Centralized and decentralized approach to economic development policy with particular emphasis on the Republic of Macedonia

Abstract

The possible more central or more decentral arrangements of development economic policy are located between two polar cases: at one pole, we have an arrangement where only the central level of government is responsible for overall economic development policy and at the other pole, neither any subcentral unit of government, which are to be supported to have any serious influence for creating effective subcentral economic policy using relevant own instruments to achieve the given goal. The paper is evaluating the consequences of a decentralization vs. centralization in the field of development economic policy so, in the sense that the current allocation of jurisdiction is changed in the direction of decentral arrangement. Special considerations in this approach are manifested in R. Macedonia as a small and developing economy with relatively high centralized economy which opens the process of economic decentralization.