| Summary: | The term decentralization which has been used since the early 1950s for a wide range of institutional reform programmes all over the globe, has gradually gained considerable prominence in contemporary discourse on development and governance
and practices A large majority of the third world countries are currently involved in some form of decentralisation, with varying degrees of commitment and success. These processes are fundamentally altering the institutional landscape in the developing countries. A number of push factors have contributed to this evolution. Mention may be made of the following: the erosion of the highly centralised ‘developmental state’ in the late 1980s; the rediscovery of the ‘local dimension’ of development and related recognition of local governments’ potential role and added-value in promoting local development and contributing to the achievement of the Millennium Development Goals (MDGs); the quest for improved efficiency in the delivery of basic social services (health, education, water and sanitation, etc.), especially in reaching out to poor people; the global imperative for democratisation and good governance, which has fuelled societal demands for local democracy and accountable local governments; the rise of participatory development approaches that allow a wide range of new actors to express their voice and have a stake in policy processes with local governments, in particular, lobbying to be recognised as a dialogue partner (at all relevant levels) and as aid beneficiary; a wide range of other push factors, such as Agenda 21 (on sustainable development) and the concern to protect local economies against globalisation
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