Decentralization of power means the release of the central government from part of its competencies and their transfer to the local level, to the municipalities and the City of Skopje. With the decentralization of power, many of the issues that are extremely important to citizens have gained local significance. In that way, the citizens got the opportunity to directly participate in the organization of the most vital areas of their lives.

One of the goals of United Cities and Local Governments since its creation in 2004 has been to create a Global Observatory on Local Democracy and Decentralization “in order to analyze on a regular basis the advances and possible reverses to local democracy and decentralization around the world, to anticipate potential changes and to analyze the obstacles faced and the solutions required to overcome them” (UCLG Executive Bureau, June 2005).