What are the Local Political Costs of Centrally Determined Reforms of Local Government?

Taking advantage of a quasi-experimental setting and drawing upon analysis of electoral results and a survey of voters, this article explores the political costs of reform through the example of the 2009 local elections in Denmark. The article finds that the local parties of mayors were punished at the polls for implementing municipal amalgamations decided by the central government. However, the effect on the mayoral parties’ electoral result is more indirect than direct. Analyses of the electoral results demonstrates that the political parties holding the mayoralty in times of amalgamations tend to nominate very tenured mayors as candidates, thereby missing the positive first-term incumbency effect, which a new mayor could have acquired. And analyses of a survey of voters demonstrates higher levels of dissatisfaction with the municipal service in amalgamated municipalities, leading to a higher cost of ruling for mayoral parties which have led the implementation of an amalgamation.     

Exploring the limits of institutional change: The direct election of mayors in Western Europe

The process of local institutional reform that different Western European countries underwent starting in the 1990s converged towards the direct election of mayors in Italy, England, Austria and Germany. Using a comparative analysis of those countries and including in it Belgium and the Netherlands (where the introduction of directly elected mayors is planned) and Greece and Portugal (with a long tradition of it), the article examines why countries with such different municipal traditions have tended towards the same institutional solution. The answer runs through the text implicitly: the institutional tradition of each country appears to have a greater capacity for explaining the outcome of the reform rather than isomorphism in the introduction of the direct election of mayors.     

Voter turnout and municipal amalgamations—evidence from Denmark

ABSTRACT

The study utilizes evidence from the Danish 2007 municipal reform to inquire into the relationship between municipal amalgamations and voter turnout, that is, the classical discussion on size and democracy. The Danish municipal reform is particularly suited for investigating the relationship as a large number of units were merged due to reasons thought to be unrelated with the democratic performance while others were left unchanged. This allows us to investigate the relationship in a quasi-experimental setup. The study finds some evidence of a short-term positive effect on turnout and only limited evidence of a medium- to long-term negative effect when comparing amalgamated and non-amalgamated municipalities. However, stronger indications of negative effects on turnout are found when considering the intensity of the amalgamations.     

How do municipal amalgamations affect turnout in local elections? Insights from the 2015 municipal reform in the Austrian state of Styria

In this paper, we evaluate the effect of municipal amalgamations on election turnout in local elections. Following recent studies, we argue that municipal mergers can lead to less information about the election being made available to citizens and less influence for individual voters. That is, while citizens in the local context usually rely on their own direct contacts in local offices and among political candidates, the subsequent increase in population size due to a merger reduces opportunities for establishing such contacts and for having decisive influence on political decisions. Consequently, voters are less informed and less engaged, resulting in lower levels of electoral turnout in local elections. We test our argument empirically by using aggregate level data from the municipal level from the 2010 and 2015 local elections in Styria, Austria, which followed the amalgamation of some, but not all, municipalities in January 2015. The empirical results support our argument.     

Political participation and municipal population size: A meta-study

Do municipal amalgamations enforce or do they weaken (local) political participation? This is an important question considering a worldwide tendency for municipalities to merge. This question will be answered using a mixed-method approach based on a literature overview (meta-study) in general and additional quantitative (turnout figures, election studies) and qualitative (interviews) data regarding the situation in The Netherlands in particular. Political participation is consistently measured using indicators that measure behaviour (especially turnout figures) instead of perceptions and opinions such as trust or internal and external political efficacy. Local political participation seems to decrease with an increase in municipal population size.     

Territorial changes and changing identities: how spatial identities are used in the up-scaling of local government in the Netherlands

This article analyses the use of local identities by local communities in two Dutch municipalities. This research was commissioned by the Dutch Ministry of the Interior to better understand the role of local identities in municipal amalgamations. This article develops a conceptual framework based on the distinction between a primary identity based on the widely recognised dominant characteristics of the local community, and a secondary identity based on how communities within a municipality have learned over time to deal with these different primary local identities. During an amalgamation, this secondary identity disappears with the old municipality. The disappearance of the protective shield of a secondary identity exposes the underlying primary local identities, and can bring local identities into the centre of the local political debate. They can become more ***inward-oriented and focus more on their historical roots and their differences with others; they ‘thicken’ into resistance identities. In other cases, the secondary identity of a municipality is too weak and indistinct to support the primary local identities. Municipal amalgamation can then help to promote a new more attractive secondary, ‘thin’ regional identity based on a selection of characteristics of established primary local identities.     

