Poland and Ukraine: Contrasting paths of decentralisation and territorial reform

Abstract

This contribution compares the development of local government systems in Poland and Ukraine, attempting to explain why two neighbouring countries, ostensibly similar in many respects, have arrived at quite different approaches. The analysis focuses on territorial organisation and inter-budgetary finance, and shows Poland to have moved decisively in the direction of a Northern European logic of local government, with relatively large first-level local authorities, a fairly strong second level for delivering services requiring economies of scale, and a relatively weak regional level. Ukraine by contrast has yet to overcome the contradictions created by the opposing principles of state (districts, and therefore large services not part of local government except in cities) and society – small municipalities based on individual communities. The ambitious inter-budgetary finance reforms since 2000 in Ukraine, which have reduced regional control over local authorities, are analysed, as are the different options for future territorial reorganisation.