Decentralization (or decentralisation) is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority. While centralization, especially in the governmental sphere, is widely studied and practiced, there is no common definition or understanding of decentralization. The meaning of decentralization may vary in part because of the different ways it is applied. Concepts of decentralization have been applied to political science, law and public administration, economics and technology.
- History 1
- Systems approach 2.1
- Goals 2.2
- Processes 2.3
Government decentralization 3
- Political 3.1
- Administrative 3.2
- Fiscal 3.3
- Economic or market 3.4
- Environmental 3.5
Ideological decentralization 4
- Libertarian socialist decentralization 4.1
- Free market decentralization 4.2
Technological decentralization 5
Information technology 5.1
- Centralization and redecentralization of the Internet 5.1.1
- Appropriate technology 5.2
- Information technology 5.1
- Critiques 6
- See also 7
- References 8
- Further reading 9
The word "centralization" came into use in France in 1794 as the post-French Revolution French Directory leadership created a new government structure. The word "decentralization" came into usage in the 1820s. "Centralization" entered written English in the first third of the 1800s; mentions of decentralization also first appear during those years. In the mid-1800s Alexis de Tocqueville wrote that the French Revolution began with "a push towards decentralization...[but became,]in the end, an extension of centralization." In 1863 retired French bureaucrat Maurice Block wrote an article called “Decentralization” for a French journal which reviewed the dynamics of government and bureaucratic centralization and recent French efforts at decentralization of government functions.
Ideas of liberty and decentralization were carried to their logical conclusions during the 19th and 20th centuries by anti-state political activists calling themselves "anarchists", "libertarians and even decentralists. Alexis de Tocqueville was an advocate, writing: "Decentralization has, not only an administrative value, but also a civic dimension, since it increases the opportunities for citizens to take interest in public affairs; it makes them get accustomed to using freedom. And from the accumulation of these local, active, persnickety freedoms, is born the most efficient counterweight against the claims of the central government, even if it were supported by an impersonal, collective will." Pierre-Joseph Proudhon (1809–1865), influential anarchist theorist wrote: "All my economic ideas as developed over twenty-five years can be summed up in the words: agricultural-industrial federation. All my political ideas boil down to a similar formula: political federation or decentralization."
In early twentieth century America a response to the centralization of economic wealth and political power was a decentralist movement. It blamed large-scale industrial production for destroying middle class shop keepers and small manufacturers and promoted increased property ownership and a return to small scale living. The decentralist movement attracted Southern Agrarians like Robert Penn Warren, as well as journalist Herbert Agar. New Left and libertarian individuals who identified with social, economic, and often political decentralism through the ensuing years included Ralph Borsodi, Wendell Berry, Paul Goodman, Carl Oglesby, Karl Hess, Donald Livingston, Kirkpatrick Sale (author of Human Scale), Murray Bookchin, Dorothy Day, Senator Mark O. Hatfield, Mildred J. Loomis and Bill Kauffman.
Leopold Kohr, author of the 1957 book The Breakdown of Nations—known for it statement “Whenever something is wrong, something is too big”—was a major influence on E.F. Schumacher, author of the 1973 bestseller Small is Beautiful:Economics As If People Mattered. In the next few years a number of best-selling books promoted decentralization. Daniel Bell's The Coming of Post-Industrial Society discussed the need for decentralization and a “comprehensive overhaul of government structure to find the appropriate size and scoope of units”, as well as the need to detach functions from current state boundaries, creating regions based on functions like water, transport, education and economics which might have “different ‘overlays’ on the map.” Alvin Toffler published Future Shock (1970) and The Third Wave (1980). Discussing the books in a later interview, Toffler said that industrial-style, centralized, top-down bureaucratic planning would be replaced by a more open, democratic, decentralized style which he called “anticipatory democracy.” Futurist John Naisbitt's 1982 book “Megatrends” was on The New York Times Best Seller list for more than two years and sold 14 million copies. Naisbitt’s book outlines 10 “megatrends”, the fifth of which is from centralization to decentralization. In 1996 David Osborne and Ted Gaebler had a best selling book Reinventing Government proposing decentralist public administration theories which became labeled the "New Public Management".
Stephen Cummings wrote that decentralization became a "revolutionary megatrend" in the 1980s. In 1983 Diana Conyers asked if decentralization was the "latest fashion" in development administration. Cornell University's project on Restructuring Local Government states that decentralization refers to the "global trend" of devolving responsibilities to regional or local governments. Robert J. Bennett's Decentralization, Intergovernmental Relations and Markets: Towards a Post-Welfare Agenda describes how after World War II governments pursued a centralized "welfarist" policy of entitlements which now has become a "post-welfare" policy of intergovernmental and market-based decentralization.
According to a 1999 United Nations Development Programme report:
"A large number of developing and transitional countries have embarked on some form of decentralization programmes. This trend is coupled with a growing interest in the role of civil society and the private sector as partners to governments in seeking new ways of service delivery...Decentralization of governance and the strengthening of local governing capacity is in part also a function of broader societal trends. These include, for example, the growing distrust of government generally, the spectacular demise of some of the most centralized regimes in the world (especially the Soviet Union) and the emerging separatist demands that seem to routinely pop up in one or another part of the world. The movement toward local accountability and greater control over one's destiny is, however, not solely the result of the negative attitude towards central government. Rather, these developments, as we have already noted, are principally being driven by a strong desire for greater participation of citizens and private sector organizations in governance.”
