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Questions and Answers
What is divestment in the context of public sector management?
Which of the following is NOT a factor influencing decentralization?
What is the main characteristic of a budgetary unit?
What is the primary difference between an autonomous unit and a corporatized unit?
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What is the goal of corporatization in the public sector?
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What is the result of privatization of a public entity?
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What is the primary objective of decentralization?
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What is the principle that guides the decentralization process?
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What is deconcentration in the context of decentralization?
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What is delegation in the context of decentralization?
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What is devolution in the context of decentralization?
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Decentralization involves the dispersion of powers, functions, personnel, or financial resources towards central authority.
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The principle of subsidiarity guides the decentralization process.
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Delegation involves the transfer of certain public functions to the sub-national level.
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Devolution involves the dispersion of certain public functions from central offices to district offices under direct control of the central government.
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The objective of decentralization is to decrease authority and capacity of sub-national levels.
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Divestment involves the transfer of ownership of a public entity into private hands.
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A budgetary unit is a self-controlling entity that pursues its own goals.
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A corporatized unit is a private organization that operates for profit.
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Privatization of a public entity results in a nonprofit organization.
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Study Notes
Decentralization
- Decentralization is the process of redistributing powers, functions, personnel, or financial resources away from central authority to make governance closer to the people.
- It involves restructuring authority and responsibility according to the principle of subsidiarity, where the lowest level of authority capable of effectively addressing an issue takes responsibility.
- The objective of decentralization is to improve the quality and effectiveness of the governance system while increasing the authority and capacity of sub-national levels.
Types of Decentralization
- Deconcentration: dispersion of public functions from central offices to district offices under direct control of the central government.
- Delegation: dispersion of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it.
- Devolution: transfer of public functions to the sub-national level, such as a state or local government.
- Divestment: total relinquishment of public functions to private entities.
Factors Influencing Decentralization
- Organizational and administrative factors
- Responsibilities and capacities, centralized and decentralized duties
- Behavioral factors, including decision-making, managerial and technical skills
- Political circumstances, including power and influence among politicians and bureaucrats, party politics
- Financial situation, including resource constraints
- Human resource situation, including morale, motivation, salaries, and incentives
Autonomization and Corporatization
- Budgetary unit: traditional organizational form of the public sector, where expenses are covered by the state budget, and services are provided free of charge.
- Autonomous unit: self-controlling entity that pursues its own goals and makes decisions for itself, empowered to manage and use its revenues to cover expenses.
- Corporatized unit: legally established as an independent entity that mimics the structure and efficiency of private corporations while maintaining social objectives through public ownership.
- Privatized unit: transfer of a public entity into private ownership, either as a for-profit or nonprofit organization, with complete exposure to market forces.
Decentralization
- Decentralization is the process of redistributing powers, functions, personnel, or financial resources away from central authority to make governance closer to the people.
- It involves restructuring authority and responsibility according to the principle of subsidiarity, where the lowest level of authority capable of effectively addressing an issue takes responsibility.
- The objective of decentralization is to improve the quality and effectiveness of the governance system while increasing the authority and capacity of sub-national levels.
Types of Decentralization
- Deconcentration: dispersion of public functions from central offices to district offices under direct control of the central government.
- Delegation: dispersion of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it.
- Devolution: transfer of public functions to the sub-national level, such as a state or local government.
- Divestment: total relinquishment of public functions to private entities.
Factors Influencing Decentralization
- Organizational and administrative factors
- Responsibilities and capacities, centralized and decentralized duties
- Behavioral factors, including decision-making, managerial and technical skills
- Political circumstances, including power and influence among politicians and bureaucrats, party politics
- Financial situation, including resource constraints
- Human resource situation, including morale, motivation, salaries, and incentives
Autonomization and Corporatization
- Budgetary unit: traditional organizational form of the public sector, where expenses are covered by the state budget, and services are provided free of charge.
- Autonomous unit: self-controlling entity that pursues its own goals and makes decisions for itself, empowered to manage and use its revenues to cover expenses.
- Corporatized unit: legally established as an independent entity that mimics the structure and efficiency of private corporations while maintaining social objectives through public ownership.
- Privatized unit: transfer of a public entity into private ownership, either as a for-profit or nonprofit organization, with complete exposure to market forces.
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Description
Test your knowledge on decentralization, the process of redistributing powers and resources to make governance closer to the people.
