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Management of technical infrastructure development at communes in the Małopolskie Province in terms of sources of financing

Chwastek Michał, Badach Elżbieta, Strojny Jacek

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2021

z. 151

99--114

Purpose: The purpose of the study was to identify the relation between the level of selected financial indicators and changes in ownership of selected elements of technical infrastructure at rural communes in the Małopolskie province. Design/methodology/approach: The study was based on the data obtained from resources of Statistics Poland and the financial statements of local self-government institutions. Each of the 121 rural communes in the province was characterised with four indicators regarding their financial management. Subsequently, communes were classified using Ward’s method into five groups with a uniform set of identified features. Next, each cluster was subject to detailed analysis in terms of changes in ownership of selected elements of technical infrastructure with a concurrent review of financing sources of such changes typical for a given group. Certain patterns of financial management focused on technical infrastructure improvement in a given commune were thus identified. Findings: The study presents the status of selected network infrastructure as well as components and structure of income of rural communes in the Małopolskie province. On the one hand, communes with the highest population density have the largest economic potential, but on the other, they have significant requirements with regard to technical infrastructure. An important driver for technical infrastructure development are aid funds, including EU funds. Communes with a comparable potential may follow different strategies with regard to investment and financing of deficit. The status of infrastructure and financial standing of a commune are shaped in multi-annual process. Research limitations/implications: The analysis was performed for the entire population. A more detailed approach would require information on the criteria for selection of the type and scope of investment projects. It would also be appropriate to analyse the financial and economic effectiveness of individual projects. Practical implications: The contents of the analysis and conclusions will be useful for persons responsible for management at commune level. Identification of the impact of individual factors on the development of technical infrastructure will enable a more conscious and responsible commune management. This material will surely be found useful by groups focused on local growth planning and management, including distribution of aid funds. Social implications: The article will have a positive impact on local development, because it will contribute to more reasonable commune management. The awareness of the existing mechanism will also enhance the professionalism of local consultative groups, which represent the community during public consultations regarding planned actions of the local self-government authorities. Originality/value: The diagnosis of the conditions for infrastructure development in terms of finances of communes is a valuable source of expertise for management personnel.