Many LAOs are too small to be financially viable or have adequate capacity to provide
public services effectively. Of the 7,854 LAOs, more than 3,000 have populations less than
5,000 people. Thailand also has one of the largest numbers of LAOs with small population per
local authority as compared with other middle income unitary decentralized countries. Such small
units are administratively costly to maintain and do not have the capacity to provide the more
than 175 functions assigned to them. The local administrative organization survey conducted
for the PFMR confirms that LAOs spend more than one-third of revenues on administration.
In addition, as was previously discussed, the sheer number of LAOs also makes coordination
difficult between central government and local authorities
Many LAOs are too small to be financially viable or have adequate capacity to providepublic services effectively. Of the 7,854 LAOs, more than 3,000 have populations less than5,000 people. Thailand also has one of the largest numbers of LAOs with small population perlocal authority as compared with other middle income unitary decentralized countries. Such smallunits are administratively costly to maintain and do not have the capacity to provide the morethan 175 functions assigned to them. The local administrative organization survey conductedfor the PFMR confirms that LAOs spend more than one-third of revenues on administration.In addition, as was previously discussed, the sheer number of LAOs also makes coordinationdifficult between central government and local authorities
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