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Glossary

The glossary will help you familiarise yourself with the basic concepts of local self-government, multi-level governance, and decentralisation.
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Word Explanation
Sectoral Decentralisation

Sectoral decentralisation is the reform of multi-level sectoral systems, involving the transfer of sectoral (decision-making) powers, responsibilities, and resources from the central government or its ministries to subordinate or nearly independent sectoral organizations or service providers. Sectoral decentralisation is generally not considered one of the core forms of decentralisation (political, administrative, fiscal).
Subnational government A subnational (regional or local) government is a corporate body (or institutional unit) that performs one or more public sector functions within a subnational (regional or local) jurisdiction and that has adequate political, administrative, and fiscal autonomy and authority to respond to the needs and priorities of its constituents.
Subnational governance institutions There is considerable consensus among the Community of Practice that the term devolution refers to transferring authority for public functions to regional or local governments, but there is less consensus on what defines these governments. While some institutions provide precise definitions, in practice, local administrative units are often referred to as "local governments" even if they do not meet strict criteria (e.g., Panchayat Raj Institutions in India). Some organizations accept any subnational governance institution as a government entity. To ensure clarity, the Local Public Sector Alliance (2024) distinguishes between subnational governance institutions (a broad category) and subnational government institutions, which meet specific institutional criteria.
Subsidiarity principle The subsidiarity principle is the principle that public sector functions should be performed by the lowest level of government organization that can perform the function or task eƯiciently. While the subsidiarity principle is widely regarded as a good practice (or best-practice principle) to be followed in the assignment of functional powers and responsibilities, some countries have formally adopted the principle as a formal legal concept. The subsidiarity principle was included in the 1992 Maastricht Treaty that established the European Union and has subsequently formed the basis for defining the relationship between the EU and its member states (EU 2024), as well as the basis for the intergovernmental systems of member states of the Council of Europe (2024) under the European Charter of Local Self-Government. The general aim of the principle of subsidiarity is to guarantee a degree of independence for a lower authority in relation to a higher body or for a local authority in relation to central government. It therefore involves the sharing of powers between several levels of authority, a principle which forms the institutional basis for (devolved unitary as well as) federal states.