Arth prabandh: A Journal of Economics and Management
  • Year: 2013
  • Volume: 2
  • Issue: 12

Federalism and economic efficiency

  • Author:
  • Mahdi Fakhravar
  • Total Page Count: 10
  • Page Number: 50 to 59

Department of Law, E-Campus, Islamic Azad University, Tehran, Iran

Online published on 12 May, 2015.

Abstract

Through decentralization a government decides to give up parts of its authorities and power within the framework dictated by the law to local governments. Decentralization, as a phenomenon, must be implemented in different countries relative to their unique political and sovereignty system. Adopting a specific type of decentralization over others and the way it is implemented are directly related to administration structure. There are different concepts and interpretations extractable from decentralization and when it comes to practice and plan, a country needs to take into account financial, managerial, and service provision structure of the country. Failure in doing so and negligence of the infrastructures, standards, government-citizen relationship, regulations, institutionalization, and so one, not only means failure of the government's plan in this regard but also destruction of infrastructures, economy, efficiency, economic growth, and consequently inefficient public services.

Keywords

Decentralization, Local government, Federal government, Economic