Can Tiny Municipalities Survive Through Extensive IMC Arrangements? The Case of Iceland

Abstract

There is a heated debate in Iceland on the status of Lilliput municipalities or tiny municipalities with less than 100 inhabitants. The strong culture of local self-identity has prevented the government from taking the step of merging these municipalities with their bigger neighbours. There is an overall agreement on that these municipalities cannot survive without inter-municipal cooperation (IMC). This dependence on IMCs raises questions in regard to responsiveness as the municipality has little control over the services it pays for, and citizens have limited means to hold those who are organizing the services accountable.