Optimal approaches to structural reform in regional and rural local governance: The Australian experience

Abstract

Australian local government finds itself at the vortex of various mounting pressures, including acute funding shortages, complex intergovernmental relationships, and forced structural reform programmes, that have made the status quo unsustainable. State government policy makers have placed heavy emphasis on council amalgamations as their chief means of resolving the problems facing municipal governance. This paper argues that such reliance on the blunt instrument of municipal consolidation has been misplaced, not only because it is based on the mistaken premise that ‘bigger is better’ in local governance, but also because it ignores many other promising alternatives to amalgamation involving various combinations of structural change and process change better suited to the extremely diverse character of regional and rural local government in Australia.     

Municipal Amalgamations and the Democratic Functioning of Local Councils: The Case of The Danish 2007 Structural Reform

This article discusses the effects of the structural reform in Denmark in 2007 – where a large number of municipalities were amalgamated – on local councillors' influence on decisions taken in the local political realm. The analysis uses data from two large surveys, a pre-reform survey (2003) and a post-reform survey (2009). The analysis shows that the amalgamations have led to an increase in the perceived influence of leading councillors vis-à-vis other councillors and a decrease in the perceived influence of the council vis-à-vis its top administrative officers. Furthermore, it is found that there is an increase in the number of councillors who find that local political decisions are determined by laws and rules from central government, but at the same time it is shown that this increase cannot be ascribed to the amalgamations.     

Welfare Loss with Municipal Amalgamations and the Willingness-to-Pay for the Municipality Name

Functional advantages and drawbacks are commonly mentioned to rationally justify or condemn municipality amalgamations. However, many consolidation projects are resisted by local governments or citizens on the grounds that amalgamation would dampen local identity. A municipality’s name change is probably the most visible sign of the loss of community bond experienced by citizens at amalgamation time. This article aims to put a value on this loss by measuring citizen willingness to pay for their city name. This methodological approach innovates upon the literature on municipal amalgamation and place branding by exploiting the versatility of the so-called contingent valuation method (CVM). CVM confronts respondents, in a survey setting, with a hypothetical market in which a characteristic of interest is exchanged. Here the characteristic is the possibility to retain one’s city name for an amalgamated jurisdiction. The article presents the estimates provided by a survey conducted in four Swiss cities.     

Rhetoric in municipal amalgamations: a comparative analysis

ABSTRACT

There is a large literature that seeks to evaluate municipal amalgamations ex post, but a relative dearth of scholarly inquiry into the practical political task of persuading the public to accept amalgamations ex ante. We address this important gap in the literature by conducting a rhetorical analysis to ascertain what types of arguments are believed to be efficacious for persuasion on amalgamation. We find evidence to suggest belief in the efficacy of persuading the public through recourse to various projected dreadful consequences, particularly amongst opponents of amalgamation. We conclude by considering some of the reasons behind the observed rhetorics and briefly outline one possible solution.     

How Second Order Are Local Elections? Voting Motives and Party Preferences in Belgian Municipal Elections

A defining characteristic of second-order elections is that voters base their decision on considerations that were developed for a different policy level. Therefore, this kind of elections does not contribute to the quality of democratic representation. Municipal elections are often considered as second-order elections. In this article, we use data from an exit poll (n = 4,591) held during the 2012 municipal elections in Belgium. Results suggest that although voters predominantly invoke local aspects as determining their vote choice, still three-quarters votes for the same party locally as for federal elections. Among voters who deviate from their federal party preference, knowing local candidates and concern about local policy issues are the main sources of deviation. The conclusion therefore is that local candidates do make a difference and contribute strongly to the salience of electoral decisions on the local level.     

Functioning and Impact of Incentives for Amalgamations in a Federal State: The Swiss Case

In Switzerland, where most amalgamations are voluntary, supportive measures for municipal mergers vary considerably between cantons. This study focuses upon the interests of higher-ranking state levels in amalgamation, the design of incentive systems set by the Swiss cantons, and their influence on the municipalities’ amalgamation activities. Empirical results show that with a higher number of municipalities, the canton sets more incentives for mergers. Also, financial incentives positively influence the municipalities’ merger activities. The data sources include comprehensive surveys of the Swiss municipal secretaries (2009/2010) and of the cantonal administrations (2010).     

Is Bigger Really Better? A Comparative Analysis of Municipal Mergers in Australian and Japanese Local Government

While structural reform by means of municipal mergers has been employed in many different countries, council consolidation has been especially marked in Australian and Japanese local government. This suggests that much can be learned by examining amalgamation through the analytical prism of comparative analysis. In this article, we investigate structural reform through municipal amalgamation in Australian and Japanese local government by examining the aims of amalgamation, the methods employed by public policy makers and the outcomes which were achieved. From this comparative analysis, we attempt to draw some broader lessons for local government policy making aimed at local government reform.     

