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Incentives and contradictions in municipal reforms

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  • T.A.Petrova

Abstract

The paper analyzes how efficient the local governance has been in the context of the administrative reform of 2006. Each level of government must reform and analyze their activity in accordance with the principles of the reform assigned by federal laws. Presently only 2% of municipalities can cover the expenditures of local competence through their own funds. So, there is no reason to speak of efficiency of such local governance. All over the world the institute of local governance is based on proprietary classes - the emergence and evolution of which took a lot of time and much support from a state – and this institute can successfully function if its financial support is sufficient and if civil society is developed as well as if a local community is solvent. To find an effective model of the relationship between federal and local authorities, it is necessary to continue reforms of intergovernmental relations, to provide subsidies for investing regions and to stimulate greater support for small and medium business by municipal authorities.

Suggested Citation

  • T.A.Petrova, 2007. "Incentives and contradictions in municipal reforms," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 3.
    • Handle: RePEc:nos:regioe:2007-3_20
    Note: Local Self-government and Municipal Development
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