Devolution : An Opportunity For Local Economic Development Essay

Devolution : An Opportunity For Local Economic Development Essay

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This year, the UK parliament is going to decide on the whether to grant devolved powers to Dalmatia. This devolution settlement would create a Dalmatian Assembly, with limited powers to vary the rate of income tax and also to make some local decisions in the areas of education, healthcare, and infrastructure. Some states that devolution might introduce corruption, financial costs and threats to national identity. However, those problems are far from incurable. Undertaken with great care, devolution in Dalmatia will produce superior outcomes in supporting local economic development, improving democratic system and preserving national unity.
Devolution: An Opportunity for Local Economic Development
Devolution is a good way to empower localized economies and harness their strengths. Due to heterogeneity in regional comparative advantages, decision-making regarding local development may require heterogeneous patterns. Under the centralized governance, investments and programs might take too long to implement and get lost in bureaucracy, while regions are unable to adapt policy to take on their unique challenges and make the most of their assets. Giving partial autonomy to local economies allows them to customize their path of economic development.
Relative to other regions in the UK, Dalmatia is comparatively poor. It underperforms on a range of economic indicators, such as public spending ($9,709 per capita) and household income ($14,623 per capita), suggesting it is inefficient in economic activities and does not live up to its full development potential. In order to grow the Dalmatia economy, local economies need to be equipped with the tools, powers and flexibility to drive growth.
Devolution will provide the Dalmatian adminis...


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...le have shown through referendum that they are in favor of devolution, and its results so far have been encouraging.
Conclusion
Devolution will allow Dalmatia to rejuvenate its local economies, encourages the people of Dalmatia to become members of a participatory democracy governed by those who understand their needs, and works to promote national unity as an alternative to Dalmatian independence. In the process of devolution, certain drawbacks—such as local elite capture, lack of executive experience of local politicians and possible financial cost—should be safeguarded. The devolution settlement in 2016 should consider possible legislative specifications and the establishment of supervisory infrastructure. With careful implementation, devolution in Dalmatia will be a promising policy that can drive economic and social development at both local and national levels.

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