THE INFLUENCE OF POLICY DECENTRALIZATION ON LOCAL GOVERNMENT AND RESOURCE ALLOCATION

Abstract

Governance systems worldwide increasingly adopt decentralization to enhance efficiency, accountability, and citizen participation, understanding its practical implications becomes essential. This quantitative study examined the influence of policy decentralization on local government operations and resource allocation. A self-administrated survey was conducted among 93 municipal officers, and the data were analyzed using frequency distribution, reliability analysis, correlation analysis, and regression analysis. The results indicate that while decentralization can empower local authorities and enhance the responsiveness of resource allocation, it also poses challenges related to capacity disparities, coordination, and equitable distribution. The findings underscore the importance of clear institutional frameworks, capacity building, and transparency mechanisms in ensuring that decentralization contributes to more effective and inclusive governance. The study offers theoretical validation of decentralization principles and provides practical insights for policymakers in designing governance systems that balance local autonomy with accountability.

Keywords: Policy decentralization, Local governance, Resource allocation.