Decentralized Infrastructure

Businesses and even households use essential infrastructural services on a daily basis. Some of the core components of these services include solid waste removal and collection, wastewater removal and collection, sanitation, water distribution and supply, and even transportation and roads.

Though these services most times tend to be associated with urban services, there are also infrastructural systems that can also be found in rural areas.

Infrastructure is the basic equipment needed for the smooth operations of a particular organization. In many organizations today, there are diverse ways in which companies have chosen to run their businesses. This could only be classified categorically into two ends of a spectrum which are the centralized infrastructure and the decentralized infrastructure.

Centralized infrastructure is a process whereby all of the infrastructures is done on a centralized server and the authority and authentication come from a central administrator. This is applicable to both the computing world and the corporate organizations. This points towards a ‘no error tolerated’ sort of infrastructure where every decision is made at the central level.

Decentralized infrastructure is a breakdown of this central authority into localized authority for a much delegated and specific lower level of management. But how can decentralization be beneficial?


So, Where Does Decentralization Come In?

The idea of decentralizing infrastructure services has been raised due to specific issues related to the design and implementation of policies.

With the capital intensiveness that comes with systems, well-informed decisions have to been taken at different stages.

  • During the preparation of capital investment plans and the setup of priorities for various capital projects
  • Operation of a network platform for providing services and the maintenance of facilities to support the physical capital
  • Financing the system by generating revenues for covering maintenance and operation, and mobilizing capital for the payment of the initial investment

At each of these stages comes a chance to decentralize infrastructure. Luckily, different platforms have taken it upon themselves to help in the decentralization of the numerous stages involved in the decision-making process.

Decentralized infrastructure projects further help in resolving the issue of economies of scale and effects of spillover. Hence, they present substantial benefits from the coordination of projects throughout subnational governments.


Why Decentralize Infrastructure?


In the actual sense, decentralized infrastructure projects can help in delivering efficiency gains when benefits for services increase primarily to the local population like waste management, urban transit, and water and sanitation.

With subnational agencies rather than central governments, infrastructure services can be better tailored to fit the needs of the public and can be delivered at a lower cost.

Benefits of Decentralized Infrastructure

Change is constant. This is an important aspect of our everyday existence. The decentralization and delegation of certain responsibilities to lower level managers will give room to more innovation and forward thinking. Other important advantages are

1.    Monopoly: The centralization of a particular infrastructure needed by a community will lead to the monopoly and total control of that infrastructure. This would mean that the price of the product will be solely controlled by that particular institution, the decentralization process will ensure checks and balances and also ensure innovation and forward development.