Decentralization can be defined as a state or condition in a governmental system where there is dispersal of power or authority from the center. In other words, it is the transfer of power and authority from central institution to lower or local levels of a government system. It is just basically the opposite of centralization which means where power is concentrated on the center. There are also three forms of decentralization which are the devolution, deconcentration, and debureauecratization. Devolution is the transfer of power and authority from the national government to local government units. Deconcentration on the other hand is the transfer of power, authority or responsibility or the discretion to plan, decide and manage from central to local, administrative, and sectorial levels. The last one is debureaucratization which involves the transfer of some public functions and responsibilities, which government may perform, to private entities or non-government organizations. Local government pertains to the activity by which local officials, both elected and appointed, implement the goals and manage the resources of the local government unit. As for our local governance we have this Local Government Code of 1991 that has two main goals. First is to transform the LGUs into self-reliant communities and active partners in nation-building by giving them more power, authority, responsibilities, and resources. Next one is that it hopes to achieve economic development at the regional and local levels by giving more freedom in carrying out their programs that are needed in their areas.
Local Autonomy refers to “self-governing”. It involves granting more powers and authority by the national government to the local government units to be self-reliant and active partners. The idea of local autonomy is related with decentralization since decentralization makes local autonomy possible. The exercise of local autonomy by the local government is possible only in a decentralized administrative system, in which the autonomous authorities are chosen by community, and on the other hand, that decentralization is the one which provides the local government with a broad autonomy, understood as the right to decide on their local problems in which they are interested in directly. Local autonomy is very important because if all power resources and capacities are concentrated on the national level and most likely in the capital. The people in the rest of the territory will hardly have any access to basic public services. Opportunities will also be limited and quality of life for the citizens will be unequal. With local autonomy our local government has the right to establish and operate in the activities and functions that are recognized by law. It also includes the legal right of the local residents to choose their representatives that will govern them. Our local government is also helpful in creating future leaders as it can serve them as their training ground where they can gain enough experience and knowledge about the policy-making and governance before they move to nationwide leadership. Having local autonomy also shows a high degree of democracy. Local government has some very important features that lend it significance, such as decentralization and local democracy, which have made the work part of it. Its significance is due to the fact that it is ideally suited to local interests, but also to better expression of local people and their will. It also serves as the symbol of communication between the central and local authorities and most importantly the people.