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== History ==
{{Integralism}}
[[File:Alexis de Tocqueville.jpg|thumb|left|upright|[[Alexis de Tocqueville]]]]
The word "''centralisation''" came into use in France in 1794 as the post-[[French Revolution|Revolution]] [[French Directory]] leadership created a new government structure. The word "''décentralisation''" came into usage in the 1820s.<ref>Vivien A. Schmidt, ''Democratizing France: The Political and Administrative History of Decentralization'', [[Cambridge University Press]], 2007, [https://books.google.com/books?id=ZsltI4XKXTUC&pg=PA22 p. 22] {{webarchive|url=https://web.archive.org/web/20160505110712/https://books.google.com/books?id=ZsltI4XKXTUC&pg=PA22 |date=2016-05-05 }}, {{ISBN|978-0521036054}}</ref> "Centralization" entered written English in the first third of the 1800s;<ref>[[Barbara Levick]], ''Claudius'', Psychology Press, 2012, [https://books.google.com/books?id=rTDNNO4_IMAC&pg=PA81 p. 81] {{webarchive|url=https://web.archive.org/web/20160602225624/https://books.google.com/books?id=rTDNNO4_IMAC&pg=PA81 |date=2016-06-02 }}, {{ISBN|978-0415166195}}</ref> mentions of decentralization also first appear during those years. In the mid-1800s [[Alexis de Tocqueville|Tocqueville]] would write that the French Revolution began with "a push towards decentralization
Ideas of liberty and decentralization were carried to their logical conclusions during the 19th and 20th centuries by anti-state political activists calling themselves "[[Anarchism|anarchists]]", "[[Libertarianism|libertarians]]", and even decentralists. [[Tocqueville]] was an advocate, writing: "Decentralization has, not only an administrative value but also a civic dimension since it increases the opportunities for citizens to take interest in public affairs; it makes them get accustomed to using freedom. And from the accumulation of these local, active, persnickety freedoms, is born the most efficient counterweight against the claims of the central government, even if it were supported by an impersonal, collective will."<ref name=EarthInstitute>[http://www.ciesin.org/decentralization/English/General/history_fao.html A History of Decentralization] {{webarchive|url=https://web.archive.org/web/20130511000503/http://www.ciesin.org/decentralization/English/General/history_fao.html |date=2013-05-11 }}, [[Earth Institute]] of [[Columbia University]] website, ''accessed February 4, 2013''.</ref> [[Pierre-Joseph Proudhon]] (1809–1865), influential anarchist theorist<ref>{{cite book |title=Encyclopedia Americana |editor=George Edward Rines |year=1918 |publisher=Encyclopedia Americana Corp. |location=New York |oclc=7308909 |page=624 |title-link=Encyclopedia Americana }}</ref><ref>{{cite book |last=Hamilton |first=Peter |title=Émile Durkheim |publisher=Routledge |location=New York |year=1995 |isbn = 978-0415110471 |page=79}}</ref> wrote: "All my economic ideas as developed over twenty-five years can be summed up in the words: agricultural-industrial federation. All my political ideas boil down to a similar formula: political federation or decentralization."<ref>"Du principe Fédératif" ("Principle of Federation"), 1863.</ref>
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A 1999 [[United Nations Development Programme]] report stated:
{{blockquote|"
== Overview ==
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[[University of California, Irvine]]'s Institute for Software Research's "PACE" project is creating an "architectural style for trust management in decentralized applications." It adopted [[Rohit Khare]]'s definition of decentralization: "A decentralized system is one which requires multiple parties to make their own independent decisions" and applies it to [[Peer-to-peer]] software creation, writing:
{{Blockquote|
}}
=== Goals ===
Decentralization in any area is a response to the problems of centralized systems. Decentralization in government, the topic most studied, has been seen as a solution to problems like economic decline, government inability to fund services and their general decline in performance of overloaded services, the demands of minorities for a greater say in local governance, the general weakening legitimacy of the [[public sector]] and global and international pressure on countries with inefficient, undemocratic, overly centralized systems.<ref name=Daun>Holger Daun, ''School Decentralization in the Context of Globalizing Governance: International Comparison of Grassroots Responses,'' Springer, 2007, [https://books.google.com/books?id=nYHXnyzGggkC&dq=goals+of+decentralization&pg=PA28 pp. 28–29] {{webarchive|url=https://web.archive.org/web/20160617152055/https://books.google.com/books?id=nYHXnyzGggkC&pg=PA28 |date=2016-06-17 }},
{{ISBN|978-1402047008}}</ref> The following four goals or objectives are frequently stated in various analyses of decentralization.
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In decentralization, the principle of [[subsidiarity]] is often invoked. It holds that the lowest or least centralized authority that is capable of addressing an issue effectively should do so. According to one definition: "Decentralization, or decentralizing governance, refers to the restructuring or reorganization of authority so that there is a system of co-responsibility between institutions of governance at the central, regional and local levels according to the principle of subsidiarity, thus increasing the overall quality and effectiveness of the system of governance while increasing the authority and capacities of sub-national levels."<ref>"Decentralization: A Sampling of Definitions", 1999, pp. 2, 16, 26.</ref>
Decentralization is often linked to concepts of participation in decision-making, democracy, equality and liberty from a higher authority.<ref>Subhabrata Dutta, ''[https://books.google.com/books?id=O8X_NxDWDq4C&q=decentralization+Dutta Democratic decentralization and grassroot leadership in India] {{webarchive|url=https://web.archive.org/web/20150319044525/http://books.google.com/books?id=O8X_NxDWDq4C&printsec=frontcover |date=2015-03-19 }}'', Mittal Publications, 2009, pp. 5–8, {{ISBN|978-8183242738}}</ref><ref>Robert Charles Vipond, ''[https://books.google.com/books?id=_iTJdiemMoUC&dq=Vipond+Liberty+and+Community&pg=PA252 Liberty & Community: Canadian Federalism and the Failure of the Constitution] {{webarchive|url=https://web.archive.org/web/20160624053945/https://books.google.com/books?id=_iTJdiemMoUC&pg=PA252 |date=2016-06-24 }}'', [[SUNY Press]], 1991, p. 145, {{ISBN|978-0791404669}}</ref> Decentralization enhances the democratic voice.<ref name=Warner/> Theorists believe that local representative authorities with actual discretionary powers are the basis of decentralization that can lead to local efficiency, equity and development."<ref>{{cite journal|last=Ribot|first=J|s2cid=55187335|title=Democratic Decentralisation of Natural Resources: Institutional Choice and Discretionary Power Transfers in Sub-Saharan Africa|journal=[[Public Administration and Development]]|year=2003|volume=23|pages=53–65|doi=10.1002/pad.259}}</ref> [[Columbia University]]'s [[Earth Institute]] identified one of three major trends relating to decentralization: "increased involvement of local jurisdictions and civil society in the management of their affairs, with new forms of participation, consultation, and partnerships."<ref name=EarthInstitute/>
