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To cite this Article Bruce, Raymon R.(2006) 'The Quest for Subsidiarity in Eastern European Nation Building',
International Journal of Public Administration, 29: 13, 1215 — 1227
To link to this Article: DOI: 10.1080/01900690600928037
URL: http://dx.doi.org/10.1080/01900690600928037
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Intl Journal of Public Administration, 29: 1215–1227, 2006
Copyright © Taylor & Francis Group, LLC
ISSN 0190-0692 print / 1532-4265 online
DOI: 10.1080/01900690600928037
Nation Building
Raymon R. Bruce
The Quest for Subsidiarity
Bruce
Horizons for Democracy, and School of Urban and Public Affairs, University
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Abstract: Globalization, the European Union, and the dissolution of the Soviet Union
have raised the importance of subsidiarity in Eastern Europe. Subsidiarity speaks to the
need for equitable and proportional power sharing among multi-levels of Governance.
Namely, there is a need for devolving decision-making powers from national and
supra-national levels of authority to regional and local level authorities. Regional and
local administrations need to assume a role in political and economic development
reforms. The EU is a model for regional and local authorities to modernize their public
administration and business sector practices to become more successful world traders.
SUBSIDIARITY: AN INTRODUCTION
Address correspondence to Dr. Raymon R. Bruce, 7620 Vista Cedro CT NE, Albu-
querque, NM, 87109, USA; E-mail: raybruce@comcast.net
1216 Bruce
EU Treaty. Its conclusions were set out in a declaration that still serves
as the cornerstone of the subsidiarity principle.[1]
Subsidiarity has become a growing concern for regional and local authorities
among the EU member nations as well. The EU authority structure has added
new layers of authority on top of the current national authorities. These struc-
tures have placed regional and local authorities additional steps away from top
level of policy and decision-making. Therefore, the regional and local author-
ities in the EU member nations are concerned that they too are being left out
of participating meaningfully in important EU economic development plan-
ning and decision-making processes.
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The Communication Report goes on to point out that local and regional
authorities should be a powerful voice to promote the actions that the European
Convention selects for the future development of Europe.
The EU’s debate concerning the future of Europe among its member
nations has framed this issue of achieving subsidiarity parity for regional and
local entities participation in the European Council’s policy and decision-
making processes:
1218 Bruce
Clearly, the same debate holds true for regional and local authorities
regarding economic development in Eastern European countries. Therefore,
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No written constitution can cover all of the changes that will arise very far into
the future. However, the tenth amendment of the Bill of Rights proposes to
settle in favor of subsidiarity any dispute over sovereignty:
Powers that are not already specified in the constitution are relegated, by
default, to regional and local authorities.
and nations of the former Soviet Union. Already several Eastern European
countries have reformed their public administration governance and econo-
mies to be accepted as members in the EU community this year. The rest are
working toward possible future acceptance into the EU or at least to become
trusted trading partners with the EU. The changes that must be entertained to
this end have significant impact on regional and local levels of authorities in
many European nations and their relations with the EU.
There are several reasons why regional and local communities of Eastern
Europe can benefit from researching, analyzing, and evaluating the EU situa-
tion. First, the EU represents a major world market. EU is comprised of a wide
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variety of national markets. The EU is one of the closest and by far the largest
Western trading partner to Eastern Europe. Many Eastern European countries
look upon the EU as a major under-tapped open market. For example,
Ukraine’s trade with EU members accounts for about 20% of Ukraine’s for-
eign trade. Most of that trade is import trade rather than export trade, resulting
in a net negative trade balance for Ukraine. The EU markets present a large
potential for growth in Ukraine and its standard of living in the future.[6]
Secondly, the EU along with the Organization for Economic Cooperative
Development (OECD) and its other associate organizations has already done
extensive research and analysis about the market cultures and requirements of its
present and most likely future members. The EU has also done extensive research
and analysis of many its associate trading partners. Most importantly, the EU
shares the results and guidance of their research and analysis freely with Eastern
European countries. Therefore, the EU provides a model as well as valuable, use-
ful, and ready source of knowledge for regional and local economic development
authorities in Eastern European countries to use in order to calibrate needed
changes in their own public administration and economic development programs.
However, there is a certain impasse for regional and local economic
development authorities in Eastern European countries and help from the EU.
Normally, the EU and its associate organizations such as the OECD work
directly with countries primarily at the national level. This is mainly a national
sovereignty issue, but this limitation does work against subsidiarity. Neverthe-
less, these development organizations do readily share information and
research results with regional and local authorities.
