Question

In: Economics

Discuss each of arguments presented below for big local governments units: For big LG units: 1....

Discuss each of arguments presented below for big local governments units:

For big LG units:

1. They could produce more goods- what enhance citizens participation

2. Local stakeholders  are strong enough to be present also at central level

3. Better for creating and forcing local development strategy

4. Lower disproportion among local units- more equal distribution of costs and benefits

5. Arguments for small LG are to idealistic

Solutions

Expert Solution

Answer-1. They could produce more goods- what enhance citizens participation-Big local governments make most decisions about what to produce, where to produce, land use, public money expenditure plans etc. Including citizens participation in decision making has both advantages and disadvantages given the size of citizen's representation. If only a few people participate in the decision making there will be uneven representation by race, age, and income and as a result, the decisions will be biased towards the values and needs of older, wealthier citizens rather than the population at large. This will lead to inefficient outcome. On the contrary, if people's participation is large, outcomes are positive and encourage elected officials to be more responsive and in touch with the communities and give residents a more prominent voice.

2. Local stakeholders  are strong enough to be present also at central level-As local government stakeholders like organisations, government representatives etc. work at grassroot level with participation of the local community, they are well aware of the problems and needs of the community. It is easier for them to present the problems of the people to the central government.

3. Better for creating and forcing local development strategy-

Local development strategies involves adopting some micro-economic measures at the local level in order to complement the macro-economic measures at the national level. It includes various processes like physical planning, economics and marketing, all with the goal of building up the economic capacity of a local area. Local government is thus considered better to improve the economic future of the locality and the quality of life of the people.

4. Lower disproportion among local units- more equal distribution of costs and benefits-

There existr horizontal equity in the local goverment system. Horizontal equity means, also called fairness and egalitarianism, is the equal distribution of costs and benefits between local units.

5. Arguments for small LG are to idealistic-

Small local government is generally considered to be fair, efficient and idealistic. As summarized by the principal author of the Declaration of Independence and third President of the United States Thomas Jefferson, “That government is best which governs least, because its people discipline themselves.” Small local governments are simpler and better representative because they work at the grass root level of community.


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