Abstract

<em>There is a quite huge body of existing literature both in form of theoretical and empirical evidence on local government administrative efficiency and fiscal sustainability in various studies, discussions and presentations. This literature review is based on the extensive data available on the varied alternative systems strengthening the local government governance, and the theoretical analysis. This paper is concerned with a question of the several systems presented, which is the best in enhancing the functional productivity and economic support of provincial Governments. Therefore, this paper seeks to evaluate the arguments advanced by proponents of decentralization, devolution, consolidations, mergers, cooperate arrangements or shared service arrangements. The analysis used the thematic reviews of literature that are organized around a topic or issue related to alternative systems of local government in 4 main parts; first describing local government structure and case for decentralization; second part for the case of other alternative models; third approaches to other alternatives, fourth new local government framework and fifth the summary and conclusion of the review.</em>

Highlights

  • There is a quite huge body of existing literature both in form of theoretical and empirical evidence on local government administrative efficiency and fiscal sustainability in various studies, discussions and presentations

  • “supervision difficulties naturally multiply when merger disrupts, the close relations amongst small divisions and their residents” (Dollery, 2008). They highlighted the reason for Economies of scope, and referred to them as, financial rewards that come from delivering a comprehensive variety of goods and facilities in a same business, i.e., a local government

  • 2.1 Approaches to Alternative Systems This theoretical analysis of the literature review concerned with the alternative systems of local government identified three approaches used in determining the systems

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Summary

Introduction

There is a quite huge body of existing literature both in form of theoretical and empirical evidence on local government administrative efficiency and fiscal sustainability in various studies, discussions and presentations. For example Sorensen (2006) argues that bigger establishments can utilize economies of scale and scope; because they have a more resilient financial foundation and higher maximum power to deal with additional or extra responsibilities yet the small units are “unviable” to deal with key demands because they lack maximum power to deliver many expert public services, this argument was supported by (Dollery & Akimov, 2008; Dollery & Crase, 2004).

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