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Decentralization:Top down planning and bottom up planning
Decentralised planning is a kind of percolation of planning activities or process from the Centre to the sub- state levels, i.e., district, sub-division, block and village level. Since the inception of First Plan, the importance of decentralised planning was emphasised in order to achieve active people’s participation in the planning process.
Top down planning
Pros
- Economic planning is assumed to modify the restraining influence of limited Resources by recognizing the existence of particular constraints and by choosing and coordinating Investment projects so as to channel these scarce factors into their most productive outlets.
- Planning is necessary to take care of the poor and the downtrodden who have little asset endowments to benefit from the natural Growth of economic activities. POVERTY alleviation programmes have definitively helped in reducing poverty and generating EMPLOYMENT.
- Planning process manages the flow of resources across regions for accelerated removal of regional disparities and thus brings about integration of such regions into the mainstream of economic activity in the country.
- Public sector investment has a major role to play in strengthening of the physical Infrastructure-2/”>INFRASTRUCTURE, i.e., energy, transport, Communication and Irrigation etc. in order to support the growth process on a sustainable basis.
- It is the Government and its planning process which is adequate for protecting Environment, forest and ECOLOGY.
Cons
- This economic system sees planners not being able to accurately predict shortages, surpluses and consumer preferences, which entails that they cannot also allocate resources efficiently. This would result in some areas having abundance of goods that cannot be sold and other areas experiencing shortages. On the other hand, a free market allocates resources based on the price system, making sure they will go where demand and supply are dictated.
- Opponents say that this system will lead to dissent among citizens, as their basic right of free will is going to be challenged. This means that it will eventually lead to the citizens revolting against the government.
- It has been observed that a centrally planned economy can stifle economic freedom, as citizens would have no incentive to take entrepreneurial risks or innovate. As you can see, central planners suppress the profit motive by considering decisions from entrepreneurs and transferring them to the state. As economists believe, Society functions best when the economy is guided by invisible hand, which rewards personal economic freedom, but central planning restricts this strategy.
Bottom up planning
Pros
Following are some of the important functional factors responsible for adoption of decentralised planning in the present context in India:
- Considering the huge size and proportion of rural Population in India, it is felt that proper linkages must be established between dispersed small villages and also between such villages and adjacent small towns by developing appropriate infrastructural facilities such as feeder roads, improved transport facilities, Marketing and storage facilities, Health and sanitation facilities and other welfare centres. Under decentralised planning better linkages between villages and small towns can be developed under local conditions, priorities and resources.
- Decentralised planning is considered as more realistic as it maintains a close coordination between locally available resources, local skills, local manpower and local requirements. It is considered as a flexible one as it is easily adjustable and adaptable under the changing local conditions and requirements. Moreover, it is considered as the practical one as it can fulfill the normal requirements of the rural population. Adaptation and flexibility of planning largely depends upon the environment prevailing in each region and sub-region. Thus decentralised planning can achieve the best result in implementing plan projects at the local level.
- Decentralised planning is suitable for the development of agricultural and allied activities such as Animal Husbandry, Horticulture-2/”>Horticulture, Fisheries-2/”>Fisheries, Forestry along with development of village and Cottage industries.
- Decentralised planning can promote active participation of local people in implementing various local plans and programmes. Thus it can enhance the involvement of local communities in such development activities.
- Under decentralised planning, wastage of resources can be reduced to a minimum level as the people participating in these developmental activities keep a close watch over the utilisation of fund as well also on the implementation of plan projects.
- Decentralised planning can show more trickle down or percolation effects in respect of Poverty Alleviation programmes and employment generation in rural areas as in this type of planning, various projects are selected for generating huge productive employment opportunities in the rural areas.
- Decentralised planning is helpful in raising the level of social Services by launching various programmes of health, Nutrition, drinking water, Education etc. in a more effective, quicker and sustainable manner.
- Decentralised planning is more helpful in utilizing the various non-conventional energy sources such as solar power, wind, animal and plant wastes etc. in rural areas. Such utilisation of non-conventional energy sources requires various agencies which can work in close association with communities in villages and small towns and also can provide necessary technical and financial support from such agencies. Decentralised planning can pave the way for utilisation of such resources.
Cons
- Decentralisation may lead to the problem of co-ordination at the level of an enterprise as the decision-making authority is not concentrated.
