management Development

and Governance Division P1

12

Cohen J M and Peterson S B 1999Administrative DecentralizationStrategies for Developing

CountriesKumarian Press (published for and on behalf of the United Nations) P16 13

Ibid P16

7

rudimentary to facilitate clarity over design and implementation issues such as legal basis

structural organization division of powers or administrative financial and budgetary

procedures Further the emphasis on territory highlights a major misconception about

decentralization that decentralization is largely focused on the process of transferring public

sector tasks out of the capital city and into the hinterland This spatial view of decentralization

is naive and obscures the complexities of the concept The notion of functional decentralization

is more useful for it underlies the current view that administrative decentralization is the

expansion of the array of institutions and organizations carrying out collective public sector

tasks and that this can happen in the capital city as well as in other urban areas and the

countryside14

The third approach identifies forms of decentralization by the problem being addressed and the

values of the investigators This approach is best illustrated by the work of the Berkeley

Decentralization Project which was primarily interested in finding ways of bringing more

effective development programs and projects to the rural poor The Berkeley group identified

eight forms of decentralization Devolution functional devolution interest organization

prefectoral de-concentration ministerial de-concentration and delegation to autonomous

agencies philanthropy and marketing In formulating this set of forms most of the Berkeley

group was not interested in addressing larger generic issues related to the concept of

lsquodecentralizationrsquo Rather it focused on studying the linkages of the center and the periphery on

a sector-by-sector basis In studying these linkages it formulated an idiosyncratic set of forms

that ensured on a project-by-project basis that development interventions addressed the

vulnerability of the rural poor and the threat to them by central and local elites seeking their

own interests The problem with this approach to addressing particular weaknesses of over

centralization is that it is eclectic and dependent on the administrative political economic and

value rationale of the analysts addressing the problem15

A fourth approach focuses on patterns of administrative structures and functions that are

responsible for the production and provision of collective goods and services One of the first

of these was presented in 1962 by the United Nations It identified four forms of

14

IbidPP16-17

15

IbidP17

8

decentralization local-level governmental systems partnership systems dual systems and

integrated administrative systems The problem with this approach is that it is not analytical

enough to deal with the increasing diversity of structural and functional designs that marks the

last three decades16

A fifth approach takes a narrow definition of decentralization typically based on the experience

of a single country Under this view transferring responsibility manpower and resources to

central government field offices is not decentralization Rather decentralization only occurs

when local-level government units are

1 Established by legislation typically in the form of a charter that gives the unit legal

personality defined as established by law with the right to sue and be sued

2 Located within clearly demarcated jurisdictional boundaries within which there is a

sense of community consciousness and solidarity

3 Governed by locally elected officials and representatives

4 Authorized to make and enforce local ordinances related to devolved public sector

tasks

5 Authorized to collect legally earmarked taxes and revenues and

6 Empowered to manage their budget expenditure and accounting systems and to hire

their own employees including those responsible for security17

The sixth approach classifies forms of decentralization on the basis of objectives

Administrative Political Spatial and Market18

221 Administrative Decentralization

Administrative decentralization seeks to redistribute authority responsibility and financial

resources for providing public services among different levels of government It is the transfer

of responsibility for the planning financing and management of certain public functions from

the central government and its agencies to field units of government agencies subordinate units

or levels of government semi-autonomous public authorities or corporations or area-wide

regional or functional authorities

16

IbidPP17-18

17

Ibid P18

18

Ibid

9

The three major forms of administrative decentralization ndash De-concentration Delegation and

Devolution - each have different characteristics19

I De-Concentration

De-concentration which is often considered to be the weakest form of decentralization and is

used most frequently in unitary states redistributes decision making authority and financial and

management responsibilities among different levels of the central government It can merely

shift responsibilities from central government officials in the capital city to those working in

regions provinces or districts or it can create strong field administration or local administrative

capacity under the supervision of central government ministries20

II Delegation

Delegation is a more extensive form of decentralization Through delegation central

governments transfer responsibility for decision-making and administration of public functions

to semi-autonomous organizations not wholly controlled by the central government but

ultimately accountable to it Governments delegate responsibilities when they create public

enterprises or corporations housing authorities transportation authorities special service

districts semi-autonomous school districts regional development corporations or special

project implementation units Usually these organizations have a great deal of discretion in

decision-making They may be exempt from constraints on regular civil service personnel and

may be able to charge users directly for services

III Devolution

A third type of administrative decentralization is devolution When governments devolve

functions they transfer authority for decision-making finance and management to quasi-

