World Bank2023-01-232023-01-232022https://hdl.handle.net/10986/38527This Equitable Growth, Finance and Institutions (EFI) note reviews international experiences and lessons in promoting local government mergers and municipal associations. It seeks to inform efforts to advance institutional reforms in Croatia and address the problem of low local government capacity. This note also provides insights on the incentives needed to encourage the voluntary association of local government units for the common provision of certain functions and public services based on international practices.en-USCC BY 3.0 IGOMUNICIPAL MERGERSGOVERNMENT CAPACITYFRAGMENTATIONINTERMUNICIPAL COOPERATIONWorking PaperWorld Bank10.1596/38527