Decentralization can be thought of as reforms that seek to achieve the empowerment of people through the empowerment of local governments. This presumes, however, that governments—at all levels—adhere to a degree of representative democracy (as called for in the Universal Declaration of Human Rights). Therefore, as students of decentralization and multilevel governance, we cannot ignore the democratic context of the countries we analyze and work in.
The Democracy Report 2025 by the V-Dem Institute examines global democratic trends over the past 25 years, highlighting the ongoing deepening wave of autocratization.
The report underscores the global decline of democratic governance, warning that autocratic regimes are gaining ground at an alarming rate.
Some of the report’s key findings
- The level of democracy for the average world citizen has regressed to 1985 levels, and by country averages, it is back to 1996.
- Economic power and democracy are at their lowest levels in over 50 years.
- Autocratization is spreading globally, with Eastern Europe, South and Central Asia experiencing steep declines. Even North America and Western Europe are no longer immune, with democracy levels in these regions falling to 1983 levels.
- The world now has 88 democracies and 91 autocracies, marking a full reversal from the previous year. Liberal democracies are now the least common regime type, with only 29 remaining in 2024.
- Freedom of expression continues to deteriorate, worsening in 44 countries by 2024, up from 35 in 2023.
Subnational governance as an important element of participatory democracy
The participatory principle of democracy emphasizes active participation by citizens in all political processes, including both electoral and non-electoral processes. The V-Dem Participatory Component Index (PCI) takes into account four important aspects of citizen participation: civil society organizations, mechanisms of direct democracy, and participation and representation through local and regional governments.
Whereas from 2004 to 2014, the number of countries improving in terms of regional and local elections exceeded the number of countries declining in terms of regional and local elections, the period from 2014-2024 saw a steady decline with regard to participation and representation through local and regional governments.
Implications for local democracy and inclusive and efficient multilevel governance
- Within the global community of practice on decentralization and multilevel governance, we know that—under the right conditions—local and regional leaders are uniquely placed to turn global changes into opportunities to improve the well-being of their citizens, by ensuring inclusive and responsive public services and by promoting local and regional development in line with the priorities of their constituents.
- While we might wish for national governments to support the implementation of place-based policies by aligning local, regional and national strategies, priorities and policy interventions through effective multi-level and multi-stakeholder governance, as the saying goes, “wishing won’t make it so”.
- In fact, over the past 50 years, except for the wave of decentralization reforms in Central and Eastern Europe and Latin America in the 1990s, only a handful of countries—including Indonesia, Kenya, Nepal, the Philippines and South Africa—have overcome centralizing political economy forces and achieved a meaningful degree of decentralization.
- As champions of decentralization and multilevel governance, we need to ask ourselves: are we fighting windmills?
- How can we advocate “not just harder, but smarter” by more carefully studying the state of decentralization and local governance around the world; by being evidence-based about the (often limited) state of decentralization in different countries and global regions; and by extracting lessons from the state of global practice about the potential for the success of decentralization and multilevel governance going forward.
Read the full report:
V-Dem Institute. 2025. DEMOCRACY REPORT 2025: 25 Years of Autocratization – Democracy Trumped? University of Gothenburg.
