Research background: The globalization processes are not only of an economic and cultural nature but also unify trends in the organization and management of administration, including at the local level. The idea of economizing administration was promoted within the broad stream of reforms described as New Public Management (NPM). This idea was often expressed as a postulate for the territorial reorganization of local governments. These reforms, motivated by the economies of scale, aimed to eliminate the allegedly overly fragmented nature of local government structures. Critics of these reforms advocate for glocalization, which takes local institutional conditions into account. They argue that the NPM concept should emphasize a long-term balance between economics, environment, and society, which are the paradigms of sustainable development (SD). According to them, this approach provides a more holistic and effective method for public management..