What is centralization

Centralization is a process in which decision-making authority and power are concentrated in a few individuals or a single central authority. In a centralized system, all important decisions and actions are taken by a central entity, typically a government or organization, with limited autonomy given to lower-level entities. This can enable quick and efficient decision-making, coordination, and control, but it can also limit individual freedoms, hinder innovation, and create bottlenecks. Centralization is often contrasted with decentralization, where decision-making authority is dispersed among multiple entities.