Limits of decentralization

In a previous issue we have referred to the forms of State and decentralization, being necessary to point out what are the expected benefits of a process of territorial decentralization. Thus, in the first place, the existence of mechanisms through which the powers of the State can be decanted allows an adequate control of state power, in specific terms of vertical control, through the attribution of a portion of political power.. However,Uniswap clone as said power is attributed, it passes from a centralization scheme to another of decentralization.

Decentralization means that there are nuclei of authority, basically in the different geographical areas considered in a given country, which implies a division of power guaranteed by the legal system. A state organization established through geographical divisions, with political and administrative autonomy, thus implies the existence of a very broad decentralization.

Advantages and disadvantages of territorial decentralizationIt is necessary to be clear, however, to what extent it can be decentralized. First of all, there are certain advantages of centralization itself to take into account. On the one hand, certain specialized issues are not likely to be decentralized. An undue increase in administrative costs may result, Uniswap clone script as administrative coordination can be costly, making decision-making difficult. On the other hand, current technology facilitates communications and transportation, which means that certain decisions can be managed centrally.

But, in addition, decentralization itself admits limits that derive precisely from the cost of decision-making, to which we have referred in previous installments. Paradoxically, a decentralized administration can be larger and more expensive than a centralized organization, since there is a need to create agencies responsible for carrying out coordination mechanisms.

On the other hand, it cannot be intended to decentralize all state decisions, since many of them require uniform considerations for their management. That is why exclusive powers of the National Government are established. In the Peruvian case, we first find the design of national and sectoral policies, which correspond to the Executive Power and in particular to the ministries.

Advantages and disadvantages of territorial decentralizationLikewise, Defense, National Security and the Armed Forces are centralized, making it unthinkable for each decentralized government to have its own defense forces. In addition, the National Government exclusively corresponds to Foreign Relations, which in principle are generated between national states; as well as the Internal Order, the national, border and crime prevention police.

The administration of justice is also centralized, unlike what occurs in some federal states, such as the United States of America or the United Mexican States (or simply, Mexico), where there are two levels of judicial organization, federal and state. In these cases, the determination of the competence of each of these levels is a matter of particular importance, which generates many controversies.

Administrative intervention in the economy is also centralized. The currency is in the hands of the Central Reserve Bank, while the regulation of Banking, Insurance and the Private Pension System corresponds to the respective Superintendency, as established by the Constitution. Taxation and national public indebtedness is also the responsibility of the National Government, as is evident; as well as the trade and tariff regime. The regulation and management of the merchant marine and commercial aviation; as well as the regulation of the public services of its responsibility also correspond to the National Government.

In addition, the National Government is responsible for the regulation and management of public infrastructure of a national nature and scope, taking into account that there is also infrastructure whose management corresponds to local and regional governments. Finally, we must include other powers indicated by law, in accordance with the Political Constitution of the State.

On the other hand, it is evident that the decentralization process in our country has not been generating the expected results. Thus, several regional governments have not complied with generating the development of their respective departments, even though there are significant resources for it; which shows quality spending problems as the allocated budget is not properly executed, despite the existing public needs,Uniswap clone software which have worsened as a result of the pandemic. Likewise, there are various authorities and former regional authorities that have not only been questioned, but have also been criminally prosecuted, which shows that the control mechanisms are not working at the decentralized level.

Finally, it is true thatThe existence of, in principle, three levels of decentralization must be established, one central or more national, another regional or provincial, and finally, a system at the local or municipal level. These three levels are related to each other through the principle of subsidiarity, by which the Government that is closest to the population must enjoy the respective state powers.

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