Purpose: The current Covid-19 crisis research focuses especially on epidemiologic and macro-level socioeconomic aspects. It only marginally covers impacts on local budgets. Our intention is to enrich the existing limited debate on this dimension.Design/methodology/approach: This paper uses a qualitative research approach and is based on secondary research and information available in restrictive regulations of national governments, data published by governmental bodies, international statistics and media articles published before 30 June 2020. The authors also conducted six non-structured online interviews with the leading question: “How do you see the current and future impacts of the pandemic on local public finance?”Findings: Available information on Czechia and Slovakia indicates that the level of municipal fiscal imbalance as the result of the Covid-19 crisis is not proportional to the situation on the central level, and municipal financial resources are not commensurate with their responsibilities as outlined by the constitution and the law. Because the reaction of the central government in both countries to this situation has been inadequate, municipalities will face problems with service delivery in some areas, especially in culture and sport.Originality/value: The authors enrich the growing debate about the current Covid-19 crisis and its consequences and focus on local government finance in two selected countries from Central and Eastern Europe.

Some nonprofit economists tend to see nonprofit commercialization as a moral dilemma because commercial activities may secure organizational survival at the cost of undermining the mission orientation. The present paper argues that this type of moral framing of the commercialization debate is hardly adequate for the transitional context of the Czech nonprofit sector which is still struggling to develop its distinct institutional identity. Given that financial independence is part of this identity, commercial activities help nonprofits to emancipate themselves from the state that used to be paternalistic in the past. On this basis, the paper underscores the institutional nature of the commercialization phenomenon in the Czech Republic. Commercialization decisions of Czech nonprofit managers are shown to be heavily influenced by the current institutional and regulatory environment that explicitly promotes nonprofit self-financing initiatives. If nonprofit commercialization is understood as an institutional phenomenon, then its moral significance is best captured in terms of institutional ethics rather than individual ethics of nonprofit managers which seems to be predominant in the Anglo-Saxon literature. After presenting the recent empirical findings on self-financing, the paper concludes by stressing the interrelation between the semantic and ethical aspects of the commercialization concept.

After 1989, all Central and Eastern European (CEE) countries implemented large-scale health care reforms. The changes differ among CEE countries, depending very much on the specific conditions present at the start of and during the processes. However, there are some common issues—most notably, the introduction of several market-based instruments, including introducing health insurance financing systems to replace general taxation-based models, privatization and the introduction of private payments and co-payments. Much was expected as the outcome of the changes. However, recent evidence indicates that many expectations from the ‘marketization’ of health care were not fulfilled. Such failures confirm that the transformation processes in CEE countries cannot be based just on the simple transfer of western good practice. The success of the implementation of new approaches has been a function of the effective combination of western and local expertise and the respecting of the specific local environment. One must be able to predict (as much as possible) the impact of new mechanisms in specific transitional conditions. The inability to do this has come at great cost to the citizens of the region.

In many cases the introduction of performance evaluation, performance management and performance financing schemes do not produce the expected results and even create perverse effects. The risks connected with their improper implementation are much higher in developing and transition countries, where the public sector is over-politicized, policy and management capacities are inadequate and resources and experience are limited or often almost absent. Our study provides basic selected data on the use of benchmarking in public administration bodies in the Czech Republic and Slovakia. The findings are clear. In spite of its high potential, benchmarking is not used regularly and properly either in Slovakia or in Czechia. Subjective barriers of its implementation, for example lack of accountability, the rent seeking attitudes of elected politicians and ineffective public services schemes might be most important limits. The situation is slowly improving, but the progress will be naturally limited by territorial fragmentation.

Contracting-out is a public sector reform tool, and it is used as a specific form of privatization. Because of its multi-dimensional character, it does not always lead to positive improvements, even in developed countries, and its impact in countries in Central and Eastern Europe may be limited. This issue is discussed in the theoretical part of this paper. Its analytical part investigates selected important dimensions of contracting-out for local public services in Slovakia and the Czech Republic, namely forms of delivery, decision-making processes concerning the selection of the form of delivery and of supplier, and costs comparisons. The final part provides a brief list of possible tools to improve the current negative situation.

After 1989, the Czech and Slovak health-care systems followed dissimilar policies. Change was faster, more profound and more experimental in the Czech Republic. But after 10 years there are clear similarities in their health status achievements and systemic problems. By showing how a common past and a similar insurance-based finance model interact with commitments to universal access, the common outcomes and problems are explained. It is argued that greater spending, rather than privatization, has improved health-care outcomes since transition began. It is also argued that most of the key problems with the two systems are finance related.