Political Institutions Effect on Societies

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Political institutions have been part of humanity since the beginning of societies. Institutions have developed in different organizational performances and have shaped in what they are nowadays. Institutions have shown us that they are necessary and essential for all societies around the world. We never realize how important and how essential they are for our daily lives, but more than that, we never realize how institutions affect or influence political outcomes. Whether institutions are federalist or centralists, they always vary in the types of outcomes and shortcomings, or if local governments function better than a federal government, or if state governments are better.
The implications effects of decentralization for political society are mixed but generally positive especially in consideration to democratic principles. Decentralization scholars focus on decentralizations ability and role as a democratic process efficiency, economic development and ethnic conflict.
Decentralization is viewed as an instrument in allowing competition, and promoting economic growth. Central government is a weaker institution for realizing democracies because central tend towards uniform policy and where there is a lot of diversity you don’t want uniform policies. Some of he disadvantages of central governments are overall not business friendly, strain growth because its hard to restrain, and no hard money constraints. On the other hand, a decentralization process increases democratic process efficiency, economic development and tends to avoid ethnic conflict.
Larry Diamond discusses the influence of smaller states versus bigger states. He asserts that local governments foster democratic vitality. It helps to develop democratic values and sk...

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...tends to increase policy stability. Also local information and policy innovation, in better use of local information and increase in policy experimentation and adding to this, Ethnic conflicts are defused, all conflicts by satisfying limited demands.

Because decentralization is a good thing, power concentrated in the hands of central government will lead to despotism. Letting each state or local government to develop their own policies encourages experimentation, because every state comes up with its own solutions to issues, a country has the chance to see firshand which policies work better or if the don’t work at all. Overall, state governmnets are always more close to the population than the national government is, so letting states or local governmnets to decide is more democratic and more fficient than leaving everything to the federal government to decide.

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