Przeobrażenie gminy – wybrane zagadnienia
Financing transformation of the municipality

Summary/Abstract: The article analyzes the causes of bankruptcy of the city of Detroit in the USA. It has beenshown that the causes can be divided into two types the external – in the automotive industry, thetransfer of business to other countries and the internal i.e. the lack of action by the city authoritiesin order to ensure the safety of residents, the lack of effective eliminating of racial conflicts, delayedsearches for new investors, which brought the excessive debt. The article shows that the very difficultsituation in Detroit is different from the difficulties of Polish towns in Lower, Upper Silesia,agglomeration of Lodz, the Tri-City, because in these cities and regions, there has been a permanentreduction in population by more than half as it was Detroit. Indicated proposals for solutions on howto proceed when the number of entrepreneurs is decreasing. In such cases, the city should expectsubstantive support, organizational and financial resources from the government administration inthe development strategies of survival, development and fund it. It also pointed out that the measuresto prevent the difficulties in the cities should be taken in advance, because then there is a chance fora smooth transition of transformation. In such operations the city should not also be alone but mustbe able to expect the support in such areas like the verification of agreed action plan in the respectof assumptions about the global situation and the partial financial support from the central budget.For introduction of the proposed solutions there is no need to create separate law regulations. It issufficient in this regard, to add some units of text in the Public Finance Act.

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