WHY SOME GOVERNMENTS DON'T WANT TO CONSOLIDATE THEIR GOVERNANCE STRUCTURE

09/14/2021


There was a time when a business could be judged entirely successful if it had an autonomous organization, Decentralized Autonomy, with a self governing board. Such an autonomous organization could then devote its time and efforts to marketing, growth, and innovation. However, what we are witnessing now is rather different, click to view here for more. A lot of medium sized enterprises (SME's) have realized the potential value of a company with a large number of employees. In fact, some of them have taken a lead by building their own DAO (ederally licensed off-line enterprise software) instead of buying ready-made ones. More importantly, they did not wait for the big IT companies to solve the problem before coming forward and attempting to solve it themselves.
Today, DAOs are much more pedestrian but much more tangible. Users only need to log on, configure the application, and point and click. The system itself is so simple that the only thing that is complicated is the human factor. Users can easily design, deploy and manage DAOs within a matter of a few mouse clicks, which has made it popular amongst those who want to try out a new system without taking the risk of investing in the infrastructure required for a centralized governance solution. Also, the story is supposed to be the other way round; that decentralized governance wouldn't necessarily come out of the woodwork and would eliminate the need for big multinational companies, which had earlier dominated the market.
One of the reasons why most people do not think of Decentralized Governance as a potential solution to the challenges we face today is that the term decentralized decision-making is associated with an ideology which is considered to be right wing, or even fascistic by some. However, if one would take a closer look at what Decentralized Governance actually stands for, one would realize that it is nothing like that, click website for details. In fact, it is a concept that is highly relevant to current day societal challenges such as climate change, environmental pollution, corporate governance, Internet users' privacy, sustainable governance, social capital, and even the management of natural resources. In addition, it can help solve many problems that are faced by individuals today such as work-related anxiety, job insecurity, low pay/no gain economy, and lack of social capital. If you get rid of the corporate veil, you would see that this concept of self-management, which was once associated with right wingers, has now become mainstream.
Since countries at different levels of government lack the will to tackle tough issues such as these, the concept of decentralized governance was needed in order to push through change. The decentralization process works well in tandem with national governments as they work hand in hand with the grassroots. This enables them to bring together the grassroots for the benefit of the entire society.
In this process, stakeholders involved in governance associations meet regularly and come up with regular agendas that need to be deliberated upon, reported on, and action plans for implementation. Stakeholders in such associations have more involvement in decision making at the local level. This results in improved accountability of local officials and better monitoring of the implementation of local policies. This also results in improved quality control of government policies which improve the accountability of the policy makers themselves and makes them answerable to the people at large. If the governance is decentralized, there are fewer conflicts and power struggles among the stakeholders.
The biggest advantage of decentralized governance is that it is able to provide genuine and long term value in terms of both economic and social returns. However, while providing these benefits, it also provides several drawbacks such as increased costs and loss of control of essential institutional mechanisms. For example, with self-management and decentralization, a certain amount of control needs to be taken into account as well as transaction costs and increased risk of non-compliance with regulations. However, the cost of these drawbacks is far outweighed by the overall benefits one receives by introducing a more decentralized authority structure. As mentioned earlier, I am not advocating that all governments immediately switch to a self-management or decentralized governance model. Read more at https://en.wikipedia.org/wiki/Governance

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