Conditions of Operations of Local Government Units in Unstable Economic Environments

Abstract

Purpose – The goal of this article is to present conditions for the operation of Poland’s local government units in the 2007–2016 period from the perspective of these entities’ finances. The subject is considered with regard to major changes which took place in the economic environment of local government units in the past few years. Design/methodology/approach – Such a complex study area requires various research methods to be applied in order to achieve the planned goal. The research procedure includes nonreactive research, a comparative historical approach and an analysis of official documents. Findings – The analyses performed revealed the conditions of Polish local government units in 2007–2016 regarding the finances of these entities. The collected data points to frequent changes to the units’ economic environment which require that the new challenges be appropriately addressed. An unstable economic setting shapes the conditions of the operations of gminas, cities with powiat rights, powiats and voivodships. Consequently, it uniquely affects the activities of local government units. Originality/value – the analyses of the subject confirm that the operations of local government units are affected by various stimuli coming from the economic environment. For the past few years it underwent dynamic changes that made local government entities react to them and stand up to emerging challenges. Local government units’ operations are determined by a group of interrelated conditions. The analysis of the operations of local government units in Poland in 2007–2016 indicates that finances are the foundation of the functioning of each local government unit and an indicator of reality and success of the public tasks performed.