Municipal real properties and the challenges of new public management: a spotlight on Romania

Abstract

In the transition and developing countries the use of surplus real property might be a good response to the acute need for local sources of revenues provided the requirements of the new public management regarding efficiency, effectiveness and quality of public services are carefully observed. The research has focused on the case of Romanian cities' real properties, aiming to reveal the problems of the existing municipal real property (MRP) management system in relation to both overall city conditions and the characteristics of the institutional and organizational framework. A questionnaire-based survey followed by nonparametric statistical tests have been employed in this respect, confirming the working hypothesis which points to the importance of the existence of an MRP plan, an MRP strategy and an MRP unit at municipality level for the effective use of these assets. A series of viable solutions to the problems identified have been also formulated.

Points for practitioners

The article emphasizes the decisive role of the strategic approach and corresponding instruments for effective MRP management, putting forward valuable recommendations for making MRP an important source of revenue for municipal governments. They are derived from the findings obtained within the EU-funded project entitled ‘Municipal Property Management in South-East European Cities’ (PROMISE) by the Bucharest University of Economic Studies team, one of the 13 partners involved. Its contribution has been nominated by the International Project Management Association among the five finalists of the Achievement Award global competition, category Community Service/Development Project 2013.