Intermunicipal Cooperation in the Netherlands: The Costs and the Effectiveness of Polycentric Regional Governance

• DOI: http://doi.org/10.1111/puar.12931
• Author: Bas Denters,Maurits Sanders,Pieter‐Jan Klok,Marcel Boogers
• Date: 01 July 2018
• Published date: 01 July 2018

Intermunicipal Cooperation in the Netherlands: The Costs and the Effectiveness of Polycentric Regional Governance 527

Pieter-Jan Klok

Bas Denters

Marcel Boogers

University of Twente

Maurits Sanders

Nyenrode Business University

Intermunicipal Cooperation in the Netherlands: The Costs

and the Effectiveness of Polycentric Regional Governance

Abstract: This article examines the effects of the structure of intermunicipal cooperatives (IMCs) on the perceived

transaction costs and benefits of IMCs. Hypotheses based on a polycentric theory of regional governance are tested using

data from Dutch municipalities. The findings are mixed. In line with polycentric theory, networks characterized by

a multiplicity of territorial scales reduce IMC transaction costs. Contrary to polycentric theory, however, if IMCs are

organized under a uniform legal regime, lower costs and higher benefits are reported. Structural factors that dominate

the debate between polycentrism and monocentrism prove to be of limited importance. On the other hand, the results

indicate support for the hypotheses that intermunicipal trust (as a cultural variable) contributes to perceptions of

effective and efficient cooperation.

Evidence for Practice

• An undiscriminating reduction of network complexity (by imposing a fixed or limited set of cooperative

partners) does not improve the functional performance of regional governance.

• Variety in cooperative partners appears to reduce the costs of cooperation but does not result in higher

benefits.

• A consistent uniform regulatory regime that creates a set of rules on how to organize decision making and

representation in intermunicipal cooperation increases functional performance of cooperation.

• Structural factors indicating how cooperation is organized play a minor role in explaining functional

performance or cooperation. The cooperative climate (indicated by the level of trust) plays a more important

role. Trust comes with lower levels of costs and higher levels of regional benefits but does not influence local

benefits for individual municipalities.

Over the years, in the United States (e.g.,

Lyons, Lowery, and DeHoog 1992; Norris

2001; Ostrom 1972) and Europe (e.g.,

Baldersheim and Rose 2010; Hulst and Van Montfort

2007; Teles 2016), the proper institutional structure

for regional governance has been a hotly debated

topic, both in academic circles and in political arenas.

In this debate, we distinguish two main positions:

monocentrism and polycentrism.1

Both monocentrists and polycentrists recognize the

need for some form of regional governance to avoid

problems that will emerge in a system of completely

independent municipalities. These problems include

possible production inefficiencies (diseconomies of

scale), allocation inefficiencies (failure to internalize

spatial spillover effects), and effects on regional

economic growth, prosperity, and employment.2

But monocentrists and polycentrists differ in the

institutional arrangements they propose for overcoming

such problems. As Vincent Ostrom (1989) has argued,

these differences pertain to two institutional factors:

1. First, monocentrists have a preference for concentrating

regional governance in one authority that is responsible

for regional governance. This might be a unitary,

single-tier authority created by an amalgamation of all

municipalities into a single municipality. However, it

could also take the form of a two-tier system in which

municipalities retain their responsibility for all local

matters but one newly established regional authority

takes over all municipal responsibilities for decisions

that require regional governance.

2. Second, monocentrists also have a preference

for uniformity of institutional design. Clear

and consistent (nationally imposed) regulation

will reduce uncertainties, lowering transaction

costs and increasing the chances for successful

collaboration.

Alternatively, polycentrists prefer a “fragmented”

system in which independent municipalities

are more or less free to enter into collaborative

arrangements. Here the main vehicle for regional

governance is essentially voluntary intermunicipal

Marcel Boogers holds a chair in

Innovation and Regional Governance in the

School of Behavioural, Management and

Social Sciences of the University of Twente,

the Netherlands. His research focuses on the

structure of and dynamics within networks

of local and regional governments,

production and service industries, higher

education institutes, and other third-sector

organizations.

E-mail: m.j.g.j.a.boogers@utwente.nl

Bas Denters holds a chair in Public

Administration in the School of Behavioural,

Management and Social Sciences of the

University of Twente, the Netherlands. His

research focuses on issues of democracy,

participation, and representation in local

and regional governance.

E-mail: s.a.h.denters@utwente.nl

Pieter-Jan Klok is assistant professor

of policy science in the Department of

Public Administration in the School of

Behavioural, Management and Social

Sciences of the University of Twente, the

Netherlands. His current research includes

creating cooperation and innovation

through different modes of governance,

including citizen participation. He teaches

in the fields of policy, network approaches,

and governance systems in public

administration.

E-mail: p.j.klok@utwente.nl

Public Administration Review,

Vol. 78, Iss. 4, pp. 527–536. © 2018 by

The American Society for Public Administration.

DOI: 10.1111/puar.12931.

Maurits Sanders is senior lecturer on

public private partnerships at Nyenrode

Business University, the Netherlands.

Current research includes the design and

performance of public-private partnerships

and regional governments.

E-mail: maurits.sanders@ppsconstruct.nl

Research Article