Corporatisation in Spanish Local Government: Governing the Diversity

Research on municipally owned corporations (MOCs) has recently focused on disclosing the potential benefits that this organisational form has over traditional procurement models and the determinants of their adoption across local governments. However, MOCs entail multiple challenges that could hinder their performance, such as having private sector actors within their boards. Although there is some evidence on various characteristics of MOCs from different countries, we do not have a comprehensive review of these organisational forms in most OECD countries. In the present chapter, we focus on describing the use and the nature of MOCs in Spain. In doing so, we discuss the institutional and regulatory framework of Spain, and how that limits the types of organisational forms that can be used to implement public services: Autonomous Organisation; Business Public Entity; and Local Commercial Company. Then, we review the legal characteristics of Spanish MOCs. Next, we provide a radiography of the current state of MOCs in Spain, debating their use and main characteristics. Finally, we conclude by delving into the organisational and decision-making process in Spanish MOCs.