Asymmetric decentralization: nature and determinants

Abstract

Over the last five decades, decentralization has been a central feature of governance reforms. However, its implementation rarely follows a symmetrical pattern across subnational units. Instead, asymmetric decentralization has become prevalent in both federal and unitary states. Nevertheless, the empirical determinants of asymmetric decentralization remain insufficiently explored. This paper tries to fill this gap offering a systematic analysis of the nature and determinants of asymmetric decentralization across a large cross section of countries and regions using data from the Regional Authority Index (RAI). The empirical analysis combines cross-country and cross-regional models estimated using ordinary least squares (OLS) and robust least squares (RLS). At the country level, ethnic fragmentation, population size, and territorial characteristics are associated with higher levels of asymmetry. At the regional level, a greater distance from the national capital and the presence of distinct linguistic identities are linked to above-average regional authority. The analysis of changes over time indicates that transitions to democracy act as a catalyst, activating structural conditions and fostering increases in interregional asymmetry.