Decentralisation is among the most significant reforms of the past 50 years. It refers to the transfer of powers, responsibilities and resources from the central government level to elected authorities at the subnational level. It is also often accompanied by the upscaling of subnational governance through inter-municipal cooperation, metropolitan governance and regionalisation.
Decentralisation covers three distinct but interrelated dimensions: political, administrative and fiscal. Finding the right balance among these dimensions and the right sequencing to implement them represent significant challenges in designing and implementing decentralisation reforms.