EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 8.10.2008 
SEC(2008) 2570 
  
Accompanying Document to the   
Communication from the Commission to the Council, the European Parliament and the 
European Economic and Social Commi ttee and committee of the regions  
Local Authorities: Actors for development  
  
{COM(2008) 626 final} 
 
EN 2   EN Communication from the Commission to the Council, the European Parliament and the 
European Economic and Social Commi ttee and committee of the regions  
Local Authorities: Actors for development  
Local Authorities: Actors for development In or der to achieve the objectives set out in the 
Communication to highlight the importance of local actors and local authorities' recent 
emergence as key actors in development, as well as to identify the first elements of a response 
strategy at EU level, the Commission theref ore proposes the develo pment of an agreed 
approach by local actors, including local au thorities, to instrumentalist development 
cooperation in support of local governance. Th e aim would be to in crease the coherence, 
complementarity and effectiveness of different local actors. The key pr inciples and modalities 
to which they could voluntarily subscribe would include the application at local level of the 
principles of the Paris Declaration on Aid Effectiveness, support for local democratic 
governance, the enhancement of national framew orks as the basis for local governance and 
the promotion of social and economic developm ent. The following text to this effect is 
currently being elaborated by concerned actors. 
 
EN 3   EN DEVELOPMENT COOPERATION  
IN SUPPORT OF LOCAL GOVERNANCE  
 
PREAMBLE 
While the importance of local dimension con cerning development is now widely recognised, 
local and territorial authorities emer ge as key actors of development. 
The increasing multiplicity of cooperation actors at local level (international organisations, 
States, local and territorial aut horities, civil society organisa tions, private sector) stress the 
necessity to improve the coherence, compleme ntarity and effectiven ess of their support. 
PURPOSE  
This Document sets out principles and modalit ies for better effectiveness in cooperation in 
support of local governance and decent ralisation in partner countries. 
It is addressed to all different types of Europe an actors involved in this field: the European 
Union, Member States, local a nd territorial governments, ci vil society organisations, and 
private sector. It is likely to be opened in the future to all in ternational actors of cooperation. 
The Document is in line with the coherency an d in continuation with the orientations, drawn 
from the “European Consensus for Developmen t” (2006), the more specific Communications 
of the European Commission in the field of gove rnance, local authorities  and non state actors, 
the Conclusions of the Council of the European Union, the Resolutions of the European 
Parliament and the Opinion of the Committee of  the Regions and the European Economic and 
Social Committee on this topics.  
The Document recognises the engagements of the Pa ris Declaration on Aid Effectiveness. It is 
in line with international specific initiatives pertaining to decentralisation and local governance such as the “European Document of Local Self-Government” (1985) and other 
Council of Europe documents, the “UN-Habita t Guidelines on dece ntralization and the 
strengthening of local author ities” (2007), the “African Document on democracy, elections 
and local governance” (2007), an d the “OECD Principles for in ternational engagement in 
fragile states” (2007), as well as the lessons le arnt from the works of the informal working 
group of Development partners on lo cal governance and decentralisation. 
The Document is based on the following definitions:  
Decentralisation : a process involving the delegation of  a range of powers, competences and 
resources from the central government to elected local (sub-na tional) governments. 
Decentralisation entails three in extricably linked dimensions: 
• Political : it involves a new distribution of powers according to the subsidiarity 
principle, with the objective of st rengthening democratic legitimacy 
• Administrative : it involves a reorganiza tion and clear assignment of tasks and 
functions between territorial levels to im prove the effectiveness, efficiency and 
transparency of the administrati on over all nati onal territory 
• Fiscal : it involves a reallocation of pub lic expenditure to local and territorial 
authorities and enables them to generate  their own revenue according to their 
assigned tasks 
 
