Local Government and Regional Administration - Theoretical and Conceptual Foundations of Local Governance

Definitions of Local Government

  • Humes & Martine, 1969: "Local governments are infra-sovereign geographic units contained within a sovereign nation or quasi-sovereign state."

  • Tindal, 1977 (as cited in Ndreu, 2016): "A local unit is a legal entity that provides public services to its people within the territory where it exercises jurisdiction, but it is also a democratic institution which from the decision making point of view, is governed by a council with representatives elected by the people who are accountable to their constituents."

  • OECD (as cited in Ndreu, 2016): “The Local Government is based on fiscal governance, legislative and executive authority over an area corresponding to the territorial limit and a certain group of people.”

  • Aijaz, 2007 (as cited in Ndreu, 2016): “Local Government is part of the government of a country which deals mainly with problems or issues related to a given population within a given territory.”

  • Lockard, 1963 (as cited in Ndreu, 2016): “A public organization, authorized to establish and administer public policies within a given territory.”

  • Hasluck, 2010 (as cited in Ndreu, 2016): “The sphere of government where local authorities are allowed by law to issue acts or decisions to adjust the way of governance.”

  • Hampton, 1991 (as cited in Ndreu, 2016): “Local authorities have boundaries defined geographically, are organs highly functional, directly elected, but on the other hand have disabilities related to the determination of local taxes, this comes depending on the determination of the margin from the central government.”

  • Wilson & Game, 2006 (as cited in Ndreu, 2016): “Local governance is a multi-functional and geographic organization determined on pursuing social objectives, economic or political ones, through funds given from above or those provided by its revenues, which regulates and monitors all areas of public services within the local community.”

  • Keating, 1991 (as cited in Ndreu, 2016): “Individual associations or organizations who decided to govern its own works, by defining the scope and limits of the powers.”

  • Godwin, 2014 (as cited in Ndreu, 2016): "Management of their affairs by the people of the locality where they are."

Elements of Local Government (Humes & Martin, 1961 as cited in Ndreu, 2016)

  • A certain population

  • Specific surface area

  • Capacity to sign contracts

  • Have a continuous organization

  • Has capacity to collect taxes

  • Can determine its budget

  • Clear division of responsibilities

  • Clear and easily identifiable division in borders

  • Financial, geographic and demographic base

  • Well-organized institutional and administrative set-up

  • Accountability

  • Productive and cooperative dynamics between elective and appointive officials

Summary of Local Government Nature, Establishment, Jurisdiction, Functions, Role and Leadership

  • Nature
    • Public organization
    • Infra-sovereign/sphere of government
    • Democratic
  • Establishment
    • Through law
    • By higher level of government
  • Jurisdiction
    • Set by law
    • Spatially limited
    • People within its territory
  • Functions
    • Multi-functional
    • Has fiscal, legislative and executive authority
    • Social, economic and political
    • Creation of public policies
  • Role
    • Management of people
    • Public service delivery
    • Deal with problems/issues of the locality
  • Leadership
    • Led by elective/appointive officials from the locality
    • Accountability

Rationale for Local Government

  • How do we satisfy our desires?

    • Economic Means: Making and exchanging things (Trade)
    • Political Means: Taking things (Force)
    • Oppenheimer, 1914 as cited in Watt, 2006

  • Government as a minimal state

    • Law and order
    • Enforcement of property rights
    • Facilitate trade
    • Achievement of Pareto Optimality
    • Watt, 2006

  • Government beyond the minimal state

    • Market Failure
      • lack of competition
      • externalities
      • information problems
      • incomplete markets
      • Watt, 2006
    • Provision of public goods
    • Watt, 2006
    • Merit Goods (e.g. education, housing)
    • Demerit Goods (e.g. alcohol, cigarettes)
    • Redistribution of income and wealth
      • Watt, 2006

  • The need for local government

    • Enforcement of law and order and securing property rights (fundamental contribution of government)
    • Redistribution of resources.
    • Provision of local public goods (e.g. local parks, street lighting and refuse collection).
    • Adjust the provision of local public goods and services to suit the tastes and the preferences of local residents.
    • Watt, 2006

  • Normative vs Positive

    • Normative
      • Law and order is necessary.
      • Governments are responsible for providing public goods.
      • Democracy is better than autocracy because decisions of the Government reflect better the will of the majority.
    • Positive
      • We need to enforce law and order to prevent people from taking things.
      • Governments should provide public goods because of possible under-provision of these goods in the market.
      • Democracy provides a long-term assurance of security of property rights than autocracies.

  • The need for local government

    • Creation of an enabling environment for Local Economic Development (UCLG, 2016)

  • The need for local government:

    • Instrument of democracy – representation and participation
    • Training of future national leaders
    • More efficient management of local affairs
    • An intermediary between the central government and the people/community.
    • Ndreu, 2016

Types of Local Governments

  • Two Types (according to functional assignment)
    • Multi-functional
    • Single Purpose
    • Tullock, 1969 as cited in Watt, 2006
  • Three Types (according to functional assignment & representativeness)
    • Representative
      • General-Purpose
        • Units of Local Representative Government (e.g. Philippine LGUs)
      • Special-Purpose
        • Special-Purpose Units of Local Representative Government (e.g. US Local School Board)
    • Non-Representative
      • Non Representative
        • Units of Local Non Representative Government (e.g. French District/Arrondissement)
      • Local Special-Purpose Organs of Central Government (NOT UNITS OF LOCAL GOVERNMENT)
    • Humes & Martin, 1969
  • Examples of Classification Criteria
    • Land area
    • Income
    • Population
    • Population Density
    • Historical/Cultural/Political circumstances