COST-GRALE-Norwegian Centre in Paris

Transcription

1 COST-GRALE-Norwegian Centre in Paris Joint PhD-Training School The Financial Crisis: Stimulating or Strangling Decentralization? The Greek Case Prof. Dr.N-K. Hlepas National und Kapodistrian University of Athens

2 Major national crises and encompassing reforms usually favored centralization. This is a lesson from the Greek experience. In a country characterized by weak public institutions dealing with social fragmentation and political polarization, rent seekers and free riders, centralism seemed to be the only way to manage trends of disintegration. Post-War (and Civil War) Greece marked the top spot of bureaucratic centralism in public administration, combined with extensive state interventionism and protectionism. At the same time, vertical clientelistic networks connected political decision makers with fragmented social interests. Since party structures were fragile and unstable, personal and particularistic linkages dominated the system of political patronage, thus undermining the integrating effects of centralism.

3 After the fall of the military dictatorship (1974), popular claims for democratization in all fields of public life perceived centralism as a core attribute of post-war authoritarian state practices. Decentralization would be a tool of democratization, bringing decision making closer to the citizen and enhancing participation. Since 1981 (EEC membership), Europeanization strongly encouraged decentralization through funds, regulations and institutional isomorphism.

4 On the other hand, the third Republic (since 1975) has been characterized by the rise of strong and extensive party structures, a shift from traditional patronage to machine politics, where party cadres and trade unionists were the strong newcomers. Thousands of political offices have been created, offering several career options and perspectives to political personnel. Local government became an attractive field for political careers and party influences. Delegation of competence from the bureaucratic state authorities to participatory local government (especially after the municipalization of state prefectures in 1994) enhanced politicization of public administration, offering new fields of action to political clientelism.

5 The Rationale of the Kallikratis Reform Depopulation of the periphery and Urbanization of life style had altered the chart of the country. The need for new strong local authorities, so that devolution and decentralisation of tasks could take place. New developments (i.e. infrastructure, transport, communications, etc) had removed structural deficiencies, like isolation and led to re-scaling of functions. The demands of the local societies for stronger political representation Economies of Scale and the demand for a rationalization of the administration and the local government, in order to succeed a better sharing within the new development procedures (i.e., EU Support Frameworks, EU Initiatives, National Projects, Regional Operational Programmes, etc.)

6 The transition ( Kallikratis -2010/11): A new structure for L. Government and peripheral state administration Central Government Central Government State Regions (13) Decentralized State Administrations (7) 1 st tier Local Authorities (1034): Municipalities Communities 2nd tier Local Authorities (50): Prefectures Enlarged Prefectures Sub-prefectures (76 Units) 1 st tier Local Authorities (325): Municipalities Municipal Communities Local Communities 2 st tier Local Authorities (13): Regions Regional Units

7 BASIC STRUCTURE OF DECENTRALIZED ADMINISTRATION AND 2 nd TIER LOCAL GOVERNMENT CENTRAL GOV/MENT D E C E N T R A L I Z E D A D M IN I S T R A T I O N S ATTICA THESSALY AND STEREA HELLAS EPIRUS AND WESTERN MACEDONIA PELOPONNESSE, WEST. GREECE & IONIAN ISLANDS AEGEAN CRETE MACEDONIA- THRACE R E G I O N S ATTICA, PIREAUS & ISLANDS THESSALY EPIRUS PELOPON- NESSE NORTH. AEGEAN CRETE CENTRAL MACEDONIA STEREA HELLAS 3 WESTERN MACEDONIA 5 WESTERN GREECE 7 SOUTH. AEGEAN 10 EASTERN MACEDONIA- THRACE 13 8 IONIAN

8 Reform steps: From Rationalization (2011) to rigid Austerity ( ) Rescaling of both tiers of Local Government and the single Tier of Peripheral State Administration (single step: 2011) Organizational Fragmentation through Municipal Public Law Legal Persons and Municipal Enterprises (a total of ca entities) has been removed. Number of entities reduced to ca. 580 School Boards, 540 PL Legal Persons and 700 Municipal Enterprises) (single step: 2011) Functional Reform: More than 100 tasks moved from the 2d to the 1 st tier, a few from the state to the new 2d tier (Regions): First step in , second step in 2013 (postponed due to lack financial and human resources). Further Steps of additional task for metropolitan, island and mountain areas postponed (Special Legislative Act Dec. 2012) Internal Re-organization of Local Authorities: in 2011 new organizational charts, 2012 had to abolish existing vacancies (posts without staff), in 2013 internal units (directorates,departments,offices etc.) to be reduced by 30%.

9 Reform steps: From Rationalization (2011) to rigid Austerity ( ) Redistribution of Personnel: Employees should follow their tasks, (single step: 2011). Specialized staff should be hired (stopped since 2011). Employees on contract basis (without civil servant status) have been fired (ca , 1/5 of Local Government employees in total in 2011) 2012: only contracts, 2013:3.582, 2014: -20%, : -10% Financial Stabilization program for Municipalities with over-debt (debt service higher than 20% of ordinary revenue) including rigid restrictions of local autonomy (to begin in 2011, it has not been really implemented). New System of State Supervision (postponed, new staff cannot be hired). Court of Audits: Scrutiny of Expenses, Contracts and Efficiency of Revenue Collection (since 2013) Transparency ( diavgeia.gr ): All regulatory acts and decisions for spending Observatory of fiscal autonomy- I/F Junction Integrated Actionpr.

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13 General Grants(KAP) to L.Government General Grants (in millions of Euros) Municipalities 2009: : Debt: : Debt: : Debt: 1730 Regions/Prefectures 2009: 436, : 350, : : 662

14 Municipal Revenue+/Expenses-/Balance

15 Public Service Employees (Aug.) Regulatory Authorities : Deconcentrated State Administrations Local Government: Ministries and other Public Entities: Total: (in 2010: )

16 Employees of Local Authorities with Civil Servant Status In the Status of Availability in 2013: Municipal Policemen/women (Municipal Police abolished, most tasks transferred to state police) School Guardians (likely to be fired, their service is completely abolished)

17 Unprecedented economic crisis (since 2008) and especially rigid stabilization policies imposed by EU, ECB and IMF (since 2010), seem to bring the longlasting rise of local government into an end. Rationalization prerogatives of structure and operation, staff lay-offs and ongoing fiscal controls, combined with abolition of services and recentralization of competence, led to an unprecedented clash between local and national politicians. Party control over local politics has never been weaker.

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19 The question arising is, whether the end of local government, that was sustained by higher level (national and European) policies and resources, could initiate a shift towards new local governance that would also use potentials (knowledge, networks, human resources etc.) accumulated during the previous period. Up to now, local government has proven to be more efficient than the central state in offering more with less, maintaining local social cohesion by mobilizing different solidarity networks, improving tax collection and rationalizing spending and hr management.