Decentralization has been described as a "counterpoint to globalization [which] removes decisions from the local and national stage to the global sphere of multi-national or non-national interests. Decentralization brings decision-making back to the sub-national levels". Decentralization strategies must account for the interrelations of global, regional, national, sub-national, and local levels.<ref>"Decentralization: A Sampling of Definitions", 1999, pp. 12–13.</ref>
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[[Norman L. Johnson]] writes that diversity plays an important role in decentralized systems like [[ecosystems]], [[social groups]], large organizations, [[political systems]]. "Diversity is defined to be unique properties of entities, agents, or individuals that are not shared by the larger group, population, structure. Decentralized is defined as a property of a system where the agents have some ability to operate "locally." Both decentralization and diversity are necessary attributes to achieve the self-organizing properties of interest."<ref name=NLJohnson/>
Advocates of political decentralization hold that greater participation by better informed diverse interests in society will lead to more relevant decisions than those made only by authorities on the national level.<ref name=WorldBank>[http://www1.worldbank.org/publicsector/decentralization/political.htm#2 Political Decentralization] {{webarchive|url=https://web.archive.org/web/20130409101601/http://www1.worldbank.org/publicsector/decentralization/political.htm |date=2013-04-09 }}, Decentralization and Subnational Economies project, [[World Bank]] website, ''accessed February 9, 2013''.</ref> Decentralization has been described as a response to demands for diversity.<ref name=EarthInstitute/><ref>Therese A McCarty, [http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.1993.tb02422.x/abstract Demographic diversity and the size of the public sector] {{webarchive|url=https://web.archive.org/web/20140522094501/http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.1993.tb02422.x/abstract |date=2014-05-22 }}, [[Kyklos (journal)|Kyklos]], 1993, via [[John Wiley & Sons#Wiley Online Library|Wiley Online Library]]. Quote: "
sector is not affected 10 consequently."</ref>
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; Appropriate size
Gauging the appropriate size or scale of decentralized units has been studied in relation to the size of sub-units of hospitals<ref>Robert J. Taylor, Susan B. Taylor, ''The Aupha Manual of Health Services Management'', Jones & Bartlett Learning, 1994, p. 33, {{ISBN|978-0834203631}}</ref> and schools,<ref name=Daun/> road networks,<ref>Frannie Frank Humplick, Azadeh Moini Araghi, "[http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1996/09/01/000009265_3961214192049/Rendered/PDF/multi_page.pdf Is There an Optimal Structure for Decentralized Provision of Roads?]", [[World Bank]] Policy Research Working Paper, 1996, p. 35.</ref> administrative units in business<ref>Abbass F. Alkhafaji, ''Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment'', [[Psychology Press]], 2003, p. 184, {{ISBN|978-0789018106}}</ref> and public administration, and especially town and city governmental areas and decision-making bodies.<ref>Ehtisham Ahmad, Vito Tanzi, ''Managing Fiscal Decentralization'', Routledge, 2003, [https://books.google.com/books?id=qzcVmaqpitwC&dq=%22appropriate+size%22+government+decentralization&pg=PA182 p. 182] {{webarchive|url=https://web.archive.org/web/20160527064232/https://books.google.com/books?id=qzcVmaqpitwC&pg=PA182 |date=2016-05-27 }}, {{ISBN|978-0203219997}}</ref><ref>Aaron Tesfaye, ''Political Power and Ethnic Federalism: The Struggle for Democracy in
In creating [[Planned community|planned communities]] ("new towns"), it is important to determine the appropriate population and geographical size. While in earlier years small towns were considered appropriate, by the 1960s, 60,000 inhabitants was considered the size necessary to support a diversified job market and an adequate shopping center and array of services and entertainment. Appropriate size of governmental units for revenue raising also is a consideration.<ref>Harry Ward Richardson, ''Urban economics'', Dryden Press, 1978, [https://archive.org/details/urbaneconomics0000rich <!-- quote="appropriate size" . --> pp. 107, 133, 159] {{webarchive|url=https://web.archive.org/web/20160513073909/https://books.google.com/books?ei=Gr0bUerHCofB0QG6v4Ag&id=d9YpAQAAMAAJ&q=%22appropriate+size%22+ |date=2016-05-13 }}.</ref>
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; Asymmetry
Decentralization may be uneven and "asymmetric" given any one country's population, political, ethnic and other forms of diversity. In many countries, political, economic and administrative responsibilities may be decentralized to the larger urban areas, while rural areas are administered by the central government. Decentralization of responsibilities to provinces may be limited only to those provinces or states which want or are capable of handling responsibility. Some privatization may be more appropriate to an urban than a rural area; some types of privatization may be more appropriate for some states and provinces but not others.<ref>"Decentralization: A Sampling of Definitions", 1999, p. 19.</ref>
=== Determinants ===
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* The presence of [[self-determination]] movements
==
Historians have described the history of governments and empires in terms of centralization and decentralization. In his 1910 ''The History of Nations'' [[Henry Cabot Lodge]] wrote that Persian king [[Darius I]] (550–486 BC) was a master of organization and "for the first time in history centralization becomes a political fact." He also noted that this contrasted with the decentralization of [[Ancient Greece]].<ref>[[Henry Cabot Lodge]], Volume 1 of ''The History of Nations,'' H. W. Snow, 1910, [https://books.google.com/books?id=GvMnAQAAMAAJ&dq=history+of+empires+centralization&pg=PA164-IA2 p. 164] {{webarchive|url=https://web.archive.org/web/20160501155504/https://books.google.com/books?id=GvMnAQAAMAAJ&pg=PA164-IA2 |date=2016-05-01 }}.</ref> Since the 1980s a number of scholars have written about cycles of centralization and decentralization. [[Stephen K. Sanderson]] wrote that over the last 4000 years chiefdoms and actual states have gone through sequences of centralization and decentralization of economic, political and social power.