New PDF release: Local Government Economics: Principles and Practice

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Extra info for Local Government Economics: Principles and Practice

Sample text

A. denotes not available. a: Data for 1/1/91 b: Data relate to all of Germany. c: Data for Turkey cannot be split between 1001-5000 and 5001-10 000. d: All local authorities in the UK have more than 10 000 inhabitants. The average population of local authorities in 1990 was 127 000 in England, 91 620 in Scotland and 75 370 in Wales (Council of Europe 1992). The overall average of 118 440 in 1990 rose to 139 300 in 1995 (Chandler 1996). 2). However, the average conceals many small local authorities.

This is in fact common practice (Council of Europe 1995b). Second, local authorities too small to achieve economies of scale may still be able to capture such cost savings by contracting out their supply to private sector firms large enough to gain economies of scale, for refuse collection and maintenance of local roads for example (see Chapter 4). There is little evidence of this in practice, however, at least in the UK (see Chapter 14). (b) Minimum Population Size This may reflect the need to ensure administrative capacity in terms of financial, technical, human and other resources and to avoid administrative overload for central government in dealing with lots of small local governments.

1995). As already 38 Local Government Economics noted in Chapter 1, decentralization is an aid to political stability. It also facilitates nation-building and is coincident with privatization, attempts to achieve macroeconomic stability and to maintain a social safety net during radical economic restructuring. Essentially, however, it has been introduced to utilize public resources more efficiently than in the past and to facilitate the transition from a command to a market economy. In this case, the development (or reintroduction) of local self-government is a prerequisite of democratic institution-building.

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