Democratic decentralization is the process of devolving the functions and resources of the state from the centre to the elected representatives at the lower levels so as to facilitate greater direct participation by the citizens in governance. The basic principle governing the devolution of functions and resources should be that of subsidiarity: what can be done best at a particular level should be done at that level and not at higher levels. All that can optimally done at the lowest level should be reserved to that level. Only the residual should be passed to the higher levels. The different tiers while functioning in ways complementary to each other, should have functional, financial and administrative autonomy. The concept of democratic decentralization proposed here also requires a movement beyond representative democracy. Appropriate institutions and opportunities but also necessary capabilities have to be created at the lower levels in order for ordinary citizens to participate in the decision-making, implementation, monitoring and sharing of the benefits and responsibilities of governmental activities. Such popular participation would make the elected representatives continuously accountable to the citizens and would facilitate a transparent administration.
Along with downsizing governments, decentralizing their authority is being advocated as part of the good governance agenda promoted by bilateral and multilateral funding agencies. De-concentrating Central government offices by locating them closer to where citizens live constitutes one part of decentralization; but the more important part concerns devolution or mandated transfers of authority and resources to independently elected local governments.
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