Question:

What is the term for the process of decentralizing power and decision-making authority from central governments to local governments?

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\textbf{Decentralization:} Transfer of authority and responsibility from central to sub-national levels.
\textbf{Devolution:} A form of decentralization where powers, functions, and resources are transferred to autonomous, elected local governments. This is a key aspect of strengthening local self-governance.
Centralization is the opposite. Globalization is about international interconnectedness. Federalization is about forming a federal state structure.
Updated On: June 02, 2025
  • Centralization
  • Devolution
  • Globalization
  • Federalization
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The Correct Option is B

Solution and Explanation

Decentralization is the broad process of transferring power, authority, functions, and resources from central government to sub-national levels of government (state/provincial, regional, local) or to non-governmental organizations. There are different forms of decentralization:
Deconcentration: Transferring administrative responsibilities from central government ministries to their field offices or agencies at regional/local levels. Decision-making authority often remains largely central.
Delegation: Transferring responsibility for specific functions to semi-autonomous organizations (e.g., public corporations, authorities) that are accountable to, but not fully controlled by, central government.
Devolution: This is the strongest form of decentralization. It involves the transfer of power, authority, functions, and resources from central government to legally constituted, autonomous sub-national (typically local) governments that have a degree of independent decision-making power and accountability to their local constituencies. These local governments often have their own elected officials and fiscal capacity.
Privatization (sometimes considered a form of decentralization): Transferring functions or assets from the public sector to the private sector. Let's evaluate the options:
(a) Centralization: This is the opposite of decentralization; it means concentrating power and decision-making at the central level.
(b) Devolution: This term specifically refers to the transfer of powers and responsibilities from a central government to sub-national (often elected local) governments, granting them a degree of autonomy. This matches the description "decentralizing power and decision-making authority from central governments to local governments."
(c) Globalization: Refers to the increasing interconnectedness and interdependence of countries through trade, investment, information flow, and cultural exchange. Not directly about internal government power structures.
(d) Federalization: This refers to the process of forming a federal system of government, where power is constitutionally divided between a central (federal) government and constituent political units (states, provinces). While federalism involves decentralization of power to states, "devolution" more specifically describes the transfer of powers to local governments *within* a state or national framework (which can occur in both federal and unitary systems). The most appropriate term for the process described is Devolution. \[ \boxed{\text{Devolution}} \]
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