Those studying the goals and processes of implementing decentralization often use a systems theory approach. The United Nations Development Programme report applies to the topic of decentralization "a whole systems perspective, including levels, spheres, sectors and functions and seeing the community level as the entry point at which holistic definitions of development goals are most likely to emerge from the people themselves and where it is most practical to support them. It involves seeing multi-level frameworks and continuous, synergistic processes of interaction and iteration of cycles as critical for achieving wholeness in a decentralized system and for sustaining its development.”
However, decentralization itself has been seen as part of a systems approach. Norman Johnson of Los Alamos National Laboratory wrote in 1999 paper: "A decentralized system is where some decisions by the agents are made without centralized control or processing. An important property of agent systems is the degree of connectivity or connectedness between the agents, a measure global flow of information or influence. If each agent is connected (exchange states or influence) to all other agents, then the system is highly connected."
University of California, Irvine's Institute for Software Research's "PACE" project is creating an "architectural style for trust management in decentralized applications." It adopted Rohit Khare's definition of decentralization: "A decentralized system is one which requires multiple parties to make their own independent decisions" and applies it to Peer-to-peer software creation, writing:
...In such a decentralized system, there is no single centralized authority that makes decisions on behalf of all the parties. Instead each party, also called a peer, makes local autonomous decisions towards its individual goals which may possibly conflict with those of other peers. Peers directly interact with each other and share information or provide service to other peers. An open decentralized system is one in which the entry of peers is not regulated. Any peer can enter or leave the system at any time...
Decentralization in any area is a response to the problems of centralized systems. Decentralization in government, the topic most studied, has been seen as a solution to problems like economic decline, government inability to fund services and their general decline in performance of overloaded services, the demands of minorities for a greater say in local governance, the general weakening legitimacy of the public sector and global and international pressure on countries with inefficient, undemocratic, overly centralized systems. The following four goals or objectives are frequently stated in various analyses of decentralization.
In decentralization the principle of 
Decentralization is often linked to concepts of participation in decision-making, democracy, equality and liberty from higher authority. Decentralization enhances the democratic voice. Theorists believe that local representative authorities with actual discretionary powers are the basis of decentralisation that can lead to local efficiency, equity and development.” Columbia University's Earth Institute identified one of three major trends relating to decentralization as: "increased involvement of local jurisdictions and civil society in the management of their affairs, with new forms of participation, consultation, and partnerships."
Decentralization has been described as a "counterpoint to globalization" which removes decisions from the local and national stage to the global sphere of multi-national or non-national interests. Decentralization brings decision-making back to the sub-national levels. Decentralization strategies must the interrelations of the global, regional, national, sub-national, local levels.
Norman L. Johnson writes that diversity plays an important role in decentralized systems like 
Advocates of political decentralization hold that greater participation by better informed diverse interests in society will lead to more relevant decisions than those made only by authorities on the national level. Decentralization has been described as a response to demands for diversity.
In business, decentralization leads to a management by results philosophy which focuses on definite objectives to be achieved by unit results. Decentralization of government programs is said to increase efficiency - and effectiveness - due to reduction of congestion in communications, quicker reaction to unanticipated problems, improved ability to deliver of services, improved information about local conditions, and more support from beneficiaries of programs.
Firms may prefer decentralization because it ensures efficiency by making sure that managers closest to the local information make decisions and in a more timely fashion; that their taking responsibility frees upper management for long term strategizing rather than day-to-day decision-making; that managers have hands on training to prepare them to move up the management hierarchy; that managers are motivated by having the freedom to exercise their own initiative and creativity; that managers and divisions are encouraged to prove that they are profitable, instead of allowing their failures to be masked by the overall profitability of the company.
The same principles can be applied to government. Decentralization promises to enhance efficiency through both inter-governmental competition with market features and fiscal discipline which assigns tax and expenditure authority to the lowest level of government possible. It works best where members of subnational government have strong traditions of democracy, accountability and professionalism.
Economic and/or political decentralization can help prevent or reduce conflict because they reduce actual or perceived inequities between various regions or between a region and the central government. Dawn Brancati finds that political decentralization reduces intrastate conflict unless politicians create political parties that mobilize minority and even extremist groups to demand more resources and power within national governments. However, the likelihood this will be done depends on factors like how democratic transitions happen and features like a regional party's proportion of legislative seats, a country's number of regional legislatures, elector procedures, and the order in which national and regional elections occur. Brancati holds that decentralization can promote peace if it encourages statewide parties to incorporate regional demands and limit the power of regional parties.
The processes of decentralization redefines structures, procedures and practices of governance to be closer to the citizenry and to make them more aware of the costs and benefits; it is not merely a movement of power from the central to the local government. According to the United Nations Development Programme it is "more than a process, it is a way of life and a state of mind." The report provides a chart-formatted framework for defining the application of the concept ‘decentralization’ describing and elaborating on the "who, what, when, where, why and how" factors in any process of decentralization.
The processes by which entities move from a more to a less centralized state vary. They can be initiated from the centers of authority ("top-down") or from individuals, localities or regions ("bottom-up"), or from a "mutually desired" combination of authorities and localities working together. Bottom-up decentralization usually stresses political values like local responsiveness and increased participation and tends to increase political stability. Top-down decentralization may be motivated by the desire to “shift deficits downwards” and find more resources to pay for services or pay off government debt. Some hold that decentralization should not be imposed, but done in a respectful manner.
