Decentralization

• Refers to Transfer of responsibility, function, authority and resources from center to the close to the citizen as far as possible.
• broad-based institutional process involving the transfer of authority and responsibility for public functions from the central government to other levels of governance.

Principle of subsidiary governance

Principle of subsidiary governance is based on following lessons.

1. State agencies do not provide sufficient access to people in governance. Hence people’s ownership remains weak
2. Without empowering local institutions equity cannot be addressed effectively
3. People participation and contribution in the service delivery cannot be mobilized in the absence of transparency and accountability
4. Effectiveness of all service should be measured from perspective of cost coverage quality, time and people satisfaction

Form of decentralization

1. Political decentralization (or democratic decentralization) is the selection of local government officials by local election rather than by central government appointment
2. Administrative decentralization is the transfer of authority over regional staff from the central government to regional or local governments.
3. Fiscal decentralization is the transfer of responsibility for raising and spending program funds to lower-level government units.
4. Market decentralization is the most decentralized form in as much as decision making power is transferred from public to private organizations. It can take two different forms.