19

ldquoBureaucratic decentralizationrdquo is another name given to de-concentration See Giancarlo Rolla 1998

Autonomy A Guiding Criterion for Decentralizing Public Administration International Review of

Administrative Sciences 64 PP27-39 And Kai Kaiser Decentralization Reforms Available on

wwwsiteresourcesworldbankorgINTPSIAResources490023-11208458259463622-06 Ch06pdf

20

Agrawal Arun and Jesse C Ribot 1999 Accountability in decentralization A framework with

South Asian and African cases Journal of Developing Areas Vol 33 PP 473-502 Oyugi Walter O

2000 Decentralization for good governance and development The unending debate Regional

Development Dialogue Vol 21 No 1 PP 3-22 and Rondinelli Dennis A James S McCullough and

Ronald W Johnson1989Analysing decentralization politics in developing countries A political

economy framework Development and Change Vol20 PP57-87

10

autonomous units of local government with corporate status Devolution usually transfers

responsibilities for services to municipalities that elect their own mayors and councillors raise

their own revenues and have independent authority to make investment decisions In a

devolved system local governments have clear and legally recognized geographical boundaries

over which they exercise authority and within which they perform public functions It is this

type of administrative decentralization that underlies most political decentralization

222 Political Decentralization

Political decentralization aims to give citizens or their elected representatives more power in

public decision-making It is often associated with pluralistic politics and representative

government but it can also support democratization by giving citizens or their representatives

more influence in the formulation and implementation of policies Advocates of political

decentralization assume that decisions made with greater participation will be better informed

and more relevant to diverse interests in society than those made only by national political

authorities The concept implies that the selection of representatives from local electoral

jurisdictions allows citizens to know better their political representatives and allows elected

officials to know better the needs and desires of their constituents21

Political decentralization often requires constitutional or statutory reforms the development of

pluralistic political parties the strengthening of legislatures creation of local political units

and the encouragement of effective public interest groups Constitution laws and regulations

codify the formal rules of the game by which a decentralized system is supposed to function

Structurally the desirable architecture of these rules is quite straightforward

The constitutions should be used to enshrine the broad principles on which decentralization is

to operate including the rights and responsibilities of all levels of government the description

and role of key institutions at central and local levels and the basis on which detailed rules

may be established or changed

21 Political decentralization is also called democratic decentralization by some authors See Crook

Richard C and James Manor Democracy and Decentralization in South-East Asia and West

Africa Participation Accountability and Performance in Manor 1998 (Ed) Political Economy

Cambridge University Press Cambridge PP11-12 and Harry Blair 1998 Spreading Power to the

Periphery An Assessment of Democratic Local Governance Program and Operations Assessment

Report No 21 Washington DC USAID P 1 and Agrawal Arun and Jesse C Ribot 1999

Accountability in decentralization A framework with South Asian and African cases Journal of

Developing Areas Vol 33 P475

11

One or more laws should define the specific parameters of the intergovernmental fiscal system

and the institutional details of the local government structure including key structures

procedures -including elections- accountabilities and remedies and a series of regulations

associated with each law should interpret and describe in detail the practices and measures by

which the related law will operate Laws that deal with tasks that are shared between national

and sub national governments should include sections on intergovernmental relations

Substantially greater detail and specificity is provided in moving down this three platform

architecture from the constitution to regulations Conversely greater difficulty and a higher

degree of authority eg Minister Parliament and Constitutional Assembly - is required to

change the provisions when moving up from regulations to the constitution

These aspects of degree of difficulty and locus of authority to effect changes are important

factors in determining where in the architecture particular aspects of the decentralization

system are defined and the relative specificity of those definitions The rigidities and flexibility

established in this structure have important implications for the management of a decentralized

system

223 Spatial Decentralization

Spatial decentralization is a term used by regional planners involved in formulating policies

and programs that aim at reducing excessive urban concentration in a few large cities by

promoting regional growth poles that have potential to become centers of manufacturing and

agricultural marketing

224 Fiscal Decentralization

Financial responsibility is a core component of decentralization If local governments and

private organizations are to carry out decentralized functions effectively they must have an

adequate level of revenues - either raised locally or transferred from the central government - as

well as the authority to make decisions about expenditures Fiscal decentralization can take

many forms including

1 Self-financing or cost recovery through user charges

2 Co-financing or co-production arrangements through which the users participate in

providing services and infrastructure through monetary or labor contributions

3 Expansion of local revenues through property or sales taxes or indirect charges

12

4 intergovernmental transfers that shift general revenues from taxes collected by the

central government to local governments for general or specific uses and

5 Authorization of municipal borrowing and the mobilization of either national or local

government resources through loan guarantees

In many developing countries local governments or administrative units possess the legal

authority to impose taxes but the tax base is so weak and the dependence on central

government subsidies so ingrained that no attempt is made to exercise that authority

