Optimal approaches to structural reform in regional and rural local governance: The Australian Experience

Australian local government finds itself at the vortex of various mounting pressures, including acute funding shortages, complex intergovernmental relationships, and forced structural reform programmes, that have made the status quo unsustainable. State government policy makers have placed heavy emphasis on council amalgamations as their chief means of resolving the problems facing municipal governance. This paper argues that such reliance on the blunt instrument of municipal consolidation has been misplaced, not only because it is based on the mistaken premise that 'bigger is better' in local governance, but also because it ignores many other promising alternatives to amalgamation involving various combinations of structural change and process change better suited to the extremely diverse character of regional and rural local government in Australia.