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Questions and Answers
What is divestment in the context of public sector management?
What is divestment in the context of public sector management?
Which of the following is NOT a factor influencing decentralization?
Which of the following is NOT a factor influencing decentralization?
What is the main characteristic of a budgetary unit?
What is the main characteristic of a budgetary unit?
What is the primary difference between an autonomous unit and a corporatized 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?
What is the goal of corporatization in the public sector?
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What is the result of privatization of a public entity?
What is the result of privatization of a public entity?
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What is the primary objective of decentralization?
What is the primary objective of decentralization?
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What is the principle that guides the decentralization process?
What is the principle that guides the decentralization process?
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What is deconcentration in the context of decentralization?
What is deconcentration in the context of decentralization?
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What is delegation in the context of decentralization?
What is delegation in the context of decentralization?
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What is devolution in the context of decentralization?
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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Test your knowledge on decentralization, the process of redistributing powers and resources to make governance closer to the people.