Fortunately, the EU and its associate organizations have been developing and
publishing guidelines on the reforms they find most important for members
and associate trading partners. Their guidelines show that subsidiarity not
only requires devolution of appropriate powers to regional and local economic
market authorities in the private sector, but the guidelines also require that
1220 Bruce
tion and business practices that would be required to meet the EU guidelines.
The rationale here is the need for regional and local communities to take on
the major responsibility for funding and managing community services such
as health care, public safety, and education of its citizens. This responsibility
requires that regional and local authorities have a sufficient power to tax their
citizens to pay for these community services that decide that they need. If all
the funding comes from the national government, then the national govern-
ment is the de facto provider, and therefore, the national authority retains strict
control over the regional and local development.
Clearly, a equitable subsidiarity needs to include that certain taxing
authorities be devolved to regional and local authorities. For example, they
need to have exclusive taxing authority on property in order to furnish the ser-
vices that their respective communities need and to take the responsibility to
implement fair, transparent business and government service practices.
As described in the previous question, regional and local authorities need to
be able to take the major responsibility to reduce local corruption and put its
own house in order. It is all too clear what happens when the equitable and pro-
portional powers are never devolved to regional and local authorities by law and
rule. If the regional and local communities lack the powers to police themselves,
a local person or group of people can choose to usurp these undevolved powers,
apply their own self-interest rules to the community, and recruit their own peo-
ple to enforce these arbitrary rules in the form of street justice. The usurpers
then tax the community citizens through extortion and other criminal means.
These informal and enforced taxes do not go to meet the needs of the commu-
nity; of course, they go to meet the desires of the self-appointed persons of
power. Therefore, regional and local authorities need certain civil and tax laws
to empower them to support civil order and to develop their communities in a
fashion most agreeable to their citizens and culture.
Subsidiarity protects against the national and supra-national authorities’
one-size-fits-all solutions that may seem appropriate and convenient to that
higher level of authority, but counterproductive in particular regional and local
communities. Subsidiarity provides for the national and higher level authority
development interests to be served, but not always at the expense of valued cul-
tural features and institutions of the nation’s individual communities.
1224 Bruce
The power and decision-making processes that were devolved from the
Soviet Union’s central planning and control structure to that of the Eastern
European countries has stalled at the national government level. Clearly, this
stalled devolution is a critical, difficult, and very political issue that is beyond
the scope of this article. It requires a national strategy that includes an equita-
ble privatizing of land, state-owned enterprises and property, as well as a
reformed tax code and administration. For example, there is a need to include
devolution of taxing authority, privatizing much of state property, and devel-
oping complete property ownership record keeping powers to regional and
local authorities. Clearly, these are not trivial tasks.[10]
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Funding in the form of outside investment and loans can play an impor-
tant role in helping regional and local authorities in reforming their gover-
nance and economic structures. Investors and bankers know that economic
and natural resource development needs to occur first in local urban and rural
communities. However, these investors and bankers have a paramount con-
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cern to see that the resources that they supply under special agreements,
grants, or loans are used for the agreed upon projects and outcomes intended.
Investment and special loan organizations are interested in participating in
regional and local economic development. Therefore, subsidiarity is an issue
for them as well. They now assume that if communities do not have the power
in some degree over decision making and planning processes, the support
organizations rightly fear that the higher national powers may reallocate the
loaned resources to other ‘national’ needs.
For example, United Nations Capital Development Fund’s recent corpo-
rate policy paper, “Taking Risks, [Item] 3 New Directions: Using Local
Development Programs to Reduce Poverty and Improve Local Governance,”
describes how they will now apply the subsidiarity principle to awarding
future projects:
CONCLUSIONS
REFERENCES
5. The Constitution of the United States of America, World Wide Web ver-
sion, preparation of table of Articles and Amendments by Peter W.
Martin, Legal Information Institute, Cornell Law School, http://
www.law.cornell.edu/constitution/constitution.billofrights.html#amend-
mentx (accessed august 28, 2003).
6. Bruce, R. R.; Wyman, S. M. Regional and Local Economic Develop-
ment—Subsidiarity in the Ukraine and the EU Context. Social Economic
Scientific Journal 2003, 1: 147–157.
7. OECD Guidelines for Multinational Enterprises; Focus on Responsible
Supply Chain Management, Annual Report. Organization for Economic
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