Democratic Decentralisation : The development of reciprocal relationships between central and local governments and between local governments and citizens.
Internet is a good example of a successful decentralised network. Wikipedia, the online Encyclopaedia, storing information on a plethora of topics, is also decentralised as it allows users to add, modify or delete content via the internet. Social networking sites are also decentralised systems that have greatly changed our lives. Information technology used to facilitate interactions of the government with the citizens, is referred to as e-Government. It is indeed a good initiative to boost democratisation. Education, health care and petroleum are some of the other sectors that have been decentralised and are among the fastest growing sectors of the economy today. Thus, decentralisation of public sector enterprises that began with the economic reforms of the 1990s has yielded tangible benefits to the country.
However, dangers of decentralisation loom large. For example, if the technical capacity or functioning of a system is weak, it will definitely result in poor quality products and services. Coordination for national policies can become complex and resource distribution can become uneven. A few local elites can grab power and hindrances in proper decision-making can surface. In the absence of a higher competent authority, monopoly and anarchy can give way to chaos and suppression of public interests.
Thus, decentralisation is both a boon and a bane to the economy. It is to be used as an ‘instrument of change and empowerment of the masses’ and not to earn quick money by few individuals pursuing their selfish interests.