<ref>Stephen K. Sanderson, ''Civilizations and World Systems: Studying World-Historical Change,'' [[Rowman & Littlefield]], 1995, [https://books.google.com/books?id=8DJKxgdJsWMC&dq=centralization+decentralization+rise+fall+empires&pg=PA117 pp. 118–19] {{webarchive|url=https://web.archive.org/web/20160425185735/https://books.google.com/books?id=8DJKxgdJsWMC&pg=PA117 |date=2016-04-25 }}, {{ISBN|978-0761991052}}</ref> Yildiz Atasoy writes this process has been going on "since the Stone Age" through not just chiefdoms and states, but empires and today's "hegemonic core states".<ref>Yildiz Atasoy, ''Hegemonic Transitions, the State and Crisis in Neoliberal Capitalism,'' Volume 7 of ''Routledge Studies in Governance and Change in the Global Era'', Taylor & Francis US, 2009, [https://books.google.com/books?id=VcUA3MKuN5IC&dq=centralization+decentralization+rise+fall+empires&pg=PA65 pp. 65–67] {{webarchive|url=https://web.archive.org/web/20160617135521/https://books.google.com/books?id=VcUA3MKuN5IC&pg=PA65 |date=2016-06-17 }}, {{ISBN|978-0415473842}}</ref> Christopher K. Chase-Dunn and Thomas D. Hall review other works that detail these cycles, including works which analyze the concept of core elites which compete with state accumulation of wealth and how their "intra-ruling-class competition accounts for the rise and fall of states" and their phases of centralization and decentralization.<ref>Christopher K. Chase-Dunn, Thomas D. Hall, ''Rise and Demise: Comparing World Systems'', Westview Press, 1997, [https://books.google.com/books?id=sIpw_9oI0RgC&q=decentralization pp. 20, 33] {{webarchive|url=https://web.archive.org/web/20160517213115/https://books.google.com/books?id=sIpw_9oI0RgC&printsec=frontcover |date=2016-05-17 }}, {{ISBN|978-0813310060}}</ref>
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In addition to increasing the administrative efficacy of government and endowing citizens with more power, there are many projected advantages to political decentralization. Individuals who take advantage of their right to elect local and regional authorities have been shown to have more positive attitudes toward politics,<ref>{{cite journal |last1=Rosenblatt |first1=Fernando |last2=Bidegain |first2=Germán |last3=Monestier |first3=Felipe |last4=Rodríguez |first4=Rafael Piñeiro |title=A Natural Experiment in Political Decentralization: Local Institutions and Citizens' Political Engagement in Uruguay |journal=Latin American Politics and Society |date=2015 |volume=57 |issue=2 |pages=91–110 |doi=10.1111/j.1548-2456.2015.00268.x |s2cid=154689249 }}</ref> and increased opportunities for civic decision-making through [[participatory democracy]] mechanisms like public consultations and participatory budgeting are believed to help legitimize government institutions in the eyes of marginalized groups.<ref name=":12">{{Cite journal|last=Lyon|first=Aisling|date=2015|title=Political decentralization and the strengthening of consensual, participatory local democracy in the Republic of Macedonia|journal=Democratization|volume=22|pages=157–178|doi=10.1080/13510347.2013.834331|s2cid=145166616}}</ref> Moreover, political decentralization is perceived as a valid means of protecting marginalized communities at a local level from the detrimental aspects of development and [[globalization]] driven by the state, like the degradation of local customs, codes, and beliefs.<ref name=":22">{{Cite web|last=James|first=Manor|date=1999-03-31|title=The political economy of democratic decentralization|url=http://documents.worldbank.org/curated/en/386101468739238037/The-political-economy-of-democratic-decentralization|language=en}}</ref> In his 2013 book, ''[[Democracy and Political Ignorance]]'', [[George Mason University]] law professor [[Ilya Somin]] argued that political decentralization in a [[Federalism|federal]] democracy confronts the widespread issue of political ignorance by allowing citizens to engage in [[foot voting]], or moving to other jurisdictions with more favorable laws.<ref name=":3">{{Cite book|title=Democracy and Political Ignorance: Why Smaller Government is Smarter|last=Somin|first=Ilya|publisher=Stanford University Press|year=2013|isbn=978-0804789318|location=ProQuest}}</ref> He cites [[Great Migration (African American)|the mass migration]] of over one million southern-born African Americans to the North or the West to evade discriminatory [[Jim Crow laws]] in the late 19th century and early 20th century.<ref name=":3" />
The [[European Union]] follows the principle of [[subsidiarity]], which holds that decision-making should be made by the most local competent authority. The EU should decide only on enumerated issues that a local or member state authority cannot address themselves. Furthermore, enforcement is exclusively the domain of member states. In Finland, the [[Centre Party (Finland)|Centre Party]] explicitly supports decentralization. For example, government departments have been moved from the capital Helsinki to the provinces. The centre supports substantial subsidies that limit potential economic and political centralization to Helsinki.<ref>{{Cite journal |
Political decentralization does not come without its drawbacks. A study by Fan concludes that there is an increase in corruption and [[rent-seeking]] when there are more vertical tiers in the government, as well as when there are higher levels of subnational government employment.<ref>{{cite journal |last1=Fan |first1=C. Simon |last2=Lin |first2=Chen |last3=Treisman |first3=Daniel |title=Political decentralization and corruption: Evidence from around the world |journal=Journal of Public Economics |date=February 2009 |volume=93 |issue=1–2 |pages=14–34 |doi=10.1016/j.jpubeco.2008.09.001 |hdl=10722/192328 |hdl-access=free }}</ref> Other studies warn of high-level politicians that may intentionally deprive regional and local authorities of power and resources when conflicts arise.<ref name=":22"/> In order to combat these negative forces, experts believe that political decentralization should be supplemented with other conflict management mechanisms like [[Consociationalism|power-sharing]], particularly in regions with ethnic tensions.<ref name=":12"/>
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Market decentralization can be done through privatization of public owned functions and businesses, as described briefly above. But it also is done through [[deregulation]], the abolition of restrictions on businesses competing with government services, for example, postal services, schools, garbage collection. Even as private companies and corporations have worked to have such services contracted out to or privatized by them, others have worked to have these turned over to non-profit organizations or associations.<ref name="Forms" />
One example of economic decentralization, which is based on a libertarian socialist model, is [[decentralized planning (economics)|decentralized economic planning]]. Decentralized planning is a type of economic system in which decision-making is distributed amongst various economic agents or localized within production agents. An example of this method in practice is in [[Kerala]], [[India]] which experimented in 1996 with [[People's Planning in Kerala|the People's Plan campaign]].<ref>{{Cite web|url=http://www.india-seminar.com/2000/485/485%20kannan.htm|archive-url=https://web.archive.org/web/20150429183826/http://www.india-seminar.com/2000/485/485%20kannan.htm|url-status=dead|title=485 K.P.Kannan, People's planning, Kerala's dilemma|archive-date=April 29, 2015}}</ref>
