IMC is not an end in itself: it aims at achieving a more efficient and effective performance of municipal functions through cooperation. The main benefits of IMC include:
Box 1: Attracting EU funds in Eastern Europe
| An important benefit of IMC that is particularly relevant to the countries of Eastern Europe is that it can help municipalities access EU funding for projects in the area of infrastructure or public utilities such as water supply and waste management. The EU Instrument for Pre-accession Assistance (IPA) Funds for the candidate/potential candidate countries and the EU Structural Funds for the EU member states often require either a minimum project size, which cannot be achieved individually by a small municipality, or explicitly seek to stimulate joint projects between groups of municipalities. Also, EU funding often requires co-financing from the beneficiaries. By formulating a joint project and pooling their resources and capacities, municipalities can meet the above criteria. |
IMC also has several potential positive side effects:
The benefits of IMC are interrelated, and in practice, there is rarely only one reason to engage in cooperation. The benefits derived from IMC can take several forms depending on the category of municipal functions. Table 1 gives specific examples of the benefits of IMC for different municipal functions.
Table 1: The benefits of IMC for different municipal functions
| Municipal function | Benefits of IMC |
|---|---|
| Municipal administration | |
| Human resource management | Sharing staff costs for issuing payrolls which is a routine municipal task |
| Electronic data processing | Reduction of the costs of hardware, software and skilled personnel |
| Procurement of equipment | Better prices obtained for equipment, furniture or services through joint procurement |
| Tax collection | Savings on staff and equipment costs
Hiring of more qualified and expensive employees Increase in tax revenue |
| Socio-economic development | |
| Development planning | Complementarities and synergies, and more effective results achieved through joint planning and coordinated actions |
| Urban planning | Coherent urban planning
(which sometimes leads to the establishment of a joint urban planning office) |
| Business development (establishment of a business support centre for instance) | A minimum population size that makes the establishment of a business support centre worthwhile
Joint financing of the establishment of the centre The joint organization of business training courses Shared overhead costs of the centre |
| Environment protection | Coordination of actions related to addressing issues concerning the pollution of a river that crosses several municipalities |
| Infrastructure and public services | |
| Waste collection and disposal | Joint organization of garbage collection to enable full use of equipment (trucks)
Shared cost of garbage collection trucks Joint landfill or garbage treatment plant established in order to save on investment costs, land and overhead management costs |
| Water distribution and sewage | Joint funding of investment
Reduced unit cost of water distribution and sewage by optimizing service catchment areas Grants obtained from the government, donors Private investment attracted by reaching a minimum economic size |
| Provision of public transport | Rationalization and cost-effectiveness of the public transport system
(larger public transport systems can attract private contractor interest more easily and offer scope for more modern management and operational structures.) |
| Health, education and culture | |
| Hospital | Shared costs, which can make higher levels of professional skills and better technologies (medical equipment) more affordable |
| Kindergartens and schools | Reduction in the per capita expenses of building and running a kindergarten
Affordability of a higher level of education for rural municipalities Prevented closure of classes due to a lack of pupils A better contract for the school bus service |
| Sport infrastructure and activities | Savings on joint building and maintenance of a swimming pool or a stadium |
| Infrastructure | |
| Road construction and maintenance | The socio-economic region used as basis for road planning and construction
Shared costs of equipment and staff for road maintenance |
| Public order and civil protection | |
| Fire brigade and rescue services | Shared costs of expensive modern equipment
Shared staff costs Improved service quality through the use of modern technology |
| Regulation | |
| Traffic | Harmonization of traffic regulations
(which sometimes leads to the establishment of a joint police force) |