The Empirical Assessment of the Performance of Portuguese Local Government

Central governments in most countries, including Portugal, remain concerned at the efficiency, effectiveness and sustainability of their local government systems. This thesis investigated the following questions: Should common performance and financial appraisal be integrated with council governance and community sustainability questions to holistically evaluate local government? (Part A - Chapters 2, 3 and 4). Did European Structural and Investment Funds (ESIF) have a positive impact on council performance and development? Which factors best explain the differential impact and the associated sustainability level? (Part B - Chapters 5 and 6). Finally, do economies of scope and scale exist in Portuguese local government? What are the main implications of scale and scope for the efficiency of the municipal provision of local goods and local services? (Part C - Chapters 7 and 8). These three questions drive much of the stakeholders and communities’ focus on - and the academic interest in - Portuguese local government development and the performance, sustainability and future challenges facing the 308 councils in Portugal. This thesis argues that the conceptualization and development of a new Council Sustainability Index (CSI), with application to the 308 councils in Portugal, is a step towards more thorough evaluation of local councils and will guide better management decisions and citizen satisfaction. In addition, this thesis concludes that the impact of ESIF on Portuguese council performance and sustainability during the period 2000-2014 was positive, but can be differentiated by size, region and sustainability factors. The existence of (dis) economies of scope and scale is also established for Portuguese local government for the period 2008-2015. These conclusions are achieved after detailed empirical analysis of the performance, finance and sustainability of All Portuguese local authorities for the past 15 years. It is argued that future local government management, investment and structural reform programs must be assessed by employing the CSI model, the major policy implications resulting from the positive investment impacts of ESIF on Portuguese council performance and sustainability, as well as the benefits originating from economies of scope and scale in Portuguese local government