Decentralization and its effects: Health Sector in Philippines Page| 3
Decentralization has captured tremendous attention in last two decades as it has been atthe centre instrument of policy change in many developed and developing countries. Ithas been adopted as a major point of governance reform agenda by many internationalinstitutions including World Bank. As centralized state lost its legitimacy and was provedincapable of solving development challenges by itself, decentralization was widely believed to promise a wide range of benefits.It is seen as a way of 1.
Increasing local control over resources and increasing accountability.2.
Increasing role and participation of local communities in governance, based onprinciples of participation, transparency and accountability.3.
Reducing central authority by fragmenting central control and introducing checksand balances.4.
Strengthening local levels of governance with greater capability to provide publicservices.5.
New paradigm of local economic development.6.
Promoting innovation and experimentation and adaptation of different schemes toreflect local realities.There are different ways in which these objectives can be completed and this gives rise todifferent kind of decentralization activities. They are broadly classified into threecategories.1.
: Devolution of power to elected local governments asa distinct set of state actors.2.
It includes de-concentration, divestment anddelegation. Transferring authority over service delivery and functions from centralto non-elected levels of government, agencies or field offices of centralgovernment agencies.3.
Resource allocation to sub-national and local levels of governance.The last two decades have seen different countries experiment with the concept in various ways, with each bringing decentralization in different forms and to variousextents (in terms of devolution of authority and power). It was seen as a panacea for a