Benefits Of Decentralization Research Articles

Management in the field of decentralized finance based on blockchain technologies

Currently, the benefits of decentralization through blockchain technology in the financial sector are actively discussed, but rarely quantified. This article attempts to examine the potential benefits and limitations of blockchain technology in improving governance and performance in digital financial ecosystems. The possibilities of using blockchain technology from traditional financial structures to the creation of new business models operating on blockchain networks and using smart contracts are shown. The impact of decentralization in the management of decentralized autonomous organizations (DAOs) on the financial performance of companies in the field of decentralized finance (DeFi) was assessed. In the process of research, we use the Gini coefficient as an indicator of inequality among token holders. This metric is analyzed in the context of return on investment (ROI) for DeFi companies. The method of linear regression analysis and the rule of interpretation of natural logarithms in regression were used for calculations. This analysis revealed a significant relationship and positive impact of decentralization on the functioning and profitability of organizations in the DeFi field. The resulting relationship indicates that with increasing decentralization in management, the return on invested capital increases. To improve investment attractiveness and long-term stability, DeFi companies should consider fairer ways to allocate tokens so that decentralized governance models based on blockchain and DAO become more profitable. The results and conclusions obtained from the study are based on academic research articles, open data, industry reports and company reports in the DeFi industry.

ChainKeeper: A cross‐chain scheme for governing the chain by chain

AbstractWith the rapid application of consortium chains, supervising these systems has become a challenge for governments. The centralized model fails to deliver supervision services that are both open and transparent. Given the benefits of decentralization, non‐tampering, and traceability offered by blockchains, researchers propose the concept of ‘governing the chain by chain’, which involves supervising multiple consortium chains by constructing a blockchain. Under this idea, the cross‐chain scheme becomes the key to achieving excellent supervision. Existing studies have shortcomings and cannot meet the requirements of universality, security, and efficiency in cross‐chain supervision scenarios. Aiming at the challenges, we propose ChainKeeper, a cross‐chain scheme for governing the chain by chain. The innovation of our work lies in three points. First, a modular node proxy program is designed to adapt to various implementations of consortium chains. Second, a verifiable node random selection method is put forward to improve the throughput of cross‐chain data transmission. Finally, a verifiable identity threshold signature method is proposed to prevent the cheating behavior of malicious nodes. To verify the universality of ChainKeeper, we built a prototype system on three types of consortium chains. The experimental results show that ChainKeeper can achieve high throughput, outperforming two state‐of‐the‐art cross‐chain schemes.

Next Generation IoT and Blockchain Integration

The Internet of Things (IoT) refers to the interconnection of smart devices to collect data and make intelligent decisions. However, a lack of intrinsic security measures makes next generation IoT more vulnerable to privacy and security threats. With its “security by design,” Blockchain (BC) can help in addressing major security requirements in IoT. Blockchain is an ever-growing list of records that are linked and protected using cryptographic methods. It offers its users the flexibility to conduct transactions with lower costs and faster speeds. Blockchain ledgers are also decentralized and a ledger is maintained at each node in the network. Blockchain’s security and adaptability help in making even entire systems on it a much easily task with the benefit of decentralization. BC capabilities like immutability, transparency, auditability, data encryption, and operational resilience can help solve most architectural shortcomings of IoT. In the vision of the Internet of Things, traditional devices are becoming smarter and more autonomous. This vision is becoming reality as technology advances but there are still challenges to be resolved. This is especially true in a security domain like data trust, and with the expected evolution of the IoT in the coming years, it is important to ensure that this great source of data arrives. This paper began with an overview of blockchain and IoT, as well as explore the IoT blockchain application challenges. This article also focuses to review the most relevant tasks to analyse how IoT blockchain can improve and examine current research concerns and developments in the use of blockchain-related techniques and technologies in the context of IoT security in depth. One of the best parts of working or learning about blockchain and its application is the curiosity about how it can impact the things that we have been accustomed to without trying to improve and make things more efficient and productive.

Qualitative approach in evaluating service delivery in Namibia: The case of the decentralized Khomas Basic Education Directorate

Decentralisation, in the Namibian public sector, was aimed at improving service delivery by regional and local authorities to the communities in Namibia. This research paper evaluates accountability of service delivery in the educational sector of the Directorate in Khomas Regional Council. This research paper used the qualitative approach and followed a triangulated method of data collection by using open and closed ended questions only. The findings of the research revealed that the understanding of the decentralisation policy and concepts are different among the participants. The paper recommends more sensitization, advocacy and training on the purpose and benefits of decentralization.

