Financial Foundations Framework

Networked Enterprises: An Information Age Solution to Enduring Problems?

Image from June 2021 GFR

Local government fragmentation refers to the fact that local governments are broken into many, often overlapping jurisdictions. In aggregate, local governments spend a great deal of money. It is reasonable to ask if the public’s interest would be better served through improved coordination of government at the local level. Information-age approaches for improving the financial performance of government through networked enterprises and government as a platform can enhance coordination and provide many services and financial benefits, but there is one disadvantage of local government fragmentation: resource inequities among local governments, also known as “fiscal disparities.”