Schneider And Schneider's Theory Of Centralization And Decentralization

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The discussion about decentralization or centralization tendencies has already been going on for several decades all over the world. Different notions concerning this question have determined the political courses of reforms in the health care sector. Given the importance of solving these questions, researchers worldwide have analysed the phenomenon of decentralizing or centralizing the health care sector, offering a wide range of scientific literature. Yet, evidence is ambiguous and no general consensus can be found regarding different aspects, including advantages and disadvantages, of either type of the organizational structure. A crucial factor, which partly explains these difficulties, is the large number of different definitions and typologies, …show more content…

Although the theoretical frameworks have flourished greatly, common components and associations can be pointed out regarding fiscal, political and administrative determinants. Taking these factors into account, Schneider (2003) has developed a new approach to analyse these concepts and to compare different countries. Based on Schneider’s theory, decentralization is explained by the following three core dimensions: fiscal, political and administrative. By describing these dimensions, advantages and disadvantages of each concept will be discussed to illustrate the complex …show more content…

A core argument supporting political decentralization is related to the concept of public participation, which again includes local responsiveness and allocative efficiency. A politically decentralized system is thus considered to ensure a higher degree of democracy and representation, translating the multiplicity of public interests into policy-decisions. However, studies discovered that weak formal structures may limit the effect of public participation reflecting on local representative decision-making (Abelson et al., 1995). Another main element concerns the possible range of incentives among different governmental levels. Cremer et al. (1996) suggests the appropriate degree of decentralization to be determined by incentives, more explicitly by which level of government expresses the most incentive to reach a certain outcome. Still, it is questioned whether the local governments’ priorities always match the incentives of the central level. While decentralization might promote some equity aspects, it might simultaneously threaten the principle of equality among local regions due to the differences in level of education, health services provided or tax rates. Moreover, the argument of democracy and representation is questioned as low turnouts at local elections and dissatisfaction with local governments reduce the

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