Territorial Review Copenhagen - Region Hovedstaden

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228 OECD country. In a majority of countries, borrowing needs prior approval of another government tier, or is restricted to certain purposes. In several OECD countries, there are no restrictions on access to sub-national borrowing. Danish municipalities can in certain limited cases acquire debt for investment. The general law and the yearly agreement between the national government and the municipalities and regions specify the areas where the sub-national governments are allowed to acquire debt. As a general rule, the municipalities are allowed to acquire debt to finance investments in supply companies (like renovation companies, etc.) as long as the expenses and the revenues for these companies are neutral in the long run. The central government uses certain budget safeguards to ensure that revenue fluctuations do not become too large. Danish municipalities can own public enterprises and utilities; there are additional limitations on borrowing by and from these enterprises. Local governments in Denmark used sale-and-lease-back operations to circumvent borrowing restrictions, but the Danish central government has revised its definition of borrowing to include renting and leasing arrangements (Pedersen, 2002). This also prohibits the use of PPPs. Not surprisingly, Denmark scores very high on several benchmarks for sub-national fiscal discipline. It has the highest score of OECD countries on the Advisory Commission on Intergovernmental Relations (ACIR) index for budget balance stringency, it has one of the lowest scores under the Inter- American Development Bank (IADB) sub-national borrowing autonomy index and one of the highest scores on the OECD composite sub-national fiscal discipline index – and the highest score on its sub-index on budget balance and borrowing constraints. The econometric evidence on the impact of borrowing constraints on sub-national fiscal policy has so far been limited and mixed, ranging from increased indebtedness, no effects to some effects (Singh and Plekhanov, 2005). Losses in aggregate efficiency are a potential problem with budget balance requirements and borrowing constraints. Hard budget constraints can be too ―hard‖ and discourage investment that is socially efficient (Besfamille and Lockwood, 2004). Significant allocative inefficiencies may occur because a rule that covers total spending may be biased against investment, since capital spending is easier to change than current expenditure in the short term. It has been observed that Danish municipalities, because they are severely constrained by borrowing restrictions, achieve consumption smoothing through adjustments in investment activity (Borge et al., 2001).
229 3.4 Political leadership The City of Copenhagen is run according to a modified Committee rule, with shared responsibility for the administration. The city government of Copenhagen consists of the City Council and seven committees: a finance committee and six sectoral committees, each with its own area of responsibility. The city‘s supreme political authority is the City Council, which consists of 55 members, each elected for a four-year period. The City Council lays down the guidelines for the work performed by the committees and the administrations. The Lord Mayor presides over the Council‘s meetings. The Finance Committee consists of 13 members of the City Council and is chaired by the Lord Mayor. The six chairmen (called mayors) from the six sectoral committees are ex officio members of the Finance Committee, along with six other members of the City Council. The Lord Mayor has no right to instruct the six mayors, and the mayors of the seven administrations are on equal footing. The members of the sectoral committees are apportioned in proportion to the size of the political party in the City Council to which they belong. The Lord Mayor and the six mayors are full-time politicians and are elected for a four-year period by the City Council proportional to the political party to which they belong. This means that not all of them belong to the majority of the City Council. The administration of the City of Copenhagen is divided into seven administrations, and the responsibility for the administrations is shared by the Lord Mayor and the six mayors, each within their committee-area. This model is one of three government models that are allowed for municipalities, all embedded in a strong tradition of involving political minorities. Minority influence in the City of Copenhagen is attained through the minority‘s participation in the mandated sectoral committees (such as education, social services, culture etc.) and by the fact that the committee, not the Lord Mayor or the mayors, is responsible for running the services. The Lord Mayor and the mayors are only responsible for the administration of each of their committee-areas. In the normal Committee rule, adopted in most Danish municipalities, the responsibility for the administration is not shared, and they have no right to more than one full-time politician: the Lord Mayor. In the Magistrate rule, the responsibility for providing services and the responsibility for the administration is shared between the Lord Mayor and a number of councillors (five councillors in Aarhus), elected by the City Council among the members of the City Council for a four-year period and in proportion to the size of the political party in the City Council to which they belong. The principles underlying these government models presuppose a high degree of consensus concerning the issues and that the nature and
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Territorial Review Copenhagen Preli
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3 Acknowledgements This Review was
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5 Table of contents Chapter 1: The
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7 Assessment and Recommendations Co
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9 Its international ranking is mixe
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11 The lack of skill is of paramoun
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13 qualifications of immigrants and
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15 more than twice average full-tim
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17 Commercialisation of research co
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19 surpassed only by Spain and Swed
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21 in the suburban periphery, while
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23 emissions by 25% since 1990 and
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25 and the other municipalities in
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27 instruments at its disposal. A s
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29 Chapter 1: The competitiveness o
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31 Figure 1.2. Map of Copenhagen an
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33 other areas in Denmark are more
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35 Figure 1.5. Map of Copenhagen an
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37 Figure 1.7. Regional GDP in % of
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39 Copenhagen plays a crucial role
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41 Figure 1.8. Monthly unemployment
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43 Figure 1.10. Co-patents between
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45 Table 1.4. Employment and value-
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47 Table 1.6. Overview of studies o
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49 capital. As Table 1.7 shows, the
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Rank Total Accounting Advertising F
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53 Potential of a more integrated
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55 Figure 1.12. Economic growth in