225 Market Decentralization

The most complete forms of decentralization from a governments perspective are privatization

and deregulation because they shift responsibility for functions from the public to the private

sector Privatization and deregulation are usually but not always accompanied by economic

liberalization and market development policies They allow functions that had been primarily

or exclusively the responsibility of government to be carried out by businesses community

groups cooperatives private voluntary associations and other non-government organizations

I Privatization

Economically decentralization can mean privatization where the state withdraws from

provision and leaves it to market forces to determine the supply of goods and services

Decentralization has also taken the form of privatization or replacing the burden of central

administration by decentralized market forces22

Decentralization can range in scope from

leaving the provision of goods and services entirely to the free operation of the market to

lsquopublic-private partnershipsrsquo in which government and the private sector cooperate to provide

services or infrastructure Privatization can include

I Allowing private enterprises to perform functions that had previously been monopolized

by government

II Contracting out the provision or management of public services or facilities to

commercial enterprises indeed there is a wide range of possible ways in which function

can be organized and many examples of within public sector and public-private

institutional forms particularly in infrastructure

22

World development report 1983 Oxpord University Press P87

13

III Financing public sector programs through the capital market - with adequate regulation

or measures to prevent situations where the central government bears the risk for this

borrowing and allowing private organizations to participate and

IV Transferring responsibility for providing services from the public to the private sector

through the divestiture of state-owned enterprises

II Deregulation

Deregulation reduces the legal constraints on private participation in service provision or

allows competition among private suppliers for services that in the past had been provided by

the government or by regulated monopolies In recent years privatization and deregulation have

become more attractive alternatives to governments in developing countries Local

governments are also privatizing by contracting out service provision or administration

Much of the decentralization which has taken place in the past decade has been motivated by

political concerns For example in Latin America decentralization has been an essential part of

the democratization process as discredited autocratic central regimes are replaced by elected

governments operating under new constitutions In Africa the spread of multi-party political

systems is creating demand for more local voice in decision making In some countries such as

Ethiopia decentralization has been a response to pressures from regional or ethnic groups for

more control or participation in the political process In the extreme decentralization represents

a desperate attempt to keep the country together in the face of these pressures by granting more

autonomy to all localities or by forging unbalanced federations A variation on this theme has

been decentralization as an outcome of long civil wars such as in Mozambique and Uganda

where opening political opportunities at the local levels has allowed for greater participation by

all former warring factions in the governance of the country The transition economies of the

former socialist states have also massively decentralized as the old central apparatus crumbled

In many countries decentralization simply has happened in the absence of any meaningful

alternative governance structure to provide local government services In some cases

particularly in East Asia decentralization appears to be motivated by the need to improve

service delivery to large populations and the recognition of the limitations of central

administration

Although politics are the driving force behind decentralization in most countries fortunately

decentralization may be one of those instances where good politics and good economics may

14

serve the same end The political objectives to increase political responsiveness and

participation at the local level can coincide with the economic objectives of better decisions

about the use of public resources and increased willingness to pay for local services In the rest

of the research we use lsquoDecentralizationrsquo as shorthand for its Political Decentralization or

Democratic Decentralization form

3 Development via Decentralization and Democracy

Democracy is a process emphasizing the broad involvement of constituents in the direction and

operation of political systems While etymological roots imply that all governments deserving

the name democracy would rely on the participation of their citizens (the Greek demos and

kratos combine to suggest that the people rule) traditional representative democracies tend to

limit citizen participation to voting leaving the main work of governance to a professional

political elite Representative democracy is not generally considered participatory Grassroots

democracy is an alternative term that has actually been used to imply almost any combination

of democracy Participatory democracy strives to create opportunities for all members of a

political group to make meaningful contributions to decision making and seeks to broaden the

range of people who have access to such opportunities Democracy is conceptualized as a form

