Decentralization in the context of "Central planning"

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⭐ Core Definition: Decentralization

Decentralization or decentralisation is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it.

Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, technology, economics and money.

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Decentralization in the context of Regionalism (politics)

Regionalism is a political ideology that seeks to increase the political power, influence and self-determination of the people of one or more subnational regions. It focuses on the "development of a political or social system based on one or more" regions, and/or the national, normative, or economic interests of a specific region, group of regions or another subnational entity, gaining strength from or aiming to strengthen the "consciousness of and loyalty to a distinct region with a homogeneous population", similarly to nationalism. More specifically, "regionalism refers to three distinct elements: movements demanding territorial autonomy within unitary states; the organization of the central state on a regional basis for the delivery of its policies including regional development policies; political decentralization and regional autonomy".

Regions may be delineated by administrative divisions, culture, language and religion, among others. Regionalists' demands occur in "strong" forms (such as sovereigntism, separatism, sovereignty, secession and independence), as well as more "moderate" campaigns for greater autonomy (such as states' rights, decentralization or devolution). Strictly speaking, regionalists favour confederations over unitary nation states with strong central governments. They may, however, embrace intermediate forms of federalism. Proponents of regionalism usually claim that strengthening the governing bodies and political powers within a region, at the expense of a centralized government, will benefit local populations by improving regional or local economies, in terms of better fiscal responsibility, regional development, allocation of resources, implementation of localist policies and plans, competitiveness among regions and, ultimately, the whole country, consistent with the principle of subsidiarity.

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Decentralization in the context of Devolution

Devolution is the statutory delegation of powers from the central government of a sovereign state to govern at a subnational level, such as a regional or local level. It is a form of administrative decentralization. Devolved territories have the power to make legislation relevant to the area, thus granting them a higher level of autonomy.

Devolution differs from federalism in that the devolved powers of the subnational authority may be temporary and are reversible, ultimately residing with the central government. Thus, the state remains de jure unitary. Legislation creating devolved parliaments or assemblies can be repealed or amended by central government in the same way as any statute. In federal systems, by contrast, sub-unit government is guaranteed in the constitution, so the powers of the sub-units cannot be withdrawn unilaterally by the central government (i.e. not without the process of constitutional amendment). The sub-units therefore have a lower degree of protection under devolution than under federalism.

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Decentralization in the context of Local Autonomy Act

The Local Autonomy Act (地方自治法, Chihō-jichi-hō), passed by the House of Representatives and the House of Peers on March 28, 1947 and promulgated as Law No. 67 of 1947 on April 17, is an Act of devolution that established most of Japan's contemporary local government structures and administrative divisions, including prefectures, municipalities and other entities. On July 16, 1999, the law was amended to eliminate administrative functions imposed upon local governments by the central governments and to establish Committee for Settling National-Local Disputes. The law and other relevant laws have been amended after the revision to promote decentralization. 

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Decentralization in the context of Urban sprawl

Urban sprawl (also known as suburban sprawl or urban encroachment) is defined as "the rapid expansion of the geographic extent of cities and towns, often characterized by low-density residential housing, single-use zoning, and increased reliance on the private automobile for transportation. ". Urban sprawl has been described as the unrestricted growth in many urban areas of housing, commercial development, and roads over large expanses of land, with little concern for very dense urban planning. Sometimes the urban areas described as the most "sprawling" are the most densely populated. In addition to describing a special form of urbanization, the term also relates to the social and environmental consequences associated with this development. In modern times some suburban areas described as "sprawl" have less detached housing and higher density than the nearby core city. Medieval suburbs suffered from the loss of protection of city walls, before the advent of industrial warfare. Modern disadvantages and costs include increased travel time, transport costs, pollution, and destruction of the countryside. The revenue for building and maintaining urban infrastructure in these areas are gained mostly through property and sales taxes. Most jobs in the US are now located in suburbs generating much of the revenue, although a lack of growth will require higher tax rates.

