Administrative and Financial Decentralization. Contemporary challenges such as urbanization, the need for enhanced gender equality in governance and effective protection of the environment all require increasingly holistic approaches. In dealing with these important issues, decentralization of government tasks and functions has a number of advantages. Enhanced efficiency and effectiveness in decision-making and resource utilization and better accountability and responsiveness are important benefits of decentralization. A decentralized system of governance should promote enhanced political stability, more balance growth, effective and efficient service delivery, and appropriate balance of power between central and local governments and grassroots participation in decision-making. The degree of decentralization, however, will vary according to local needs, requirements and capabilities. In the view of some participants, the necessary conditions for decentralization were not yet in place for their countries. A number of constraints impeding decentralization were identified such as general lack of capacity of local government and civil society.
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