ABSTRACT
This chapter discusses the complex workings of the American federalist system and examines a growing aspect of intergovernmental relations at the local level—that being inter-local shared services. It deals with a discussion of intra-governmental and intergovernmental competition as a means of improving performance. This balance between the National and State governments ought to be dwelt on with peculiar attention, as it is of the utmost importance. The picket fence model of the federalist system is characterized by close fiscal relationships among the national, state, and local governments. Public demands for doing more with less, promoting public organizations that are efficient, and bolstering citizen trust through improved governmental responsiveness have engendered interest in inter-local shared service agreements. Public administration scholars accept privatization given the assumption that governments are altogether ill equipped to provide certain services in any capacity, much less high-quality services.
