Centralisation & Decentralisation

सर्व पाठांशी संबंधीत व्हिडीओ लेक्चर्स पहाण्यासाठी इथे क्लिक करा

Centralization and decentralization are two contrasting principles of public administration. They refer to the distribution of authority and decision-making power within an organization or a governmental system. Let’s delve into each:

Centralization:

• Definition: Centralization refers to the concentration of decision-making authority at the top level of an organization or system. In a centralized structure, decisions are typically made by a single entity or a group of senior officials, and there is a more stringent hierarchical control.
• Advantages:
  • Uniformity in decisions and policies.
  • Efficient use of resources due to unified direction.
  • Reduced duplication of efforts.
  • Clear accountability as the decision-making rests with a specific entity or person.
• Disadvantages:
  • May lead to delays in decision-making due to bottlenecks.
  • Can be distant from ground realities and local needs.
  • Might discourage initiative and innovation at lower levels.
  • Increased risk of single point failures.
• Example: Many authoritarian regimes follow a centralized form of administration where the central government or a single leader holds the primary decision-making power, often overriding regional or local inputs. Another example can be large corporations where decisions are primarily made by the headquarters, and satellite offices simply implement those decisions.

Decentralization:

• Definition: Decentralization refers to the dispersion or distribution of decision-making powers and functions away from the central authority to regional or local authorities. In a decentralized system, local entities have more autonomy to make decisions based on their specific contexts and needs.
• Advantages:
  • Faster decision-making as decisions are made closer to the source of issues.
  • Better responsiveness to local needs and circumstances.
  • Encourages initiative and innovation at regional or local levels.
  • Reduces burden on the central authority.
• Disadvantages:
  • Risk of inconsistency in policies and decisions across different regions or departments.
  • May lead to resource duplication if regions implement similar solutions independently.
  • Challenges in coordinating and aligning regional goals with the central vision.
  • Potential for inter-regional disparities.
• Example: Federal systems of government, like the United States or Germany, exemplify decentralization. Here, individual states or regions possess significant powers to govern their territories, allowing them to make decisions tailored to their local circumstances. Similarly, multinational corporations may adopt a decentralized approach by giving significant decision-making authority to their regional offices, allowing them to cater to local market needs effectively.

In practice, most public administration systems fall somewhere on a spectrum between total centralization and total decentralization, adopting a blend of both principles based on their specific circumstances, goals, and challenges.

Examples from the Indian Constitution

The Indian constitution follows both these principles. Some departments are completely centralised. For e.g. currency and coinage is looked after by the RBI, which is a central institution. India has only one defence force controlled by the central government. India has one foreign policy. But every state is free to follow their own language, educational pattern. Every state has a separate police force and a public works department.

The seventh schedule

The Seventh Schedule of the Indian Constitution provides for the division of powers between the Union government (central government) and the State governments. It contains three lists detailing the subjects on which each level of government can make laws. These three lists are:

1. Union List (List I):
   • Subjects on which only the Union government can make laws.
   • Examples include defense, atomic energy, foreign affairs, railways, and telecommunications.
   • The Union List comprises 100 items (originally 97 items).
2. State List (List II):
   • Subjects on which only the State governments can make laws.
   • Examples include police, public health, agriculture, and local government.
   • The State List comprises 61 items (originally 66 items).
3. Concurrent List (List III):
   • Subjects on which both the Union and State governments can make laws. However, in case of a conflict between Union and State laws on a Concurrent List subject, the Union law prevails.
   • Examples include criminal law, bankruptcy and insolvency, marriage and divorce, and bankruptcy and insolvency.
   • The Concurrent List comprises 52 items (originally 47 items).

These lists indicate the use of principles of centralisation and decentralisation together.

Example of University of Mumbai

University of Mumbai has a decentralised system of examination for first and second year undergraduate classes of arts, commerce and science faculties. Exams are conducted by each affiliated college separately, assessment is also done at the college level and results are declared by the college. Finally, results are communicated to the University. University maintains a database of all students from all colleges. However third year exams are conducted by the University, i.e. it follows the principle of centralisation at the third year.

The admission process has a combination of centralisation and decentralisation. First year undergraduate admissions in affiliated colleges is centralised. All students have to fill up a university form. But after filling this form they approach various colleges alloted to them by the University and finally take admission in the college of their choice. They pay the fees in the college. Original documents are submitted to the college. College confirms the admission and informs the University. University updates its database. Same database is used to enter first and second year marks of respective students.