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Central governments themselves may own large tracts of land and control the forest, water, mineral, wildlife and other resources they contain. They may manage them through government operations or leasing them to private businesses; or they may neglect them to be exploited by individuals or groups who defy non-enforced laws against exploitation. It also may control most private land through land-use, zoning, environmental and other regulations.<ref>{{cite news |last1=Smith |first1=Vernon L. |last2=Simmons |first2=Emily |title=How and Why to Privatize Federal Lands |url=https://www.cato.org/policy-analysis/how-why-privatize-federal-lands |publisher=CATO Institute |date=9 December 1999 }}</ref> Selling off or leasing lands can be profitable for governments willing to relinquish control, but such programs can face public scrutiny because of fear of a loss of heritage or of environmental damage. Devolution of control to regional or local governments has been found to be an effective way of dealing with these concerns.<ref>{{cite journal |last1=Larson |first1=Anne M. |title=Decentralisation and forest management in Latin America: towards a working model |journal=Public Administration and Development |date=August 2003 |volume=23 |issue=3 |pages=211–226 |doi=10.1002/pad.271 |s2cid=39722511 }}</ref><ref>{{cite book|last=Ribot|first=J|title=Democratic Decentralisation of Natural Resources: Institutionalising Popular Participation|year=2002|publisher=Routledge|location=Oxon}}{{page needed|date=October 2022}}</ref> Such decentralization has happened in India<ref>I. Scoones, ''Beyond Farmer First'', London: Intermediate technology publications.</ref> and other developing nations.<ref>{{cite journal |last1=Larson |first1=Anne M |title=Natural Resources and Decentralization in Nicaragua: Are Local Governments Up to the Job? |journal=World Development |date=January 2002 |volume=30 |issue=1 |pages=17–31 |doi=10.1016/s0305-750x(01)00098-5 }}</ref>
== In economic ideology ==
=== Libertarian socialism ===
[[File:Portrait of Pierre Joseph Proudhon 1865.jpg|thumb|right|[[Pierre Joseph Proudhon]], [[anarchist]] theorist who advocated for a decentralist non-state system which he called "federalism"<ref>Binkley, Robert C. Realism and Nationalism 1852–1871. Read Books. p. 118</ref>]]
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Accordingly, libertarian socialists believe that "the exercise of [[Power (philosophy)|power]] in any institutionalized form – whether economic, political, religious, or sexual – brutalizes both the wielder of power and the one over whom it is exercised".<ref>{{cite book | last=Ackelsberg | first=Martha A. |author-link=Martha Ackelsberg | title=[[Free Women of Spain: Anarchism and the Struggle for the Emancipation of Women]] | page=41 | year=2005 | publisher=[[AK Press]] | isbn=978-1902593968}}</ref> Libertarian socialists generally place their hopes in decentralized means of [[direct democracy]] such as [[libertarian municipalism]], citizens' assemblies, or [[workers' council]]s.<ref>{{cite book | last=Rocker | first=Rudolf | title=Anarcho-Syndicalism: Theory and Practice | page=65 | year=2004 | publisher=[[AK Press]] | isbn=978-1902593920 }}</ref> Libertarian socialists are strongly critical of coercive institutions, which often leads them to reject the legitimacy of the state in favor of anarchism.<ref>Spiegel, Henry. ''The Growth of Economic Thought'' Duke University Press (1991) p. 446</ref> Adherents propose achieving this through decentralization of political and economic power, usually involving the socialization of most large-scale [[private property]] and enterprise (while retaining respect for [[personal property]]). Libertarian socialism tends to deny the legitimacy of most forms of economically significant private property, viewing capitalist property relations as forms of domination that are antagonistic to individual freedom.<ref>Paul, Ellen Frankel et al. ''Problems of Market Liberalism'' Cambridge University Press (1998) p. 305</ref><ref>However, libertarian socialism retains respect for personal property.</ref>
Political philosophies commonly described as libertarian socialist include most varieties of [[anarchism]] (especially [[anarcho-communism]], [[Collectivist anarchism|anarchist collectivism]], [[anarcho-syndicalism]],<ref>{{cite book | last=Sims | first=Franwa | title=The Anacostia Diaries As It Is | page=160 | year=2006 | publisher=Lulu Press}}</ref> [[social anarchism]] and [[Mutualism (economic theory)|mutualism]])<ref>[http://www.mutualist.org/id32.html A Mutualist FAQ: A.4. Are Mutualists Socialists?] {{webarchive|url=https://web.archive.org/web/20090609075437/http://www.mutualist.org/id32.html |date=2009-06-09 }}. Mutualist.org. Retrieved on 2011-12-28.</ref> as well as [[autonomism]], [[Communalism (Bookchin)|communalism]], participism, [[libertarian Marxist]] philosophies such as [[council communism]] and [[Luxemburgism]],<ref name="Graham-2005">Murray Bookchin, ''Ghost of Anarcho-Syndicalism''; [[Robert Graham (historian)|Robert Graham]], ''The General Idea of Proudhon's Revolution''</ref> and some versions of [[utopian socialism]]<ref>Kent Bromley, in his preface to [[Peter Kropotkin]]'s book ''[[The Conquest of Bread]]'', considered early French utopian socialist [[Charles Fourier]] to be the founder of the libertarian branch of [[Socialism|socialist]] thought, as opposed to the authoritarian socialist ideas of [[François-Noël Babeuf|Babeuf]] and [[Philippe Buonarroti|Buonarroti]]." [[Peter Kropotkin|Kropotkin, Peter]]. ''The Conquest of Bread'', preface by Kent Bromley, New York and London, G. P. Putnam's Sons, 1906.</ref> and [[individualist anarchism]].<ref>"[[Benjamin Tucker|(Benjamin) Tucker]] referred to himself many times as a socialist and considered his philosophy to be "Anarchistic socialism." ''[[An Anarchist FAQ]]'' by Various Authors</ref><ref>French individualist anarchist [[Émile Armand]] shows clearly opposition to capitalism and centralized economies when he said that the individualist anarchist "inwardly he remains refractory – fatally refractory – morally, intellectually, economically (The capitalist economy and the directed economy, the speculators and the fabricators of single are equally repugnant to him.)"