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Tutorial Week 5 Pad320

Decentralization transfers power from higher to lower levels of government. The two major forms are devolution and deconcentration. Devolution transfers power through legislation, giving local governments autonomy over finances, hiring, and territory. Deconcentration transfers authority to agents of higher governments, who operate under their control without independent finances or power. In Malaysia, local governments experience devolution, gaining independent revenue sources and control over an assigned territory through laws, while deconcentrated entities remain under central government direction.

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327 views2 pages

Tutorial Week 5 Pad320

Decentralization transfers power from higher to lower levels of government. The two major forms are devolution and deconcentration. Devolution transfers power through legislation, giving local governments autonomy over finances, hiring, and territory. Deconcentration transfers authority to agents of higher governments, who operate under their control without independent finances or power. In Malaysia, local governments experience devolution, gaining independent revenue sources and control over an assigned territory through laws, while deconcentrated entities remain under central government direction.

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Al
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Differentiate the two major forms of decentralization at the local level.

(25 marks)

Decentralization is the transfer of power, purpose, and task from a higher level
organization to a lower level organization, such as the federal government. The aim is to
delegate authority and resources to lower-level officials. As a result, local government can better
understand it and control it. It can improve service quality while also improving governance and
transparency. This is important because they will be aware of the country's progress. For
example, in terms of urban development, the federal government has delegated authority to
local governments. In the Malaysian government, distinguish between devolution and
deconcentration.

In the Malaysian case, decentralisation is a term that encompasses both devolution and
deconcentration. Devolution, in the most basic sense, is the transfer of power from the highest
to the lowest level of government by an act of parliament. They are legal organizations that have
the ability to sue and be sued, as well as the ability to enter into legal contracts. Local
governments, for example, receive control from the federal government, as specified in the
federal constitution and the Local Government Act of 1976, while deconcentration refers to the
transfer of authority to agents of the federal and state governments at the local level. These
organizations do not have any financial or administrative power. They work on behalf of higher
levels of government and are only allowed to carry out orders.

After that, as a result of devolution, they will produce their own income because the
federal government has given them the authority to do so. Furthermore, they can obtain control
via a legislative act. Local governments, for example, may raise revenue because of a law
enacted in 1976 that grants them financial autonomy. While in deconcentration, they did not
have right to generate income such as they just collect the tax.

In terms of hiring employees, concept devolution may do so because they have the
financial means to do so, while concept deconcentration cannot because they lack the authority
to do so. Finally, and perhaps most importantly, devolution has its own territory, which allows it
to exert control in areas defined by statute. They are not allowed to go outside the limits. Local
governments in Perak, for example, only exercise control within their authority. When in
deconcentration, they remain under the control of the central government and pass tasks from
the government to its agents.
In conclusion, decentralization, which shifts duties from the central government to other
levels of government, is a part of this reform process. Deconcentration and devolution are the
two major forms this can take. Each of these has a different impact on production performance,
allocative efficiency, and service financing. Good governance, better service quality, and the
promotion of democratic democratization are all possible advantages of decentralization.
Decentralization, on the other hand, brings with it a multitude of challenges and risks that must
be carefully considered.

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