Yeah, BUT---
What about the theory that 'the lowest possible unit of governance should resolve problems,' which would seem to imply a localized control system is ideal?
Are you saying that Russia (old Soviet Union) is incapable of operating under that theory?
The law applies perfectly - most of functions can be done best locally, some at higher level and some in the center. In case of Russia some powers were too local and Putin is moving them to the optimum level.
What is "the lowest possible unit of governance" depends on circumstances, national culture and nature of problems. Putin initiative to arm local people for self-defense (not much mentioned in Western media) is moving some functions of government down to the governed. Teachers and parents carying concealed weapons will be much harder to victimize.