Factors contributing to the institutional efficiency of local governments in the administrative area

Wiesława Lizińska,Renata Marks-Bielska,Karolina Babuchowska,Magdalena Wojarska

doi:10.24136/eq.v12i2.18

Abstract

Research background: The theory of endogenous regional development indicates in par-ticular the role of local authorities in creating the conditions for socio-economic development. Among the factors that shape institutional efficiency of local government, the ones referring to the administrative sphere should be especially analyzed.Purpose of the article: The aim of the paper was the assessment of the activities shaping institutional efficiency in the administrative area with respect to the activities pursued by local governments in Poland, and to assess the effects of such activities. The analysis includes activities aimed at streamlining service provision, implementation of a system of self-control of provided services, and measures related to the adjustment of the organizational structure of an office to the implemented tasks.Methods: For the purpose of performing the study a questionnaire was prepared and sent to local authorities in Poland. The research was conducted between 2015 and 2016 on a sample of 1,220 municipalities from 2,479. Identification of activities implemented by local gov-ernments was made on the basis of an analysis of the task implementation index. The evalu-ation of effects of tasks was made on the basis of the values of effect index of implemented tasks.Findings & Value added: Many local governments do not fully apply the available tools that streamline the provision of administrative services. The value of the task performance index had a low average level in Poland (0.42). Representatives of local authorities were convinced of the relatively high efficiency of undertaken activities. The value of the task implementation index in the area of self-control of the provided services remained at the level of 0.48. The average value of effects of activities amounted to 0.55. The average index of task implementation of activities adjusting the organizational structure to the implemented tasks and provided services amounted to 0.64 in Poland.

Highlights

The results of international studies pursued at country level show that in the long-term perspective the affluence of individual countries is determined, inter alia, by the quality of institutions (Acemoglu et al, 2005)
Findings & Value added: Many local governments do not fully apply the available tools that streamline the provision of administrative services
2 The results presented in the article refer to the implementation of one detailed objective formulated as part of the implementation of a research project entitled Institutional Efficiency vs. Local Economic Development: Forming Factors and Interactions

Summary

Introduction

The results of international studies pursued at country level show that in the long-term perspective the affluence of individual countries is determined, inter alia, by the quality of institutions (Acemoglu et al, 2005). Socio-economic development at the local level does not depend exclusively on the economic base and the possibilities of its financial support; more and more frequently it is possible to show that it is determined by institutional factors (Mac Leod & Goodwin, 1999; Gibbs et al, 2001). The theory of endogenous regional development indicates the role of public authorities (in particular local authorities) in creating the conditions for socio-economic development The literature on the subject features two main views about the interactions which take place between economic development and institutional efficiency. The significance of institutional efficiency is considered the key stimulant for the level of development (this view is dominant) (Evans & Harding, 1997); the second approach does not refute the theory that development conditions efficiency (Fried & Rabowitz, 1980). It may be noted that the efficiency of functioning of a given local government may be determined by the activity of neighbouring local governments (Geys, 2006), or that it is possible to intensify it without the necessity of increasing expenses (Afonso & Fernandes 2008)

Objectives

Methods

Conclusion