In Europe, the term peri-urbanisation is often used to denote similar dynamics and phenomena, but the term urban sprawl is currently being used by the European Environment Agency. There is widespread disagreement about what constitutes sprawl and how to quantify it. For example, some commentators measure sprawl by residential density, using the average residential units per acre in a given area. Others associate it with decentralization (spread of population without a well-defined centre), discontinuity (leapfrogging development, as defined below), segregation of uses, and so forth.

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Decentralization in the context of Republics of the Soviet Union

In the Soviet Union, a Union Republic (Russian: Сою́зная Респу́блика, romanizedSoyúznaya Respúblika) or unofficially a Republic of the USSR was a constituent federated political entity with a system of government called a Soviet republic, which was officially defined in the 1977 constitution as "a sovereign Soviet socialist state which has united with the other Soviet republics to form the Union of Soviet Socialist Republics" and whose sovereignty is limited by membership in the Union. As a result of its status as a sovereign state, the Union Republic de jure had the right to enter into relations with foreign states, conclude treaties with them and exchange diplomatic and consular representatives and participate in the activities of international organizations (including membership in international organizations). The Union Republics were perceived as national-based administrative units of the Union of Soviet Socialist Republics (USSR).

The Soviet Union was formed in 1922 by a treaty between the Soviet republics of Byelorussia, Russian SFSR (RSFSR), Transcaucasian Federation, and Ukraine, by which they became its constituent republics of the Union of Soviet Socialist Republics (Soviet Union). For most of its history, the USSR was a one-party state led by the Communist Party of the Soviet Union. Key functions of the USSR were highly centralized in Moscow until its final years, despite its nominal structure as a federation of republics; the light decentralization reforms during the era of perestroika (reconstruction) and glasnost (voice-ness, as in freedom of speech) conducted by Mikhail Gorbachev as part of the Helsinki Accords are cited as one of the factors which led to the dissolution of the USSR in 1991 as a result of the Cold War and the creation of the Commonwealth of Independent States.

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Decentralization in the context of Foreign exchange market

The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it is by far the largest market in the world, followed by the credit market.

The main participants are the larger international banks. Financial centres function as anchors of trading between a range of multiple types of buyers and sellers around the clock, with the exception of weekends. As currencies are always traded in pairs, the market does not set a currency's absolute value, but rather determines its relative value by setting the market price of one currency if paid for with another. Example: 1 USD is worth 1.1 Euros or 1.2 Swiss Francs etc. The market works through financial institutions and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are involved in large quantities of trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "interbank market". Trades between dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, Forex has little supervisory entity regulating its actions. In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency.

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Decentralization in the context of Territorial collectivity

A territorial collectivity (French: collectivité territoriale, previously collectivité locale), or territorial authority, in many francophone countries, is an administrative division governed by public law that exercises within its territory certain powers devolved to it by the State as part of a decentralization process. In France, it also refers to a chartered administrative division of France with recognized governing authority. It is the generic name for any territory with an elective form of local government and local regulatory authority. The nature of a French territorial collectivity is set forth in Article 72 of the Constitution of France (1958), which provides for local autonomy within limits prescribed by law.

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Decentralization in the context of Economic planning

Economic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources between and within organizations contrasted with the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a procedure for direct allocations of resources within an interconnected group of socially owned organizations which together comprise the productive apparatus of the economy.

There are various forms of economic planning that vary based on their specific procedures and approach. The level of centralization or decentralization in decision-making depends on the specific type of planning mechanism employed. In addition, one can distinguish between centralized planning and decentralized planning. An economy primarily based on planning is referred to as a planned economy. In a centrally planned economy, the allocation of resources is determined by a comprehensive plan of production which specifies output requirements. Planning can also take the form of indicative planning within a market-based economy, where the state employs market instruments to induce independent firms to achieve development goals.

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