Opinion of the Committee of the Regions — Empowering local authorities in partner countries for enhanced governance and more effective development outcomes
Date: 2013-10-09
Institutions: European Committee of the Regions
Subjects: EU aid, European Development Fund, decentralisation, governance, international cooperation, regional and local authorities, third country








C_2013356EN.01008601.xml










5.12.2013   


EN


Official Journal of the European Union


C 356/86





Opinion of the Committee of the Regions — Empowering local authorities in partner countries for enhanced governance and more effective development outcomes
2013/C 356/15
THE COMMITTEE OF THE REGIONS






—


fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources;










—


welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the local public sector;










—


encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ in its programmes, e.g. for Non-State Actors and Local Authorities;










—


agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness; and emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations;










—


expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties;










—


states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda, with the necessary financial resources;










—


reiterates its support for the designation of 2015 as the European Year of Development demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives;










—


reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation.










Rapporteur


Hans JANSSEN (NL/EPP), Mayor of Oisterwijk




Reference document


Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes
COM(2013) 280 final




I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS


General comments








1.


welcomes the new European Commission communication on Empowering local authorities in partner countries for enhanced governance and more effective development outcomes. This is an important next step in the explicit recognition and the elaboration of the specific position of local and regional authorities (LRAs) as partners in EU development policy, next to and distinguished from other partners and actors such as central governments and civil society organisations;










2.


recalls that in 2008, the European Commission (EC) published its first communication (1) on the role of LRAs within development. That was a major step towards acknowledging the place, role and added value of LRAs in development policy and cooperation;










3.


refers to earlier CoR opinions, notably the most recent ones on the communication on Global Europe: a new approach to financing EU external action and on the communication on Increasing the impact of EU development policy: an Agenda for Change, which stressed the specific position and role of LRAs in the EU's external action;










4.


fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources;










5.


recalls that each and every type of ‘local authority’ — regions, provinces, counties, districts, municipalities, villages, etc. — play a strategic role in enhancing democratic governance and contributing to more effective development. It therefore does not see a ground for the decision of the European Commission to put the focus of the Communication primarily on the municipal level, as stated in footnote 1;










6.


welcomes the empowerment of LRAs in partner countries, as advocated in the communication, as this will help LRAs fulfil the important role bestowed on them, inter alia by the Agenda for Change, in the areas of human rights, democracy and other key elements of good governance, as well as in inclusive and sustainable growth for human development;










7.


reiterates that European LRAs possess a wealth of experience in many areas in which LRAs in partner countries need to build capacity. This should be recognised more explicitly in the communication, which should also focus on how this experience can be transferred, inter alia through peer-to-peer knowledge-sharing, and applied to local circumstances;










8.


believes that, on the basis of the analysis in the communication, LRAs should be closely involved in formulating the post-2015 development agenda. The important role for LRAs applies not only to sustainable development, but also to related areas such as inclusive urbanisation, social cohesion, adaptation to climate change, human security, etc. In this respect:






—


welcomes the report issued by the UN Secretary-General's High-level Panel of Eminent Persons on the Post-2015 Development Agenda;










—


welcomes the fact that HABITAT III (2) in 2016 will concentrate on a new urban agenda; and










—


underlines the need for local and regional authorities to be fully involved in the establishment of the EU contributions and positions, including in the preparatory process;














9.


recognises the open process followed during the preparatory phase of the communication. LRAs were able to submit contributions and ideas, and exchanges of views took place on various occasions, including during a CoR CIVEX commission meeting;










10.


acknowledges the communication's recognition of the key role of the CoR in stimulating and coordinating LRAs’ development efforts and offers its continued cooperation in the further shaping and implementation of EU development policy. Good forums for this include the assises on decentralised cooperation, which facilitates dialogue between LRAs from the EU and developing countries and with European institutions, and, particularly as regards cooperation in EU efforts to support development in neighbouring countries, ARLEM and CORLEAP — two assemblies gathering local and regional representatives from the EU and (neighbourhood) partner countries;






Background








11.


agrees with the Commission that centrally-led, top-down policies and programmes cannot on their own succeed in addressing the complexities of sustainable development and fighting poverty, and that public and private actors have their role to play, especially at local level;










12.


agrees with the well balanced position the Commission takes as to the key role of LRAs: on the one hand, their key role can also apply independently from how central authorities function (for instance in fragile states), on the other hand, their key role can be undermined by negative factors, including at local level;