- Decentralisation may lead to inconsistencies (i.e. absence of uniformity) at the Organisation level. For example, uniform policies or procedures may not be followed for the same type of work in different divisions.
- Decentralisation is costly as it raises administrative expenses on account of requirement of trained personnel to accept authority at lower levels. Even the services of such highly paid manpower may not be utilised fully, particularly in small organisations.
- Introduction of decentralisation may be difficult or may not be practicable in small concerns where product lines are not broad enough for the creation of autonomous units for administrative purposes.
- Decentralisation creates special problems particularly when the enterprise is facing number of uncertainties or emergency situations. The decision-making process gets delayed and even correct decisions as per the changing situations may not be possible.
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Decentralization is the process of distributing power away from a central authority. It can be achieved in a variety of ways, including through bottom-up and top-down approaches.
Bottom-up decentralization is a process that occurs when individuals or groups of individuals take control of their own affairs. This can be done through the creation of decentralized organizations, such as decentralized autonomous organizations (DAOs), or through the use of decentralized technologies, such as blockchain.
Top-down decentralization is a process that occurs when a central authority devolves power to lower levels of government or to individuals. This can be done through the creation of decentralized institutions, such as decentralized banks, or through the use of decentralized technologies, such as blockchain.
Decentralized autonomous organizations (DAOs) are organizations that are run by rules encoded in computer code. They are typically governed by a set of smart contracts, which are self-executing contracts that are stored on a blockchain. DAOs can be used to manage a variety of assets, including Money, property, and data.
Blockchain technology is a distributed ledger technology that allows for secure, transparent, and tamper-proof transactions. It is the underlying technology behind cryptocurrencies, such as Bitcoin, and decentralized applications (dApps).
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They are not issued by any central authority, such as a government or bank, and they are typically traded on decentralized exchanges.
Smart contracts are self-executing contracts that are stored on a blockchain. They are typically used to automate the execution of agreements between parties.
Distributed ledger technology (DLT) is a type of Database that is distributed across multiple computers. It is used to record transactions and other data in a secure and transparent way.
Peer-to-peer (P2P) networks are networks of computers that connect directly to each other, without the need for a central server. They are often used to share files, data, and other resources.
Consensus mechanisms are algorithms that are used to reach agreement on a shared state in a distributed system. They are used in blockchains to ensure that all nodes in the Network agree on the validity of transactions.
Proof of work (PoW) is a consensus mechanism that requires miners to solve complex mathematical problems in order to add blocks to the blockchain. It is the consensus mechanism used by Bitcoin.
Proof of stake (PoS) is a consensus mechanism that requires validators to stake a certain amount of Cryptocurrency in order to participate in the consensus process. It is a more energy-efficient alternative to PoW.
Delegated proof of stake (DPoS) is a consensus mechanism that allows users to delegate their stake to a validator. The validator then stakes the delegated tokens and participates in the consensus process on behalf of the delegator.
Proof of authority (PoA) is a consensus mechanism that relies on a set of trusted validators to confirm transactions. It is often used in private blockchains.
Byzantine fault Tolerance (BFT) is a property of a distributed system that allows it to continue operating even if some of the nodes in the system fail.
Byzantine agreement (BA) is a protocol that allows a group of nodes to reach agreement on a shared state, even if some of the nodes are Byzantine faulty.
Tendermint is a BFT consensus protocol that is used by the Cosmos blockchain.
Casper is a PoS consensus protocol that is being developed by Ethereum.
Raft is a BFT consensus protocol that is used by the Hyperledger Fabric blockchain.
Paxos is a BFT consensus protocol that is used by the Stellar blockchain.
HotStuff is a BFT consensus protocol that is being developed by Facebook.
Scalability is the ability of a system to handle an increasing number of users or transactions. It is a major challenge for blockchain technology, as the size of the blockchain grows with each new block that is added.
Security is the ability of a system to protect its data from unauthorized access, use, disclosure, disruption, modification, or destruction. It is a major concern for blockchain technology, as the data stored on the blockchain is typically public.
Privacy is the ability of individuals or organizations to control the information that is collected about them. It is a major concern for blockchain technology, as the data stored on the blockchain is typically public.
Governance is the process of making decisions about how a system should be operated. It is a major challenge for blockchain technology, as there is no central authority that can make decisions for the entire network.