of organization of power that rests on a political regime but goes far beyond the regime it is a

system that regulates and acts on the disparities and conflicts that arise as a result of power

inequalities in a society The impact of this re-conceptualization is quite striking Rather than

focus attention exclusively on the electoral process and consider this process in isolation of

other key aspects of citizenship it highlights the multiple dimensions of citizenship and the

mutual interdependence among these dimensions In a nutshell seeing citizenship as consisting

of distinct yet normatively interconnected dimensions is a key step toward conceiving human

beings in a more holistic fashion

Decentralization occurs when government actors possessing authorities are willing to grant

discretion delegate authorities or share responsibilities with other actors inside or outside the

government and its public service in order to accomplish certain tasks Those who advocate

decentralization see a centralized system where power is situated at the center usually

controlled by a few In other words individuals organizations and communities not at the

center do not have authorities discretion or exercise control over their own affairs They are

either recipients of policies and programs from the center or merely instruments for carrying

15

out the centerrsquos plans and directives In this view the center is incapable of monitoring and

comprehending the diverse reality beyond its immediate confines and as a result imposes

counterproductive and demeaning rules and controls and sometimes causes decision-making

gridlock The center loses sight of what and who is to be served becoming more interested in

the means than the ends because the means are more familiar The desire to remedy these

problems constitutes the case for administrative and political decentralization often touted as

an alternative promising set of governance arrangements more conducive to determining local

needs encouraging innovation and responsiveness to citizens and furthering autonomy and

democracy 23

Decentralization is an integral part of the logic of democratization ndash the power of a people to

determine their own form of government representation policies and services In designing

decentralization strategies it is important to ensure adequate processes of accountability

transparency and responsiveness by all societal actors24

Democratic decentralization involving the transfer of administrative fiscal and political

power is necessary for decentralization to be successful and for sustainability to be a reality

Democratic decentralization is significantly strengthened when mechanisms are created at the

local level to facilitate the local level planning process linking government staff to civil

society Such partnership often necessitates a change in the mind-set of its members as well as

resources devoted to strengthening the capacities and skills necessary for effective facilitation

of such processes25

Decentralization should not be considered as a process but a way of life and a state of mind

based on the principles of freedom respect and participation Above all it is trust and

recognizing that people are capable of managing their affairs The need to close the gaps and

differences between all levels of governance through interaction and sharing

23

Institute of Public Administration of Canada 1999 Decentralization and Power-Sharing Impact

on Public Sector Management 24th National Seminar P418

24


Programmes to Achieve Sustainable People-Centered Development Management Development and

Governance Division P1 25

Experiences from India extracted from UNDP 1998 Draft Report on Global Workshop on

UNDPMIT Decentralized Governance Research Project Amman Jordan P3

16

Decentralization as consist of interlocking rings of responsibilities from the center to the

community Decentralization should not be imposed but that people should be exposed to it

thereby honoring their intelligence and respecting their independence26

UNDP uses the term lsquodecentralizing governancersquo as it firmly believes that decentralization of

the public sector in itself will not be effective unless support is also provided to strengthen

local governance involving the public private and civil sectors And in turn the achievement

of good governance at the local level is also not possible without the transfer of responsibilities

and capacities through decentralization The term decentralized governance defines the

systematic and harmonious interrelationship resulting from the balancing of power and

responsibilities between central governments and other levels of government and non-

governmental actors and the capacity of local bodies to carry out their decentralized

responsibilities using participatory mechanisms27

4 Conclusion

Decentralizing governance from the center to regions districts local governments authorities

and local communities can be an effective means of achieving critical objectives of the

sustainable human development (SHD) vision - improved access to services and employment

increased people participation in decisions affecting their lives and enhanced government

responsiveness28

Today throughout the world there is a broad-based movement towards greater decentralization

At the same time however there is still real debate about whether decentralized governance

can be an effective means of achieving the critical objectives of sustainable human

development improved and more equitable public access to services and employment

increased popular participation and enhanced government responsiveness Consequently there

is an increasingly urgent need to review the structure and processes of local governance in light

