For a long period of time centralized power has been the dominant political theory of mankind history. With no doubt, power is the source of economic and military movement and furtherance of human civilization. But a glance at income distribution map (except for oil countries) shows that, at present time, the countries with less political centralization are wealthier. less centralization does not mean weakness of central government, besides, it shows wider participation of the elite in the decision-making, specialization of local decisions, government focus on its main tasks and more importantly, providing conditions for sustainable development. Iran history is full of brilliant jumps of development and empty of a lasting and stable development. This thesis is a system dynamics approach to the issue of centralism. This study covers economic, politic and culture sectors. Determining measurement criteria for political centralization is very difficult and it has remained an unanswered question so far; therefore, in this research culture and economic sectors are brought in to a model with more certain variations. The final result of this study emphasizes that continuance of centralized policies in culture and economic sectors leads to cultural and economic dependence of cities of a country to its center. This dependence depends on the income by selling of national resources. Unbalanced distribution of income can be a motive for political unrest and a start for endangering integrity of country. Key words Decentralization, socio-economic development, centralization, dynamics