EN 4   EN Decentralisation: delegation of administrative functions from the State to local non elected 
public structures. 
Local democratic governance:  decision-making and implementation process of public 
policy that, around local governments (elected in c ontexts of decentralisation), encourages an 
equal participation of all stakehol ders of a territory (State, citizen  civil society, private sector), 
reinforces accountability toward s citizens and responsiveness to social demands in seeking for 
the general interest. 
Local authorities are related to all governments existing at the local (sub-national) level. 
Framework 
The principles of this Document ar e supported by the following convictions: 
• Local democratic governance and decentralisation are enabling framework to fight 
against poverty and inequities , to achieve the Millennium Development Goals and 
for the respect of Human ri ghts (including economic, soci al and cultural rights). 
Democratic local governance, by involvi ng all the concerne d actors in the 
elaboration, implementation and evalua tion of local policies, encourages a 
development responsive to population’s rights and demands, notably the most 
vulnerable groups. 
• Local elected authorities play a cataly st role for local governance and local 
development due to their democratic legi timacy, their proximity with the citizens 
and their capacity to mobilise local actors.  In the framework of decentralisation 
policies and according to the subsidiarity pr inciple, it is important to reinforce 
local self government by providing them  with the necessary competencies and 
resources. 
• No major development issue can be treated at one level. Interaction between 
levels of territory (sub-national, national,  global) is essential for public policies 
cohesion. 
• Decentralisation and local democratic governance policie s are part of the State 
institutional framework, contribute to its  reform and to strengthen legitimacy of 
public action. 
I COOPERATION  PRINCIPLES:  TOWARD  A MORE  EFFECTIVE  
COOPERATION  IN RESPONSE  TO A DEMAND 
The implementation of the Document is a contri bution to the Paris Decl aration principles. It 
relies on the general principles  of coherence, complementarit y and co-ordination shared by 
the European actors in development. 
Ownership 
• Recognise the leadership of national and local governments, civil society 
organisation and citizens at the national and local levels in partner countries, in 
the management of decentralisatio n and local governance processes. 
• Foster the implication of local authoritie s and civil society organizations in the 
political dialogue regarding development issues. 
 
EN 5   EN • Endorse, according to a systemic approac h, capacity development of all actors 
involved in local governance (at individual, organisa tional, and institutional 
levels), paying a specific a ttention to gender issues. 
Alignment 
• Ensure alignment of support to local governance and local development with 
national decentralisation policies and stra tegies, by supporting national procedures 
and systems. 
• Promote flexible and operational support strategies and aid modalities that are 
adapted to national and local situations, pa ying a specific attention to the analysis 
of risks of fragmentation related to decentr alisation, and to the specific needs of 
situations of fragility, conflict torn or post conflict countries (e.g. capacity development, state building). 
• Give pre-eminence to local analysis and ta ke into account the issues of legitimacy 
in the definition of support strategies. 
Harmonisation 
• Coordinate action and financial support in  favour of decentralisation and local 
governance processes within th e cooperation actors and with the partner country. 
• Promote a territorial approach to developm ent, which enables integrated solutions 
encouraging coherence w ith sectoral policies. 
• Support processes of local governance and decent ralisation on a long term basis. 
• Take into account the issu es of Human rights, chil dren’s rights, indigenous 
people’s rights, equity, social inclusi on, gender, youth, fight against corruption, 
HIV/AIDS, environment and climate ch ange, in all support strategies and 
programmes in favour of local governance and decentralisation. 
Results 
• Support the implementation of monito ring and evaluation systems of 
decentralisation and local governance reforms,  particularly in fostering sharing of 
information, follow-up and evaluation be tween central and local level, and 
statistic capacity development. 
• Insure the follow-up and an evaluation of the applicati on of cooperation principles 
stated in the Document 
• Commit to invest in learning process a nd sharing experiences on support to local 
governance and decentralisation. 
Mutual Accountability 
• Promote mutual accountability, foreseeable nature and transparency in the 
relations with the local partners and the us e of resources affected for development. 
• Foster exchange reciprocity among cooperation partners. 
 