[http://www.spaz.org/~dan/individualist-anarchist/library/emile-armand/life-activity.html "Anarchist Individualism as a Life and Activity" by Emile Armand] {{webarchive|url=https://web.archive.org/web/20120728211629/http://www.spaz.org/~dan/individualist-anarchist/library/emile-armand/life-activity.html |date=2012-07-28 }}</ref><ref>Anarchist Peter Sabatini reports that In the United States "of early to mid-19th century, there appeared an array of communal and "utopian" counterculture groups (including the so-called [[free love]] movement). [[William Godwin]]'s anarchism exerted an ideological influence on some of this, but more so the socialism of [[Robert Owen]] and [[Charles Fourier]]. After success of his British venture, Owen himself established a cooperative community within the United States at [[New Harmony, Indiana]] during 1825. One member of this commune was [[Josiah Warren]] (1798–1874), considered to be the first [[individualist anarchist]]"[http://www.theanarchistlibrary.org/HTML/Peter_Sabatini__Libertarianism__Bogus_Anarchy.html Peter Sabatini. "Libertarianism: Bogus Anarchy"] {{webarchive|url=https://web.archive.org/web/20120503100657/http://www.theanarchistlibrary.org/HTML/Peter_Sabatini__Libertarianism__Bogus_Anarchy.html |date=2012-05-03 }}</ref> For [[Murray Bookchin]] "In the modern world, anarchism first appeared as a movement of the peasantry and yeomanry against declining feudal institutions. In Germany its foremost spokesman during the Peasant Wars was [[Thomas Muenzer]]; in England, Gerrard Winstanley, a leading participant in the Digger movement. The concepts held by Muenzer and Winstanley were superbly attuned to the needs of their time – a historical period when the majority of the population lived in the countryside and when the most militant revolutionary forces came from an agrarian world. It would be painfully academic to argue whether Muenzer and Winstanley could have achieved their ideals. What is of real importance is that they spoke to their time; their anarchist concepts followed naturally from the rural society that furnished the bands of the peasant armies in Germany and the New Model in England."<ref>[http://www.theanarchistlibrary.org/HTML/Lewis_Herber__Murray_Bookchin___Ecology_and_Revolutionary_Thought.html Lewis Herber. (Murray Bookchin) "Ecology and Revolutionary Thought"] {{webarchive|url=https://web.archive.org/web/20120515215001/http://www.theanarchistlibrary.org/HTML/Lewis_Herber__Murray_Bookchin___Ecology_and_Revolutionary_Thought.html |date=2012-05-15 }}. Theanarchistlibrary.org (2009-04-27). Retrieved on 2011-12-28.</ref> The term "anarchist" first entered the English language in 1642, during the [[English Civil War]], as a [[Pejorative|term of abuse]], used by [[Cavalier|Royalists]] against their [[Roundhead]] opponents.<ref name=BBC-Anarchism/> By the time of the [[French Revolution]] some, such as the ''[[Enragés]]'', began to use the term positively,<ref>Sheehan, Sean. ''Anarchism'', London: [[Reaktion Books]], 2004. p. 85.</ref> in opposition to [[Jacobin (politics)|Jacobin]]
For [[Pierre-Joseph Proudhon]], [[Mutualism (economic theory)|mutualism]] involved creating "[[industrial democracy]]", a system where workplaces would be "handed over to democratically organised workers' associations . . . We want these associations to be models for agriculture, industry and trade, the pioneering core of that vast federation of companies and societies woven into the common cloth of the democratic social Republic."<ref>Guerin, Daniel (ed.) ''No Gods, No Masters'', AK Press, vol. 1, p. 62</ref> He urged "workers to form themselves into democratic societies, with equal conditions for all members, on pain of a relapse into feudalism." This would result in "Capitalistic and proprietary exploitation, stopped everywhere, the wage system abolished, equal and just exchange guaranteed."<ref>''The General Idea of the Revolution'', Pluto Press, pp. 277, 281</ref> Workers would no longer sell their labour to a capitalist but rather work for themselves in co-operatives. [[Anarcho-communism]] calls for a [[Federalism#Federalism as the Anarchist Mode of Political Organization|confederal]] form in relationships of mutual aid and [[Free association (communism and anarchism)|free association]] between communes as an alternative to the [[centralism]] of the [[nation-state]]. [[Peter Kropotkin]] thus suggested that "Representative government has accomplished its historical mission; it has given a mortal blow to court-rule; and by its debates it has awakened public interest in public questions. But to see in it the government of the future socialist society is to commit a gross error. Each economic phase of life implies its own political phase; and it is impossible to touch the very basis of the present economic life-private property – without a corresponding change in the very basis of the political organization. Life already shows in which direction the change will be made. Not in increasing the powers of the State, but in resorting to free organization and free federation in all those branches which are now considered as attributes of the State."<ref>{{Cite web |date=4 December 2023 |title=Anarchist Communism: Its Basis and Principles |url=https://www.marxists.org/reference/archive/kropotkin-peter/1927/anarchist-communism.html |url-status=live |archive-url=https://web.archive.org/web/20230812192734/https://www.marxists.org/reference/archive/kropotkin-peter/1927/anarchist-communism.html |archive-date=August 12, 2023 |website=marxists.org}}</ref> When the [[First Spanish Republic]] was established in 1873 after the abdication of King Amadeo, the first president, Estanislao Figueras, named [[Francesc Pi i Margall]] Minister of the Interior. His acquaintance with Proudhon enabled Pi to warm relations between the Republicans and the socialists in Spain. Pi i Margall became the principal translator of Proudhon's works into Spanish<ref>[[George Woodcock]]. ''Anarchism: a history of libertarian movements''. p. 357</ref> and later briefly became president of Spain in 1873 while being the leader of the Democratic Republican Federal Party. According to [[George Woodcock]] "These translations were to have a profound and lasting effect on the development of [[Spanish anarchism]] after 1870, but before that time Proudhonian ideas, as interpreted by Pi, already provided much of the inspiration for the federalist movement which sprang up in the early 1860s."<ref>George Woodcock. ''Anarchism: a history of libertarian movements''. p. 357</ref> According to the ''[[Encyclopædia Britannica]]'' "During the Spanish revolution of 1873, Pi y Margall [[Cantonal Revolution|attempted to establish a decentralized, cantonalist political system]] on Proudhonian lines."<ref>[https://www.britannica.com/EBchecked/topic/22753/anarchism/66525/Anarchism-in-Spain#ref539322 "Anarchism"] {{webarchive|url=https://web.archive.org/web/20140424210641/https://www.britannica.com/EBchecked/topic/22753/anarchism/66525/Anarchism-in-Spain |date=2014-04-24 }} at the ''[[Encyclopædia Britannica]]'' online.</ref>
=== Organizational structure of a firm ===▼
