Decentralization of territorial policy in Italy - the coherence with the model of multi-level governance and the effects on responsibilities of public spending

Abstract

The past twenty years have seen the communitarian system of multi level governance (MLG) being established as a model of territorial policies governance. In the MLG, several levels of jurisdiction participate to decision making and Regions assume a relevant role in managing policies of development. This article highlights how such a system, mostly led by Public Institutions, cuts transaction costs being based on principles aimed at increasing the number of decision makers, as well as at making all governing levels and the processes of institutional coordination more effective. The article investigates two issues: a) to what extent the reorganization of the Italian system is compatible with the main characteristics of Communitarian MLG system in the governance of territorial policies; b) to what extent the decentralization in programming policies of development has gone with a transfer of capital expenses from a central (Central Administration) to local (Regional and Local Bodies) jurisdictions. The hypotheses to be tested refer to the decentralization process so far recorded in Italy: the first hypothesis is that such a process would not be fully shareable, neither with regard to the characteristics of the Communitarian MLG model, nor to the general considerations deriving by the theory of fiscal federalism; secondly, the process wouldn’t seem suitably supported by a symmetrical transfer of the expenses from the Central Government’s jurisdiction to local bodies’.Territorial policy, Multi Level Governance, institutional decentralization, OLS panel fixed-effects models