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Decentralization: Experiments and
Reforms in Central and Eastern Europe During the first decade of transition various models of local government were designed. Political mechanisms, economic systems, institutions, and management practices were restructured. During the long learning process of establishing new local governments, several shifts in objectives and modifications took place. These modifications have left different government structures in place in the eight countries of Central and Eastern Europe. Structural Changes As an important first step of transition, a new democratic and pluralistic model was introduced at the local level. The European Charter of Local Self-Government summarized the minimum structural and legal requirements for preparing and establishing local institutions. Administrative reforms and models vary both across countries and over time. Due to the fluid and sensitive political balance that exists in Central Europe, reform concepts about local government undergo relatively frequent changes. Reform of Poland’s local government, for example, reached a dead end in the mid-1990s, breeding disillusionment. Then, in 1999, limits on local jurisdictions were suddenly changed, with far-reaching political-administrative implications. In Lithuania crucial reform revisions were initiated in 1995, replacing the two-tier system of local government with a single tier. In the Czech Republic the institutions and mechanisms of local democracy have been radically reformed and municipalities have taken over all self-governing functions—but debates on the establishment of an intermediate government tier dragged on for a decade. Organizational Models In the first wave of constitutional changes, legislation on local government and free local elections was codified. In the second wave, legislation established the scope of local government, approved civil servant and public employee acts, specified the scope and duties of public administration at each level, and regulated property transformation. Attitudes and the operation of local governments were changed as a consequence of the introduction of market agents and public participation. The influence of the private and nongovernmental sectors increased in public services. Financial cutbacks forced customers to contribute to the costs of these services. While the withdrawal of government from public services was more drastic in Central and Eastern Europe than in the West, policy responses to these challenges were more mooted. Further development of local governments in these countries is proceeding in four major directions: · Reforming public administration. After 10 years of almost continuous changes, public administration reform is still on the political agenda in most of Central and Eastern Europe. Major targets include the further decentralization of local government structures (in Slovakia) and decisionmaking powers (in Slovenia). The relation between the functions of existing central public administration and the new municipal administrations are also subject to change. For countries involved in the EU preaccession process (the Czech Republic, Hungary, and Poland), the role of the intermediary level of government is a crucial issue.· Improving service provision. Estonia and Latvia are focusing on creating more efficient local government services, improving management techniques, and developing new rules of modern administrative ethics. They are also trying to increase the professionalism of local government staff and municipal service organizations in order to improve service provision.· Reforming local government finance. Earlier in the reform process, the focus was on intergovernmental fiscal relations, especially the system of transfers. Today the principal objective is to increase independent revenues as the basis of extending local autonomy. Suggested methods are more sophisticated and include not only local taxation but also personal income tax sharing schemes, which are being developed in Estonia and Poland.· Introducing local governance and management methods. Greater public participation, more transparent operation of municipalities, and establishment of direct contacts with citizens are high priority goals of reform in Lithuania and the Slovak Republic.Tamás M. Horváth is Research Director, HIPA (Hungarian Institute of Public Administration). Gábor Péteri is Research Director, OSI-LGI.This article is based on an article that appeared in Local Governments in Central and Eastern Europe, edited by T.M.Horváth (Budapest: LGI Books, OSI/LGI, 2000).
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