Defining the local government capacity index
Local government capacity index shows the amount of different abilities of city or rural municipality (eg quantitative ability like resources, the diversity of the system)- the potential of local governments to do something. Local Government index is expressed at the same time as the local-setting assumptions (the so-called administrative capacity), as well as the management of more general results of the local authority area. In the latter case, the measurement of capability is indirec – the results obtained can not be smaller than the relative capacity of local government unit, but may exceed capacity results of a given year.
In general it is possible to identify two major dimensions of local government units. First, local governments as territorial units. Here important capability is a result that depends on territory and members of corporation- inhabitants and organizations they form, networks and associations. Secondly- local government units as government and management structures,which is most significant autonomous capability in representative democracy, a local organization and the ability of public services. Index of local government will take into account both the local dimensions and each dimensions are distinguished by three index components (a total of 6 components). In measurement the capabilities of local government as a territorial unit in addition to component directly from definition (A1- Population and land) also local economy (A2), welfare of the population (A3) are taken into account because these components are important aspects of cities and rural municipalities characterizing components. Local governments are described through government, management and organizational capacity to provide services (B1), the local government financial capacity (B2) and the capacity to deliver local public services (B3).
Nature of local government units
- defining component
- characterizing components
Territorial units (cities and towns)
A1 Population and land
A2 Local economy
A3 Welfare of local population
B1 Local government organization
B2 Local government financial capacity
B3 Local government services
Local Government index figures are gathered under a same methodology since 2005, so all the data of cities and municipalities are comparable. Local government index 2010 was calculated using 29 indicators, which were divided between six components. The original data have been collected from public records.Not to collect data from individual studies was chosen to to save costs. Local Government index calculations will be financed by Estonian Ministry of Internal Affairs.