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Decentralization in any area is a response to the problems of centralized systems. Decentralization in government, the topic most studied, has been seen as a solution to problems like economic decline, government inability to fund services and their general decline in performance of overloaded services, the demands of minorities for a greater ...
To the extent that a base unit of society – usually conceived as an individual citizen – vests authority in a larger unit, such as the state or the local community, authority is centralized. The extent to which this ought to occur, and the ways in which centralized government evolves, forms part of social contract theory .
Centralised versus decentralised systems [ edit ] A centralised system is one in which a central controller exercises control over the lower-level components of the system directly or through the use of a power hierarchy (such as instructing a middle level component to instruct a lower level component). [ 1 ]
In political science, centralisation refers to the concentration of a government's power—both geographically and politically—into a centralised government, which has sovereignty over all its administrative divisions. Conversely, a decentralised system of government often has significant separation of powers and local self-governance.
A central government is the government that is a controlling power over a unitary state. Another distinct but sovereign political entity is a federal government , which may have distinct powers at various levels of government, authorized or delegated to it by the federation and mutually agreed upon by each of the federated states .
Decentralized planning is usually held in contrast to centralized planning, in particular the Soviet-type economic planning of the Soviet Union's command economy, where economic information is aggregated and used to formulate a plan for production, investment and resource allocation by a single central authority.
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According to Walter Scheidel, mainstream definitions of the state have the following in common: "centralized institutions that impose rules, and back them up by force, over a territorially circumscribed population; a distinction between the rulers and the ruled; and an element of autonomy, stability, and differentiation.