Decentralization refers to the transfer of authority, responsibility and financial resources for governance and administration from higher levels to lower tiers of government/organization.
It is a complex multifaceted concept and decentralization can be of 3 three types- deconcentration, delegation and devolution.
- Deconcentration 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.
- It is often considered to be the weakest form of decentralization and is used most frequently in unitary states.
2. Devolution
- Devolution is a type of decentralization where governments devolve functions, they transfer authority for decision-making, finance, and management to the lower tier of government.
- In a devolved system, local governments have clear and legally recognized powers and they exercise authority and perform public functions within a fixed geographical region. This is the most extensive form of decentralization.
3. Delegation
It 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.
Example Medical Council of India, FSSAI etc. Usually these organizations have a great deal of discretion in decision-making.