Analysis of operations
Project and program planners must assess the lowest organizational level at which functions can be carried out efficiently and effectively Governments deciding to privatize functions must decide which are best privatized. Existing types of decentralization must be studied. The appropriate balance of centralization and decentralization should be studied. Training for both national and local managers and officials is necessary, as well as technical assistance in the planning, financing, and management of decentralized functions.
Gauging the appropriate size or scale of decentralized units has been studied in relation to the size of sub-units of hospitals and schools, road networks, administrative units in business and public administration, and especially town and city governmental areas and decision making bodies.
In creating planned communities ("new towns"), it is important to determine the appropriate population and geographical size. While in earlier years small towns were considered appropriate, by the 1960s, 60,000 inhabitants was considered the size necessary to support a diversified job market and an adequate shopping center and array of services and entertainment. Appropriate size of governmental units for revenue raising also is a consideration.
Even in bioregionalism, which seeks to reorder many functions and even the boundaries of governments according to physical and environmental features, including watershed boundaries and soil and terrain characteristics, appropriate size must be considered. The unit may be larger than many decentralist bioregionalists prefer.
- Inadvertent or silent
Decentralization ideally happens as a careful, rational, and orderly process, but it often takes place during times of economic and political crisis, the fall of a regime and the resultant power struggles. Even when it happens slowly, there is a need for experimentation, testing, adjusting, and replicating successful experiments in other contexts. There is no one blueprint for decentralization since it depends on the initial state of a country and the power and views of political interests and whether they support or oppose decentralization.
Decentralization usually is conscious process based on explicit policies. However, it may occur as "silent decentralization" in the absence of reforms as changes in networks, policy emphasize and resource availability lead inevitably to a more decentralized system. A variation on this is "inadvertent decentralization", when other policy innovations produce an unintended decentralization of power and resources. In both China and Russia, lower level authorities attained greater powers than intended by central authorities.
Decentralization may be uneven and "asymmetric" given any one country's population, political, ethnic and other forms of diversity. In many countries, political, economic and administrative responsibilities may be decentralized to the larger urban areas, while rural areas are administered by the central government. Decentralization of responsibilities to provinces may be limited only to those provinces or states which want or are capable of handling responsibility. Some privatization may be more appropriate to an urban than a rural area; some types of privatization may be more appropriate for some states and provinces but not others.
Measuring the amount of decentralization, especially politically, is difficult because different studies of it use different definitions and measurements. An OECD study quotes Chanchal Kumar Sharma as stating: "a true assessment of the degree of decentralization in a country can be made only if a comprehensive approach is adopted and rather than trying to simplify the syndrome of characteristics into the single dimension of autonomy, interrelationships of various dimensions of decentralization are taken into account."
Historians have described the history of governments and empires in terms of centralization and decentralization. In his 1910 The History of Nations Ancient Greece. Since the 1980s a number of scholars have written about cycles of centralization and decentralizations. Stephen K. Sanderson wrote that over the last 4000 years chiefdoms and actual states have gone through sequences of centralization and decentralization of economic, political and social power. Yildiz Atasoy writes this process has been going on “since the Stone Age” through not just chiefdoms and states, but empires and today’s “hegemonic core states”. Christopher K. Chase-Dunn and Thomas D. Hall review other works that detail these cycles, including works which analyze the concept of core elites which compete with state accumulation of wealth and how their "intra-ruling-class competition accounts for the rise and fall of states" and of their phases of centralization and decentralization.
Rising government expenditures, poor economic performance and the rise of free market-influenced ideas have convinced governments to decentralize their operations, to induce competition within their services, to contract out to private firms operating in the market, and to privatize some functions and services entirely.
Government decentralization has both political and administrative aspects. Its decentralization may be territorial, moving power from a central city to other localities, and it may be functional, moving decision-making from the top administrator of any branch of government to lower level officials, or divesting of the function entirely through privatization. It has been called the "new public management" which has been described as decentralization, management by objectives, contracting out, competition within government and consumer orientation.
Political decentralization aims to give citizens or their elected representatives more power. It may be associated with pluralistic politics and representative government, but it also means giving citizens, or their representatives, more influence in the formulation and implementation of laws and policies. Depending on the country, this may require constitutional or statutory reforms, the development of new political parties, increased power for legislatures, the creation of local political units, and encouragement of advocacy groups.
Four major forms of administrative decentralization have been described.
- Deconcentration, the weakest form of decentralization, shifts responsibility for decision-making, finance and implementation of certain public functions from officials of central governments to those in existing districts or, if necessary, new ones under direct control of the central government.
- Devolution transfers all responsibility for decision-making, finance and implementation of certain public functions to the sub-national level, such as a regional, local, or state government.
-  Many of these functions originally were done by private individuals, companies, or associations and later taken over by the government, either directly, or by regulating out of business entities which competed with newly created government programs.
Fiscal decentralization means decentralizing revenue raising and/or expenditure of moneys to a lower level of government while maintaining financial responsibility. While this process usually is called fiscal federalism it may be relevant to unitary, federal and confederal governments. Fiscal federalism also concerns the "vertical imbalances" where the central government gives too much or too little money to the lower levels. It actually can be a way of increasing central government control of lower levels of government, if it is not linked to other kinds of responsibilities and authority.
Fiscal decentralization can be achieved through user fees, user participation through monetary or labor contributions, expansion of local property or sales taxes, intergovernmental transfers of central government tax monies to local governments through transfer payments or grants, and authorization of municipal borrowing with national government loan guarantees. Transfers of money may be given conditionally with instructions or unconditionally without them.