EN 6   EN II INTERVENTION AXIS IN SU PPORT OF LOCAL DEMOCRATIC 
GOVERNANCE AND DECENTRALISATION 
The Document aims to define a nd share principles of action in  the field of support to local 
democratic governance and decentralisation. Th ese principles should be adapted to the 
specificities of local contexts.  
1. Promote a national framework fo stering local democratic governance 
1.1. The success of support to local democratic governance and decentralisation 
necessitates a political will and a nationa l legal framework in  partner countries 
which clearly stipulate the division of roles, responsibilities and resources between 
actors of different tiers of government and set the conditions for shared governance.  
Multilevel governance can be  facilitated through opera tional measures aiming at: 
• Support institutional arrangements that fost er dialogue between different tiers of 
government, thereby ensuring coheren ce between national and local policy 
development and planning; 
• Develop the capacities of national structures in ch arge of formulating and 
implementing decentralisation policies an d strategies, particularly ensuring 
coordination, adequate planning and financial management, coordination, 
monitoring and evaluating their implementation.  
• Develop the capacity of local authorities, especially in the fi eld of dialogue and 
cooperation with the differen t levels of governments.  
• Support the role of national, regional, international and continental associations 
representing local governments in promoti ng local authorities’  interests, notably 
by supporting their capacity development and recognizing the need of financial support. 
2. Strengthen democratic governance at the local level 
Support for local governance should foster e quity, transparency, re sponsibility, gender 
sensitivity  and active participation of all actors, so as to strengthen mutual trust, effectiveness 
of public action in support of development.  
2.1. Consolidate legitimacy of  local governments  
• Support accountability mechanisms of local authorities towards central 
government, citizens and among themselves. 
• Support institutional frameworks that gu arantee the right to information, 
encourage dialogue, roles di stribution and consensus be tween all social groups, 
including marginalised groups. 
• Develop local authorities’ capacities, notably towards the implementation of 
participative policies, by scaling up in particular women and children’s 
participation in local decision-making pr ocesses for ensuring th eir sustainability. 
 
EN 7   EN 2.2. Empowering civil society with a view to it s active participation in  the processes of 
local governance and decentralisation 
• Recognise the autonomy, diversity and the ro les of civil society organisations as 
partners in policy dialogue and interlocut ors of public institutions, as well as in 
the fields of social services and essential infrastructures.  
• Promote active and participatory citizensh ip by supporting the involvement of 
civil society organisations in policy- making, planning, budgeting, monitoring and 
evaluation.  
• Develop the capacity of civil society organisations at all levels (national, local, 
community) notably in the view of th eir engagement in local public action.  
3. Promote local social and economic development for the reduction of poverty 
and inequality  
The efficiency of territorial development st rategies, elaborated and implemented by local 
actors, relies on a balance between economic de velopment, social equity and environmental 
considerations and. Coherence must be sought with national sectoral  policies taking into 
account land use planning issues.  
3.1. Ensure equity in public services delivered locally 
• Base access to essential services on fundamental social rights and support the 
improvement of the coverage, quali ty and access for all basic social 
infrastructures.  
• Support local governments’ ability to deliv er local public services by seeking an 
efficient and sustainable management, ba sed on the participation of all actors' 
concerned (users, contractors, State services…), the adaptation to local 
specificities and the research of inst itutional, financial and environmental 
sustainability. 
3.2. Promote local economic development 
• Support local governments in th eir role both as catalysts  and promoters of local 
economic development. 
• Encourage the creation of an enabling en vironment for private sector and the 
emergence of structuring economic act ivities (private-public partnerships, 
infrastructures financing, land tenure security, access to financial services).  
• Encourage the use of local resources and potentialities, and promote local 
enterprises at the national and international levels.  
• Encourage a multi-sectoral approach that integrates economic development with 
territorial development issues (such as  access to public services and natural 
resources preservation).  
3.3 Promote a sustainable manageme nt of natural resources 
• Support the role of local governments in their concerted and sustainable 
management of natural resources, in  accordance with national policies. 
 
