Accompanying document to the Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee and committee of the regions - Local authorities: actors for development {COM(2008) 626 final}
Date: 2008-10-08
Institutions: European Commission
Subjects: EU programme, EU relations, company constituted under civil law, cooperation policy, development policy, non-governmental organisation

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COMMISSION OF THE EUROPEAN 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 Committee and committee of the regions  

Local Authorities: Actors for development  

{COM(2008) 626 final} 

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Communication from the Commission to the Council, the European Parliament and the 
European Economic and Social Committee and committee of the regions  

Local Authorities: Actors for development  

Local  Authorities:  Actors  for  development  In  order  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  therefore  proposes  the  development  of  an  agreed 
approach  by  local  actors,  including  local  authorities,  to  instrumentalist  development 
cooperation  in  support  of  local  governance.  The  aim  would  be  to  increase  the  coherence, 
complementarity and effectiveness of different local actors. The key principles 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  frameworks  as  the  basis  for  local  governance  and 
the  promotion  of  social  and  economic  development.  The  following  text  to  this  effect  is 
currently being elaborated by concerned actors. 

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DEVELOPMENT COOPERATION 

IN SUPPORT OF LOCAL GOVERNANCE  

PREAMBLE 

While the importance of local dimension concerning development is now widely recognised, 
local and territorial authorities emerge as key actors of development. 

The  increasing  multiplicity  of  cooperation  actors  at  local  level  (international  organisations, 
States,  local  and  territorial  authorities,  civil  society  organisations,  private  sector)  stress  the 
necessity to improve the coherence, complementarity and effectiveness of their support. 

PURPOSE 

This  Document  sets  out  principles  and  modalities  for  better  effectiveness  in  cooperation  in 
support of local governance and decentralisation in partner countries. 

It  is  addressed  to  all  different  types  of  European  actors  involved  in  this  field:  the  European 
Union,  Member  States,  local  and  territorial  governments,  civil  society  organisations,  and 
private sector. It is likely to be opened in the future to all international actors of cooperation. 

The Document is in line with the coherency and in continuation with the orientations, drawn 
from the “European Consensus for Development” (2006), the more specific Communications 
of the European Commission in the field of governance, 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 Paris 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-Habitat  Guidelines  on  decentralization  and  the 
strengthening  of  local  authorities”  (2007),  the  “African  Document  on  democracy,  elections 
and  local  governance”  (2007),  and  the  “OECD  Principles  for  international  engagement  in 
fragile  states”  (2007),  as  well  as  the  lessons  learnt  from  the  works  of  the  informal  working 
group of Development partners on local 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-national)  governments. 
Decentralisation entails three inextricably linked dimensions: 

•  Political  :  it  involves  a  new  distribution  of  powers  according  to  the  subsidiarity 

principle, with the objective of strengthening democratic legitimacy 

•  Administrative  :  it  involves  a  reorganization  and  clear  assignment  of  tasks  and 
functions  between  territorial  levels  to  improve  the  effectiveness,  efficiency  and 
transparency of the administration over all national territory 

•  Fiscal  :  it  involves  a  reallocation  of  public  expenditure  to  local  and  territorial 
authorities  and  enables  them  to  generate  their  own  revenue  according  to  their 
assigned tasks 

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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 contexts of decentralisation), encourages an 
equal participation of all stakeholders of a territory (State, citizen civil society, private sector), 
reinforces accountability towards 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 are 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  rights (including economic, social  and cultural rights). 
Democratic  local  governance,  by  involving  all  the  concerned  actors  in  the 
elaboration,  implementation  and  evaluation  of  local  policies,  encourages  a 
development  responsive  to  population’s  rights  and  demands,  notably  the  most 
vulnerable groups. 

•  Local  elected  authorities  play  a  catalyst  role  for  local  governance  and  local 
development due to their democratic legitimacy, their proximity with the citizens 
and  their  capacity  to  mobilise  local  actors.  In  the  framework  of  decentralisation 
policies  and  according  to  the  subsidiarity  principle,  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  policies  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 contribution to the Paris Declaration principles. It 
relies  on  the  general  principles  of  coherence,  complementarity  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 decentralisation and local governance processes. 

•  Foster  the  implication  of  local  authorities  and  civil  society  organizations  in  the 

political dialogue regarding development issues. 

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•  Endorse,  according  to  a  systemic  approach,  capacity  development  of  all  actors 
involved  in  local  governance  (at  individual,  organisational,  and  institutional 
levels), paying a specific attention to gender issues. 

Alignment 

•  Ensure  alignment  of  support  to  local  governance  and  local  development  with 
national decentralisation policies and strategies, by supporting national procedures 
and systems. 

•  Promote  flexible  and  operational  support  strategies  and  aid  modalities  that  are 
adapted to national and local situations, paying a specific attention to the analysis 
of risks of fragmentation related to decentralisation, 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 take 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 the cooperation actors and with the partner country. 

•  Promote a territorial approach to development, which enables integrated solutions 

encouraging coherence with sectoral policies. 

•  Support processes of local governance and decentralisation on a long term basis. 

•  Take  into  account  the  issues  of  Human  rights,  children’s  rights,  indigenous 
people’s  rights,  equity,  social  inclusion,  gender,  youth,  fight  against  corruption, 
HIV/AIDS,  environment  and  climate  change,  in  all  support  strategies  and 
programmes in favour of local governance and decentralisation. 

Results 

•  Support 

the 

implementation  of  monitoring  and  evaluation  systems  of 
decentralisation and local governance reforms, particularly in fostering sharing of 
information,  follow-up  and  evaluation  between  central  and  local  level,  and 
statistic capacity development. 

