Decentralization
The act or process of decentralizing an organization or government (moving control from a single place to several smaller ones) [Cambridge Dictionary].
Decentralization—the transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations or the private sector—covers a broad range of concepts. Each type of decentralization—political, administrative, fiscal, and market—has different characteristics, policy implications, and conditions for success. From a government's perspective, the complete forms of decentralization are privatization and deregulation. They shift responsibility for functions from the public to the private sector. They allow functions that had been primarily or exclusively the responsibility of government to be carried out by businesses, community groups, cooperatives, private voluntary associations, and other nongovernmental organizations. Privatization and deregulation are usually accompanied by economic liberalization and market development policies. Although in many cases, decentralization seems to be happening without much planning or design, many design issues affect the impact of decentralization on efficiency, equity, and macro stability. The success of decentralization is closely related to adherence to several design principles: finance following the precise assignment of functions, informed decision-making, adherence to local priorities, and accountability. Because country circumstances differ, often in subtle and complex ways, the policy and institutional instruments that establish decentralization have to be shaped to specific circumstances [Decentralization Briefing Notes].
Decentralization. Cambridge Dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/decentralization
Litvack, J., Seddon, J. (2002). Decentralization Briefing Notes. Washington: World Bank Institute.