A Study of Local Government in Africa through Participatory Action Research (PAR)

A Study of Local Government in Africa through Participatory Action Research (PAR)

Main definitions of decentralization definition

The article explores the scientific approaches to defining decentralization. It is analyzed what decentralization is, what is its purpose. The main possibilities are identified. It is emphasized that the benefits of decentralization are the implementation of differentiated policies, effective mobilization at the local level, namely: increasing interest, building partnerships and social cohesion, gaining experience and creating technical groups at the local level; greater flexibility in decision-making and management; possibility of direct physical control at the local level in addition to documentary control. The necessity and efficiency of decentralization are substantiated, through the implementation of reforms aimed at increasing the efficiency of activities of both central and local authorities, as well as creating favorable conditions for economic development. It has been determined that decentralization must necessarily support the functioning of democracy, the proper technical capacity of local self-government and the development of civil society and public organizations.

A Clustered, Decentralized Approach to Urban Water Management

Current models in design of urban water management systems and their corresponding infrastructure using centralized designs have commonly failed from the perspective of cost effectiveness and inability to adapt to the future changes. These challenges are driving cities towards using decentralized systems. While there is great consensus on the benefits of decentralization; currently no methods exist which guide decision-makers to define the optimal boundaries of decentralized water systems. A new clustering methodology and tool to decentralize water supply systems (WSS) into small and adaptable units is presented. The tool includes two major components: (i) minimization of the distance from source to consumer by assigning demand to the closest water source, and (ii) maximization of the intra-cluster homogeneity by defining the cluster boundaries such that the variation in population density, land use, socio-economic level, and topography within the cluster is minimized. The methodology and tool were applied to Arua Town in Uganda. Four random cluster scenarios and a centralized system were created and compared with the optimal clustered WSS. It was observed that the operational cost of the four cluster scenarios is up to 13.9 % higher than the optimal, and the centralized system is 26.6% higher than the optimal clustered WSS, consequently verifying the efficacy of the proposed method to determine an optimal cluster boundary for WSS. In addition, optimal homogeneous clusters improve efficiency by encouraging reuse of wastewater and stormwater within a cluster and by minimizing leakage through reduced pressure variations.

The costs and benefits of decentralization and centralization of ant colonies.

A challenge faced by individuals and groups of many species is determining how resources and activities should be spatially distributed: centralized or decentralized. This distribution problem is hard to understand due to the many costs and benefits of each strategy in different settings. Ant colonies are faced by this problem and demonstrate two solutions: 1) centralizing resources in a single nest (monodomy) and 2) decentralizing by spreading resources across many nests (polydomy). Despite the possibilities for using this system to study the centralization/decentralization problem, the trade-offs associated with using either polydomy or monodomy are poorly understood due to a lack of empirical data and cohesive theory. Here, we present a dynamic network model of a population of ant nests which is based on observations of a facultatively polydomous ant species (Formica lugubris). We use the model to test several key hypotheses for costs and benefits of polydomy and monodomy and show that decentralization is advantageous when resource acquisition costs are high, nest size is limited, resources are clustered, and there is a risk of nest destruction, but centralization prevails when resource availability fluctuates and nest size is limited. Our model explains the phylogenetic and ecological diversity of polydomous ants, demonstrates several trade-offs of decentralization and centralization, and provides testable predictions for empirical work on ants and in other systems.

The political opportunities of urban decentralisation: Mobilising local governance in Buenos Aires

Decentralisation – the transfer of political, fiscal and administrative authority from centralised to local bodies - has re-shaped urban governance across Latin America and much of the global south since the 1980s, yet explaining this transformation remains unclear. Much analysis points to the macro-discourses of democratisation and neoliberalism as causal factors yet these are difficult to demonstrate empirically. This paper seeks to explain how and why urban decentralisation unfolded in the case of the City of Buenos Aires (CABA) and proposes political opportunity - perceived changes in the political environment that encourage mobilisation - as a useful analytical tool for doing so. Drawing on original qualitative research, archive analysis and secondary literature this paper examines CABA between 1994 and 2017 and demonstrates the key roles of political parties and social movements in determining how and why decentralisation unfolded. The analysis is divided into three time periods, each of which represents major changes in the political environment that certain party or movement actors perceived as altering the feasibility and likely benefits of decentralisation, thus triggering their mobilisation (or demobilisation): the constitution of decentralisation and the first city government (1994–2000); grassroots demands and top-down responses to decentralisation in the wake of political crisis (2001–2007); and the institutionalisation of decentralisation during the government of the PRO political party (2007–2017). By analysing the political opportunities of decentralisation in CABA across these periods the paper provides a robust analytical approach for explaining urban decentralisation.

