The effectiveness and efficiency of local government in European small states

Abstract

Local Governments form the lowest level of government which is closest to the people and hence aim to satisfy the aspirations and needs of the residents which they represent. This can be evidenced also in small states where many small local authorities are in direct and continuous contact with the community. The objective of this dissertation is to analyse the efficiency and effectiveness of these authorities in European small states in delivering services to residents. In the literature review chapter the various studies carried out regarding reforms in local government systems are analysed and assessed so as to give a broad and objective account of the subject matter. Problems associated with the size of local authorities are highlighted together with definitions of both efficiency and effectiveness by various writers. Primary data, obtained from questionnaires sent to local governments in the selected small states in Europe, was utilised to test the hypothesis that the small size of the local authority poses constraints on efficiency and effectiveness The main conclusions of the study produce interesting results on local government performance. There are definitely important advantages of being small including the affinity between local authorities and the electorate they represent enhanced by positive attitudes of local governments' personnel. Important disadvantages include the lack of economies of scale resulting in high costs of services provided to them. They also lack necessary financing and staffing to perform the responsibilities entrusted to them. Large local authorities are advantaged in their financing although they represent relatively large populations. They are recognised at higher levels by national governments. Their main disadvantages include bureaucracy and particular problems associated with the nature of their localities. The study recommends actions which may be adopted by small local authorities to enhance their efficiency and effectiveness.