Options for Applying Functional Overlapping Competing Jurisdictions (FOCJs) for Municipal Cooperation in Russia

Options for Applying Functional Overlapping Competing Jurisdictions (FOCJs) for Municipal Cooperation in Russia

Peter Friedrich (University of Tartu, Estonia) and Mariia Chebotareva (University of Tartu, Estonia)
DOI: 10.4018/978-1-5225-2215-7.ch004
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Abstract

Municipal cooperation is important for transformation countries, like Russia, which have to develop legal, institutional and political environments for public service activities. The authors recommend FOCJs as an instrument for coordinated municipal public service provision. To determine the suitability of FOCJs the analyst has to investigate the relation between FOCJ theory, their financing possibilities, the fiscal effects, and the legal forms in which FOCJs can operate in Russia. The authors define several forms of FOCJs and sort out appropriate public enterprises of private and public law for Russian FOCJ. To analyse the establishment, the operations, and the competition between FOCJs the authors present three types of models. One relates to the establishment of an FOCJ, the second concentrates on financing service activities, and the third model deals with competition among FOCJs and demonstrates the effects of different ways of finance. The article concludes with elaborating recommendations for financing FOCJ under conditions in Russia.
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Introduction1

Modern realities and the intensifying crisis in the Russian economy demonstrate a serious need for the juridical, as well as economic and political, transformation of existing Russian public institutions. Following the example of many European countries, Russian governments should modernize the provision of public services and promote public entrepreneurship2. Some authors argue for further decentralization (Петров, 2000; Гельман, 2006; Ляпин, 2015) and more cooperation of municipalities in local government service provision (Ирискина, 2010; Ладыгин, 2011).

Special means of cooperation in providing public services – Functional Overlapping Competing Jurisdictions (FOCJs3) – are discussed in the Western public finance literature (Frey, 1999, 2000; Frey & Eichenberger, 1995, 1996, 2002, 2006; Friedrich, Ukrainski & Timpmann, 2014). The main fields of discussion concern:

  • 1.

    The character of an FOCJ as a jurisdiction (Detig, 2004; Friedrich, 2006; Gabbe, 2008; Friedrich & Eckardt, 2014).

  • 2.

    The character of an FOCJ as an economic subject and political unit (Friedrich, Kaltschütz & Nam, 2004; Friedrich & Fladung, 2008; Friedrich & Eckardt, 2014).

  • 3.

    The FOCJ as a means of municipal cooperation in relation to other forms of cooperation (Bartholomae & Popescu, 2008, Friedrich, Ukrainski & Timpmann, 2014).

  • 4.

    The FOCJ as a means to intensify competition in public service provision (Friedrich & Eckardt, 2014).

  • 5.

    The FOCJ as a reform concept for the European Union (Eckardt & Gritsch, 2016).

  • 6.

    Cross-border problems with respect to FOCJ (Detig, Feng & Friedrich, 2002; Friedrich & Ukrainski, 2014; Metis, 2014; Eckardt & Gritsch, 2016).

  • 7.

    Lessons from historical cases of FOCJs (Frey, 2005; Smith, 2011; Fink, 2012; Eckardt & Gritsch, 2016).

  • 8.

    FOCJs related to several sector activities and problems (Spindler, 1998, 2008a, 2008b; Detig, 2004; Friedrich & Popescu, 2006; Friedrich & Reiljan, 2011).

  • 9.

    Opportunities for and limits of application of FOCJs (Friedrich & Reiljan, 2011; Friedrich & Eckardt, 2014).

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