An Overview of the Reformed Local Government in Macedonia

Local government in Westerns Balkans has gone through various public administration reforms resulting from the era of New Public Management (NPM) developments that took place in developed countries. However, such reforms have not yet reached their goal of creating more autonomous (especially financially) local government units that would be efficient and effective enough to provide better services to citizens. Macedonia is perceived a country where fiscal decentralisation has not reached its expected outcome reflected mainly in low shares of finances compared to central government finances. This paper aims to elaborate on the reforms that have shaped the management of local government in Macedonia, as well as its financial position. This is an exploratory study of previous writings about decentralization and local government (mainly) in Macedonia. The paper starts with some theoretical background of NPM and decentralisation that have shaped the local government. Then it follows with a review of the public administration reforms, decentralisation process, and local government finances. The paper is expected to contribute modestly in understanding the nature of local government and its finances along the reforms channelled mainly through the decentralization process.