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

Local government 

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.