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What was Centralization?
When the power, authority and all other decisions lie in the hand of one or a few, who are solely responsible for all the decisions, planning and executions, this type of governance is called centralized government. For example- if the monarch of any country controls everything, he has complete authority.
Why did it lead to Decentralization?
Intellectual minds and well-read people believe that when authority lies with only a few, it can act as a boon as well as a bane. Still, in a large community or group, the power must be distributed so that authority in one’s hand does not start being a dictatorship when the power is distributed; authoritarians keep a check on each other, which will lead to healthy governance.
It is nearly impossible for a few people to run a big nation like India single-handedly, so the power and duties must be distributed in a hierarchical way to improve governance and decision making; this led to decentralization in India.
After the 2 tier system of central and state governance, the third tier of governance was introduced by India in 1992, and that is how India undertook decentralization with the ideology “local people can govern their local areas in a very efficient way”.
What is Decentralization?
The transfer of power, authority and decision making to a group of people in a devised hierarchical system or organized levels are called decentralization. For example: Distribution of power to local gram panchayats, which were earlier governed by the state government itself.
Differences Between Decentralization and Centralization
Parameters | Centralization | Decentralization |
|---|---|---|
Meaning | The power and authority lie with one or very few people. | Power and authority are distributed amongst groups of people in an organized way. |
Power | Lies in the hand of authoritarian | Decision making and power is distributed for keeping a check on each other |
Flow of decisions | One person takes the decision | Decision making is divided, and an open and organized system is formed. |
Advantage | Quick decision making as no one else has a check and no discussion on the decision. | The decision undergoes proper discussion and assessment, and then it is implemented. |
Disadvantage | It can turn into a dictatorship as no other person has control or authority. | Discussion, analysis, and checking by other authoritarians takes time and slows the process. |
Role of lower authorities | Due to the concentration of power, the role of lower authoritarianism is very negligible and also limits consultation. | Different departments and decision-making are distributed amongst people, which spread duties and responsibilities in a better way. |
Institution level | Preferable for a small scale organization | Preferable for a group of people or community or nation so that working and governance becomes efficient |
Better decision makings | The leader may or may not choose the best local solution to local problems. | Local people and leaders will be able to take better call for their local areas and make efficient decision making that suits the best. |
Decision-making speed | The decision may be impulsive but can also be delayed | Slow and steady decision making |
Burden of implementing | The burden is not distributed and is concentrated on a few, making implementations of new decisions difficult. | The burden is equally shared, which makes implementing new decisions easily. |
Stability | Prone to instability due to conflicts in decision | Stable because decisions are taken collectively. |
Examples | A monarchical system where the decision-making power lies in the hand of the monarch | Democracy- hierarchical system devised by the authoritarians of India in 1992 |
Conclusion
Decentralization and centralization are equally important; both have their pros and cons. Centralization of power may be a better option in a smaller group or an organisation. Still, in a large group or community, decentralization is a better option, as the decision is made collectively, so more discussion and analysis will make the best decisions. For example: In India, decentralization of governance took place in 1992, which has become a better and more efficient way of governance. A centralized organization may not be stable comparatively because of conflicts of the thought process of lower authorities to higher. In contrast, a collective decision is taken in decentralisation, and proper discussion and analysis make better and appropriate decisions.
