The Czech Republic is seeking to establish satisfactory systems of governance to replace its former totalitarian structures. A study for the Czech Ministry for Regional Development was initiated under the PHARE Programme, to examine linkages between central authorities and regional or municipal levels of government in four unitary EU Member States - Denmark, France, the Netherlands, and the UK. These were selected because all four have long established and efficacious systems of local government, yet each differs in significant ways from the other three. The University of Birmingham researchers who led the study conclude that appropriate role models, if they are to be found in this group, are most likely to be French.

Each of the four studies was organised in two phases, the first analysing the jurisdiction and functions of democratic local authorities, and the second reviewing in particular the role of such authorities in economic development. In terms of jurisdiction, it emerged as unlikely that the Czech Republic will emulate the policy of local government amalgamations adopted by the Netherlands and Denmark, nor create enormous primary units as in Britain. Models might more plausibly be sought in France's policies, notably in the recent territorial concept of a pays, a multifunctional joint body in which small municipalities cooperate. The Netherlands' system of 'joint regulations' was also judged instructive.

As to functions, where primary local bodies are very small and the nation itself quite large, there is a need for an intermediate level of government, with the following provisos:

• If this level is a service provider it should be under direct democratic control.
• If it is to supervise smaller local bodies it is best kept out of the political arena.
• European experience suggests that regional authorities are most satisfactory when based on 'natural' socio-geographic or ethnic regions, even if this division results in variations of scale.
• Competence over any given function should be restricted to only one specific level of government.

There is no uniform pattern in the role of local government finance in the European Union: major differences arise especially from the respective degrees of local government responsibility for education, health and social welfare. Local authorities in the Nordic countries obtain substantial revenue from surcharges on personal income taxation, which enjoy public tolerance because of their perceived equity. Not so the property taxes levied in Britain, France and other EU countries. In the Netherlands and UK, local governments derive most of their income through transfers from central taxation, which can assist redistribution, but may threaten local autonomy.

Throughout the European Union, public policy shifts over the last two decades have generally put more weight on user charges and fees. This works partly to relieve pressure on taxation, but also to shift the onus of choice onto the individual consumer. This shift can have negative effects, such as encouraging illegal waste dumping, or reducing use of public transport.

Local governments intervene in the local economy in three principal ways, through planning, by providing infrastructure and services, and by support to business. No common patterns are discernible but convergence has emerged from common pressures: need for fiscal restraint, globalisation and competition, decline of traditional industry, and heightened scrutiny of performance of public servants.

Source(s):
Relationship between Central & Local Government. School of Public Policy Study (1997)

id21 Research Highlight: 1998-Apr-15

Further Information:
K. Davey or H. Allen
School of Public Policy
University of Birmingham
Birmingham
B15 2TT
UK

Tel: +44 (0) 121 414 4987
Fax: +44 (0) 121 414 4989
Contact the contributor: k.j.davey@bham.ac.uk

School of Public Policy, University of Birmingham, UK

Other related links:
The International Development Department of the School of Public Policy, University of Birmingham, UK