Effective Decentralised Development Cooperation: Flows, Modalities and Challenges by UNDP ART Initiative

EFFECTIVE DECENTRALISED DEVELOPMENT COOPERATION: FLOWS, MODALITIES AND CHALLENGES Agustí Fernández de Losada1

DRAFT STUDY v.12. – November 2013

Director, Studies and International Technical Assistance, Tornos Abogados, Spain (contact: afdelosada@tornosabogados.com). The views expressed in this paper are the author’s own and do not necessarily reflect the views of the United Nations. UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Table of contents Acronyms List of best practices presented 0-

Executive Summary

I-

Background

II -

Decentralised development cooperation: definition and actors

III -

LRGsâ&#x20AC;&#x2122; engagement in international development cooperation

IV -

Existing legal frameworks for decentralised development cooperation

V-

Principles of decentralised development cooperation

VI -

Modalities to implement decentralised development cooperation

VII -

Challenges and good practices in accessing information and ensuring accountability

VIII -

Effective decentralised development cooperation: How to improve development results?

IX -

Challenges in the context of a more effective international development cooperation system a) South-South development cooperation b) Public-private partnerships c) LRGs as legitimate actors in the new global partnership for development

X-

Conclusions and recommendations

Bibliography

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

List of best practices presented. -

BP.1: Intendencia de Montevideo – Diputació de Barcelona. EU LATAM Observatory of Decentralised Development Cooperation. BP. 2: The Beit Beirut Museum as the main result of the Paris – Beirur partnership. BP. 3: Conseil Géneral de l’Herault. BP. 4: Federation of Canadian Municipalities. BP. 5: National Strategy for Decentralized Cooperation in El Salvador. BP. 6: Urban Community of Al-Fayhaa (Tripoli - Lebanon). BP. 7: GTM Chefchaouen, Morocco. BP. 8: Global Fund for Cities Development. BP. 9: UNDP ART Initiative measuring cooperation effectiveness at local level. BP. 10: Transparency portal, Belo Horizonte. BP. 11: The AL-Las Project, Mexico DF. BP. 12: Local Leadership Platform. BP. 13: The VNG Local Government capacity programme. BP. 14: Platform for International knowledge of the Future City Initiative, Japan. BP. 15: Citynet. BP. 16: Brazil – Mozambique South – South partnership. BP. 17: South Africa Local Government Association (SALGA) South – South Programme. BP. 18: The Cities for Mobility Network. BP. 19: The Medellin Agency for International Cooperation.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Acronyms CNCD CUF DCF DDC EC EU FEMP FMDV ICLEI IULA LGDK LRG MDGs OECD OECD DAC ODA ORU/FOGAR SLK SMEs UCLG UNDP UNDESA VNG

Commission Nationale de la Coopération Décentralisée Cités Unies France Development Cooperation Forum Decentralised development cooperation European Commission European Union Federación Española de Municipios y Provincias Global Fund for Cities Development Local Governments for Sustainability International Union of Local Authorities Danish Local Government Association Local and Regional Governments Millennium Development Goals Organisation for Economic Co-operation and Development OECD Development Assistance Committee Official Development Assistance United Regions Swedish Local Authorities Association Small and medium-sized enterprises United Cities and Local Governments United Nations Development Programme United Nations Department of Economic and Social Affaires Dutch Local Authorities Association

