Financial Foundations Framework

Networked Enterprises: An Information Age Solution to Enduring Problems?

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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.”


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