Foreword
Decentralization and development of modern local government systems were
fundamental components of transition in Central Europe. During this first
decade of demolishing centralized states and unifying public services, various
local government models were designed. Political mechanisms, economic systems,
inherited institutions and management practices were restructured in these
countries. Several shifts in objectives and modifications in the speed of
changes characterized the long learning process of establishing new local
governments. Ten years after the political transformation, this book is an
attempt to assess the most important elements of local government systems, to
present the similarities and differences in the existing models of eight
countries of Central and Eastern Europe (CEE).
This publication is a continuation of the first anthology on local
governments in the region published by the predecessor organization of the
Local Government Initiative (LGI) in 1994. At that time there was a need for
basic information on local governments. Those country reports described a wide
range of countries in a concise manner. Our first goal with this publication
is to update the information on the first of three groups of countries. At the
same time our intention is not only to present systemic information, but also
to analyze and evaluate internal processes. In this way local government
structures can be better understood and compared.
These goals are in line with LGI’s mission to generate knowledge on local
governments and public services in the CEE region. This information and
analysis will be an important building block for the gradual development of
local governments. Countries following different patterns might learn from
this information on local models. We also hope that through this publication
LGI will be able to establish new partnerships with policy makers and other
potential users of this book.
The country reports focus on the major components of decentralization and
local government operation:
- legal and constitutional frameworks and structures of local governments;
- local politics, decision-making and internal organization;
- local government administration and service delivery mechanisms;
- fiscal issues and financial management.
Evaluation of local governments is based on some objective indicators,
showing the progress of decentralization and level of local autonomy. At the
same time a detailed description is provided on those issues that are
important for countries with new local government structures. The primary
topics for our analysis of legal frameworks are particularly the assignment of
local government functions and the relationship between the traditional state
administration and new local governments.
Local politics and decision-making mechanisms are embedded in the political
institutions and culture of a given country. Besides traditional
characteristics of local politics (elections, role of parties, et cetera)
there are two aspects of local decision-making that are new for these
countries. Local governments are faced with problems of ethnic minorities.
Improved forms of representation, new methods of conflict management and the
need for special services are parts of a local government’s daily operation.
Minority issues influence local governments on different scales, depending on
the size and position of these groups. Another new phenomenon of local
politics is the emerging form of the association. Joint local lobbying
activities started to develop when municipalities realized the failures of the
new party hierarchies and lack of efficient representation in central
government decision-making.
Local service delivery experienced major transformation in the privatized
economic environment. This has raised the claim for new local government
administrative functions (control, monitoring), which required more
professional personnel in municipal administration. In the field of local
government finances, local and regional economic development are the main new
municipal functions. In these countries with their relatively developed market
mechanisms, local governments establish new forms of partnerships in service
delivery and economic development.
Country reports discuss these four major topics, but the depth in which
each issue is addressed differs, depending upon the importance of these issues
to the country in question. The authors present a brief history of policy
discussions on local government issues. Due to our limited resources and time,
their research is based mostly on a secondary analysis of existing studies,
government publications and reports of international organizations.
It is obvious that this type of descriptive publication never will be
complete. Our intention is to present relevant information on all major
elements of local government structure and operation in a balanced fashion. So
the reader of this publication will not find, for example, detailed
information on local public services, like education and welfare services. Not
only these sectoral issues, but also analysis of judicial structures and
systems of appeals were out of our scope of work. General employment
regulations and other rules of administrative personnel are not discussed in
equal length. Transfer and functions of municipal property are very much
dependent on the size and forms of state ownership and privatization patterns
in each country, so detailed analysis of municipal property was also beyond
our capacity.
However, description of the eight countries with the most decentralized
local government systems provides sufficient information on general
development trends in the CEE region. There are similar efforts in this group
of countries to modernize local government structures and management
practices. These reform activities on the one hand are initiated by external
factors, like political changes (as in Slovakia) or European Union enlargement
(such as structural reform at the regional level of government). On the other
hand planned changes are often the result of internal development processes to
increase the efficiency of local government operation and management.
The reports identify four major directions for further development of local
government systems in these countries. After ten years of almost continuous
changes public administration reform is still on the political agenda
in most of these countries. Reports emphasize the importance of further
decentralization of local government structures (as in Slovakia) or
decision-making powers (as in Slovenia). The relationship between the
functions of existing central public administration and the new municipal
administrations are also subject to change. In countries involved in the
European Union preaccession process the role of the intermediary level of
government—regionalization—is a crucial issue (as in the Czech Republic,
Hungary and Poland). The legal and administrative structure of large capital
cities is also an important component of the planned reforms, as in these
relatively small countries the nation’s capital has an exceptional position
(as in Estonia).
Parallel to systemic changes internal processes of local government
operation are also important items on the reform agenda. Higher efficiency of
local government services, improved management techniques or developing new
rules of modern administrative ethics are primary objectives (such as in
Estonia and Latvia). Several countries realized that further
professionalization of local government staff and municipal service
organizations is required for better service provision.
Local government finance reforms are almost constantly discussed in the
countries of the CEE region. Earlier intergovernmental fiscal relations,
especially concerning the system of transfers, were the focus of
transformation. Now mostly the increase of independent revenues as the basis
of extending local autonomy is the objective of the reforms. Suggested methods
are more sophisticated; not only local taxation but also, for example,
personal income tax sharing schemes are under development (this is the case in
Estonia and Poland). In some countries property issues are still unresolved
(as in the Czech Republic).
Local governance and management methods are also subject to change in this
group of countries. Higher public participation, more transparent
operation of municipalities and the establishment of direct contacts to
citizens are high priority goals of reform (as in Lithuania and Slovakia).
This requires further refinement of the legal position of elected leaders (as
in Slovenia).
Hopefully this information will be useful to all of our targeted readers.
Primarily the book is recommended for policy-makers and legislators who
believe that the countries of Central and Eastern Europe have common roots and
thus are able to learn from one another. Civil servants in ministries or
experts advising members of parliament now are able to work with a group of
consultants and think tanks. This common knowledge on specific characteristics
of local governments in the CEE region is slowly incorporating work by
academic researchers, for whom this book might provide comprehensive
information on local governments. As the direct contacts between local
practitioners (mayors, chief executives, finance directors) are developing,
they could learn from the other countries addressed in this book.
Writing and editing this volume was a rather long process. We acknowledge
LGI’s steering committee, which initiated the work and contributed valuable
advice on several professional issues. The authors of the country reports,
together with the editor and the reviewers, presented this comprehensive
information, which hopefully will be appreciated by the readers. Tamás
M. Horváth, the editor of the book, made particularly important
contributions not only in discussing the draft papers, but also by summarizing
the major trends in his introductory chapter. The first project manager at LGI
was Sharon Cooley, and later, Ondrej Simek, who provided administrative
support for this publication. Christine Zapotocky helped us with copyediting.
We are very grateful for their contributions and work.
Gábor Péteri
OSI Local Government and Public Service Reform Initiative
Budapest, February 2000
