Abstract. The attentive diagnosis of the local economic basis, the deep understanding of the obstacles that confront the economic growth and the investments, the elaboration and the implementation of certain strategies to facilitate the investments are the means by which the local authorities can assure the future of the local community which voted them. The present paper proposes to measure the effectiveness and efficacity of their activity by lying the basis of the methodology of calculating the degree the local authorities imply themselves in the local economic development and its impact upon the financial mana¬gement performance of a certain town. Only a management that sustains the local economic development can lead to the permanent growth of the economic basis, which generates permanent development.

Keywords: local authorities; implication; calculating; economic development; performance.