Regional tailor‐made policy making in trade licensing administration—case of Slovakia

• Author: Tomáš Malatinec,Eleonóra Marišová,Viliam Kováč
• DOI: http://doi.org/10.1002/pa.1626
• Date: 01 August 2017
• Published date: 01 August 2017

ACADEMIC PAPER

Regional tailor‐made policy making in trade licensing

administration—case of Slovakia

TomášMalatinec

1

|Eleonóra Marišová

2

|Viliam Kováč

3

1

Department of Regional Science and

Management, Faculty of Economics, Technical

University of Košice, Košice, Slovak Republic

2

Department of Law, Faculty of European

Studies and Regional Development, Slovak

University of Agriculture in Nitra, Nitra, Slovak

Republic

3

Department of Finance, Faculty of

Economics, Technical University of Košice,

Košice, Slovak Republic

Correspondence

TomášMalatinec, Department of Regional

Science and Management, Faculty of

Economics, Technical University of Košice,

Němcovej 32, 040 01 Košice, Slovak Republic.

Email: tomas.malatinec@tuke.sk

Local public administration contributes to a favorable business environment. Slovak Trade

Licensing Administration (TLA) provides public services for traders. Centrally managed policy

making without taking into account of local and regional specifics is not fully conforming to

the current local needs of territorial units. Innovative administrative interventions from the

central tier may reflect territorial needs of these units. Spatial distribution of performance data

points out regional differences in the territorial units of the TLA. There are significant regional

differences in the numbers of trades per employees and performed administrative actions. It

creates conditions for individual approach in policy making. Cluster analysis groups the territorial

units of the TLA for suitable tailor‐made policy making from the central tier. Based on the

findings, there are seven clusters of territorial units with specific local and regional needs.

Tailor‐made policy making can take into account of territorial specifics and strengthening the role

of territorial units of theTLA in regional development.

1|INTRODUCTION

This paper reflects current demand for changes in public adminis-

tration in Slovakia. System of the Trade Licensing Administration

(TLA) was chosen as a part of the Slovak state administration that

is active in empowerment of entrepreneurial environment. Discus-

sion on tailor‐made policy making in regional context is outlined.

Current policy framework does not answer territorial challenges of

administrative units despite the fact they are evident in the regions.

Future administrative innovations can integrate arising territorial

needs. In light of findings, more active participation of local state

administration units in regional development can be strengthened.

The purpose of this paper is to confront current state in the TLA

in Slovakia with conclusions from literature focused on regional

impact and needs of public authorities. Of major interest are poten-

tial regional differences in the TLA and justification of taking them

into consideration within policy making from the central tier.

“Public administration plays a key role in creation of regional busi-

ness environment. Public administration is also considered an impor-

tant player in regional policy”(Buček, Rehák, & Tvrdoň, 2010).

Scientific and grey literature have confirmed the importance of local

and regional authorities and their role as key actors in development

(Committee of Regions, 2009; Ketterer & Rodríguez‐Pose, 2016; Matei

&Băieşiu, 2014; OECD, 2006). Their key role stems from “physical

proximity to the main public and private sector players”(European

Union, 2010).

“Significant factors are combing to put public sector under enor-

mous pressure. Not only expenditure crisis, but also a lack of strate-

gic leadership and poor performance management practices”(CIMA,

2010). “Efficiency, effectiveness, integrity, accountability and innova-

tion –these are some of the most prominent values associated with

public services”(Kernaghan, Marson, & Borins, 2000). “The quality

of institutions, both governmental and judicial, is a key determining

factor for a country's well‐being”(European Commission, 2015).

The meaning of public administration is also highlighted in European

context. “Administrative capacity is increasingly recognised as a pre‐

requisite for delivering the EU's treaty obligations and objectives,

such as creating sustainable growth and jobs”(European Commis-

sion, 2015). Public authorities provide numerous services to the

public and serve state and public interests. Its responsibility is to

build a platform (networks) by creating the environment which is

beneficial to economic development at various levels and increasing

wellbeing.

Nowadays, the Slovak state administration is a subject to reform

program that should bring more effective, reliable, and open state

administration for citizens. Vision is to bring more citizens‐oriented

state administration at the local level. “Institutional rebuilding and the

pursuit of effective governance is nothing new. Institutional rebuilding

is a metaphor for a wave of modernisation reforms that have swept

through the public sector during the time”(Busch et al., 2013). Several

changes in public administrations are initiated from the global perspec-

tives. “Globalization tipped the scales to make administrative bodies

Received: 19 July 2016 Accepted: 11 August 2016

DOI: 10.1002/pa.1626

J Public Affairs. 2017;17:e1626. Copyright © 2016 John Wiley & Sons, Ltd.wileyonlinelibrary.com/journal/pa 1of10

https://doi.org/10.1002/pa.1626