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

0 - Executive Summary Local and Regional Governments (LRGs) are becoming increasingly recognised as legitimate actors in the international development system. They play a critical role in the development process through the implementation of public policies at the grass-roots level, which can have important influence on the national and international development agendas. Thus, there is a solid global consensus on the need to strengthen their institutional and operational capacities. Decentralised development cooperation has been identified as a pertinent and genuine modality through which this can be achieved. The present paper aims to provide an overview of decentralised development cooperation. It addresses key concepts and principles, the evolution of the main modalities and instruments of intervention, information on cooperation flows as well as the main challenges that decentralized development cooperation is facing within the framework of the new global partnership for development. The paper illustrates the arguments provided with references to several best practice examples, selected for their positive impact and capability for replication. In doing so, it proposes a set of recommendations with the aim of contributing to the debate at the forthcoming 2014 United Nations Development Cooperation Forum (DCF)2. Decentralised development cooperation faces great challenges in addressing its main weaknesses and in contributing to implementing a more efficient and effective development cooperation. In most countries, it is formally regulated through a broad variety of legal forms and met with support from citizens. However, since LRGsâ&#x20AC;&#x2122; mandates make them primarily responsible for service provision within their own jurisdictions, the question of why they engage in cross-border activities may arise. This is particularly the case if pockets of social exclusion and inequality persist or grow in their respective jurisdictions and public support for development cooperation wanes; a situation faced by even some of the most developed countries. It is important to respond to this question with solid arguments to avoid a potential legitimacy crisis among citizens and policy makers and to further guide the work of LRGs in development cooperation. In recent years, decentralised development cooperation has evolved remarkably and has overcome the initial inefficient vertical models, based primarily on a donor - recipient logic. LRGs have shifted to setting up new specific modalities based on horizontal and reciprocal partnerships between peers, with a high capacity to mobilise economic and social stakeholders at the territorial level, such as the private sector, civil society organisations and academia. These modalities possess great potential to contribute to development through peer-to-peer learning, the exchange of experiences and knowhow, the provision of technical assistance and the promotion of a shared political agenda. As in any other public policy, citizensâ&#x20AC;&#x2122; support and efficiency are clearly linked to transparency and accountability. However, collecting and sharing information concerning decentralised cooperation is still a major challenge. Despite the existing technological solutions and replicable experiences, there is need for major political engagement to standardise open access systems given this complex and fragmented reality.

New York, July 2014.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

A major effort should be made to improve vertical and horizontal multilevel governance mechanisms in order to optimise coordination platforms and harmonise efforts to effectively assign tasks and responsibilities to different actors, both public and private, based on their respective capacities and strengths. To this end, multilateral organisations have a great potential. Decentralised development cooperation, as part of the overall development cooperation system, is concerned with the challenge of improving development results. Effective programmes and projects are therefore to be oriented towards reinforcing the partnersâ&#x20AC;&#x2122; political decisions and strategic plans, based on their respective development needs and aligned with their on-going governance processes. In line with the challenge of improving development effectiveness, two main areas of cooperation should be addressed to facilitate the implementation of new schemes: first, Southâ&#x20AC;&#x201C;South Cooperation at the territorial level, because LRGs from the South face similar challenges and develop solutions and innovations that are highly relevant to their Southern counterparts; and second, publicprivate partnerships, as they have the potential to trigger innovative cooperation dynamics, with direct impact on local economic development. As key actors for development, LRGs should be actively involved in international efforts to create a new global partnership for development. The post-2015 development agenda and the outlook for the 3rd United Nations Conference on housing and sustainable urban development in 2016 (Habitat III) will give new impetus to the question of how LRGs can best address existing and new development challenges. LRGs ought to play an important role in the definition, implementation and monitoring of the new global development agenda, bringing in the local and urban dimension to national and international development processes. To ensure the adequate engagement of LRGs and benefit from their rich and heterogeneous experience, the post-2015 development architecture should be based on multi-actor approaches and inclusive partnerships for development.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

