Administrative-territorial reform of local governments
Why
In order to comply with the local government tasks and the demands of the citizens in a satisfactory
way, the geographical size of the local government units has to be appropriate.
If the local government units are too small, their budgets and number of specialised staff will be
limited, and many tasks will typically be solved in an unsatisfactory way or not at all. Some tasks will
have a very small scale and the local government cannot carry out these tasks efficiently. Furthermore, some tasks need a certain capacity and special knowledge to be solved, which typically is lacking in small local governments. Hence, too small local government units will also hamper a further decentralisation of tasks from the central to the local government level.
If, on the other hand, the local government units are too big, some tasks will not be solved efficiently, if
optimal solutions to the tasks require a close contact with the citizens and a thorough understanding of
the local conditions. Furthermore, large units risk limiting the proximity of the citizens and the participation of the citizens with the local government in the democratic dialogue on the development of the
local area.
Denmark has twice implemented major administrative-territorial reform. The first in the period 19621970 reduced the number of municipalities from 1388 to 275 and the number of counties from 25 to
14. The second reform in the period 2003-2007 reduced the number of municipalities from 275 to 98
and changed the existing 14 counties into 5 new regions. Denmark therefore has a rich own
experience to draw upon when advising other countries how to do, and what to avoid when preparing
and implementing administrative-territorial reforms.
What
Administrative-territorial reform is often a complex question, which cannot be reduced to redrawing the
maps of the local government borders. Many different aspects must be taken into account in order to
establish new local governments of appropriate sizes that can work in an efficient and accountable
way. Among the relevant aspects that need to be considered are:









Legislation, structure, organisation and time frame of the administrative-territorial reform process
Strategies for administrative-territorial reform
Implementation of investigations of the socio-economic situation in local governments in order to
identify future bigger local government units
Criteria for formation of new local governments
Historical, demographical, ethnical, geographical, infrastructural, economic, political and other
aspects of present and future local governments
Information and participation of the citizens in the administrative-territorial reform process
Re-division of tasks between central, regional and local governments in combination with the
administrative-territorial reform.
Training of local government politicians and employees to fulfil redefined tasks in the new local
governments
Various methods of implementation of the administrative-territorial reform.
How
When the need of a territorial reform process is recognised politically, the model for the reform process
must be decided upon. Basically, the process can be voluntary for the local government units - which
normally do not produce any results, it can be made mandatory by the central government, or it can be
a mix between the voluntary and the mandatory model. It is LGDK's experience that the local governments should be involved as early in the process as possible in order to avoid resistance later in the
process and that a mixed approach is best.
…/2
The next step will typically be to develop the necessary legislation and to set-up an administrative-territorial reform committee assisted by a secretariat. The aim of the committee and the secretariat is
typically to manage and support the reform process by conducting investigations and distributing information. It will be natural to have representatives from both central and local governments
represented in the territorial reform committee.
One of the primary tasks of the territorial reform secretariat will typically be to conduct pilot investigations in different parts of the country in order to explore the real situation of the local government units
regarding infrastructure, finance, historical bonds to neighbouring local governments, attitudes towards
territorial reform etc. Such investigations will provide the decision-makers at all levels with crucial information in the further territorial reform process.
A brief illustration
LGDK has in the 1990s assisted the territorial reform process in Latvia and Estonia (amalgamation of
local governments), and Lithuania (splitting up of local governments) heavily. The assistance in Latvia
included:










Providing input to the territorial reform debate by elaboration of papers on various aspects of
territorial reform, like economic and other rationale for reform
Advice to the government, the parliament’s local government committee, the central government
unit on how to implement the reform process
Support to the functioning of a local government territorial reform secretariat
Investigations in all of the 26 regions and pilot investigations in some municipal clusters
Presentations at seminars on territorial reform in Latvia
Facilitation of exchange of experience between clusters of local governments in the amalgamation
process
Assistance to formation and training of a territorial reform secretariat
Assistance to elaboration of a "Handbook of voluntary amalgamations"
Assistance and advice to local governments which have decided to amalgamate on a voluntary
basis
Presentation of a booklet on criteria and stimuli for formation of new municipalities “Implementation of Local Government Administrative-Territorial Reform in Latvia – Incentives and Criteria for
Forming New Local Authorities”.
In East-Timor, LGDK in 2008 supported the elaboration of a Law on Administrative-Territorial Division.
This work included:
 Analysis of the existing system of division
 Consultation with major stakeholders, identifying the major critical factors
 Review of how the territorial division interacts with other critical policies, like return of refugees,
registration of ownership and property in a cadastre system
 Drafting a text of the law to be reviewed by legal and organisation experts in the Ministry of State
Administration and Territorial Management
 Advise on implementation of the law
In Macedonia, LGDK in 2004 provided advice on which criteria to use in an upcoming administrativeterritorial reform and which implementation procedures may yield the best results in view of
Macedonia’s mixed population.
In Ukraine, LGDK in 2008 reviewed a draft Law on Territorial Division and drafted a Concept for Regional Development.