Inter-municipal cooperation (IMC) is a generic term for all joint provision of public services between municipalities, who are normally but not necessarily neighbours. It is part of the science of administration.
Municipalities are elements of administration and have a history of several hundred years in Europe. One can speak of IMC when two or more local governments work together to provide a public service. All gains and losses are shared between the participants of the cooperation. These cooperation spread from only coordinated behaviour up to founding a joint venture that settles the task for both participants. As the territorial consolidation often fails because of political resistance inter-municipal cooperation is a way to keep public services efficient and effective without territorial consolidation. IMC can be divided into two categories: In case of a joint agreement municipals work together to operate a certain plant or share the provision of a service. The other category is called service agreement, where one town provides the service for the other town, e.g. town A provides the snow plowing services for town B. In both categories all types of cooperation can be found.
Cooperation of municipalities is an appearance of nowadays. A historic example of inter-municipal cooperation is the Hanseatic League. It was created by municipalities in Northern Europe and lasted from the 13th to the 17th century. Change came with the Industrial Revolution as cities grew rapidly and the requirements concerning public services increased. While cooperation was initially without obligation, with the beginning of the 20th century IMC was increasingly legally codified. As an example, the “Siedlungsverband Ruhr” was founded in 1911 and exists until today. It has extensive powers in planning the settlement of the region around the Ruhr. The services and the standards had been raised after the Second World War to a quality of public services never known before. But with increasing costs on the one hand and decreasing inhabitants combined with decreasing tax income, municipalities have increasing problems in maintaining the quantity and quality of public services. One way to cut costs and increase efficiency is to cooperate with neighbouring municipalities.
IMC is used to increase efficiency and effectiveness in providing public services. The joint financing and operating of these services can cut costs and achieve economies of scale, which becomes increasingly important in areas of decreasing numbers of inhabitants. Also the gain use of latest technology and equipment can be seen as a benefit of IMC in case it would be unaffordable otherwise. Furthermore it can eliminate duplicate efforts. A major advantage in Europe is that the European Union is providing incentives for municipal partnerships.
The most important barrier for inter-municipal cooperation is the lack of trust between the potential partners. Though the partnership means that services are provided together politicians and citizens may fear a loss of control over the service. As well one participant may fear to be taken advantage of. Beside the lack of trust the often complicated legal structure of IMC can be a barrier. Though IMC is no daily work, municipals have to look for advisors who can provide the experience that is needed. Besides that resistance among citizens and politicians can be met when the goal of the partnership is consolidation as citizens may fear the loss of identity and politicians the loss of decision-making power. If consolidation is the goal of the partnership, it should be communicated right from the beginning. If it is not, the limits of cooperation should be defined and communicated.