I- Background For decades, Local and Regional Governments (LRGs) have been playing a significant role in international development cooperation efforts by interacting with each other, promoting their interests, exchanging knowledge, experiences and information, promoting solidarity and fighting poverty. It was the establishment of the International Union of Local Authorities (IULA) in 1913, one hundred years ago, however, that marked the first contemporary expression of an organized global dimension of LRGs. The establishment of IULA marked the beginning of an evolving process that culminated not only in the formation of the World Federation of United Cities, gathering together the biggest cities in the world. But also in the creation of the first twinning mechanisms between European cities, the foundation of post-colonial networks (such as the Commonwealth Local Government Forum3 or the Association Internationale des Maires Francophones4) after World War II and the cooperation between cities in the context of political movements in the mid-1980s. Yet, for many, the concept of â&#x20AC;&#x153;decentralised development cooperationâ&#x20AC;? still appears to be relatively new. This is due to a recent and marked increase in their activities in the planning and delivery of development assistance. The growing importance of decentralised development cooperation can be attributed to three main factors: 1) The increasing recognition of the role that LRGs play as key development actors. They are suppliers of basic public services in urban and rural areas, promoters of local and sustainable development, inclusive growth, social cohesion and conflict prevention, all of which clearly relate to the national and global development agenda, including the Millennium Development Goals (MDGs) and the evolving post-2015 development agenda. 2) The emergence of more decentralised forms of governance. The growing intensity and consolidation of decentralisation processes in many regions of the world has provided LRGs with new opportunities to participate in policy making and implementation. LRGs gained new competencies given their close vicinity to citizens. Good governance is also increasingly guided by principles of proximity and subsidiarity and the establishment of multilevel governance mechanisms is becoming a requirement for the modernisation of the public system. Moreover, this is occurring at a time when the local context is having a relevant impact on national and global strategies. A major caveat in this regard is the lack of transfer of policy space, institutional and operational resources to LRGs. Their weak institutional and operational capacities are still a great challenge in many regions of the world. 3) The exposure of LRGs to the growing interdependence between the many global development challenges, ranging from international migration and climate change to economic development. LRGs are often on the receiving end of such phenomena and experience considerable difficulties in coping with their impact. These factors and a growing interdependence between the local, regional, national and global levels have given rise to the following double effect: 3 4

http://www.clgf.org.uk/index.cfm http://www.aimf.asso.fr/

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

On the one hand, long-standing actors in international development cooperation, including multilateral organisations and national States, have started to support LRGs through programmes to enhance and strengthen their institutional and operational capacities. There are many good and interesting examples for this, supported by UN Habitat5 - the UN Agency specialised in human settlements - the Non-State Actors and Local Authorities Programme of the European Union6, the UNDP ART Initiative7 or the Cities Alliance Platform8 founded by the World Bank. National development agencies, such as those from Canada, France, Italy, Spain, Germany, the Netherlands or Sweden, have also developed effective strategies to promote the role of Northern LRGs in development cooperation. On the other hand, LRGs have started to define their own, diverse strategies to cooperate with bi- or multilateral actors to reinforce their capacities and build partnerships. This type of development cooperation, ultimately defined as â&#x20AC;&#x153;decentralised development cooperationâ&#x20AC;?, has evolved considerably in the last two decades and is now increasingly recognised as an innovative and demand-driven approach to promoting development at the local level. Decentralised development cooperation is a fledgling modality, in so far as its ability to demonstrate its efficiency is concerned. It is therefore critical to assess the landscape of decentralised development cooperation and identify objectives, principles and modalities before reviewing its ability to contribute to the broader development agenda. The evolving post-2015 development agenda and the outlook for the 3rd United Nations Conference on housing and sustainable urban development in 2016 (Habitat III) will give new impetus to the debate on how LRGs can tackle existing and new development challenges. They have already been identified as critical actors for the implementation of sustainable development in the Rio+20 conference in 2012. LRGs can therefore also be expected to play an important role in the definition, implementation and monitoring of the post-2015 global agenda, thereby enhancing the focus on urban and local development issues. Habitat III will be assigned with proposing a new urban agenda at a time when urbanisation is evolving as one of the most persistent and multi-faceted global development challenges. Against this backdrop, it is opportune to analyse the flows, modalities and challenges of decentralised development cooperation and how it can play a leading role in responding to the challenges that affect the lives of citizens.

II - Decentralised development cooperation: definition and actors The concept of decentralised cooperation has always been uncertain and there is no consensus among academics, experts and practitioners on its definition and determinants. There are two fundamentally different interpretations of decentralised development cooperation, coined by the different actors that have emerged in development cooperation.

