Decentralization, empowerment and economic efficiency : learning from business experiences in France
Abstract
Centralisation or decentralisation in a given state, city or company is a fact which is the
result of a historical process. Therefore it cannot be changed quickly and easily be it in a
state, a city or a company. However, for those in charge of political decision making,
centralisation or decentralisation is a philosophical choice. Promoting centralisation or
decentralisation in each single decision, each implementation process, even on simple and
limited issues has great consequences on the long range.
France is a particularly relevant example since it has been and remains one of the most
centralised country in the world although its overcentralisation has been highly controversial
for decades and is still viewed by many politicians and scholars as a handicap in the
globalised competitive economies of today.
Despite many reforms, the public sector remains highly centralised in France and is
considered as less and less relevant, effective and efficient. Conversely, since the second
word war, the business community has profoundly changed its conception of administrative
sciences and many French companies are decentralised nowadays. In this conference, I will
emphasise the key role played by management in this transformation towards an
empowerment of the bottom of the hierarchical pyramid.
I will argue that the key points of a policy towards a more decentralised society are: 1/
A fair balance between autonomy and accountability. 2/ A fair and complete attribution of
the means needed by the decentralised entities to reach their goal. The Saint Louis du
Sénégal case study will illustrate the difficulties and complexities of the long process toward
the empowerment of the poors.