An Analysis of the Joint Board or County Model as the Structural Basis for Effective Australian Local Governance

Australian policy‐makers continue to rely on municipal amalgamation as the main engine of structural reform in local government, despite strong evidence that it diminishes participation and representation without improving service efficiency. Several promising, but neglected alternative models of structural reform have been developed, including ad hoc resource sharing models, Regional Organisations of Councils, virtual local government, and agency models. In an encouraging response to the recent policy of enforced council amalgamations in NSW, the Shires Association of NSW (2004) has recently proposed a ‘Joint Board model’ of local governance and invited comment on this model. This article takes up this challenge and seeks to place the Joint Board model in conceptual context and evaluate its characteristics and simulated cost savings.     

Amalgamation Impacts on Local Public Expenditures in Sweden

This paper concerns amalgamation impacts on local public expenditures. The empirical analysis is based on the extensive 1952 municipal reform in Sweden. The 1952 reform amalgamated municipalities in a way that they had at least 2,000–3,500 inhabitants. This was done in the belief that larger municipalities would improve administration efficiency and public services by exploiting economies of scale. The results show that the reform had a negative impact on expenditures as long as the municipalities did not exceed a critical size.     

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.     

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.     

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.     

Jurisdiction size and local government effectiveness: Assessing the effects of municipal amalgamations on performance

The optimal jurisdiction size has been debated since Plato and Aristotle. A large literature has studied economic and democratic scale effects, but we have almost no knowledge of the effects of jurisdiction size on the effectiveness of local services. This is due to two methodological problems. First, selection bias and reverse causality often render change in jurisdiction size an endogenous variable. Second, there is a lack of empirical indicators of effectiveness, and most studies therefore focus on spending measures. Extant research thus studies economies of scale, leaving effectiveness of scale unexamined. We address both problems in a quasi-experimental study of public schools. Our findings from the school area indicate that jurisdiction size does not have systematic effects on effectiveness. Our analysis therefore supports recent studies of economic and democratic scale effects that indicate that the search for the optimal jurisdiction size is futile.     

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 upscaling of local governments: a variable-oriented approach to explaining variance among Western European countries

Local government systems change at varying speeds. While some countries have dramatically reduced the number of local governments during a short period of time, other countries have seen only incremental change or relative inertia. A number of explanations for structural change have been put forward in the comparative local government literature, but these explanations have to a small extent been tested empirically. This article uses statistical indicators to analyse changes in the local government systems in 17 Western European countries between 2004 and 2014. Some often-cited explanations for what drives structural change receive little support. Still, the article demonstrates that changes tend to occur in situations marked by different combinations of decentralisation, urbanisation, fiscal stress and a recent history of territorial upscaling.     

Death by a Thousand Grants? The Challenge of Grant Funding Reliance for Local Government Councils in the Northern Territory of Australia

In July 2008, the local government sector in the Northern Territory of Australia underwent wide-sweeping reforms whereby 53 councils, most of which were located in remote Indigenous communities, were amalgamated into eight regional shires. The dominant justifications for these reforms focused on internal ‘deficit’ views about the community council sector, including lack of competent and ethical staff, managerial workforce instability, inefficient use of resources, and poor oversight as the primary causes of chronic underperformance and dysfunction. This paper identifies and discusses the under-scrutinised role of grants revenue dependency and volatility in the demise of remote small councils in the Northern Territory. We analyse financial data to demonstrate the extreme volatility in year-on-year grants funding. With their high dependency on grants revenue, such volatility and unpredictability resulted in councils being hamstrung in their ability to strategically plan and ensure stability in service delivery, infrastructure management and employment provision. We argue that these fiscal dynamics, fuelled by hierarchical intergovernmental relations, contributed significantly to dysfunction in the sector, as well as mutually reinforcing pre-existing structural and endogenous weaknesses. This argument runs against the common conceptualisation of the sector as requiring of externally imposed structural reform. We conclude by suggesting that there are factors additional to scale that need to be incorporated into analysis of the effects of amalgamation policies on remote councils.