Decentralisation, quality of government and economic growth in the regions of the EU

The effect of decentralisation on regional economic growth is a hotly debated topic. In theory, decentralisation should entail welfare benefits by bringing government closer to the people. In practice, the benefits of decentralisation have been hard to prove. A problem is that the quality of regional governments is often lacking, or at least varies widely across different regions. Hence, regional governments may not be capable of delivering public goods in an efficient and accountable manner. Previous analyses have, however, neglected how the benefits of decentralisation may depend on the quality of the regional government whose authority is strengthened by such reforms. This paper considers these two dimensions in conjunction, highlighting that the effect of decentralisation on economic performance is highly mediated by the quality of the devolved government. Using panel data for 223 regions in the EU, the results show that the quality of regional government is a better predictor of economic development than decentralisation. Regional government quality also conditions the economic returns to decentralisation, meaning decentralisation works best in regions with a higher quality of government. Accordingly, decentralisation reforms must consider the quality of the regional government to which they would devolve authority.

Should councils collaborate? Evaluating shared administration and tax services in English local government

ABSTRACTDecentralized public organizations have many advantages, but can be inefficient due to suboptimal organizational size and duplication of activities. Selective inter-organizational collaboration may produce economies of scale without undoing the benefits of decentralization, assuming that co-ordination and re-organization costs are low. The authors tested this popular reform logic using data from all English councils, focusing on shared administration and tax collection. There were no significant benefits from either kind of collaboration.

Fiscal Decentralization and Preference Heterogeneity

Oates' Decentralization Theorem is the basis of the theory of fiscal federalism. This study reconsiders the theorem with a focus on the role of preference heterogeneity. The Decentralization Theorem predicts that the larger (smaller) the heterogeneity in preferences for local public goods across regions, the larger (smaller) the benefits of decentralization. Contrary to this conventional view, the present study shows that larger degrees of preference heterogeneity may increase the benefits of centralization. First, if the difference in preferences is small and/or spillovers in local public goods are large, then a rise in the preference of a region with higher taste, among two regions with different tastes, is more likely to increase the welfare differential between centralization and decentralization. Thus, larger preference difference may make a centralized regime preferable to a decentralized regime in terms of welfare. In contrast, a rise in the preference of a region with lower taste increases the welfare differential. Second, the preference of a region with higher preference can have a positive effect on the welfare differential if social welfare under a centralized regime is superior to that under a decentralized regime. This means that the positive relationship between preference heterogeneity and the welfare differential does not bring about a regime switch from decentralization to centralization.

Does Decentralized Leadership Influence the Performance of Czech Museums?

Abstract This study tests whether decentralized leadership influences the efficiency of running selected cultural institutions, specifically museums in the Czech Republic. For the analysis, data from 2015 from 187 museums spread around the whole Czech Republic are used. The method for the evaluation of efficiency is data envelope analysis, and for identifying the influence of decentralized leadership, a regression analysis is used. Museums established by municipalities reach higher efficiency than museums established by regions and central government. The causes may be found in the ability to better estimate the local demand as well as in the rational behavior of municipalities that prefer a cost-minimization strategy. The benefits of decentralization cannot be seen only in the field of finance but also in reinforcing local traditions, trust and the effects of social capital that is generated by a strong regional cultural identity.

Decentralisation – A Portmanteau Concept That Promises Much but Fails to Deliver? Comment on "Decentralisation of Health Services in Fiji: A Decision Space Analysis"

Decentralisation has been described as an empty concept that lacks clarity. Yet there is an enduring interest in the process of decentralisation within health systems and public services more generally. Many claims about the benefits of decentralisation are not supported by evidence. It may be useful as an organising framework for analysis of health systems but in this context it lacks conceptual clarity and particularly often ignores level context issues given the focus on a principal-agent/vertical centre/local axis or other aspects of limits on autonomy such as standards for professional practice. Both these aspects are relevant in discussing the establishment of "decentralised" health centres in Fiji. In the end decentralisation may be nothing more than a useful descriptive label that can be used in an increasingly wide range of ways but actually have little meaning in practice as an analytical concept.

Low Decision Space Means No Decentralization in Fiji Comment on "Decentralisation of Health Services in Fiji: A Decision Space Analysis".

Mohammed, North, and Ashton find that decentralization in Fiji shifted health-sector workloads from tertiary hospitals to peripheral health centres, but with little transfer of administrative authority from the centre. Decision-making in five functional areas analysed remains highly centralized. They surmise that the benefits of decentralization in terms of services and outcomes will be limited. This paper invokes Faguet’s (2012) model of local government responsiveness and accountability to explain why this is so – not only for Fiji, but in any country that decentralizes workloads but not the decision space of local governments. A competitive dynamic between economic and civic actors that interact to generate an open, competitive politics, which in turn produces accountable, responsive government can only occur where real power and resources have been devolved to local governments. Where local decision space is lacking, by contrast, decentralization is bound to fail because it has not really happened in the first place.

U-Form vs. M-Form: How to Understand Decision Autonomy Under Healthcare Decentralization? Comment on "Decentralisation of Health Services in Fiji: A Decision Space Analysis".