Economic or market
Economic decentralization can be done through privatization of public owned functions and businesses, as described briefly above. But it also is done through
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- Nico Groenendijk, "Fiscal federalism Revisited" paper presented at Institutions in Transition Conference organized by IMAD, Slovania Ljublijana.
- ”Decentralization: A Sampling of Definitions”, 1999, p. 18.
- Intergovernmental Fiscal Relations, Decentralization and Subnational Economies project, World Bank website, accessed February 9, 2013.
- Jerry Taylor and Peter Van Doren, Short-Circuited, Wall Street Journal, August 30, 2007, reprinted at Cato Institute website.
- Mark A. Calabria, Did Deregulation Cause the Financial Crisis?, Cato Policy Report, July/August 2009, Vol. XXXI No. 4p 1, 6-8.
- Peoples planning : kerala's dilemma by K P Kannan, Seminar 485 2000
- Emmanuelle Auriol and Michel Benaim, Standardization in Decentralized Economies, The American Economic Review, June 2000, p. 1, 5.
- Terry L. Anderson, Vernon L. Smith, and Emily Simmons, How and Why to Privatize Federal Lands, Cato Institute policy paper No. 363, November 9, 1999.
- Larson, A (2003). "Decentralisation and Forest Management in Latin America: Towards a Working Model". Public administration and development 23: 211–226.
- Ribot, J (2002). Democratic Decentralisation of Natural Resources: Institutionalising Popular Participation. Oxon: Routledge.
- I. Scoones, Beyond Farmer First, London: Intermediate technology publications.
- Larson, A (2002). "Natural Resource Management and Decentralisation in Nicaragua: Are Local Governments up to the job?". World Development 30 (1): 17–31.
- Binkley, Robert C. Realism and Nationalism 1852-1871. Read Books. p. 118
- "The revolution abolishes private ownership of the means of production and distribution, and with it goes capitalistic business. Personal possession remains only in the things you use. Thus, your watch is your own, but the watch factory belongs to the people."Alexander Berkman. "What Is Communist Anarchism?"
- As Noam Chomsky put it, a consistent libertarian "must oppose private ownership of the means of production and the wage slavery, which is a component of this system, as incompatible with the principle that labor must be freely undertaken and under the control of the producer". Chomsky (2003) p. 26
- Paul Zarembka. Transitions in Latin America and in Poland and Syria. Emerald Group Publishing, 2007. p. 25
- Guerin, Daniel. Anarchism: A Matter of Words: "Some contemporary anarchists have tried to clear up the misunderstanding by adopting a more explicit term: they align themselves with libertarian socialism or communism." Faatz, Chris, Towards a Libertarian Socialism.
- Ostergaard, Geoffrey. "Anarchism". A Dictionary of Marxist Thought. Blackwell Publishing, 1991. p. 21.
- Chomsky (2004) p. 739
- Ross, Dr. Jeffery Ian. Controlling State Crime, Transaction Publishers (2000) p. 400 ISBN 0-7658-0695-9
- Ackelsberg, Martha A. (2005). Free Women of Spain: Anarchism and the Struggle for the Emancipation of Women.
- Rocker, Rudolf (2004). Anarcho-Syndicalism: Theory and Practice.
- Spiegel, Henry. The Growth of Economic Thought Duke University Press (1991) p.446
- Paul, Ellen Frankel et al. Problems of Market Liberalism Cambridge University Press (1998) p.305
- However, libertarian socialism retains respect for personal property.
- Sims, Franwa (2006). The Anacostia Diaries As It Is. Lulu Press. p. 160.
- A Mutualist FAQ: A.4. Are Mutualists Socialists?. Mutualist.org. Retrieved on 2011-12-28.
- Murray Bookchin, Ghost of Anarcho-Syndicalism; Robert Graham, The General Idea of Proudhon's Revolution
- Kent Bromley, in his preface to Peter Kropotkin's book The Conquest of Bread, considered early French utopian socialist Charles Fourier to be the founder of the libertarian branch of socialist thought, as opposed to the authoritarian socialist ideas of Babeuf and Buonarroti." Kropotkin, Peter. The Conquest of Bread, preface by Kent Bromley, New York and London, G. P. Putnam's Sons, 1906.
- "(Benjamin) Tucker referred to himself many times as a socialist and considered his philosophy to be "Anarchistic socialism." An Anarchist FAQ by Various Authors
- French individualist anarchist Émile Armand shows clearly opposition to capitalism and centralized economies when he said that the individualist anarchist "inwardly he remains refractory – fatally refractory – morally, intellectually, economically (The capitalist economy and the directed economy, the speculators and the fabricators of single are equally repugnant to him.)""Anarchist Individualism as a Life and Activity" by Emile Armand
- Anarchist Peter Sabatini reports that In the United States "of early to mid-19th century, there appeared an array of communal and "utopian" counterculture groups (including the so-called free love movement). William Godwin's anarchism exerted an ideological influence on some of this, but more so the socialism of Robert Owen and Charles Fourier. After success of his British venture, Owen himself established a cooperative community within the United States at New Harmony, Indiana during 1825. One member of this commune was Josiah Warren (1798–1874), considered to be the first individualist anarchist"Peter Sabatini. "Libertarianism: Bogus Anarchy"
- Lewis Herber. (Murray Bookchin) "Ecology and Revolutionary Thought". Theanarchistlibrary.org (2009-04-27). Retrieved on 2011-12-28.