5 6 7 8

http://www.unhabitat.org http://ec.europa.eu/europeaid/how/finance/dci/non_state_actors_en.htm http://web.undp.org/geneva/ART/ http://citiesalliance.org/

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

Firstly, within a larger scope, it refers to development cooperation managed by all actors that are different from central governments (including non-governmental organisations, LRAs, Universities, Trade Unions and many others). However, in recent years, the concept has been gradually linked to the more restricted and specific partnership between LRGs and their associations for the purpose of providing development-related services across borders. Special emphasis was placed on strengthening and mutually enhancing their institutional and operational capacities and their ability to mobilise key economic and social actors, such as civil society, private sector (mainly SMEs), cultural institutions, universities, research centres, and other public bodies. The present study is going to focus on this approach and looks at LRGs and their associations’ partnerships, irrespective of whether they are based in developed or developing countries. The following definition may be used: Decentralised development cooperation is development cooperation between LRGs and their associations acting across borders to mutually reinforce their capacities and to involve economic and social actors at local and regional level to address development challenges.

Based on this narrow definition of decentralised development cooperation, the following definition of actors used by the European Commission is a useful description of the stakeholders involved:9 The term LRGs is used in its widest sense as directly or indirectly elected public governing bodies at sub-national level possessing, within a given region and as defined by law, a degree of autonomy from the central government and a set of competencies to deliver public goods and services to citizens. They encompass a large variety of public governing bodies at various levels i.e. municipalities, communities, districts, countries, provinces, regions, federal states. Local and Regional Governments’ Associations (LRGsAs) are to be understood as umbrella organisations based on membership and acting as representatives at national, regional, continental and international level, with a permanent body established as an autonomous entity in accordance with the legislation in force in the country of registration.

III - LRGs engagement in international development cooperation LRGs are increasingly recognised as legitimate actors in international development cooperation and work in the context of an ever more dynamic and complex landscape of partnerships. Since their mandates make them primarily responsible for service provision within their own jurisdictions, the question of why they engage in cross-border activities may arise. This is particularly the case when pockets of domestic social exclusion and inequality persist or grow and public support for 9

The proposed definition is partially taken from the issue paper published by the European Commission in preparation for the Communication on “Local Authorities in Development”.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

development cooperation wanes, experienced even in some of the most developed countries. It is important to respond to this question to avoid a legitimacy crisis among citizens and policy makers and to further guide the work of LRGs in development cooperation. Three possible arguments for this are outlined below: 1) Given the proximity of LRGs to citizens, decentralised development cooperation is an effective modality to promote universal values, such as solidarity, equal opportunity, justice and tolerance and to utilise this type of cooperation to strengthen partnerships between local communities in developed and developing countries. Decentralised development cooperation initiatives can provide the impetus for mutual understanding, respect, tolerance and solidarity between peoples and citizens’ with different origins and living in different realities. LRGs consider themselves to be responsible for reinforcing citizens’ commitments through education and awareness raising initiatives, with support from civil society. 2) The growing global interdependence of countries and their ability to effectively address development challenges points to the importance of LRGs as direct intermediaries to citizens. This is especially the case when it comes to some global challenges that have a considerable impact on both developing and developed regions and territories, for example, air or costal contamination, international migration or fierce competition to attract foreign direct investment. Managing such challenges puts a particular burden on local administrations, as it has far reaching implications on issues related to security, employment, education and health care, among others. In this context, it can be suggested that LRGs have a shared responsibility for sustainable development in an interrelated global economy. Their specific capacities and strengths can bring an added value to achieving these targets. It is therefore essential to engage in a more structured exchange with LRGs regarding the principles of engagement and their ability to contribute – both as providers and recipients of development cooperation– in close alignment with national development strategies. LRGs should be considered as critical actors at country level, contributing to national ownership and leadership in the development process. 3) Decentralised development cooperation is a useful tool to strengthen territories’ capacities and to share lessons learned from their operational activities. Through this, they can identify new opportunities and resources for their own development. This is relevant in at least four dimensions of development cooperation: a) The economic dimension is the fastest growing dimension and includes trade relations, mobilising investments for development projects and programmes, and attracting of skilled labour, for example through fellowship programmes and scientific collaboration; b) The social dimension focuses on the relationships among citizens themselves. This is for example linked to Diasporas and emigration groups (Italian migrations to Argentina, Uruguay, Brazil; Algerian, Tunisian, Moroccan and other immigrant populations in France; Latin American citizens in Spain etc.); c) The cultural dimension relates to cultural and historical links, which is mostly related to ties arising from colonial relationships (for example, through regional groups such as the