For more than three decades healthcare decentralization has been promoted in developing countries as a way of improving the financing and delivery of public healthcare. Decision autonomy under healthcare decentralization would determine the role and scope of responsibility of local authorities. Jalal Mohammed, Nicola North, and Toni Ashton analyze decision autonomy within decentralized services in Fiji. They conclude that the narrow decision space allowed to local entities might have limited the benefits of decentralization on users and providers. To discuss the costs and benefits of healthcare decentralization this paper uses the U-form and M-form typology to further illustrate the role of decision autonomy under healthcare decentralization. This paper argues that when evaluating healthcare decentralization, it is important to determine whether the benefits from decentralization are greater than its costs. The U-form and M-form framework is proposed as a useful typology to evaluate different types of institutional arrangements under healthcare decentralization. Under this model, the more decentralized organizational form (M-form) is superior if the benefits from flexibility exceed the costs of duplication and the more centralized organizational form (U-form) is superior if the savings from economies of scale outweigh the costly decision-making process from the center to the regions. Budgetary and financial autonomy and effective mechanisms to maintain local governments accountable for their spending behavior are key decision autonomy variables that could sway the cost-benefit analysis of healthcare decentralization.

The ‘local turn’ in peacebuilding: a literature review of effective and emancipatory local peacebuilding

This article is a literature review of the current local turn in peacebuilding. After a short introduction on the origins of ‘the local’ in peacebuilding, it gives an overview of current research and policy debates on the issue along two different lines. First, it emphasises the local in peacebuilding as a measure to increase peacebuilding effectiveness, as explored in the literature on the benefits of decentralisation and local governments for peace, as well as in the debates on local capacity and ownership as essential parts of peacebuilding policy. Second, it focuses on the local in peacebuilding as a means of emancipation and inclusion of local agency, expressed partly through the emphasis on voices from below and partly within the critical approaches to how the local has been interpreted in peacebuilding so far, arguing for a peacebuilding that is essentially local.

The Institutional Pre-Conditions for Regional Labour Market Policy Making in the EU: Case Studies and Policy Conclusions

Based on questionnaires conducted among PES organizations as well as Pacts and LEIs (Pacts/LEIs) in 40 cities of 12 EU member states and 2 non-EU member states – we take stock of the preconditions for conducting local labour market policies in an urban context in Europe and analyse the development of both regional PES organisations as well as Pacts/LEIs in the time since the economic crisis of 2008. Our findings suggest that the most effective measures to foster partnership based regional labour market approaches in the EU would consist of: a) Increasing budgetary autonomy of the regional level of labour market policy institutions and aligning their competencies in other fields of labour market policy to the results that are expected from them, b) Investing in the development of partnership based policy institutions such as territorial employment pacts of local employment initiatives both in terms of the number of actors and their structure, c) Increasing the problem solution capabilities of regional actors by providing additional information in terms of evaluation and monitoring results with respect to policy measures and the regional labour market situation. In addition, the European Commission should on the one hand aim to raise awareness among national and regional policy makers on the benefits of decentralisation and devolution for regional labour market policy and to provide know-how and potentially also tools, sufficiently flexible to accommodate for the potentially widely varying needs of different local initiatives, for data generation, monitoring and evaluation. National governments, by contrast, should on the one hand aim to improve the vertical co-ordination of regional labour market policies by using best practice management tools of new public management in PES organisations and take an active role as a partner in Pacts/LEIs. They should also align the vertical distribution of formal competencies for labour market policy making in their respective countries with the tasks of (and the results expected from) regional policy organisations. From the perspective of the regional organisations, in particular this last point seems to be of major importance, since it is also considered to be the most important impediment to effective regional labour market policy making by them.

Fiscal Decentralization and Regional Economic Growth: The Case of the Russian Federation

In the present Master Thesis, written at the University of Bonn, the relationship between fiscal decentralization and regional economic growth is studied for the case of the Russian Federation. A rich panel dataset of 78 Russian regions during 2005-2012 is gathered by the author. Using panel data analysis, it is shown that excessive expenditure decentralization within a region, which is not accompanied by revenue decentralization, can have harmful consequences for regional economic growth during the period of the economic crisis. On the contrary, federal government can stimulate recovery by efficiently assigning intergovernmental grants. Overall, the benefits of decentralization seem to be overweighed by its costs in Russia.

Decentralization in Developing Economies

Standard models of fiscal federalism suggest many benefits of decentralization in developing economies, and there has been a recent push toward decentralization around the world. However, developing countries presently still have less decentralization, particularly on the revenue side, than both developed countries today and the United States and Europe historically. We consider how the trade-offs associated with fiscal federalism apply in developing countries and discuss reasons for their relatively low levels of decentralization. We also consider additional features relevant to federalism in developing economies, such as the prevalence of nongovernmental organizations and the role of social incentives in policy design.