- Sheehan, Sean. Anarchism, London: Reaktion Books, 2004. p. 85.
- Guerin, Daniel (ed.) No Gods, No Masters, AK Press, vol. 1, p. 62
- The General Idea of the Revolution, Pluto Press, p. 277 and p. 281
- Peter Kropotkin. "Anarchist Communism: Its Basis and Principles"
- George Woodcock. Anarchism: a history of libertarian movements. Pg. 357
- George Woodcock. Anarchism: a history of libertarian movements. Pg. 357
- "Anarchism" at the Encyclopedia Britannica online.
- "This process of education and class organization, more than any single factor in Spain, produced the collectives. And to the degree that the CNT-FAI (for the two organizations became fatally coupled after July 1936) exercised the major influence in an area, the collectives proved to be generally more durable, communist and resistant to Stalinist counterrevolution than other republican-held areas of Spain." Murray Bookchin. To Remember Spain: The Anarchist and Syndicalist Revolution of 1936
- Murray Bookchin. To Remember Spain: The Anarchist and Syndicalist Revolution of 1936
- Noam Chomsky Notes on Anarchism
- Marvin Zelkowitz, Editor, Advances in Computers, Volume 82, Academic Press, 2011, p. 3, ISBN 9780123855138
- Eleanor Doyle, The Economic System, John Wiley & Sons, 2005, p. 61, ISBN 9780470015179
- Friedrich von Hayek, The Road to Serfdom: Text and documents - the definitive edition; Volume 2 of Collected Works of F. A. Hayek, edited by Bruce Caldwell, University of Chicago Press, 2009, p. 94, ISBN 9780226320533
- Bruce M. Owen, Antecedents to Net Neutrality, Cato Institute publication "Regulation", Fall, 2007, p. 16.
- Tibor R. Machan, Private Rights & Public Illusions, Transaction Publishers, 1995, p. 99, ISBN 9781412831925
- Tibor R. Machan, editor, The Libertarian Alternative, Nelson-Hall, 1974 included Yale Brozen's, "Is Government the source of monopoly? and other essays", Cato Institute, 1980; and Roy Childs' "Big Business and the Rise of American Statism", 1971, Reason.
- Gabriel Kolko, The Triumph of Conservatism: A Reinterpretation of American History, 1900–1916, Chapter Two: "Competition and Decentralization: The Failure to Rationalize Industry", Simon and Schuster, 2008, p. 26-56, 141, 220, 243, 351, ISBN 9781439118726
- Roy Childs, "Big Business and the Rise of American Statism", Reason, 1971.
- D. T. Armentano, Antitrust Policy: Reform or Repeal?, Cato Institute Policy Analysis No. 21, January 18, 1983
- John Montgomery, The New Wealth of Cities: City Dynamics and the Fifth Wave, Ashgate Publishing, Ltd., 2008, p. 2, ISBN 9780754674153
- Jane Jacobs, The Question of Separatism: Quebec and the Struggle over Sovereignty, (1980 Random House and 2011 Baraka Books), ISBN 978-1-926824-06-2
- Gopal Balakrishnan, Mapping the Nation, Verso, 1996, p. 277, ISBN 9781859840603
- Jane Jacobs, Cities and the Wealth of Nations: Principles of Economic Life, Vintage Books, 1984, ISBN 0-394-72911-0
- Jeremy Magliaro, Amory Lovins, Valuing Decentralized Wastewater Technologies: A Catalog of Benefits, Costs, and Economic Analysis Techniques, Rocky Mountain Institute, 2004.
- Lawrence D. Smith, Reform and Decentralization of Agricultural Services: A Policy Framework, United Nations Food and Agriculture Organization, 2001, p. 2010-211, ISBN 9789251046449
- Lawrence D. Smith, Reform and Decentralization of Agricultural Services: A Policy Framework, 2001.
- Maggie Koerth-Baker, What We Talk About When We Talk About the Decentralization of Energy, The Atlantic, April 16, 2012.
- Fred E. Foldvary, Daniel Bruce Klein, Editors, The Half-Life of Policy Rationales: How New Technology Affects Old Policy Issues NYU Press, 2003, p. 1, 184, ISBN 9780814747773
- Chandler, Daniel; Munday, Rod, "Information technology", A Dictionary of Media and Communication (first ed.), Oxford University Press, retrieved 1 August 2012 (subscription required)
- John Baschab, Jon Piot, The Executive's Guide to Information Technology, John Wiley & Sons, 2007, p. 119, ISBN 9780470135914
- G. David Garson, Modern Public Information Technology Systems: Issues and Challenges, IGI Global, 2007, p. 115-120, ISBN 9781599040530
- Kopstein, Joshua. "The Mission To Decentralize The Internet". The New Yorker. Condé Nast. Retrieved 13 December 2013.
- MIT Press, 2003, 65-66, ISBN 9780262632737
- Chris DiBona, Mark Stone, Danese Cooper, Open Sources 2.0: The Continuing Evolution, O'Reilly Media, Inc., 2008, p. 316, ISBN 9780596553890
- Axel Bruns, Blogs, WorldHeritage, Second Life, and Beyond: From Production to Produsage, Peter Lang, 2008, p. 80, ISBN 9780820488660
- Joseph Nye, The politics of the information age, Prague Post, February 13, 2010.