13.


welcomes the proposed more strategic engagement of the European Commission with LRAs in partner countries, with a view to their empowerment and the achievement of development objectives;










14.


shares the Commission's view that the political recognition of the role of LRAs in development processes should be accompanied by an adequate level of autonomy, capacity development and financial resources, in order for their empowerment to be complete and to reflect the division of powers among the different tiers of government;










15.


urges the Commission to translate these very true observations into the priorities it agrees with partner countries for its cooperation programmes. Given the relevance of LRAs, these should be fully involved in the preparation and implementation of these programmes, including through their representative associations;






Unlocking the development potential of local authorities








16.


welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the public sector at local and regional level. This coincides with the Committee of the Regions’ plea for better involvement of LRAs in development policy, both within the EU and in partner developing countries;










17.


endorses the importance the Commission gives to stakeholder partnerships and dialogue mechanisms at beneficiary level as a way of engaging in dialogue with relevant central authorities to ensure their needs and concerns are known and taken into account. This is aligned with the multilevel governance approach. At the same time, the multilevel approach also requires that central authorities on their side seek to engage in dialogue with LRAs to get to know the needs and concerns at local level;










18.


The requirement for co-financing prevents the participation of certain actors in both EU Member States and Partner Countries. In the case of Partner Countries, financial resource constraints may prevent the engagement of local actors, while in some Member States like Sweden, local and regional government cannot participate in programmes like Non-State Actors and Local Authorities because they are not permitted to utilise local taxes to finance international development cooperation. Given the specific goals of the programme, and the wide-ranging experiences of different European countries (welfare, decentralisation, healthcare, etc.), this does not seem to be in the interest of EU and its external cooperation programme. To avoid this situation, the Committee of the Regions encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ (Article 253 — 1(e));










19.


emphasises the importance of a territorial approach to development, as referred to in the communication, and calls on the EU to work together with other development partners on the elaboration and implementation of this approach. The EU should also elaborate incentives, such as additional financial support for partner countries who, in dialogue with LRAs and their association(s) within the country, are genuinely taking steps forward in terms of applying a territorial approach within their national development plan(s);






Shaping EU support for improved governance and more effective development outcomes at local level








20.


notes that while the Commission’s proposal to work in favour of legitimate authorities is pertinent, the specific reference in the first paragraph of this section to ‘opportunities for coordination with regional authorities’ does not make sense, in the Committee's view, given the premise in footnote 1 of the communication that sub-state authorities of all types, i.e. not only municipalities and cities, but also districts, provinces and regions are included within its understanding of local authorities;










21.


agrees with the Commission that political will is a condition for successful decentralisation. In accordance with the communication, however, this political will should be promoted, for instance in policy dialogue. And when it is demonstrated, it should be rewarded via incentives in EU cooperation;










22.


shares the view that EU support for decentralisation should focus on the establishment of a conducive legal and policy environment and on institutional and capacity development. The CoR also supports additional identified priorities, such as a strong focus on fiscal decentralisation, public financial management and accountability, and a long-term and demand-driven approach to capacity development;










23.


reiterates that LRAs from EU countries possess a wealth of relevant knowledge and experience in many areas where LRAs in partner countries need to develop capacity, and feels that, in addition to and in combination with bilateral cooperation between LRAs in the EU and partner countries, their associations should be considered strategic partners for managing capacity-building programmes for LRAs;










24.


agrees with the Commission that associations of LRAs can be instrumental in achieving good governance and development outcomes at local level, and points out that apart from the six main functions distinguished in the communication, the function of service provision to the members of the association should be mentioned. Associations of LRAs are often called upon by their members to provide capacity development and training services, particularly in a development context. Providing these services has proved vital for the visibility, membership commitment and thus sustainability of the associations. It also generates information and insights that can be used in the associations' lobby and advocacy activities;










25.


agrees with the view of the Commission that in many partner countries associations of LRAs are still weak. In order to fulfil their roles to their full potential, substantial long-term support is needed. This can take various forms. For example, by providing direct funding as part of the budgets being managed by the EU delegations, and by establishing or continuing bigger, interconnected programmes such as the ARIAL programme referred to in the communication. In all cases, making use of the knowledge and experience of European associations of LRAs, via peer-to-peer learning and exchange of experience, is of key importance;






A way forward: more efficient and flexible means of support








26.


agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness;










27.


emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations. Now is the time to do so, at the beginning of the new financing period. LRAs should be explicitly eligible in all instruments of the Global Europe package. And a significant shift is needed within the European Development Fund. The Thematic global evaluation of the Commission support to decentralisation processes
 (3) of February 2012, shows that direct contributions to decentralisation represented only 1 % of the Commission's overall financial contributions (all sectors and countries) over the period 2000-2004, only around 2,5 % over the period 2004-2008, and much less again over the last years of the evaluation (2008-2009). Empowering local authorities for enhanced governance and more effective development outcomes is worth more;










28.


welcomes the wish of the Commission to explore the use of innovative funding arrangements and the idea that this could be linked to the assessment of LRAs’ institutional performance. Too often, however, such assessments are top-down exercises, which result in sanctions for those who perform less well. This generally leads to less openness amongst the participants. Taking the need for the capacity development of LRAs into account, encourages the use of horizontal learning processes, using instruments such as benchmarking and open comparisons in which the efficiency-building role of LRA associations can be strengthened, which can more easily be linked with positive financial incentives, and are more appropriate and more fruitful in the long term;










29.


endorses the view that the EU should ensure sufficient flexibility in its programmes to support the initiatives of LRAs and their associations. In fact, this is an essential element in opting for a more strategic engagement in their empowerment. Such flexibility should therefore include the possibility of direct funding to LRAs and their associations for these ‘own initiatives’, and the funding of such initiatives with or via their partner LRAs and partner associations in Europe;










30.


shares the Commission’s view that, in the context of budget support, the EU should support systems to monitor financial transfers from central government to LRAs. This should also contribute to the development of more comprehensive instruments at regional and global levels that provide direction for decentralisation processes and a basis for monitoring the state of play, as the European Charter on Local Self-Government does at European level;










31.


expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties, notably associations of LRAs, and others organisations (UN-Habitat; UNDP) or entities, including in developing countries (the CCT of the UEMOA for instance);










32.


considers that such comprehensive instruments provide a valuable input for the policy dialogue between the EU and partner countries. They allow the dialogue to take into account policy coordination, complementarity and coherence between various levels of government in a country. Such policy dialogue can be reinforced by financial incentives related to these issues, in line with the wish to explore the use of innovative funding arrangements;










33.


agrees with the Commission that the EU should support decentralised and cross-border cooperation between LRAs from Europe and partner countries based on long-term and equal institutional partnerships. From a European perspective, coordination of partnerships in wider networks or working together in joint programmes should be encouraged and facilitated. Points out that the Portal on decentralised cooperation for development facilitates such coordination by providing information on existing projects and enabling discussion with a view to developing new ones. The CoR is willing to continue its role in this respect, together with associations of LRAs, for example. In view of the enhanced impact that is expected from more coordinated approaches, this should be encouraged by increasing the EU funding available for such approaches;










34.


welcomes the Commission’s view that the EU should support the role that LRAs and associations of LRAs play in shaping the post-2015 development agenda; notes with satisfaction that this view is supported by the Council (4), which calls on the EU and its Member States, as appropriate in cooperation with the Committee of the Regions, to take into account the voice and experience of local authorities and to support their representation in policy discussions at national and international level, including in the development of the post-2015 agenda and in the preparation of HABITAT III;










35.


states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda. The necessary financial resources need to be released to guarantee this involvement;










36.


reiterates its support for the designation of 2015 as the European Year of Development (5), and regards it as a good opportunity to launch and support, including financially, activities at local and regional level; demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives;










37.


reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation;










38.


confirms its commitment to contributing to further policy development and innovations, building inter alia on this communication and on the experience of the decentralised cooperation for Development, and in cooperation with networks and associations of LRAs. All of this is aimed at empowering LRAs in partner countries for enhanced governance and more effective development outcomes.





Brussels, 9 October 2013.


The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO





(1)  COM(2008) 626 final.

(2)  The Third United Nations Conference on Housing and Sustainable Urban Development.

(3)  http://ec.europa.eu/europaid/how/evaluation/evaluation_reports/2012/1300_docs_en.htm

(4)  See ‘Council conclusions on local authorities in development’, Foreign Affairs Council meeting, Brussels, 22 July 2013 and ‘The Overarching Post 2015 Agenda — Council Conclusions’, General Affairs Council meeting, Luxembourg, 25 June 2013

(5)  Proposal for a decision of the European Parliament and the Council on the European Year of Development (2015), COM(2013) 509 final.