The process of decentralization:
Disperses power, both geographically and institutionally: Decentralization inevitably changes the location of power and jobs. Movement geographically or across tiers of government is often impeded by issues related to statute, prestige and poor labor mobility. In the Eastern European transition economies, for example, de-legitimation of the central state and the emergence of representative government at local and intermediate levels of government has complicated human resource allocation. Incentive programs and mechanisms for inter-post mobility, which compound the costs of decentralization, may be required in order to introduce flexibility.