26

Ibid P1 27

UNDP 1998 Decentralized Governance Monograph A Global Sampling of Experiences

Management Development and Governance Division Bureau for Policy Development P6

28

UNDP 1997 Decentralized Governance Programme Strengthening Capacity for People -


Development Policy P1

17

of the growing recognition that good local governance is a sine qua non for improved national

governance29

Decentralized government can be an important element in the facilitation of an active and lively

civil society The more government is decentralized and the stronger the local governance

capacity the more opportunities in essence the more arenas are provided for the emergence of

civil society institutions In that regard local governments can and have played crucial

facilitating roles in the development of vibrant civil societies Local legislation government

policy and administrative practice can all profoundly impact upon the capacity for civil society

to both emerge and play a role in governance Indeed it is the existence of local governance

combined with the emergence of local civil society institutions that truly creates the pluralism

that is central to democratic development30

Decentralization of governance and the strengthening of local governing capacity is in part also

a function of broader societal trends These include for example the growing distrust of

government generally the spectacular demise of some of the most centralized regimes in the

world (especially the Soviet Union) and the emerging separatist demands that seem to routinely

pop up in one or another part of the world The movement toward local accountability and

greater control over ones destiny is however not solely the result of the negative attitude

towards central government Rather these developments are principally being driven by a

strong desire for greater participation of citizens and private sector organizations in

governance31

In the process of decentralization that is to say the redefinition of structures procedures and

practices of governance to be closer to the citizenry the importance of a general sensitization of

the public and a heightened awareness of costs and benefits especially for direct stakeholders

both at the central and local levels has to be emphasized The process of decentralization

should be understood from such a perspective instead of being seen in the over simplistic and

ultimately inaccurate terms of a movement of power from the central to the local government

29



30

IbidP28

31

Ibid

18

The reality is that government capacity is not a simple zero sum game In fact experience

shows that strengthening local government inevitably produces enhanced capacity at the center

as well32

A century ago the eminent British historian Lord Acton noted that ldquopower corrupts absolute

power corrupts absolutelyrdquo This maxim has been demonstrated all too frequently Indeed

much of the recent emphasis placed on the strengthening of local governance has been

motivated by a desire to break the grip of sometimes quite corrupt national bureaucracies on the

development process Indeed in many cases the single most important rationale for the

strengthening of systems of local governance is the need to disperse the monopolization of

power that is held by many national governments It is critically important to ensure the

existence of a system of multiple checks and balances on the exercise of political power In that

respect the single most important form of checks and balances in any society is the dispersal

or fragmentation of political power Without question the creation of strong regional and local

governments is critical to that development33

32

IbidP7 33

IbidP11

19

Bibliography

Agrawal Arun and Jesse C Ribot 1999 ldquoAccountability in decentralization A framework

with South Asian and African casesrdquo Journal of Developing Areas Vol 33

Cohen J M and Peterson S B 1999 Administrative Decentralization Strategies for

Developing Countries Kumarian Press (published for and on behalf of the United Nations

Crook Richard C and James Manor Democracy and Decentralization in South-East Asia

and West Africa Participation Accountability and Performance in Manor 1998 (Ed)

Political Economy Cambridge University Press Cambridge

Ebel Robert D and Serdar Yilmaz 2001 Concept of Fiscal Decentralisation and

Worldwide Overview International Symposium Quebec Commission of Fiscal

Imbalance Available on wwwundporggovernance docsDLGUD_Pub_overview-



UNDPMIT Decentralized Governance Research Project Amman Jordan

Giancarlo Rolla 1998 Autonomy A Guiding Criterion for Decentralizing Public

Administration International Review of Administrative Sciences 64

Harry Blair 1998 Spreading Power to the Periphery An Assessment of Democratic Local

Governance Program and Operations Assessment Report No 21 Washington DC USAID

Institute of Public Administration of Canada 1999 Decentralization and Power-Sharing

Impact on Public Sector Management 24th National Seminar

Kai Kaiser Decentralization Reforms Available on

wwwsiteresourcesworldbankorgINTPSIAResources49002311208458259463622-06

Ch06pdf

Kate Woodford and Guy Jackson(Eds) 2003 Cambridge Advanced Learnerrsquos Dictionary

Cambridge University Press Version 10Available on www DictionaryCambridgeorg

20

Mawhood Philip Local Government in the Third World in John Wiley Chichester and

Smith Brian C (Eds) 1985 Decentralization The Territorial Dimension of the State

George Allen London

Oyugi Walter O 2000 ldquoDecentralization for good governance and development The

unending debaterdquo Regional Development Dialogue Vol 21 No 1

Rondinelli Dennis A James S McCullough and Ronald W Johnson1989ldquoAnalysing

decentralization politics in developing countries A political economy frameworkrdquo