- Adi Kamdar and Peter Eckersley, Can the FCC Create Public "Super WiFi Networks"?, Electronic Frontier Foundation, February 5, 2013.
- Jennifer Holt, Alisa Perren, Media Industries: History, Theory, and Method, John Wiley & Sons, 2011, p. 1995-1997, ISBN 9781444360233
- David G. Post and David R. Johnson, 'Chaos Prevailing on Every Continent': Towards a New Theory of Decentralized Decision-Making in Complex Systems, Chicago-Kent Law Review, Vol. 73, No. 4, p. 1055, 1998, full version at David G. Post's Temple University website.
- Bolychevsky, Irina (12 November 2013). BBC Radio Five Live. Interview with
- Hazeltine, B.; Bull, C. (1999). Appropriate Technology: Tools, Choices, and Implications. New York: Academic Press. pp. 3, 270.
- Todaro, M.; Smith, S. (2003). Economic Development. Boston: Addison Wesley. pp. 252–254.
- National Center for Appropriate Technology website.
- Cooper–Hewitt Museum. "Design for the other 90%".
- Chapter 2. Decentralization and environmental issues, "Environment in decentralized development", United Nations accessed February 23, 2013; also see Environment in Decentralized Decision Making, An Overview, Agricultural Policy Support Service, Policy Assistance Division, FAO, Rome, Italy, November 2005.
- Summary of Remy Prud’homme, "The Dangers of Decentralization", World Bank Research Observer, 10(2):201, 1995, linked from Decentralization, article “Restructuring local government project” of Dr. Mildred Warner.
- Decentralised system
- Foundation for subsidiarity
- Home rule
- List of micro-regional organizations
- Political economy
- Tax choice
- User-generated content
It has been noted that while decentralization may increase "productive efficiency" it may undermine "allocative efficiency" by making redistribution of wealth more difficult. Decentralization will cause greater disparities between rich and poor regions, especially during times of crisis when the national government may not be able to help regions needing it.
Other challenges, and even dangers, include the possibility that corrupt local elites can capture regional or local power centers, while constituents lose representation; patronage politics will become rampant and civil servants feel compromised; further necessary decentralization can be stymied; incomplete information and hidden decision-making can occur up and down the hierarchies; centralized power centers can find reasons to frustrate decentralization and bring power back to themselves.
Factors hindering decentralization include weak local administrative or technical capacity may result in inefficient or ineffective services; inadequate financial resources may be made available to perform new local responsibilities, especially in the start-up phase when they are most needed; inequitable distribution of resources may result; decentralization can make national policy coordination too complex; it may allow local elites to capture functions; local cooperation maybe undermined by any distrust between private and public sectors; decentralization may result in higher enforcement costs and conflict for resources if there is no higher level of authority. Additionally, decentralization may not be as efficient for standardized, routine, network-based services, as opposed to those that need more complicated inputs. If there is a loss of economies of scale in procurement of labor or resources, the expense of decentralization can rise, even as central governments lose control over financial resources.
"Appropriate technology", originally described as "intermediate technology" by economist E. F. Schumacher in Small is Beautiful, is generally recognized as encompassing technologies that are small-scale, decentralized, labor-intensive, energy-efficient, environmentally sound, and locally controlled. It is most commonly discussed as an alternative to transfers of capital-intensive technology from industrialized nations to developing countries. Even developed countries developed appropriate technologies, as did the United States in 1977 when it created the National Center for Appropriate Technology (NCAT), though funding later dropped off. A related concept is "design for the other 90 percent" - low-cost solutions for the great majority of the world's low income people.
"As we've gone on there's been more and more internet traffic focused through particular nodes such as Google or Facebook. [...] Centralised services that hold all the user data and host it themselves have become increasingly popular because that business model has worked. As the Internet has become more mass market, people are not necessarily willing or knowledgable to host it themselves, so where that hosting is outsourced it's become the default, which allows a centralization of power and a centralization of data that I think is worrying."
In an interview with BBC Radio 5 Live one of the co-founders of Redecentralize.org explained that:
 Examples of projects that attempt to contribute to the redecentralization of the Internet include ArkOS,
The New Yorker reports that although the Internet was originally decentralized, in recent years it has become less so: "a staggering percentage of communications flow through a small set of corporations—and thus, under the profound influence of those companies and other institutions [...] One solution, espoused by some programmers, is to make the Internet more like it used to be—less centralized and more distributed."
Centralization and redecentralization of the Internet
Because human interactions in cyberspace transcend physical geography, there is a necessity for new theories in legal and other rule-making systems to deal with decentralized decision-making processes in such systems. For example, what rules should apply to conduct on the global digital network and who should set them? The laws of which nations govern issues of internet transactions (like seller disclosure requirements or definitions of "fraud"), copyright and trademark?
Inspired by system and cybernetics theorists like Norbert Wiener, Marshall MacLuhan and Buckminster Fuller, in the 1960s Stewart Brand started the Whole Earth Catalog and later computer networking efforts to bring Silicon Valley computer technologists and entrepreneurs together with countercultural ideas. This resulted in ideas like personal computing, virtual communities and the vision of an "electronic frontier" which would be a more decentralized, egalitarian and free-market libertarian society. Related ideas coming out of Silicon Valley included the free software and creative commons movements which produced visions of a "networked information economy".
Decentralization continues throughout the industry, for example as the decentralized architecture of wireless routers installed in homes and offices supplement and even replace phone companies relatively centralized long-range cell towers.
