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What are the factors influencing centralization and decentralization_

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What are the factors influencing centralization and decentralization_

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  1. What are the factors influencing centralization and decentralization?

  2. Centralization Centralization refers to that organizational structure where decision-making power is confined to the top management, and the subordinates need to follow the instructions of their seniors. Blockchainx, Centralization of authority is essential for the small-scale organizations which lack resources and finance.

  3. Factors influencing Centralization and Decentralization centralization It consists of delegating all administrative, budgetary and social functions to the State or to institutions located in the country's capital. In other words, political, legal and economic power is centralized and little power is vested in local entities or authorities. According to the neoclassical theory of Economy, this organizational model of a State is called centralism .

  4. Types of centralization Administrative centralization: administrative matters are part of the responsibilities of the state. Organizational centralization: It is the political functions are exercised by the institutions managed by the State.

  5. Decentralization In order to establish a comparison between what is decentralization and centralization, it is necessary to first know their concepts. In this sense, Token Swap Platform Development decentralization is a term that refers to the political organization of a government, that is, it consists of decisions regarding the administration and budgets that, in general, are matters of the capital of the country, are transferred to local entities. So they are given a certain autonomy in matters related to management and also some legal regulations.

  6. Types of decentralization Territorial decentralization: it is the concession of administrative and budgetary functions to the communities without this meaning the separation of the local authorities from said management. Decentralization of services: is the granting of authority over industrial companies, public services, commercial establishments, among others. Administrative decentralization: is the granting of administrative and financial powers to local authorities.

  7. Difference Between Decentralization and Centralization Now that we know what decentralization and centralization are, it is time to know how each of these fundamental axes that define the organizational structure of a government differ. Let's see below: In decentralization, power is concentrated in local authorities and collectivities. In centralization, it is in the hands of a single authority. In decentralization, decisions on economic and social matters are concentrated in several hands, that is, they are taken jointly. In centralization, political, administrative, economic and social decisions are the sole responsibility of the president. On the other hand, in decentralization, in order to execute actions for the benefit of the nation, the authorization of the central axis of the government is not necessary. In centralization, all those actions that are going to be executed at the local level must be consulted and authorized by the central government.

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