Development and Change Vol20

Robertson 2002 Overview of Decentralization Worldwide A Stepping Stone to Improved


Federalism The Future of Decentralizing States Manila UNDP New York Available on

wwwundporg governancedocsDLGUD_Pub_overview-decentralisation-worldwide-

paperpdf

UNDP 2001 A Key Concept for Regional Development Policy New Regional

Development Volume 3 Available on wwwundporg

governancedocsDLGUD_Pub_overview-decentralisation-worldwide-paperpdf

helliphelliphellip1998 Decentralized Governance Monograph A Global Sampling of Experiences

Management Development and Governance Division Bureau for Policy Development

helliphelliphellip 1998 Factors to Consider in Designing Decentralized Governance Policies and

Programmes to Achieve Sustainable People-Centered Development Management

Development and Governance Division

helliphelliphellip1997 Decentralized Governance Programme Strengthening Capacity for People -


Development Policy

21


Innovative Policies and Practices in Local Governance Gothenburg Sweden

USAID 2000 Decentralization and Democratic Local Governance Programming

Handbook Technical Publication series Centre for Democracy and Governance Bureau for

Global Programs Field Support and Research US Agency for International Development

Washington DCAvailable on wwwusaidgov-our_work-democracy_and_governance-

publications-pdfs pnach300

World development report 1983 Oxpord University Press

2



1 Introduction

Many Governments in the third world have attempted to introduce new organizational

structures at the grassroots level in the expectation that these will stimulate participation of the

people in local developmental activities Realization that the process of decentralization is

fundamental for securing involvement of the people has led them in this direction While

decentralization has undoubtedly gained popularity within the last two decades it is not a new

concept The term attracted attention in the 1950s and 1960s when British and French colonial

administrations prepared colonies for independence by devolving responsibilities for certain

programmes to local authorities In the 1980s decentralization came to the forefront of the

development agenda alongside the renewed global emphasis on governance and human-

centered approaches to human development1Today both developed and developing countries

are pursing decentralization policies

Under appropriate conditions all forms of decentralization can play important roles in

broadening participation in political economic and social activities in developing countries

Where it works effectively decentralization helps alleviate the bottlenecks in decision making

that are often caused by central government planning and control of important economic and

social activities Decentralization can help to cut complex bureaucratic procedures and it can

increase government officials sensitivity to local conditions and needs Moreover

decentralization can help national government ministries reach larger numbers of local areas

with services allow greater political representation for diverse political ethnic religious and

cultural groups in decision-making and relieve top managers in central ministries of routine

tasks to concentrate on policy In some countries decentralization may create a geographical

focus at the local level for coordinating national state provincial district and local programs

more effectively and can provide better opportunities for participation by local residents in

decision making Decentralization may lead to more creative innovative and responsive

1 Robertson 2002 Overview of Decentralization Worldwide A Stepping Stone to Improved


Federalism The Future of Decentralizing States Manila UNDP New York P5 Available on


3














21 Decentralization



















4






























6 Ibid P6



5























programmes10









6





















analytically weak13







11




12



Ibid P16

7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









3














21 Decentralization



















4






























6 Ibid P6



5























programmes10









6





















analytically weak13







11




12



Ibid P16

7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









4






























6 Ibid P6



5























programmes10









6





















analytically weak13







11




12



Ibid P16

7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









5























programmes10









6





















analytically weak13







11




12



Ibid P16

7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









6





















analytically weak13







11




12



Ibid P16

7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









7










countryside14



















14

IbidPP16-17

15

IbidP17

8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









8















tasks













16

IbidPP17-18

17

Ibid P18

18

Ibid

9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









9



I De-Concentration







II Delegation










III Devolution



19





20







10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









10


































11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









11















system
















12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









12















I Privatization










by government





22


13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









13






II Deregulation























administration



14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









14
































15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









15









democracy 23











of such processes25





23



24






16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









16













4 Conclusion





responsiveness28







26

Ibid P1 27



28




17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









17


governance29


















governance31







29



30

IbidP28

31

Ibid

18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









18



as well32












32

IbidP7 33

IbidP11

19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









19

Bibliography






















Ch06pdf



20



George Allen London










paperpdf











Development Policy

21









20



George Allen London










paperpdf











Development Policy

21









21









The Organizational Structures at the Grassroots Level: Theoretical Overview

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Transcript of The Organizational Structures at the Grassroots Level: Theoretical Overview