The internet is an example of an extremely decentralized network, having no owners at all (although some have argued that this is less the case in recent years). "No one is in charge of internet, and everyone is." As long as they follow a certain minimal number of rules, anyone can be a service provider or a user. Voluntary boards establish protocols, but cannot stop anyone from developing new ones. Other examples of open source or decentralized movements are Wikis which allow users to add, modify, or delete content via the internet. WorldHeritage itself has been described as decentralized. Smartphones have greatly increased the role of decentralized social network services in daily lives worldwide.
Information technology applied to government communications with citizens, often called e-Government, is supposed to support decentralization and democratization. Various forms have been instituted in most nations worldwide.
Executives and managers face a constant tension between centralizing and decentralizing information technology for their organizations. They must find the right balance of centralizing which lowers costs and allows more control by upper management, and decentralizing which allows sub-units and users more control. This will depend on analysis of the specific situation. Decentralization is particularly applicable to business or management units which have a high level of independence, complicated products and customers, and technology less relevant to other units.
Information technology encompasses computers and computer networks, as well as information distribution technologies such as television and telephones. The whole computer industry of computer hardware, software, electronics, internet, telecommunications equipment, e-commerce and computer services are included.
Technologies often mentioned as best implemented in a decentralized manner, include: water purification, delivery and waste water disposal, agricultural technology and energy technology. Advancing technology may allow decentralized, privatized and free market solutions for what have been public services, such utilities producing and/or delivering power, water, mail, telecommunications and services like consumer product safety, money and banking, medical licensing and detection and metering technologies for highways, parking, and auto emissions.
Technology includes tools, materials, skills, techniques and processes by which goals are accomplished in the public and private spheres. Concepts of decentralization of technology are used throughout all types of technology, including especially information technology and appropriate technology.
Author and activist Jane Jacobs's influential 1961 book The Death and Life of American Cities criticized large-scale redevelopment projects which were part of government-planned decentralization of population and businesses to suburbs. She believed it destroyed cities' economies and impoverished remaining residents. Her 1980 book The Question of Separatism: Quebec and the Struggle over Sovereignty supported secession of Quebec from Canada. Her 1984 book Cities and the Wealth of Nations proposed a solution to the various ills plaguing cities whose economies were being ruined by centralized national governments: decentralization through the "multiplication of sovereignties", i.e., acceptance of the right of cities to secede from the larger nation states that were squelching their ability to produce wealth.
It often is claimed that free markets and private property generate centralized monopolies and other ills; the counter is that government is the source of monopoly. Historian Gabriel Kolko in his book The Triumph of Conservatism argued that in the first decade of the 20th century businesses were highly decentralized and competitive, with new businesses constantly entering existing industries. There was no trend towards concentration and monopolization. While there were a wave of mergers of companies trying to corner markets, they found there was too much competition to do so. This also was true in banking and finance, which saw decentralization as leading to instability as state and local banks competed with the big New York City firms. The largest firms turned to the power of the state and working with leaders like United States Presidents Theodore Roosevelt, William H. Taft and Woodrow Wilson passed as "progressive reforms" centralizing laws like The Federal Reserve Act of 1913 that gave control of the monetary system to the wealthiest bankers; the formation of monopoly "public utilities" that made competition with those monopolies illegal; federal inspection of meat packers biased against small companies; extending Interstate Commerce Commission to regulating telephone companies and keeping rates high to benefit AT&T; and using the Sherman Anti-trust Act against companies which might combine to threaten larger or monopoly companies. When government licensing, franchises, and other legal restrictions create monopoly and protect companies from open competition, deregulation is the solution.
According to Bruce M. Owen, this does not mean that all firms themselves have to be equally decentralized. He writes: "markets allocate resources through arms-length transactions among decentralized actors. Much of the time, markets work very efficiently, but there is a variety of conditions under which firms do better. Hence, goods and services are produced and sold by firms with various degrees of horizontal and vertical integration." Additionally, he writes that the "economic incentive to expand horizontally or vertically is usually, but not always, compatible with the social interest in maximizing long-run consumer welfare." When it does not, he writes regulation may be necessary.
There would be no difficulty about efficient control or planning were conditions so simple that a single person or board could effectively survey all the relevant facts. It is only as the factors which have to be taken into account become so numerous that it is impossible to gain a synoptic view of them that decentralization becomes imperative.
Free market ideas popular in the 19th century, such as those of Adam Smith returned to prominence in the 1970s and 1980s. Nobel Prize–winning economist Friedrich von Hayek emphasized that free markets themselves are decentralized systems where outcomes are produced without explicit agreement or coordination by individuals who use prices as their guide. As Eleanor Doyle writes: "Economic decision-making in free markets is decentralized across all the individuals dispersed in each market and is synchronized or coordinated by the price system." The individual right to property is part of this decentralized system. Analyzing the problems of central government control, Hayek wrote in The Road to Serfdom:
Free market decentralization
To date, the best-known examples of an anarchist communist society (i.e., established around the ideas as they exist today and achieving worldwide attention and knowledge in the historical canon), are the anarchist territories during the Spanish Revolution and the Free Territory during the Russian Revolution. Through the efforts and influence of the Spanish Anarchists during the Spanish Revolution within the Spanish Civil War, starting in 1936 anarchist communism existed in most of Aragon, parts of the Levante and Andalusia, as well as in the stronghold of Anarchist Catalonia before being crushed by the combined forces of the regime that won the war, Hitler, Mussolini, Spanish Communist Party repression (backed by the USSR) as well as economic and armaments blockades from the capitalist countries and the Second Spanish Republic itself. During the Russian Revolution, anarchists such as Nestor Makhno worked to create and defend—through the Revolutionary Insurrectionary Army of Ukraine—anarchist communism in the Free Territory of the Ukraine from 1919 before being conquered by the Bolsheviks in 1921. Several libertarian socialists, notably Noam Chomsky among others, believe that anarchism shares much in common with certain variants of Marxism (see libertarian marxism) such as the council communism of Marxist Anton Pannekoek. In Chomsky's Notes on Anarchism, he suggests the possibility "that some form of council communism is the natural form of revolutionary socialism in an industrial society. It reflects the belief that democracy is severely limited when the industrial system is controlled by any form of autocratic elite, whether of owners, managers, and technocrats, a 'vanguard' party, or a State bureaucracy."
