Author Topic: Advantages of decentralization & Limits of decentralization  (Read 130 times)

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Advantages of decentralization & Limits of decentralization
« on: November 23, 2022, 10:50:45 AM »

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Advantages of decentralization
Advantages and disadvantages of territorial decentralizationOn the one hand, the idea of decentralizing implies providing relief to the central state leadership - generally called the national government or central government -, it allows to generate better decisions and acquire greater speed to make these. In short, decentralization, be it political or administrative, reduces the cost of decision-making within the State . This also involves the need for a delicate construction of the powers that correspond to each of the entities that make up the decentralized organization .

On the other hand, decentralization brings state power closer to the individual, providing more efficient mechanisms for political control and bringing those who hold said power closer together. The more decentralized power is found, the easier it will be for the decentralized Exchange entity to know the options and preferences of the residents subject to its jurisdiction. In fact, decentralization mechanisms democratize the access of said individuals to the State in general, since they facilitate the realization of mechanisms of political participation typical of direct democracy .

Likewise, the existence of decentralized entities with a certain amount of autonomy allows them to control the power exercised by the central or national State. This mutual interaction causes both to moderate the use they make of the faculties that the order provides them. This control mechanism works vertically , unlike the separation of powers, to which we have previously referred , which works horizontally.

All the aforementioned advantages can be observed in the analysis of political systems that show tendencies towards decentralization, whether we consider in the analysis the Spanish autonomies, the German landers, the Swiss cantons, the North American states or the Italian regions, to name just a few. Some examples. In fact, the so-called consensual democracy schemes have a very broad relationship with highly decentralized regimes .

Limits of decentralization

First, there are certain advantages of centralization itself to take into account. On the one hand, certain specialized issues are not likely to be decentralized. An undue increase in administrative costs may result, as administrative coordination can be costly, making decision making difficult. On the other hand, current technology facilitates communications and transportation, which means that certain decisions can be managed centrally.

But, in addition, decentralization itself admits limits [8]which derive precisely from the cost of decision-making, to which we have referred in previous installments. Paradoxically, a decentralized administration can be larger and more expensive than a centralized organization, as there is a need to create agencies in charge of carrying out coordination mechanisms.

On the other hand, it cannot be expected to decentralize all state decisions, since many of them require uniform considerations for their management. That is why the exclusive powers of the National Government [9] are established . In the Peruvian case we find in the first place the design of national and sectoral policies, which correspond to the Executive Power and in particular to the ministries.
Advantages and disadvantages of territorial decentralizationLikewise, Defense, National Security and the Armed Forces are centralized, making it unthinkable that each decentralized government has its own defense forces. In addition, Foreign Relations correspond exclusively to the National Government , which in principle are generated between national states; as well as the Internal Order , the national, border and crime prevention police.

The administration of justice is also centralized, unlike what occurs in some federal states, such as the United States of America or the United Mexican States (or simply, Mexico), where there are two levels of judicial organization, the federal and the state. In these cases, the determination of the competence of each one of said levels is a matter of particular importance, which generates not a few controversies.

The currency in the hands of the Central Reserve Bank, while the regulation of Banking, Insurance and the Private Pension System corresponds to the respective Superintendency, as established by the Constitution. Taxation and national public indebtedness is also the responsibility of the National Government, as is evident; as well as the trade regime and tariffs. The regulation and management of the merchant marine and commercial aviation; as well as the regulation of public services for which it is responsible also correspond to the National Government.

In addition, the regulation and management of public infrastructure of a national nature and scope corresponds to the National Government , taking into account that there is also infrastructure whose management corresponds to local and regional governments.

On the other hand, it is evident that the decentralization process in our country has not been generating the expected results . Thus, several regional governments have not complied with generating the development of their respective departments , Defi Development even when there are important resources for it; which shows spending quality problems by not properly executing the assigned budget, despite the existing public needs, which have worsened as a result of the pandemic. Likewise, there are various authorities and former regional authorities that have not only been questioned, but have also been criminally prosecuted, which shows that the control mechanisms are not working at a decentralized level.

Finally, it is true thatThe existence of , in principle, three levels of decentralization must be established , one central or more national, another regional or provincial, and finally, a regime at the local or municipal level . These three levels are related to each other through the principle of subsidiarity, by which the Government that is closest to the population must enjoy the respective state powers.


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