EN 8   EN 4. Strengthen fiscal decentralisation and local authorities financing  
In order to respond to the importa nt financial needs of local auth orities, it is appropriate to 
establish specific financial plans adapted to thei r situation so that they can fulfil competencies 
assigned to them by decentralisation laws. 
4.1. Strengthen mobilisation and foreseeable nat ure of local governments resources 
• Foster the sustainable mobilisation of thei r own resources by local authorities, in 
connection with the relevant services. En courage the developm ent and the setting 
up of a sustainable and flexible local tax system, using different types of 
resources, adapted to territorial speci ficities and new economic realities, and 
consistent with national tax system. 
• Strengthen local governments’ ability  to negotiate external resources: 
development projects, implication in sect oral programmes, and access to financial 
market. Take into account, within the fr amework of local budget elaboration, the 
forecasting of project support led by all the development partners.  
• Contribute to ensure financial transfer mechanisms from the State to subnational 
governments in a regular, transparent and foreseeable way; and to support 
equalization modalities aimed at reinfo rcing balance and solidarity between 
territories. 
4.2. Strengthen financial local governance to in crease transparency in the management 
of local resources 
• Support the local governments’ capacities to settle expenditure priorities 
developed on the basis of informa tion and dialogue among local actors. 
• Strengthen a transparent mechanism of  local governments’ engagement and 
expenditures’ payments channels by se tting up accounting e ngineering and the 
development of capacities  of a skilled staff. 
III COOPERATION MODALITIES FOR EUROPEAN ACTORS 
European development partners commit to ha rmonise and coordinate their interventions 
respecting the specificity of each actor’s instru ments. They associate local authorities of 
partner countries at all steps of their suppor t regarding local development (elaboration, 
planification, monitoring and evaluation). They seek coherence of their usual modalities of interventions with national strategies and syst ems, and with the concerned local authority’s 
programming and budgetary capacity. They commit to:  
• Strengthen cooperation actions in support of local  governance and 
decentralisation. 
• When the judicial framework enables it, encourage and develop sustainable 
partnerships between Europ ean local authorities and local authorities from the 
South, and between local authorities from  the South. This can foster exchanges 
and capacity development in the field of lo cal governance. Foster partnerships for 
cooperation between local auth orities from several European member States, to 
enhance resource sharing. 
• Foster development awareness and e ducation among European public opinion. 
 
EN 9   EN More particularly:  
• Regarding EU member States and the Eu ropean Commission, follow the EU Code 
of Conduct on Complementarity and Divisi on of Labour in Development Policy, 
in order to strengthen aid effectiveness.  
• Progress (notably for member States, Eu ropean Commission and European local 
authorities), within the framework of a fi duciary risk control, towards modalities 
for direct budgetary support mechanisms for local authorities budgets or local 
development funds. The use of these support modalities, which must not 
substitute local authorities own resour ces relies on the recognition of their 
leadership in local policies management.  
• Regarding civil society organisations , aim at coordinating with other 
interventions, seek a contractual approach with local authorities that are respectful 
of their autonomy. 
• Facilitate the impli cation of different public and non state actors in development 
cooperation, especially through an a ppropriate legislative and institutional 
framework.  
IV REPORTING PROGRESS REGARDING THE IMPLEMENTATION OF 
THE DOCUMENT 
• The implementation follow up of the Document should be based on a partnership 
mechanism involving all actors having pa rticipated in the drafting of the 
Document and adhering to it: followi ng of its implemen tation on the ground, 
analysis of experiences, take- stock meetings, enriching of the document, 
contribution to international debate. 
• This mechanism should aim at developing complementarities and synergies with 
on-going initiatives at  national and intern ational levels.