While the motivation for decentralization will often vary from state to state, the following two sets of objectives are the most prevalent:

1. To increase the efficiency and effectiveness of service delivery.

Services will be more efficient if they are delivered institutions that are located in and come from those communities. Local institutions will have a greater understanding of the needs and concerns of their communities and therefore be better able to deliver services that address those concerns and meet those needs more effectively than central government.

2. To establish a system where diverse groups can live together peacefully.

Decentralization aims to allow stakeholders representing minority or marginalized regions to participate in governance. It can also promote greater access to government services and economic resources for remote or marginalized communities. This can promote stability and unity within diverse countries.