Joint Integrated Local Development Programme ANALYTICAL STUDY ON OPTIMAL ADMINISTRATIVE-TERRITORIAL STRUCTURE FOR REPUBLIC OF MOLDOVA Chișinău, August-October 2010 The Study was commissioned by the Joint Integrated Local Development Programme (JILDP) implemented by the Government of Moldova, with the assistance of the United Nations Development Programme (UNDP) and United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), and the financial support of the Government of Sweden, and prepared by Ion Osoian, Igor Sirodoev, Eugenia Veverita, Valeriu Prohnițchi of “Expert Grup”. More information about the activities of the Joint Integrated Local Development Programme can be found by visiting the websites: www.descentralizare.gov.md and www.undp.md The opinions expressed in this report do not necessarily reflect the views of the UN Women, UNDP or the Government of Sweden. This is an independent publication prepared for JILDP and reflects the views of the authors. 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For more information please visit: www.unwomen.org 65 | P a g e Contents: Executive summary....................................................................................................................................... 8 Introduction ................................................................................................................................................ 10 Study rationale ....................................................................................................................................... 10 What is an ‘optimal’ administrative-territorial division? ....................................................................... 10 Purpose of the study .............................................................................................................................. 11 1. Approaches to territorial fragmentation: a comparative perspective ............................................... 12 General considerations for a comparative perspective ......................................................................... 12 Czech Republic ........................................................................................................................................ 18 Estonia .................................................................................................................................................... 24 Georgia ................................................................................................................................................... 31 Latvia ...................................................................................................................................................... 36 Macedonia .............................................................................................................................................. 42 2. Analysis of the current administrative-territorial structure in Republic of Moldova ......................... 48 Evolution of the administrative-territorial structure in Moldova .......................................................... 48 Is Moldova territorially too fragmented? ............................................................................................... 51 What services do Moldovan local public authorities provide? .............................................................. 54 Analysis of the cost-efficiency at the first tier of local public administration ........................................ 57 Analysis of the cost-efficiency at the second tier ................................................................................... 61 Democratic participation ........................................................................................................................ 66 Administrative-territorial division and local development .................................................................... 70 3. Models and criteria for an optimal administrative-territorial organization....................................... 74 General country’s context and its implications for the administrative-territorial organization ............ 74 Purposes of the administrative-territorial reform ................................................................................. 81 One-tier model of administrative-territorial organization ..................................................................... 82 Two-tier model of administrative-territorial organization ..................................................................... 91 Inter-municipal (inter-communal) cooperation ..................................................................................... 99 4. Conclusions and recommendations ................................................................................................. 105 5. List of references .............................................................................................................................. 110 6. Sources of information for maps ...................................................................................................... 113 7. Annexes ............................................................................................................................................ 114 65 | P a g e List of tables: Table 1. Changes in the number of municipalities in selected European countries .................................. 13 Table 2. Models of sub-national government in the EU-27, situation as of year 2009 .............................. 15 Table 3. Geographic and economic characteristic features of the selected countries, year 2009, if not otherwise indicated .................................................................................................................................... 17 Table 4. Local governments in Czech Republic by number of inhabitants ................................................. 19 Table 5. The assignment of independent competencies and delegated powers in Czech Republic, 2006 21 Table 6. Local governments in Estonia by number of inhabitants, as of 2009 ........................................... 26 Table 7. Local governments in Georgia by number of inhabitants (2009)* ............................................... 32 Table 8. Exclusive powers of the self-governing units in Georgia .............................................................. 33 Table 9. The main changes in the administrative-territorial division of Latvia .......................................... 38 Table 10. Local governments in Latvia by number of inhabitants (2010) .................................................. 39 Table 11. Local governments in Macedonia by number of inhabitants after two administrative-territorial reforms ....................................................................................................................................................... 44 Table 12. Local governments in Moldova by number of inhabitants (2008)* ........................................... 52 Table 13. Consolidated local budgets evolution by functions, as% of GDP and of total expenditures, 2006- 2009, executed budget ............................................................................................................................... 56 Table 14. General operational costs of the local public administration in 2005 and 2009........................ 59 Table 15. Structure of the aggregate raions budget, % of total (Chisinau and Balti municipalities and UTA Gagauzia dolays not included) .................................................................................................................... 62 Table 16. Geographic indicators for the Moldovan administrative-territorial units .................................. 65 Table 17. Number of local councilors per municipality and citizens representation in local councils ...... 68 Table 18. Indirect representation of citizens by local