Posts Tagged ‘decentralization’

McDonald's Behind the ArchesSome people believe that more government is better; that they can do things more efficiently and cheaper due to the principle of economies of scale. Some people would know better than that, but still feel the a central government is best to make decisions for society as a whole, because they know what is best for people, and because they can make sure no one person or small group, is taking advantage of everyone else.

Other people understand how this is not the case.

The same thing goes for private enterprise. There are cases where companies have tried to keep all the decisions at the top, while others kept only the major decisions at the top that couldn’t be handled at the lower levels, and left everything else to be done in the local areas.

In the Freedom series from Life Leadership, you learn how a government can’t understand the needs of the individual, but can only see global statistics. It uses a great example. Imagine someone’s arm is burning and needs to be put in ice, while his other arm is freezing and needs to be warmed up. overall the body temperature is average. If a central planner doctor were to look at the overall statistics, without looking at each arm, he would assume there is no problem and do nothing!

The best decisions will always be made by those who can clearly see the situation, and so should be left to the lowest level possible, right down to the individual when the individual can make the decisions.

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