This article answers the question of why interlocal partnerships are seen as a viable route to effective governance among local elites in Norway. Co-operation between local governments is often seen as a way of overcoming transaction costs, increasing the quantity and quality of public service delivery�even if it comes at the price of less transparent local democratic processes. The analysis presented here shows that the legitimacy of interlocal partnerships is not only based on a perception of increased effectiveness in terms of direct policy outputs. Such partnerships are also based on a more general perception of increased decision-making power, specifically in relation to forces exogenous to the regional context in which such co-operation is forged. Nevertheless, the local elites� perceptions are conditioned by regional and local contexts. The article argues that demography, perceptions of local governance and ideology matter when elites assess the importance of interlocal partnerships.
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