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Commonwealth, the Francophonie, the Comunidad Iberoamericana, Comunidade de Países de Língua Portuguesa. etc.); d) The political and institutional dimension refers to the construction of shared platforms and networks to promote and defend common interests. The numerous examples, including UCLG, ORU-FOGAR, Metropolis, ICLEI etc., which serve to exchange experiences and knowledge and represent the interests and needs of its stakeholders at national, regional and international level. These arguments indicate that decentralised development cooperation is, possibly more than other types of development cooperation, characterized by a high degree of reciprocity and mutual exchange and learning. This should be the basis for the continued legitimacy of this type of cooperation in all its dimensions despite growing economic shortcomings in many regions and central governments’ increasing limitations in the funding of development-related activities.

IV - Existing legal frameworks for decentralised development cooperation As a result of its increasing recognition, many countries provide specific legal regulations for decentralised development cooperation, allowing their LRGs to engage with their counterparts through international agreements. These frameworks vary widely in their scope, quality and level of detail. Even though each country regulates decentralised development cooperation in accordance with internal legal structure and rules, it is possible to identify some trends and highlight some good practices: A small group of countries has developed specific legal instruments to regulate the international action of their LRGs: France, for example, has a legal framework that stimulates the dynamism of LRGs in the field of decentralised development cooperation. The competences of French LRGs are explicitly recognised in the Thiollière Law of the 25th of January 200710, which provides them with the ability to conclude international agreements with other LRGs with the aim of leading initiatives in the field of “development and aid cooperation”. Since the law was enacted, international cooperation among LRGs has been perceived as a formal competency of LRGs, and no longer as a way to exercise or enhance other formal competences. France also uses an innovative legal tool to finance decentralised development cooperation: The Oudin Santini Law11, approved in 2005, enables LRGs and water agencies to voluntarily dedicate up to 1% of their water and sanitation budget to development cooperation activities in these sectors. Ecuador has developed a unique model to transfer exclusive competence to LRGs “to manage international cooperation” in their territories and within the framework of their competences, through its 2008 Constitution (arts. 262, 263, 264, 267). The Organic Code on Territorial Organisation, Autonomy and Decentralisation (2011) stipulates that LRG initiatives to raise non-refundable international financial resources for development cooperation as well as technical assistance must do 10

Loi n° 2007-147 du 2 février 2007 relative à l'action extérieure des collectivités territoriales et de leurs groupements.

Loi n° 2005-95 du 9 février 2005 relative à la coopération internationale des collectivités territoriales et des agences de l'eau dans les domaines de l'alimentation en eau et de l'assainissement.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

so in accordance with national objectives, established by the Central Government, and their territorial development plans. This exclusive competence has been regulated through a Resolution of the National Commission of Competences12 that highlights its scope (competences and territorial constituency) and stresses the need for a better coordination between international development initiatives and development plans at territorial and national level. The Resolution also calls for the establishment of coordination measures between major stakeholders in every territory (different levels of government, civil society organisations and international partners) as well as transparency and accountability measures. Ecuador is one of the few countries explicitly recognising decentralised cooperation as a public policy and its legal framework allows for alignment with national priorities. It is worth mentioning that in some European Countries, characterised by federal or semi-federal legal systems, regions with legislative powers have developed regional laws in the field of international cooperation. This is the case in Spain, Belgium and Italy13. In Brazil, some State Constitutions14 also contemplate the possibility of passing international agreements with foreign institutions. This possibility, however, contradicts the Federal Constitution that reserves exclusive prerogatives in foreign affairs for the President of the Republic despite the notable dynamism of Brazilian municipalities and states in the international scenario. Argentina presents a similar system, although the Federal Constitution ascribes provinces the capacity to sign international agreements. Competencies in this field have been developed in almost all the provincial constitutions. A second group of countries have provided the legal basis that facilitates cross border activities for their LRGs through legislation dealing with the international development cooperation policy of the national government (“international legislative package”). This is the case for Spain, where the Law of International Development Cooperation15 provides that LRGs action is based on the principles of budgetary autonomy and self-reliance and that it should respect the general and basic guidelines formulated by the national Parliament and the principles of partnership between public authorities in access and sharing of information and optimisation of public resources. The same occurs in Mexico where the Law on Treaties´ Celebration (1992)16 authorises LRGs to pass international agreements with foreign organisations including international organisations under certain formal limitations regarding the scope of the activities (competences and territorial constituency) and the duty to inform the Federal Secretary of External Relations.

