WRITTEN QUESTION E-0610/01

by Richard Howitt (PSE) to the Commission

(1 March 2001)

Subject: Role of EU local and regional authorities in promoting self-government in developing countries

How does the European Commission view the role of EU Member State local and regional authorities and their representative bodies in promoting the concept and practice of local self-government in development countries?

Answer given by Mr Nielson on behalf of the Commission

(15 May 2001)

The Community increasingly recognises the critical importance of providing effective support to the new wave of decentralisation processes in developing countries. A genuine decentralisation -involving the effective transfer of power, responsibilities and funds to (elected) local governments- holds great development potential. Local governments could play a useful role as a nexus between central government and local communities. They could offer a domestic framework for democratic interaction, joint planning of local development priorities, improved accountability and sustainability of development actions. They have a key role to play in creating an enabling environment for local (economic) development and related fight against poverty. They can help to promote new partnerships between public and private actors on the basis of their respective comparative advantages.

However, it should be clear that decentralisation is a complex and fragile process. The emerging local governments are likely to be confronted with major problems of legitimacy, political and administrative culture, funding and capacity. If sustainable human development is to be ensured in both rural and urban areas, and if the decentralisation processes are to succeed, it is essential that local governments and their institutions are given the opportunity to develop appropriate capacities and to raise sufficient resources to meet the increasing demands on them. Against this background, the Community is keen to strengthen the partnership with Community local and regional authorities (and their representative bodies) as they can provide a useful, complementary contribution to the emergence of viable local governance systems in developing countries.

Their potential added-value and comparative advantage in terms of roles is threefold. First, Community local and regional authorities are well-placed to provide targeted forms of capacity building to local governments and national associations, amongst others through innovative modalities of municipal international co-operation.

Second, Community local and regional authorities could provide different forms of support to local (economic) development processes (as opposed to traditional projects), based on new public-private partnership between a wide variety of local actors (local governments, private sector, civil society). Local governments have a critical role to play in building these local development coalitions in the pursuit of common goals. Yet this is a fairly new task for local governments. Their northern partners can help them to become an effective catalyst for local development, in close collaboration with other development players.

Third, Community local and regional authorities have an important advocacy role to play in promoting a stronger partnership between the Community and local governments (in North and South) and in helping to shape new policies and instruments in support of decentralisation processes and local governments.

Over the last years, the Community has sought to improve and deepen its collaboration with Community local and regional authorities, with the respect for the principles of local ownership and subsidiarity. Innovative initiatives have been supported through the decentralised co-operation budget line. The Community has developed a new policy framework for decentralised co-operation (1999), which recognises the priority of promoting local governance and effective local governments. Also in 1999, a first structured dialogue has taken place between

the Community and local government representatives from Africa and the Community. Building on this, the Community will seek to elaborate a communication on ways and means to develop stronger partnership with local governments, including a comprehensive policy framework, adapted (financial) instruments and clarity on the appropriate role division between local government actors in developing countries and the Community. In this regard, the Community has systematically stressed the need for Community local and regional authorities to also adjust their policies, roles, interventions, strategies, and capacities. Such adjustment is required if Community local and regional authorities are to provide effective forms of support that do not substitute for roles and responsibilities that local governments in developing countries should play.