In [[managerial economics]], the [[Principal–agent problem|principal-agent problem]] is a challenge faced by every firm.<ref>{{Cite book |last=Perloff |first=Jeffrey M. |title=Microeconomics |date=2018 |isbn=978-0-13-451953-1 |edition=8th |location=New York, NY |oclc=966436503 }}{{page needed|date=October 2022}}</ref> In response to these incentive and information conflicts, a firm can either [[Centralisation|centralize]] their [[organizational structure]] by concentrating decision-making to upper management, or decentralize their organizational structure by delegating authority throughout the organization.<ref>{{cite journal |last1=Ouchi |first1=William G. |title=Power to the Principals: Decentralization in Three Large School Districts |journal=Organization Science |date=April 2006 |volume=17 |issue=2 |pages=298–307 |doi=10.1287/orsc.1050.0172 }}</ref> The delegation of authority comes with a basic trade-off: while it can increase efficiency and information flow, the central authority consequentially suffers a loss of control.<ref>{{cite journal |last1=Zábojník |first1=Ján |title=Centralized and Decentralized Decision Making in Organizations |journal=Journal of Labor Economics |date=January 2002 |volume=20 |issue=1 |pages=1–22 |doi=10.1086/323929 |s2cid=222328856 }}</ref> However, through creating an environment of trust and allocating authority formally in the firm, coupled with a stronger [[rule of law]] in the geographical location of the firm, the negative consequences of the trade-off can be minimized.<ref>{{cite journal |last1=Aghion |first1=P. |last2=Bloom |first2=N. |last3=Van Reenen |first3=J. |title=Incomplete Contracts and the Internal Organization of Firms |journal=Journal of Law, Economics, and Organization |date=1 May 2014 |volume=30 |issue=suppl 1 |pages=i37–i63 |doi=10.1093/jleo/ewt003 }}</ref>▼
In having a decentralized organizational structure, a firm can remain agile to external shocks and competing trends. Decision-making in a centralized organization can face information flow inefficiencies and barriers to effective communication which decreases the speed and accuracy in which decisions are made. A decentralized firm is said to hold greater flexibility given the efficiency in which it can analyze information and implement relevant outcomes.<ref>{{cite journal |last1=Aghion |first1=Philippe |last2=Bloom |first2=Nicholas |last3=Lucking |first3=Brian |last4=Sadun |first4=Raffaella |last5=Van Reenen |first5=John |title=Turbulence, Firm Decentralization, and Growth in Bad Times |journal=American Economic Journal: Applied Economics |date=1 January 2021 |volume=13 |issue=1 |pages=133–169 |doi=10.1257/app.20180752 |s2cid=234358121 |url=http://nrs.harvard.edu/urn-3:HUL.InstRepos:33111765 }}</ref> Additionally, having decision-making power spread across different areas allows for local knowledge to inform decisions, increasing their relevancy and implementational effectiveness.<ref>{{cite journal |last1=Leiponen |first1=Aija |last2=Helfat |first2=Constance E. |title=Location, Decentralization, and Knowledge Sources for Innovation |journal=Organization Science |date=June 2011 |volume=22 |issue=3 |pages=641–658 |doi=10.1287/orsc.1100.0526 }}</ref> In the process of developing new products or services, the decentralization enable the firm gain advantages of closely meet particular division's needs.<ref>{{Cite book |last=Schilling |first=Melissa A. |url=https://www.worldcat.org/oclc/929155407 |title=Strategic management of technological innovation |date=2017 |isbn=978-1-259-53906-0 |edition=5th |location=New York, NY |oclc=929155407}}</ref>▼
Decentralization also impacts [[human resource management]]. The high level of individual agency that workers experience within a decentralized firm can create job enrichment. Studies have shown this enhances the development of new ideas and innovations given the sense of involvement that comes from responsibility.<ref>{{cite journal |last1=Bucic |first1=Tania |last2=Gudergan |first2=Siegfried P. |title=The Impact of Organizational Settings on Creativity and Learning in Alliances |journal=M@n@gement |date=2004 |volume=7 |issue=3 |pages=257–273 |doi=10.3917/mana.073.0257 |hdl=10453/5995 |hdl-access=free }}</ref> The impacts of decentralization on [[innovation]] are furthered by the ease of information flow that comes from this organizational structure. With increased knowledge sharing, workers are more able to use relevant information to inform decision-making.<ref>{{cite journal |last1=Foss |first1=Nicolai J. |last2=Laursen |first2=Keld |last3=Pedersen |first3=Torben |title=Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices |journal=Organization Science |date=August 2011 |volume=22 |issue=4 |pages=980–999 |doi=10.1287/orsc.1100.0584 |doi-access=free }}</ref> These benefits are enhanced in firms with skill-intensive environments. Skilled workers are more able to analyze information, they pose less risk of information duplication given increased communication abilities, and the productivity cost of multi-tasking is lower. These outcomes of decentralizion make it a particularly effective organizational structure for entrepreneurial and competitive firm environments, such as [[Startup company|start-up companies]]. The flexibility, efficiency of information flow and higher worker autonomy complement the rapid growth and innovation seen in successful start up companies.<ref>{{cite journal |last1=Burton |first1=M. Diane |last2=Colombo |first2=Massimo G. |last3=Rossi‐Lamastra |first3=Cristina |last4=Wasserman |first4=Noam |title=The organizational design of entrepreneurial ventures |journal=Strategic Entrepreneurship Journal |date=September 2019 |volume=13 |issue=3 |pages=243–255 |doi=10.1002/sej.1332 |s2cid=201351323 }}</ref>▼
=== Free market ===
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Author and activist [[Jane Jacobs]]'s influential 1961 book ''The Death and Life of American Cities'' criticized large-scale redevelopment projects which were part of government-planned decentralization of population and businesses to suburbs. She believed it destroyed cities' economies and impoverished remaining residents.<ref>John Montgomery, ''The New Wealth of Cities: City Dynamics and the Fifth Wave'', [[Ashgate Publishing]], Ltd., 2008, [https://books.google.com/books?id=5CCsHETenvMC&dq=Jane+Jacobs+decentralization&pg=PA2 p. 2] {{webarchive|url=https://web.archive.org/web/20160522041029/https://books.google.com/books?id=5CCsHETenvMC&pg=PA2|date=2016-05-22}}, {{ISBN|978-0754674153}}</ref> Her 1980 book ''The Question of Separatism: Quebec and the Struggle over Sovereignty'' supported secession of [[Quebec]] from [[Canada]].<ref>Jane Jacobs, ''The Question of Separatism: Quebec and the Struggle over Sovereignty'', (1980 Random House and 2011 Baraka Books), {{ISBN|978-1926824062}}</ref> Her 1984 book ''Cities and the Wealth of Nations'' proposed a solution to the problems faced by cities whose economies were being ruined by centralized national governments: decentralization through the "multiplication of sovereignties", meaning an acceptance of the right of cities to secede from the larger nation states that were greatly limiting their ability to produce wealth.<ref>Gopal Balakrishnan, ''Mapping the Nation'', Verso, 1996, [https://books.google.com/books?id=hdrfDqF3fLoC&dq=Jane+Jacobs+Cities+and+the+wealth+of+nations+multiplication+of+sovereignties&pg=PA277 p. 277] {{webarchive|url=https://web.archive.org/web/20160610105415/https://books.google.com/books?id=hdrfDqF3fLoC&pg=PA277|date=2016-06-10}}, {{ISBN|978-1859840603}}</ref><ref>{{cite book|first1=Jane |last1=Jacobs|title=Cities and the Wealth of Nations: Principles of Economic Life|publisher=[[Vintage Books]]|year=1984|isbn=0-394-72911-0}}</ref>
