ISSN 1648-2603 (print) VIEŠOJI POLITIKA IR ADMINISTRAVIMAS ISSN 2029-2872 (online) PUBLIC POLICY AND ADMINISTRATION 2020, T. 19, Nr. 2 / 2020, Vol. 19, No 2, p. 253–265. URGENT DECENTRALIZATION PROBLEMS IN THE CZECH REPUBLIC AT A REGIONAL LEVEL: POLITICAL, ADMINISTRATIVE AND SOCIOLOGICAL DIMENSIONS1 Yevheniy Haydanka Department of Political Science Trnava University in Trnava 23 Hornopotočná Street, 918 43, Trnava, Slovakia DOI: 10.13165/VPA-20-19-2-08 Abstract. This article proposes a comparative analysis of the modern Czech decentral- ization model and its institutional peculiarities. The author explores, in a comparative con- text, administrative-territorial features of local municipalities, consistent patterns of local budgeting, and the fragmentation of the political and party systems in the Czech Republic. The article provides expert findings with regard to contemporary problems with decentral- ization. On the basis of a wealth of empirical evidence (verified statistics and the findings of an expert sociological survey), the author draws conclusions on the efficiency of the con- temporary Czech decentralization model. The article discusses the idea that, through the lens of political issues, numerous confrontations arise in Regional Assemblies between the two key-players (AN0-2011 and ČSSD). The author outlines the substantial dependence of local budgets on state subventions that comprise up to 35–43% of the total budget. The sociological survey conducted in May 2017 suggests that the majority of decentralization problems occur due to uneven economic growth in regions, as well as insufficient political influence upon decentralization processes, as the efficiency of the present decentralization model does not rise above 60%. The results of the study’s findings on the problems with and prospects of decentralization, as well as positive or negative experiences with decentraliza- tion in the Czech Republic, may be applicable for similar institutionalization problems in other countries of Central and Eastern Europe. Keywords: Czech decentralization model; political fragmentation of Regional Assemblies; local budgets allocation, administrative and political decentralization levels. 1 Acknowledgements: We would like to express our gratitude to all the respondents for having participated in the survey, and to the International Visegrad Fund for providing the opportunity to carry out our research project. Y. Haydanka. Urgent Decentralization Problems In The Czech Republic At A Regional Level: 254 Political, Administrative And Sociological Dimensions Raktiniai žodžiai: Čekijos decentralizacijos modelis; politinė regioninių asamblėjų fragmentacija; vietos biudžetų paskirstymas, administracinis ir politinis decentralizacijos lygiai. Introduction The present study is aimed at outlining the key problematic issues in decentralization processes in the Czech Republic, particularly at the highest level of local self-government, i.e. the level of regions. The research hypothesis is based on proving the fact that the Czech Republic has been one of the leaders in the development of territorial democracy in its re- spective region. Exploring its positive experience of decentralization, especially the political and administrative aspects, would be a useful experience to borrow from for post-socialist countries, particularly in the light of extending the autonomy of territorial communities. The problems of structure and performance in the decentralization model developed have remained among the central research directions in both Czech and international academic scope. General issues of power decentralization in the Czech Republic at the level of regions have been investigated by Kopečký (2010), Illner (2011), and Hemming (2006). Specific theoretical and practical issues of decentralization optimization in the Czech Republic have been discussed by Cibáková and Malý (2009), and Ochrava and Půček (2011). Kruntorádová and Jůptner (2012) suggested an in-depth analysis of the tools for financial independence employed by municipalities, against the background of regional political conjuncture. One should not overlook Eurointegration amongst the crucial factors, having con- tributed to the intensification of decentralisation processes in the Czech Republic. Undoubtedly, rapprochement of the Czech Republic with EU public administration required improvements in the scope of local fiscal policy. R. Jahoda, J. Pekova, and J. Selesovky (2003) argue that it is of primary importance to extend the administrative competences of territorial communities in the scope of their own revenue allocation. On the other hand, the extended fiscal autonomy of territorial communities will not be able to institutionally fill local budgets due to the lack of effective political and public control. Moreover, the Czech Republic’s accession to the European Union failed to result in an immediate positive dynamic in terms of regional decentralization. According to M. Baun and D. Marek (2006), a centralized approach to the allocation of European financial funds has remained a problematic one. It should be noted, however, that institutional decentralization lies, above all, in the system of delegation of managerial competences from the centre to the regions. In this light, the mechanism of filling local budgets is important along with the degree of de- pendence of regions on public transfers (Hamerniková 2000). Even given the effective implementation of both administrative decentralization and decentralization reforms owing to the broad fiscal autonomy of the regions, a considerable amount of local tax autonomy remains relevant. As a result, this leads to an uneven allocation of revenues and expenditures in the fiscal policy of the region (Jílek 2009). Viešoji politika ir administravimas. 2020, T. 19, Nr. 2, p. 253–265 255 An effective system of governance at the local level remains one of the most problem- atic segments the post-socialist country faces in the course of democratic transformation. A country can achieve a consolidated democratic regime in the scope of politics and public administration reforms, yet local governance reforms require greater efficiency. In fact, decentralization of governance (including increased financial autonomy in the regions) has continuously been a ‘catch-up reform’ that requires the streamlining of pro- cesses in three areas: political (consolidation of party and political environment in the regions), administrative (implementing effective administrative-territorial reform), and fiscal (expanding fiscal autonomy in regions and reducing the weight of state transfers in local budgets). Methodology & data We conducted the respective data analysis at two methodological levels: 1. The chronological level – at this stage we monitored decentralization processes in their dynamics (in the course of transformation) 2. The comparative level – at this point we employed comparative analysis of the struc- tural components of the decentralization process in order to point out the general di- rection of the decentralization system. This method of analysis requires contemplation of certain components of decentral- ization in the Czech Republic at two levels: 1. The political level, involving a comparative analysis of the local political and party envi- ronment on the example of the latest Regional Assemblies elections (legislation on local elections, the results of 2014–2016 electoral processes at a regional level). 2. The administrative level, involving (a) territorial division (legislation on local commu- nities, the structure and entities of administrative-territorial division, and the adminis- trative status of Prague, kraj – region), and (b) local self-government (territorial com- munities, the level of financial independence of the communities, and the peculiarities of regional budgets’ formation and allocation). Our study is reinforced by the following sources of information: a) data on the num- ber of administrative districts and municipalities in December 2015 (Czech Statistical Office, n.d.), b) microeconomic indicators on local budgeting in particular regions dur- ing 2013–2015 (Czech Statistical Office, n.d.), c) electoral data about specific political parties’ representation at the latest 2014–2016 Elections to Regional Assemblies, (Czech Statistical Office, n.d.), and d) the findings of a 2017 sociological survey (own research)2. 2 We conducted a qualitative survey, the methodology of which involved sending questionnaires to experts involved in administrative processes at a regional level. The survey time framework was 8–22 May 2017. The respondents were selected according to their affiliation to local administration bodies. We received 9 completed questionnaires in total, representing mostly Eastern, Central, and Western parts of the Czech Republic: a) Karlovy Vary Region (1), b) Vysočina Region (4), c) Olomouc Region (1), d) Moravian-Silesian Region (1), e) Zlín Region (1) and (f) Prague (1). According to the professional indicator these proved to be: a) regional Government members (6), b) public servants in the departments of: education (1), legal sector (1), and architecture (engineering) (1). Y. Haydanka. Urgent Decentralization Problems In The Czech Republic At A Regional Level: 256 Political, Administrative And Sociological Dimensions The political dimension of decentralization – the division of political and party space at a Regional level Elections to local councils in the Czech Republic are held every 4 years in particular election