(0009-CNC-2011) Three examples of regional laws in the field of decentralised cooperation: Law 26/2001 of 31 of December 2001 of the Parliament of Catalonia on Development Cooperation. Regional Law of 17 of April 2007 of the Autonomous Region of the Vale d’Aosta concerning regional interventions in the frame of development cooperation and international solidarity. Flemish Government Decree of 22 June 2007 on Development Cooperation. Source: Study on Capitalisation of European Experiences of Decentralised Cooperation. Agustí Fernández de Losada. European Commission 14 See, for example, the Constitution of the State of Bahia. 13

15 16

Ley 23/1998, de 7 de julio, de Cooperación Internacional para el Desarrollo. Ley sobre la celebración de tratados, DOF 02/01/1992.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

A third group of countries recognises decentralised development cooperation in legislation dealing with the territorial organisation of the State. In Morocco, for example, the Municipal Charter17 provides municipalities with the right to establish decentralised development cooperation agreements, albeit under the “tutelage” of the central government. However, the new system of advanced regionalisation adopted with the recent constitutional modification (July 2011) will certainly enable regions to interact formally with their international partners in a new approach based on the principles of free administration and subsidiarity. Finally, the fourth and most numerous group of countries does not provide any legal framework although, in most cases, do accept or even support decentralised development cooperation. There is a broad range of legal modalities, from countries where decentralised development cooperation is marginal to those where LRGs are highly dynamic. This is the case in The Netherlands which has become a key reference at the global level of what we have named the “agency modality” based on a strong and highly efficient system of coordination between the Central Government and VNG International, the Dutch LG Association.

V - Principles of decentralised development cooperation In recent years, decentralised development cooperation has evolved in a remarkable manner. Starting from vertical models, where the main added value was to channel official development assistance (ODA) from donors to recipients, often through NGOs, decentralised development cooperation is increasingly shifting towards a set-up of horizontal and reciprocal development partnerships between LRGs and their associations to improve mutual reinforcement of institutional and operational capacities. Such partnerships are being established both in the form of donorrecipient or recipient-donor relationships, or in the form of South-South, triangular and publicprivate initiatives. In this context, there are at least four key principles that help to better understand the value added by decentralised development cooperation and its capacity to deliver results for local communities: a) Genuine partnership: Decentralised development cooperation is based on the establishment of formal relationships between LRGs from different countries, usually at different stages of development. They are, nonetheless, characterised by engagement among equals and peers with a common political agenda that, despite operating in different contexts, facilitates ownership and results.

Dahir n° 1-02-297 du 25 rejeb 1423 (3 octobre 2002) portant promulgation de la loi n° 78-00 portant charte communale (B.O du 21 novembre 2002).

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Best Practice 1: Intendencia de Montevideo - Provincial Government of Barcelona EU - LATAM Decentralised Development Cooperation Observatory The Provincial Government of Barcelona and the Intendencia de Montevideo have been engaged for many years in a stable partnership that has led to relevant and tangible results, such as the creation of the Observatory of Decentralised Cooperation, a training, research and dissemination platform launched in 2005 with the support of the EU aiming to improve the quality of partnerships between European and Latin American LRGs. http://www.observ-ocd.org/es