Exploiting the common pool or looking to the future? A study of free-riding leading up to the 2007 municipal amalgamations in Denmark

ABSTRACT

Municipal amalgamations can create incentives for opportunistic behaviour. Several fairly recent studies have examined this on amalgamations in Denmark and Sweden using the so-called law of 1 over n. However, they have yielded inconclusive results and I argue that one plausible explanation is a theoretical deficiency in the law, as it does not account for how future political representation can mitigate the incentive to free-ride. I examine this using large-scale amalgamations in Denmark in 2007. This case is quite unique as the amalgamations were implemented in such a manner that they constitute a quasi-experiment, and because an extra fiscal year was added to the election period where the composition of the new councils was known with certainty, while the municipalities retained some decision-making power. The study’s findings are consistent with the argument that the incentive to free-ride depends on the decision makers’ future political stake in the new, amalgamated municipality.     

Ten years after: revisiting the determinants of the adoption of municipal corporations for local service delivery

Research on the use of municipal corporations to deliver local and regional public services has evolved significantly in the past decade. Most of this work addresses the performance of this service-delivery mode in relation to local bureaucracies. However, much less is known about the drivers for the adoption of municipal corporations in the first place. This article reviews the main determinants of adoption – service characteristics, institutional and regulatory settings, political constraints and financial conditions – and highlights the need for comparative research across countries.     

Decentralizing Governance within the European Union’s Framework: Evidence from Greece

ABSTRACT

The administrative reform launched in 2010 (“Kallikratis” programme) in Greece stands out as a major decentralization initiative. Notably, amalgamations at the local level were set at the forefront of the reform. This paper aims at shedding light on the issue of decentralizing governance by examining the implications of the “Kallikratis” reform programme on local authorities in terms of their domestic financial mobilization. Drawing empirical evidence from their implementation in European structural programmes, it is argued that the decentralization effort had an asymmetrical impact on local institutions, favouring principally the small-sized local authorities vis-à-vis the bigger in population local bodies.     

Merger Melancholia: An Empirical Analysis of the Perceptions of the Residents of the Forcibly Amalgamated Manilla Shire Council

Notwithstanding cogent reasons for the continued existence of small local authorities in the sparsely populated Australian hinterland, compulsory council consolidation has been a recurring theme throughout the history of Australian local government. Despite its ubiquity, especially in rural, regional and remote Australian communities, its local consequences have not yet been fully examined by scholars or policy makers. The present paper seeks to remedy this neglect with an exploratory study of the social and economic consequences of forced local government amalgamations through the lens of the ‘lived experience’ of the small rural community of Manilla, which was forced in merge with the much larger Tamworth in 2004.     

Local Governments’ Responses to Revenue Changes: The Effects of Unreserved General Fund Balances

ABSTRACT

Volatile revenues affect the quality and consistency of municipal service provision. This article investigates how cities use unreserved general fund balances to mitigate annual expenditure fluctuations when confronted with volatile revenues. Based on the analysis of a panel dataset of over two thousand American cities from 2003 to 2011, the fixed-effects regression results suggest that unreserved general fund balances reduce municipal expenditure fluctuations on a year-to-year basis. The expenditure-smoothing effects were more pronounced when municipal governments experienced large revenue changes. Results are robust when excluding large cities, using different cutting-points to define ‘moderate’ or ‘large’ revenue changes, and in recession and non-recession years. This article contributes to the local expenditure stabilization literature by recognizing the unreserved general fund balances’ expenditure-smoothing effects during ‘non-rainy days.’ It adds empirical evidence to the organizational theory that financial slack works as a crucial buffer against external changes and provides managerial discretion to local administrators.     

THEORIES OF LOCAL GOVERNMENT REORGANIZATION: AN EMPIRICAL EVALUATION

Local government reorganization has been widespread throughout Europe in the postwar era. Three broad types of theory have set out to explain this phenomenon in a cross-national context; a welfare state perspective, a functional revolution perspective and a political perspective. The validity of these theories is assessed in the specific context of Belgium. The evidence suggests that none of the prevailing theories can make much headway in explaining the timing and form of reorganization. More promising explanations are to be found through examining broader values, and beliefs and more specific political constellations. The claim or implication that the major local government reorganizations of the postwar era were, in the different countries that experienced it, independent events produced by a common pattern of domestic social, economic or political development has the trappings of scientific theory without its true substance – the ability to explain.