Decentralization

Decentralization distributes decision-making authority among multiple people, institutions, or locations rather than concentrating it in one central body. It can apply to political systems, organizations, and technical networks.

Subsidiarity: The principle that decisions should be made by the smallest competent authority closest to those affected. It gives a rule for deciding which responsibilities belong at local rather than central levels.
Federalism: A constitutional system that divides governing authority between a national government and constituent regional governments. It constitutionally distributes public powers across national and regional levels.
Centralization: The concentration of decision-making authority in a central person, institution, or location. It is the direct opposite: authority is concentrated rather than dispersed.
Local knowledge: Practical, context-specific knowledge held by people close to a place, activity, or problem. Local decision-makers may use information that distant central authorities lack.
Ostrom's design principles: Elinor Ostrom's principles for designing durable institutions that govern shared resources. They identify conditions under which local self-governance can manage common resources successfully.
Delegation: The assignment of authority or responsibility from one person or body to another. It transfers decision-making power while allowing the delegating body to retain oversight.
Local government: Public administration by authorities responsible for a town, city, county, or other local area. It places decisions about local services and rules in territorially closer institutions.
Deconcentration: The relocation of central government offices or staff to local areas without transferring their ultimate authority. It spreads administration geographically while leaving decisions under central control.
Collective action problem: A difficulty in coordinating individuals whose separate choices may undermine a shared goal. Independent decision centers can struggle to coordinate when their interests or actions diverge.
Fiscal equalization: Transfers between governments intended to reduce disparities in their capacity to provide public services. Decentralized revenue systems raise the question of how poorer regions can maintain comparable services.

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