ABSTRACT
This chapter reiterates modern non-democracies, unlike former ones, have quite complex and sophisticated internal mechanics. Decentralization, whether formal or informal, can potentially mitigate the adverse effects of inadequate national governance on economic competitiveness within non-democratic nations at local and regional levels. Economic and fiscal decentralization could pose risks to territorial cohesion by undermining central government control, potentially exacerbating regional disparities and fostering regional grievances. Decentralization can result in an unequal distribution of economic resources among regions, with wealthier regions generating more revenue and investing more in local economies, while poorer regions may struggle to provide essential services and maintain infrastructure. The evolution of globalization has sparked renewed discussions about the shifting role of government and governance in economic development. Economic decentralization, in both formal and informal forms, has the potential to alleviate the negative impact of poor national governance on economic competitiveness in non-democratic countries at the local and regional levels.