Regulation is the process of creating rules and regulations that govern the behavior of businesses and individuals. It is a major challenge for blockchain technology, as the technology is still in its early stages of development and there is no clear regulatory framework for it.
Adoption is the process of taking a new technology and
What is decentralization?
Decentralization is the process of distributing power away from a central authority. In the context of technology, decentralization refers to the distribution of power and control over a network or system among multiple participants.
What are the benefits of decentralization?
There are many benefits to decentralization, including:
- Increased security: A decentralized system is less vulnerable to attack than a centralized system, as there is no single point of failure.
- Improved efficiency: A decentralized system can be more efficient than a centralized system, as there is no need for a central authority to coordinate activities.
- Increased transparency: A decentralized system can be more transparent than a centralized system, as all participants have access to the same information.
- Increased resilience: A decentralized system is more resilient to shocks and disruptions than a centralized system.
What are the challenges of decentralization?
There are also some challenges associated with decentralization, including:
- Coordination: It can be difficult to coordinate activities in a decentralized system.
- Security: A decentralized system can be more vulnerable to attack than a centralized system.
- Transparency: A decentralized system can be less transparent than a centralized system, as it can be difficult to track all of the participants.
- Resilience: A decentralized system can be less resilient to shocks and disruptions than a centralized system.
What are some examples of decentralized systems?
Some examples of decentralized systems include:
- The Internet: The internet is a decentralized network of computers that are connected to each other.
- Bitcoin: Bitcoin is a decentralized digital currency that is not controlled by any central authority.
- Ethereum: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
What is the future of decentralization?
Decentralization is a rapidly growing trend, and it is likely to have a significant impact on the future of technology and society. Decentralized systems offer a number of advantages over centralized systems, and they are likely to become increasingly popular in the years to come.
Which of the following is not a type of decentralization?
(A) Bottom-up decentralization
(B) Top-down decentralization
(C) Deconcentration
(D) All of the above are types of decentralization.Which of the following is an example of bottom-up decentralization?
(A) The creation of local governments
(B) The delegation of power from the central government to lower levels of government
(C) The transfer of resources from the central government to lower levels of government
(D) All of the above are examples of bottom-up decentralization.Which of the following is an example of top-down decentralization?
(A) The creation of local governments
(B) The delegation of power from the central government to lower levels of government
(C) The transfer of resources from the central government to lower levels of government
(D) None of the above are examples of top-down decentralization.Which of the following is an advantage of decentralization?
(A) It can improve efficiency and effectiveness by allowing decision-making to be made closer to the people who are affected by it.
(B) It can increase accountability by making it easier for citizens to hold their elected officials accountable.
(C) It can promote innovation and experimentation by allowing different jurisdictions to try different approaches to solving problems.
(D) All of the above are advantages of decentralization.Which of the following is a disadvantage of decentralization?
(A) It can lead to a lack of coordination and coherence in policy making.
(B) It can make it more difficult to ensure that all citizens have equal access to services.
(C) It can increase the risk of Corruption.
(D) All of the above are disadvantages of decentralization.Which of the following is a country that has been successful in decentralizing its government?
(A) Canada
(B) Germany
(C) India
(D) All of the above have been successful in decentralizing their governments.Which of the following is a country that has struggled with decentralization?
(A) Brazil
(B) Mexico
(C) Russia
(D) All of the above have struggled with decentralization.Which of the following is a condition that is necessary for decentralization to be successful?
(A) There must be a strong commitment to decentralization from the central government.
(B) There must be a clear Division of Powers between the central government and lower levels of government.
(C) There must be adequate financial resources available to lower levels of government.
(D) All of the above are necessary conditions for decentralization to be successful.Which of the following is a factor that can hinder the success of decentralization?
(A) A lack of capacity at lower levels of government.
(B) A lack of trust between the central government and lower levels of government.
(C) A lack of coordination between different levels of government.
(D) All of the above can hinder the success of decentralization.Which of the following is a lesson that can be learned from the experiences of countries that have decentralized their governments?
(A) Decentralization is a complex process that requires careful planning and implementation.
(B) Decentralization can be a powerful tool for improving governance and service delivery.
(C) Decentralization can also create new challenges, such as the risk of corruption and a lack of coordination.
(D) All of the above are lessons that can be learned from the experiences of countries that have decentralized their governments.