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57 If a broader definition of econo
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59 …but is only moderately succes
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61 Region. The variation in tertiar
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63 Education and skills Education o
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65 Øresund as part of the solution
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67 Under-utilisation of immigrants
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69 Figure 1.18. Share of foreign-bo
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71 the countries that attract the m
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73 both the public and private sect
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75 figures in the THES rankings of
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77 (FORA, 2008). This is in line wi
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79 most other OECD countries (OECD,
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81 Several OECD countries score bet
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83 fewest procedures in the world f
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85 recorded in the OECD (OECD, 1999
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87 50 000 population; New Zealand:
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89 ensuring that these 38 000 dwell
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91 progress has been made - the lev
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93 the region‘s groundwater aquif
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95 rising sea levels (which could r
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Car theft per 1000 inhabitants (200
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99 challenges, such as delays and c
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101 Figure 1.34. Congestion in sele
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immigrants and students, who enter
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105 8 Copenhagen metropolitan regio
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107 ranking rates 200 universities
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109 32 One notable exception is the
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111 44 Københavns Energi (Copenhag
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114 governments and the majority of
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116 main challenges for the region
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118 Box 2.1. Economic linkages betw
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120 technicians. Since the Structur
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122 Figure 2.1. Denmark’s plannin
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124 by openness, quality consciousn
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126 2.3 Skills policies Recent labo
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128 exams. This system gives univer
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130 municipality, which in principl
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132 intention of developing and spr
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134 highly skilled migrants. Such p
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136 the effectiveness of innovation
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138 they suggest that exploratory r
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140 bureaucratic. First-tier fundin
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142 The priority on high-growth ent
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144 Creative entrepreneurship Preli
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146 therefore be targeted at these
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148 A current constraint in busines
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150 2009 will provide some first in
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152 Box 2.4. Ørestad development-I
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154 dealing with the expected incre
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156 but it does not have clear prio
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158 In designing a detailed scheme
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160 of demand management tool in th
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162 elasticity of short-distance lo
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164 bridge construction but for stu
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166 The consequence of the Fehmarn
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168 Local and national housing poli
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170 increased by approximately 40%
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172 disproportionately affected. Th
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174 in Denmark (Andersen, 2008). Mu
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176 Given the diversity of the buil
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Page 182 and 183: 182 A wide range of environmental i
Page 184 and 185: 184 Denmark's National Board of Hea
Page 186 and 187: 186 conditions, and natural ventila
Page 188 and 189: 188 mandated to integrate respect f
Page 190 and 191: 190 with a further EUR 220 million
Page 192 and 193: 192 inter-linkages between economic
Page 194 and 195: 194 Although these national framewo
Page 196 and 197: 196 schools, teachers and pedagogue
Page 198 and 199: 198 17 In 1997, the average price f
Page 200 and 201: 200 literature and case law that mu
Page 202 and 203: 202 eco-project that will be showca
Page 205 and 206: 205 Chapter 3: metropolitan governa
Page 207 and 208: 207 regional level, the 16 existing
Page 209 and 210: 209 and education. Expenditure for
Page 211 and 212: 211 Administrative boundaries do no
Page 213 and 214: 213 Figure 3.5. Dominance of the co
Page 215 and 216: 215 airport, a new metro line betwe
Page 217 and 218: 217 instruments, it has funds at it
Page 219 and 220: 219 Box 3.3. Relations between metr
Page 221 and 222: 221 Figure 3.6. Under-representatio
Page 223 and 224: 223 Authority, set up to deal with
Page 225 and 226: 225 providing services to other mun
Page 227: 227 municipalities in Copenhagen wa
Page 231 and 232: 231 mayors; permitting only the eco
Page 233 and 234: 233 While international migration m
Page 235 and 236: 235 Human resources management in t
Page 237 and 238: 237 developed, notably by the natio
Page 239 and 240: This governance framework poses cha
Page 241 and 242: 241 Annex 1: Conceptual Framework T
Page 243 and 244: 243 over 1980-2003, confirm the pre
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Page 247 and 248: 247 population growth was strongly
Page 249 and 250: 249 specialised places are better s
Page 251 and 252: 251 trend can mainly be explained b
Page 253 and 254: 253 partnerships between firms and
Page 255 and 256: 255 workers. Even though relative p
Page 257 and 258: 257 indicators such as GDP per capi
Page 259 and 260: 259 institutional proxies of commun
Page 261 and 262: 261 Bibliography Acs, Z. and C. Arm
Page 263 and 264: 263 Bikes Belong (2008), ―Bicycli
Page 265 and 266: 265 CBS (2005e), A Mapping of Danis
Page 267 and 268: 267 City of Vancouver (2007), ―Re
Page 269 and 270: 269 Demographia (2008), ―4th Annu
Page 271 and 272: 271 Faugert, S. et al. (2004), ―E
Page 273 and 274: 273 Gyourko, J. and J. Tracy (1989)
Page 275 and 276: 275 Konkurrencestyrelsen (2004), Ko
Page 277 and 278: 277 Meijiers and Romeim (2003) ―R
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279 OECD (1996), Innovative Policie
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281 Rappaport, J. and J. Sachs (200
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283 Statistics Denmark (2008) ―IN
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