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Decentralization or decentralisation is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it. [1]
Centralisation or centralization (North American English; see English spelling differences) is the process by which the activities of an organisation, particularly those regarding planning, decision-making, and framing strategies and policies, become concentrated within a particular group within that organisation.
One of the most well known examples of a "natural" decentralized system is one used by certain insect colonies. In these insect colonies, control is distributed among the homogeneous biological agents who act upon local information and local interactions to collectively create complex, global behaviour.
There are various forms of economic planning that vary based on their specific procedures and approach. The level of centralization or decentralization in decision-making depends on the specific type of planning mechanism employed. In addition, one can distinguish between centralized planning and decentralized planning. [3]
A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning. [1] [2] The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed. [3]
The decisions arising from a process of decentralized decision-making are the functional result of group intelligence and crowd wisdom. Decentralized decision-making also contributes to the core knowledge of group intelligence and crowd wisdom, often in a subconscious way à la Carl Jung's collective unconscious.
Their management usually is executed by local authorities. In hybrid systems and small centralized systems in towns or rural communities management can be executed in the same way. [12] [citation needed] In the case of decentralization at on-site level and clusters of buildings, the whole wastewater system is located within private premises.
A centralized government (also united government) is one in which both executive and legislative power is concentrated centrally at the higher level as opposed to it being more distributed at various lower level governments. In a national context, centralization occurs in the transfer of power to a typically unitary sovereign nation state.