For  According to the Encyclopedia Britannica "During the Spanish revolution of 1873, Pi y Margall attempted to establish a decentralized, or “cantonalist,” political system on Proudhonian lines."
Political philosophies commonly described as libertarian socialist include most varieties of anarchism (especially anarchist communism, anarchist collectivism, anarcho-syndicalism, and mutualism) as well as autonomism, Communalism, participism, libertarian Marxist philosophies such as council communism and Luxemburgism, and some versions of "utopian socialism" and individualist anarchism. For Murray Bookchin "In the modern world, anarchism first appeared as a movement of the peasantry and yeomanry against declining feudal institutions. In Germany its foremost spokesman during the Peasant Wars was Thomas Muenzer; in England, Gerrard Winstanley, a leading participant in the Digger movement. The concepts held by Muenzer and Winstanley were superbly attuned to the needs of their time — a historical period when the majority of the population lived in the countryside and when the most militant revolutionary forces came from an agrarian world. It would be painfully academic to argue whether Muenzer and Winstanley could have achieved their ideals. What is of real importance is that they spoke to their time; their anarchist concepts followed naturally from the rural society that furnished the bands of the peasant armies in Germany and the New Model in England." The term "anarchist" first entered the English language in 1642, during the English Civil War, as a term of abuse, used by Royalists against their Roundhead opponents. By the time of the French Revolution some, such as the Enragés, began to use the term positively, in opposition to Jacobin centralisation of power, seeing "revolutionary government" as oxymoronic. By the turn of the 19th century, the English word "anarchism" had lost its initial negative connotation.
Accordingly, libertarian socialists believe that "the exercise of power in any institutionalized form—whether economic, political, religious, or sexual—brutalizes both the wielder of power and the one over whom it is exercised". Libertarian socialists generally place their hopes in decentralized means of direct democracy such as libertarian municipalism, citizens' assemblies, trade unions, and workers' councils. Libertarian socialists are strongly critical of coercive institutions, which often leads them to reject the legitimacy of the state in favor of anarchism. Adherents propose achieving this through decentralization of political and economic power, usually involving the socialization of most large-scale private property and enterprise (while retaining respect for personal property). Libertarian socialism tends to deny the legitimacy of most forms of economically significant private property, viewing capitalist property relations as forms of domination that are antagonistic to individual freedom.
free association in place of government and opposes the social relations of capitalism, such as wage labor. The term libertarian socialism is used by some socialists to differentiate their philosophy from state socialism, and by some as a synonym for left anarchism.
Central governments themselves may own large tracts of land and control the forest, water, mineral, wildlife and other resources they contain. They may manage them through government operations or leasing them to private businesses; or they may neglect them to be exploited by individuals or groups who defy non-enforced laws against exploitation. It also may control most private land through land-use, zoning, environmental and other regulations. Selling off or leasing lands can be profitable for governments willing to relinquish control, but such programs can face public scrutiny because of fear of a loss of heritage or of environmental damage. Devolution of control to regional or local governments has been found to be an effective way of dealing with these concerns. Such decentralization has happened in India and other third world nations.
Some argue that government standardisation in areas from commodity market, inspection and testing procurement bidding, Building codes, professional and vocational education, trade certification, safety, etc. are necessary. Emmanuelle Auriol and Michel Benaim write about the "comparative benefits" of decentralization versus government regulation in the setting of standards. They find that while there may be a need for public regulation if public safety is at stake, private creation of standards usually is better because "regulators or 'experts' might misrepresent consumers' tastes and needs." As long as companies are averse to incompatible standards, standards will be created that satisfy needs of a modern economy.
One example of economic decentralization, which is based on a libertarian socialist model, is decentralized economic planning. Decentralized planning is a type of economic system in which decision-making is distributed amongst various economic agents or localized within production agents. An example of this method in practice is in Kerala, India which started in 1996 as, The People's Planning in Kerala.
Since the 1970s there has been deregulation of some industries, like banking, trucking, airlines and telecommunications which resulted generally in more competition and lower prices. According to Cato Institute, an American libertarian think-tank, some industries deregulation of aspects of an industry were offset by more ambitious regulations elsewhere that hurt consumers, the electricity industry being a prime example. For example in banking, Cato Institute believes some deregulation allowed banks to compete across state lines, increasing consumer choice, while an actual increase in regulators and regulations forced banks to do business the way central government regulators commanded, including making loans to individuals incapable of repaying them, leading eventually to the financial crisis of 2007–2008.