Analytical Study on Optimal Administrative-Territorial Structure for Republic of Moldova
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ANALYTICAL STUDY ON OPTIMAL ADMINISTRATIVE -TERRITORIAL STRUCTURE FOR REPUBLIC OF MOLDOVA Prepared by: Ion Osoian Igor Sîrodoev Eugenia Veveriță Valeriu Prohnițchi Chișinău, August-October 2010 Contents: Executive summary ....................................................................................................................................... 7 Introduction .................................................................................................................................................. 9 Study rationale .......................................................................................................................................... 9 What is an ‘optimal’ administrative-territorial division? .......................................................................... 9 Purpose of the study ............................................................................................................................... 10 1. Approaches to territorial fragmentation: a comparative perspective ................................................ 11 General considerations for a comparative perspective .......................................................................... 11 Czech Republic ........................................................................................................................................ 17 Estonia ..................................................................................................................................................... 23 Georgia .................................................................................................................................................... 30 Latvia ....................................................................................................................................................... 35 Macedonia ............................................................................................................................................... 41 2. Analysis of the current administrative-territorial structure in Republic of Moldova ......................... 47 Evolution of the administrative-territorial structure in Moldova ........................................................... 47 Is Moldova territorially too fragmented? ............................................................................................... 49 What services do Moldovan local public authorities provide? ............................................................... 53 Analysis of the cost-efficiency at the first tier......................................................................................... 56 Analysis of the cost-efficiency at the second tier ................................................................................... 60 Democratic participation ........................................................................................................................ 65 Administrative-territorial division and local development ..................................................................... 69 3. Models and criteria for an optimal administrative-territorial organization ....................................... 73 General country’s context and its implications for the administrative-territorial organization ............ 73 Purposes of the administrative-territorial reform .................................................................................. 80 One-tier model of administrative-territorial organization ...................................................................... 81 Two-tier model of administrative-territorial organization ..................................................................... 90 Inter-municipal (inter-communal) cooperation ...................................................................................... 98 4. Conclusions and recommendations .................................................................................................. 104 5. List of references ............................................................................................................................... 109 6. Sources of information for maps ...................................................................................................... 112 7. Annexes ............................................................................................................................................. 113 64 | P a g e List of tables: Table 1. Changes in the number of municipalities in selected European countries ................................... 12 Table 2. Models of sub-national government in the EU-27, situation as of year 2009 .............................. 14 Table 3. Geographic and economic characteristic features of the selected countries, year 2009, if not otherwise indicated ..................................................................................................................................... 16 Table 4. Local governments in Czech Republic by number of inhabitants ................................................. 18 Table 5. The assignment of independent competencies and delegated powers in Czech Republic, 2006 20 Table 6. Local governments in Estonia by number of inhabitants, as of 2009 ........................................... 25 Table 7. Local governments in Georgia by number of inhabitants (2009)* ................................................ 31 Table 8. Exclusive powers of the self-governing units in Georgia ............................................................... 32 Table 9. The main changes in the administrative-territorial division of Latvia ........................................... 37 Table 10. Local governments in Latvia by number of inhabitants (2010) ................................................... 38 Table 11. Local governments in Macedonia by number of inhabitants after two administrative-territorial reforms ........................................................................................................................................................ 43 Table 12. Local governments in Moldova by number of inhabitants (2008)* ............................................ 50 Table 13. Consolidated local budgets evolution by functions, as% of GDP and of total expenditures, 2006-2009, executed budget ...................................................................................................................... 55 Table 14. General operational costs of the local public administration in 2005 and 2009 ........................ 58 Table 15. Structure of the aggregate raions budget, % of total (Chisinau and Balti municipalities and UTA Gagauzia dolays not included) .................................................................................................................... 61 Table 16. Geographic indicators for the Moldovan administrative-territorial units .................................. 64 Table 17. Number of local councilors per municipality and citizens representation in local councils ....... 67 Table 18. Indirect representation of citizens by local NGOs in the South Development Region ............... 67 Table 19. Some indicators of development of physical and digital infrastructure by raions ..................... 79 Table 20. Average size of the municipalities under the two-tier model ..................................................... 94 Table 21. Averages population by groups of municipalities under the two-tier model ............................. 94 Table 22. Distribution of municipalities by number of settlements under the two-tier model ................. 94 Table 23. Distribution of municipalities by area under the two-tier model ............................................... 94 64 | P a g e List of figures: Figure 1. Average demographic size of the municipalities in the EU-27, 2009 ........................................... 13 Figure 2. Average municipal area in the EU-27, km 2, 2009 ......................................................................... 14 Figure 3. Evolution of the number of Municipalities in the Czech Republic 1950–2007 ............................ 18 Figure 4. Total and sub-national government spending in the CEE and selected EU-15 countries, as % of GDP .............................................................................................................................................................. 54 Figure 5. Correlation between own revenues and municipality size, rural and urban settlements (Chișinău and Bălți not included), year 2009 .............................................................................................. 56 Figure 6. Correlation between own revenues and municipality size, rural primarias only, year 2009 ...... 57 Figure 7. Correlation between the administrative costs per resident and size of the rural municipalities, year 2009 ..................................................................................................................................................... 59 Figure 8. Correlation between the share of administrative costs in total budget expenditures and size of the rural municipalities, year 2009 ............................................................................................................. 59 Figure 9. Correlation between the education expenditures for education per resident and size of the municipality, year 2009 ............................................................................................................................... 60 Figure 10. Correlation between the per resident