Decentralization and the Management of Extreme Events: Does Multilevel Governance Matter?

Ana Herrero-Alcalde and Santiago Lago-Penas
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Ana Herrero-Alcalde: UNED, Spain
Santiago Lago-Penas: Universidade de Santiago de Compostela, Spain

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: This paper explores the role of multilevel governance in managing extreme shocks such as economic crises, natural disasters, and pandemics -- assessing the strengths and limitations of decentralization. Drawing on fiscal federalism literature, it highlights how decentralization can enhance policy innovation, tailor responses to local needs, and mitigate the risks of nationwide policy failures. However, it also identifies challenges, including inter-jurisdictional inequalities, externalities, and economies of scale, which may necessitate centralization. Using case studies from recent global crises, the paper examines the effectiveness of governance models, emphasizing the importance of well-designed intergovernmental frameworks and cooperative mechanisms. The findings suggest that while decentralization enables localized responsiveness, centralization is critical for addressing spillovers, mobilizing resources, and ensuring coordinated action in large-scale crises, offering insights into the resilience of multilevel systems amid growing global uncertainties.

Pages: 33 pages
Date: 2024-12
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper2407

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