The link between financial autonomy and local development. The case of Romania

In recent years, in the European Union, community in which Romania is part, there is a tendency towards regionalization, part of the state powers being transferred to local communities. It is accredited the idea that local and regional development policies can be run more efficiently at the local level. Local public administration authorities, under the autonomy they have, hold an important position in the local development process. In this context, in our article we intend to analyze the link between the degree of local financial autonomy and the local development level, by considering the experiences of the Romanian local communities. The research made on the facts existing at the local communities level in our country has shown that with increasing degree of local financial autonomy, tends to increase the level of local development. A strong argument in support of this result is that greater financial autonomy to local government means greater ability of local public authorities to serve the needs of local communities, leading, consequently, to local development. (C) 2015 The Authors. Published by Elsevier B.V.