Consolidating Public Trust and Blending Public Management

Decentralized governance is a buzzword that is being used increasingly often in the business world. What does it mean? Basically it refers to a form of administration that is more loosely coupled between corporate policies, and societal objectives. Decentralized governance gives an edge to enterprises that are striving to improve internal working models, while giving flexibility to the organizations to interact with external third parties more effectively, read more at https://governordao.org/. For any type of organization, the goal is to build better working models, while ensuring compliance with organizational goals and missions.

Traditional public company governance methods have many limitations and drawbacks. For instance, decentralized governance systems are usually non-transparent, as the decision making processes are decentralized, and do not have the ability to make good decisions under pressure from a number of stake holders. As a result, these stake holders may tend to take advantage and may decide that their stake is higher than that of the stakeholders and the organization in order to take control. If the organization is weak in terms of internal mechanisms or structure, then this result can be amplified.

The proponents of decentralized governance systems believe that it provides a better balance between a rapid pace of change and a sense of stability and predictability. According to them, centralized governance tends to become corrupt, overbearing and overly intrusive due to the increased powers it grants to the central authorities. On the other hand, decentralization results in less state intervention, which allows greater control and accountability over public institutions, read more at https://governordao.org/. For instance, in India's public sector, where decentralization has been most vigorously applied, there has been a major increase in corruption and waste disposal, especially in the non-performing sector. Similarly, in the United States, with the tremendous expansion of the welfare state, the growth and development of the private sector lag the overall performance of the state and local governments.

Although both can be equally beneficial, both processes have their own limitations and their application in various countries will largely depend on each country's unique situation. The key for deciding which process is more suitable for a particular country or region, then, would be to closely analyze the pros and cons of both processes and look at the potentials for enhanced flexibility and better public sector performance. No matter what system of governance is implemented, one thing is certain: whether it is at the municipal, regional, or national level, the key is to make it work. It is only through successful implementation that any meaningful measure of decentralization can be achieved. Read more at https://www.britannica.com/topic/governance#:~:text=Governance%2C%20patterns%20of%20rule%20or,authority%20of%20the%20modern%20state.