•  Insure the follow-up and an evaluation of the application of cooperation principles 

stated in the Document 

•  Commit to invest in learning process and 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 use of resources affected for development. 

•  Foster exchange reciprocity among cooperation partners. 

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II 

INTERVENTION  AXIS 
GOVERNANCE AND DECENTRALISATION 

IN  SUPPORT  OF  LOCAL  DEMOCRATIC 

The  Document  aims  to  define  and  share  principles  of  action  in  the  field  of  support  to  local 
democratic  governance  and  decentralisation.  These  principles  should  be  adapted  to  the 
specificities of local contexts.  

1. 

1.1. 

Promote a national framework fostering local democratic governance 

The  success  of  support  to  local  democratic  governance  and  decentralisation 
necessitates  a  political  will  and  a  national  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 operational measures aiming at: 

•  Support  institutional  arrangements  that  foster  dialogue  between  different  tiers  of 
government,  thereby  ensuring  coherence  between  national  and  local  policy 
development and planning; 

•  Develop  the  capacities  of  national  structures  in  charge  of  formulating  and 
implementing  decentralisation  policies  and  strategies,  particularly  ensuring 
coordination,  adequate  planning  and  financial  management,  coordination, 
monitoring and evaluating their implementation.  

•  Develop  the  capacity  of  local  authorities,  especially  in  the  field  of  dialogue  and 

cooperation with the different levels of governments.  

•  Support the role of national, regional, international and continental associations 
representing local governments in promoting 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  equity,  transparency,  responsibility,  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  guarantee  the  right  to  information, 
encourage  dialogue,  roles  distribution  and  consensus  between  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 processes for ensuring their sustainability. 

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2.2. 

Empowering  civil  society  with  a  view  to  its  active  participation  in  the  processes  of 
local governance and decentralisation 

•  Recognise the autonomy, diversity and the roles of civil society organisations as 
partners  in  policy  dialogue  and  interlocutors  of  public  institutions,  as  well  as  in 
the fields of social services and essential infrastructures.  

•  Promote  active  and  participatory  citizenship  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 their engagement in local public action. 

3. 

Promote  local  social  and  economic  development  for  the  reduction  of  poverty 
and inequality  

The  efficiency  of  territorial  development  strategies,  elaborated  and  implemented  by  local 
actors, relies on a balance between economic development, 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 
the  coverage,  quality  and  access  for  all  basic  social 

improvement  of 
infrastructures.  

•  Support local governments’ ability to deliver local public services by seeking an 
efficient  and  sustainable  management,  based  on  the  participation  of  all  actors' 
concerned  (users,  contractors,  State  services…), 
local 
specificities  and  the  research  of  institutional,  financial  and  environmental 
sustainability. 

the  adaptation 

to 

3.2. 

Promote local economic development 

•  Support  local  governments  in  their  role  both  as  catalysts  and  promoters  of  local 

economic development. 

•  Encourage  the  creation  of  an  enabling  environment  for  private  sector  and  the 
emergence  of  structuring  economic  activities  (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 management of natural resources 

•  Support  the  role  of  local  governments  in  their  concerted  and  sustainable 

management of natural resources, in accordance with national policies. 

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4. 

Strengthen fiscal decentralisation and local authorities financing  

In  order  to  respond  to  the  important  financial  needs  of  local  authorities,  it  is  appropriate  to 
establish specific financial plans adapted to their situation so that they can fulfil competencies 
assigned to them by decentralisation laws. 

4.1. 

Strengthen mobilisation and foreseeable nature of local governments resources 

•  Foster the sustainable mobilisation of their own resources by local authorities, in 
connection with the relevant services. Encourage the development and the setting 
up  of  a  sustainable  and  flexible  local  tax  system,  using  different  types  of 
resources,  adapted  to  territorial  specificities  and  new  economic  realities,  and 
consistent with national tax system. 

•  Strengthen 

local  governments’  ability 

resources: 
development projects, implication in sectoral programmes, and access to financial 
market. Take into account, within the framework of local budget elaboration, the 
forecasting of project support led by all the development partners.  

to  negotiate  external 

•  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  reinforcing  balance  and  solidarity  between 
territories. 

4.2. 

Strengthen financial  local  governance to increase transparency in the management 
of local resources 

•  Support  the  local  governments’  capacities  to  settle  expenditure  priorities 

developed on the basis of information and dialogue among local actors. 

•  Strengthen  a  transparent  mechanism  of  local  governments’  engagement  and 
expenditures’  payments  channels  by  setting  up  accounting  engineering  and  the 
development of capacities of a skilled staff. 

III 

COOPERATION MODALITIES FOR EUROPEAN ACTORS 

European  development  partners  commit  to  harmonise  and  coordinate  their  interventions 
respecting  the  specificity  of  each  actor’s  instruments.  They  associate  local  authorities  of 
partner  countries  at  all  steps  of  their  support  regarding  local  development  (elaboration, 
planification,  monitoring  and  evaluation).  They  seek  coherence  of  their  usual  modalities  of 
interventions  with  national  strategies  and  systems,  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  European  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 local governance. Foster partnerships for 
cooperation  between  local  authorities  from  several  European  member  States,  to 
enhance resource sharing. 

•  Foster development awareness and education among European public opinion. 

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More particularly:  

•  Regarding EU member States and the European Commission, follow the EU Code 
of Conduct on Complementarity and Division of Labour in Development Policy, 
in order to strengthen aid effectiveness. 

•  Progress (notably for member States, European Commission and European local 
authorities), within the framework of a fiduciary 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  resources  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 implication of different public and non state actors in development 
cooperation,  especially  through  an  appropriate  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  participated  in  the  drafting  of  the 
Document  and  adhering  to  it:  following  of  its  implementation  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 international levels.  

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