Consolidation or cooperation frequently occurs in the public sector. Give some reasons why local governments consolidating or cooperating through special districts might be problematic

What will be an ideal response?

The primary reason why local government consolidation or cooperation might be problematic is because it reduces intergovernmental competition, which gives consumers choice and increased inefficiency. Centralization of government services leads to the cartelization of government, where differences between governments is obscured or eliminated. While economies of scale might justify the creation of a special district on efficiency grounds, it is also likely that special interests will be able to play a more important role in a larger government as well.