▲In [[managerial economics]], the [[Principal–agent problem|principal-agent problem]] is a challenge faced by every firm.<ref>{{Cite book |last=Perloff |first=Jeffrey M. |title=Microeconomics |date=2018 |isbn=978-0-13-451953-1 |edition=8th |location=New York, NY |oclc=966436503 }}{{page needed|date=October 2022}}</ref> In response to these incentive and information conflicts, a firm can either [[Centralisation|centralize]] their [[organizational structure]] by concentrating decision-making to upper management, or decentralize their organizational structure by delegating authority throughout the organization.<ref>{{cite journal |last1=Ouchi |first1=William G. |title=Power to the Principals: Decentralization in Three Large School Districts |journal=Organization Science |date=April 2006 |volume=17 |issue=2 |pages=298–307 |doi=10.1287/orsc.1050.0172 }}</ref> The delegation of authority comes with a basic trade-off: while it can increase efficiency and information flow, the central authority consequentially suffers a loss of control.<ref>{{cite journal |last1=Zábojník |first1=Ján |title=Centralized and Decentralized Decision Making in Organizations |journal=Journal of Labor Economics |date=January 2002 |volume=20 |issue=1 |pages=1–22 |doi=10.1086/323929 |s2cid=222328856 }}</ref> However, through creating an environment of trust and allocating authority formally in the firm, coupled with a stronger [[rule of law]] in the geographical location of the firm, the negative consequences of the trade-off can be minimized.<ref>{{cite journal |last1=Aghion |first1=P. |last2=Bloom |first2=N. |last3=Van Reenen |first3=J. |title=Incomplete Contracts and the Internal Organization of Firms |journal=Journal of Law, Economics, and Organization |date=1 May 2014 |volume=30 |issue=suppl 1 |pages=i37–i63 |doi=10.1093/jleo/ewt003 }}</ref>
▲In having a decentralized organizational structure, a firm can remain agile to external shocks and competing trends. Decision-making in a centralized organization can face information flow inefficiencies and barriers to effective communication which decreases the speed and accuracy in which decisions are made. A decentralized firm is said to hold greater flexibility given the efficiency in which it can analyze information and implement relevant outcomes.<ref>{{cite journal |last1=Aghion |first1=Philippe |last2=Bloom |first2=Nicholas |last3=Lucking |first3=Brian |last4=Sadun |first4=Raffaella |last5=Van Reenen |first5=John |title=Turbulence, Firm Decentralization, and Growth in Bad Times |journal=American Economic Journal: Applied Economics |date=1 January 2021 |volume=13 |issue=1 |pages=133–169 |doi=10.1257/app.20180752 |s2cid=234358121 |url=http://nrs.harvard.edu/urn-3:HUL.InstRepos:33111765 |hdl=10419/161329 |hdl-access=free }}</ref> Additionally, having decision-making power spread across different areas allows for local knowledge to inform decisions, increasing their relevancy and implementational effectiveness.<ref>{{cite journal |last1=Leiponen |first1=Aija |last2=Helfat |first2=Constance E. |title=Location, Decentralization, and Knowledge Sources for Innovation |journal=Organization Science |date=June 2011 |volume=22 |issue=3 |pages=641–658 |doi=10.1287/orsc.1100.0526 }}</ref> In the process of developing new products or services, the decentralization enable the firm gain advantages of closely meet particular division's needs.<ref>{{Cite book |last=Schilling |first=Melissa A. |url=https://www.worldcat.org/oclc/929155407 |title=Strategic management of technological innovation |date=2017 |isbn=978-1-259-53906-0 |edition=5th |location=New York, NY |oclc=929155407}}</ref>
▲Decentralization also impacts [[human resource management]]. The high level of individual agency that workers experience within a decentralized firm can create job enrichment. Studies have shown this enhances the development of new ideas and innovations given the sense of involvement that comes from responsibility.<ref>{{cite journal |last1=Bucic |first1=Tania |last2=Gudergan |first2=Siegfried P. |title=The Impact of Organizational Settings on Creativity and Learning in Alliances |journal=M@n@gement |date=2004 |volume=7 |issue=3 |pages=257–273 |doi=10.3917/mana.073.0257 |hdl=10453/5995 |hdl-access=free }}</ref> The impacts of decentralization on [[innovation]] are furthered by the ease of information flow that comes from this organizational structure. With increased knowledge sharing, workers are more able to use relevant information to inform decision-making.<ref>{{cite journal |last1=Foss |first1=Nicolai J. |last2=Laursen |first2=Keld |last3=Pedersen |first3=Torben |title=Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices |journal=Organization Science |date=August 2011 |volume=22 |issue=4 |pages=980–999 |doi=10.1287/orsc.1100.0584 |doi-access=free }}</ref> These benefits are enhanced in firms with skill-intensive environments. Skilled workers are more able to analyze information, they pose less risk of information duplication given increased communication abilities, and the productivity cost of multi-tasking is lower. These outcomes of decentralizion make it a particularly effective organizational structure for entrepreneurial and competitive firm environments, such as [[Startup company|start-up companies]]. The flexibility, efficiency of information flow and higher worker autonomy complement the rapid growth and innovation seen in successful start up companies.<ref>{{cite journal |last1=Burton |first1=M. Diane |last2=Colombo |first2=Massimo G. |last3=
== In technology and the internet ==
[[File:Living Machine at Port of Portland-interior.jpg|thumb|left|The [[Living Machine]] installation in the lobby of the [[Port of Portland (Oregon)|Port of Portland]] headquarters which was completed and ready for occupation May 2010. The decentralized wastewater reuse system contributed to the headquarter's certification as a LEED Platinum building by the [[U.S. Green Building Council]].]]
''Technological decentralization'' can be defined as a shift from concentrated to distributed modes of production and consumption of goods and services.<ref>Eggimann, S. ''[https://www.research-collection.ethz.ch/bitstream/handle/20.500.11850/125311/eth-50304-02.pdf The optimal degree of centralisation for wastewater infrastructures. A model-based geospatial economic analysis] Doctoral Thesis ETH Zurich.'', 30. November 2016.</ref> Generally, such shifts are accompanied by transformations in technology and different technologies are applied for either system. Technology includes tools, materials, skills, techniques and processes by which goals are accomplished in the public and private spheres. Concepts of decentralization of technology are used throughout [[Outline of technology|all types of technology]], including especially [[information technology]] and [[appropriate technology]].
