The aim of this course is to acquaint students with the major problems, theories and practices of vertical division of government authority within states.
Power of nation states is challenged simultaneously by supra- and sub-national bodies in the form of integration and regionalization/federalization. This course deals with the latter issue, namely how authority is shared between national and subnational levels of government and its consequences on politics and the economy.
The literature views decentralization from two angles: The abstract normative approach discusses the various aspects of “optimal” share of responsibilities, while the positive one of political economy focuses on different trade-offs of decentralization and on how various interests and institutions affect actual outcomes. Thus students will be introduced to major normative and positive theories of decentralization while exploring various hot and relevant issues like the linkages of decentralization with democracy/authoritarianism, economic development, state capacity, globalization and national unity.