INTRODUCTION:

WHY DECENTRALIZATION?

Yuwanto, Ph.D.
Mobile: 081325470107
Email: yuwantosaja@yahoo.com
Outline

 Decentralization &
Democratization
 Rationale for Decentralization
 Goals of Decentralization
 Approaches of Decentralization

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 Decentralization refers to a
process or situation of
transfer of authority and
responsibility for public
functions from the central
government to local
governments (World Bank, 2002)

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 Decentralization and
Democratization

 Over the last several decades

‘decentralization’ has become an
integral part of the contemporary
political reformist lexicon (along with
‘civil society’, ‘social capital’ and
‘good governance’)

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 As a policy objective,
decentralization processes were
more fully incorporates the
factors of power, power struggle
and interests

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 The localization of politics
through decentralization process
is a test case for the success of
the democratization

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 Rationale

 The trend to decentralize is driven

by a range of factors, such as:

1) Efforts to reduce central

bureaucracies

2) History of government
management failures

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3) Increased economic liberalization
and market orientation

4) Growing commitment to more

socially just and equitable public
services management.

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 Politics are the driving force
behind decentralization in most
countries, and decentralization
may be one of those instances
where good politics and good
economics may serve the same
end.

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 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 the distribution of local
services.

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 Goals of Decentralization

 In numerous countries, growing

numbers of citizens & policymakers
believe that decentralizing changes
can make their societies more stable,
more democratic, and better
developed economically.
3 (primary) goals of decentralization:
1) Stability
2) Democracy
3) Economic Development
1)Stability
– Decentralization can reduce
conflict by opening up new
avenues for political participation
– Local governments have the
potential to do a better job
preventing, managing, and solving
conflicts than national
government
– Where central government lack
credibility with the citizenry,
decentralization can be a
stabilizing force if it results in
improved public services
2)Democracy

– Decentralization can create more

transparent political institutions,
inculcate stronger citizen support
for government, and improve
democratic participation
– Decentralization also creates
incentives for the thickening of
civil society. One of the most
important ways that political
decentralization can strengthen
democracy is through its positive
impact on community
empowerment
3)Economic Development
– Local governments can promote
the conditions for investment and
economic development in a number
of dimensions, such as: (i) public
infrastructure investments (ii) pro-
growth regulatory & tax
environments (iii) human resource
development (iv) public-private
partnerships
– Services provided by local
governments are also important
because of their impact on the
private sector. Public services
function as inputs for the products
& services that are produced by
private companies, thereby
enhancing their ability to grow &
provide jobs.
 Approaches

 A Normative Approach
• Gradual/Incremental Process
• Systematic Preparation
• Normal Condition in Terms of
Politic, Social and Economy

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 A “Big‐bang” Approach
• Once for All
• Learning by Doing
• Transition Condition in Terms
Politic, Social and Economy

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