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Information technology applied to government communications with citizens, often called [[e-Government]], is supposed to support decentralization and democratization. Various forms have been instituted in most nations worldwide.<ref>G. David Garson, ''Modern Public Information Technology Systems: Issues and Challenges'', IGI Global, 2007, [https://books.google.com/books?id=mf_kb6MKrOYC&dq=information+technology+decentralization&pg=PT128 p. 115–20] {{webarchive|url=https://web.archive.org/web/20160519041443/https://books.google.com/books?id=mf_kb6MKrOYC&pg=PT128 |date=2016-05-19 }}, {{ISBN|978-1599040530}}</ref>
The [[internet]] is an example of an extremely decentralized network, having no owners at all (although some have argued that this is less the case in recent years<ref name=newyorkerdecentralize>{{cite magazine|last=Kopfstein|first=Janus|title=The Mission To Decentralize The Internet|url=http://www.newyorker.com/online/blogs/elements/2013/12/the-mission-to-decentralize-the-internet.html|magazine=The New Yorker| date=12 December 2013 |publisher=Condé Nast|access-date=13 December 2013|url-status=live|archive-url=https://web.archive.org/web/20131213190350/http://www.newyorker.com/online/blogs/elements/2013/12/the-mission-to-decentralize-the-internet.html|archive-date=13 December 2013}}</ref>). "No one is in charge of internet, and everyone is." As long as they follow a certain minimal number of rules, anyone can be a service provider or a user. Voluntary boards establish protocols, but cannot stop anyone from developing new ones.<ref>[[Thomas W. Malone]], Robert Laubacher, [[Michael S. Scott Morton]], ''Inventing Organizations 21st Century'', [[MIT Press]], 2003, [https://books.google.com/books?id=az_UcjtGrSgC&q=internet+is+decentralized++structure 65–66] {{webarchive|url=https://web.archive.org/web/20160428093601/https://books.google.com/books?id=az_UcjtGrSgC |date=2016-04-28 }}, {{ISBN|978-0262632737}}</ref> Other examples of open source or decentralized movements are [[Wiki]]s which allow users to add, modify, or delete content via the internet.<ref>Chris DiBona, Mark Stone, Danese Cooper, ''Open Sources 2.0: The Continuing Evolution'', O'Reilly Media, Inc., 2008, [https://books.google.com/books?id=q9GnNrq3e5EC&dq=wikipedia+decentralization&pg=PA316 p. 316] {{webarchive|url=https://web.archive.org/web/20160610134249/https://books.google.com/books?id=q9GnNrq3e5EC&pg=PA316 |date=2016-06-10 }}, {{ISBN|978-0596553890}}</ref> [[Wikipedia]] has been described as decentralized (although it is a centralized web site, with a single entity operating the servers).<ref>Axel Bruns, ''Blogs, Wikipedia, Second Life, and Beyond: From Production to Produsage'', [[Peter Lang (publishing company)|Peter Lang]], 2008, [https://books.google.com/books?id=xWxmFNMKXhEC&dq=wikipedia+decentralization&pg=PA231 p. 80] {{webarchive|url=https://web.archive.org/web/20160528215002/https://books.google.com/books?id=xWxmFNMKXhEC&pg=PA231 |date=2016-05-28 }}, {{ISBN|978-0820488660}}</ref> [[Smartphones]] have
Decentralization continues throughout the industry, for example as the decentralized architecture of wireless routers installed in homes and offices supplement and even replace phone companies' relatively centralized long-range cell towers.<ref>Adi Kamdar and Peter Eckersley, [https://www.eff.org/deeplinks/2013/02/fcc-public-super-wifi-networks Can the FCC Create Public "Super WiFi Networks"?] {{webarchive|url=https://web.archive.org/web/20130212163129/https://www.eff.org/deeplinks/2013/02/fcc-public-super-wifi-networks |date=2013-02-12 }}, [[Electronic Frontier Foundation]], February 5, 2013.</ref>
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In [[blockchain]], decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network. Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.<ref>{{Cite journal|last=Anderson|first=Mally|date=2019-02-07|title=Exploring Decentralization: Blockchain Technology and Complex Coordination|url=https://jods.mitpress.mit.edu/pub/7vxemtm3/release/2|journal=Journal of Design and Science|language=en}}</ref>
[[cryptocurrency|Cryptocurrencies]] use cryptographic proofs such as [[proof-of-work|proof of work]] (e.g. [[Bitcoin]]) or [[proof of stake]] (e.g. [[Cardano (blockchain platform)|Cardano]]) as a means of establishing decentralized consensus
Decentralized protocols, applications, and ledgers (used in [[Web3]]<ref>{{cite journal |last1=Zarrin |first1=Javad |last2=Wen Phang |first2=Hao |last3=Babu Saheer |first3=Lakshmi |last4=Zarrin |first4=Bahram |title=Blockchain for decentralization of internet: prospects, trends, and challenges |journal=Cluster Computing |date=December 2021 |volume=24 |issue=4 |pages=2841–2866 |doi=10.1007/s10586-021-03301-8 |pmid=34025209 |pmc=8122205 }}</ref><ref>{{cite book |doi=10.1002/9781119621201.ch1 |chapter=Blockchain |title=Cryptocurrencies and Blockchain Technology Applications |year=2020 |last1=Gururaj |first1=H. L. |last2=Manoj Athreya |first2=A. |last3=Kumar |first3=Ashwin A. |last4=Holla |first4=Abhishek M. |last5=Nagarajath |first5=S. M. |last6=Ravi Kumar |first6=V. |pages=1–24 |isbn=9781119621164 |s2cid=242394449 }}</ref>) could be more difficult for governments to regulate, similar to difficulties regulating [[BitTorrent]] (which is not a blockchain technology).
=== Appropriate technology ===
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It has been noted that while decentralization may increase "productive efficiency" it may undermine "allocative efficiency" by making redistribution of wealth more difficult. Decentralization will cause greater disparities between rich and poor regions, especially during times of crisis when the national government may not be able to help regions needing it.<ref>Summary of Remy Prud’homme, "[http://government.cce.cornell.edu/doc/summary.asp?id=prudhomme1995 The Dangers of Decentralization] {{webarchive|url=https://web.archive.org/web/20120616074803/http://government.cce.cornell.edu/doc/summary.asp?id=prudhomme1995 |date=2012-06-16 }}", [[World Bank]] Research Observer, 10(2):201, 1995, linked from [http://government.cce.cornell.edu/doc/viewpage_r.asp?ID=Decentralization Decentralization] {{webarchive|url=https://web.archive.org/web/20121026031204/http://government.cce.cornell.edu/doc/viewpage_r.asp?ID=Decentralization |date=2012-10-26 }}, article "Restructuring local government project" of Dr. Mildred Warner.</ref>
== See also ==
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* Ryan McMaken, ''Breaking Away: The Case for Secession, Radical Decentralization, and Smaller Polities'', [[Ludwig Von Mises Institute|Ludwig von Mises Institute]], 2022, {{ISBN|9781610167581}}
* {{cite journal | last1 = Schrape | first1 = Jan-Felix | year = 2019 | title = The Promise of Technological Decentralization. A Brief Reconstruction. | journal = Society | volume = 56| pages = 31–37| doi = 10.1007/s12115-018-00321-w | s2cid = 149861490 }}
* Schakel, Arjan H. (2008), [https://web.archive.org/web/20100602002702/http://www.unc.edu/~gwmarks/assets/doc/RFS.III.Validation%20of%20regional%20authority%20index.pdf Validation of the Regional Authority Index], Regional and Federal Studies, Routledge, Vol. 18 (2).
* [http://government.cce.cornell.edu/doc/viewpage_r.asp?ID=Decentralization Decentralization], article at the "[http://government.cce.cornell.edu/ Restructuring local government project]" of Dr. Mildred Warner, [[Cornell University]] includes a number of articles on decentralization trends and theories.
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[[Category:Organization design]]
[[Category:Cyberpunk themes]]
[[Category:Military tactics]]
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