Inter-local Financial Transfers as a Measure of Cooperation in Poland

Abstract

The chapter presents an analysis of financial flows among local governments in Poland. The first aim of the chapter is methodological—on the basis of empirical data from Poland, it demonstrates the construction, advantages and limitations of an index of inter-municipal cooperation based on analysis of financial (budgetary) data. The second aim is to present the scale, dynamics (2001–2015) and sectoral scope of financial transfers among Polish local governments. The chapter discusses how local authorities use these financial transfers as an element of mixed modes of control in their external relations. All three models—hierarchy, market and network cooperation—can be identified in the inter-local financial relations.