b) Reciprocity: Such partnerships are articulated in a two-way relationship with both parties cooperating for their own development based on joint action plans and shared initiatives with the purpose of ensuring a positive impact on both sides, by reinforcing capacities, providing resources (development cooperation flows, expertise and know-how, advocacy, etc.) and supporting common values. Best practice 2: The Beit Beirut Museum as the main result of the Paris-Beirut partnership The cities of Paris and Beirut have been engaged for more than twenty years in a fruitful partnership that has led to an intensive framework of artistic and cultural exchanges. The Beit Beirut Museum Project is certainly the most visible result of this partnership, which focuses on the restoration of an emblematic building, The Yellow House, as a unique piece of “war time architecture” to host a cultural institution dedicated to the history of Beirut. http://www.beitbeirut.org/ c) Proximity: LRGs have the capacity to mobilise key economic and social actors in their territories and involve them in cross-border development cooperation initiatives. Particularly their ability to mobilise private sector operators will highlight the importance of this modality over others in the future. Best practice 3: Conseil Géneral de l’Herault (France) The Conseil Géneral de l’Herault bases its decentralised development cooperation policy on the establishment of reciprocal partnership with peer institutions in different countries (Morocco, Tunisia, Croatia, Chile and China) and with strong involvement of their territorial stakeholders (Civil Society Organisations, private sector, universities and research centers, etc). http://www.herault.fr/international/cooperation-decentralisee

d) Knowledge sharing: LRGs have significant expertise, know-how and knowledge in the field of local governance. This is the core asset, at the heart of LRGs’ potential to contribute to international development cooperation. Both LRGs from developed and developing countries, from Least Developed and Middle Income countries can share their expertise through multiple forms of engagement.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Best practice 4: Federation of Canadian Municipalities The FMC and the Canadian International Development Agency (CIDA) collaborate within the framework of a strong partnership through which Canadian municipalities and provinces can share their expertise and knowledge as well as their “municipal culture” with LRGs in Canada’s partner countries focusing on several sectors: promoting good governance, local democracy, public participation; delivery of basic services; and strengthening decentralisation. http://www.fcm.ca/home/programs/international.htm

These principles define the way decentralised development cooperation actors engage. They will be a starting point for the analysis of modalities and their effectiveness in subsequent sections.

VI – Modalities to implement decentralised development cooperation Considering exclusively horizontal and reciprocal partnerships, three main standard modalities that are used by LRGs to implement decentralised development cooperation can be identified. The partnership modality refers to the creation of solid and structured bi- and multilateral relationships between individual LRGs. Common in Southern Europe, mainly in France, Italy and Spain and in some emerging economies, like Brazil, Colombia, Mexico or Turkey, this modality is characterised by: -

The formal relationship between two (or more) governments collaborating to strengthen their capacities, to improve their public policies and to defend their shared interests;

An optimal framework to channel official development assistance and to exchange knowledge between partners;

The capacity to also assign their own financial resources to fund initiatives;18

Technical cooperation and project execution as the main forms of intervention, with rare use of budget support or trust funds to channel financial support;

The capacity to involve citizens and public and private actors with emphasis on results and impact at the grass roots level;

Limited resources in the field, despite the existence of highly professionalised teams and strong capacities in big cities and regions;

Partnerships that arise from close historical, cultural, social or economic ties; and

Sector of intervention that are mainly linked to LRGs’ core competences;

The agency modality refers to the use of ad hoc channels of LRGs’ associations to deliver their associates’ development cooperation efforts. This modality has been developed in Northern Europe, especially The Netherlands and the Scandinavian countries, as well as Canada. The South African local government association (SALGA) is also starting to use this modality by developing programmes 18

In some countries, such as Spain, this contribution can account for up to 13,6% of national ODA (Spanish Cooperation Master Plan 20092012, pg. 264, http://www.exteriores.gob.es/Portal/es/SalaDePrensa/Multimedia/Publicaciones/Paginas/Cooperacion/Planificacion.aspx)

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

to cooperate with LRGs’ associations in neighbouring countries. The following are key characteristics of this modality: -

Highly professionalised and competent staff supporting ad hoc structures set up under the realm of LRGs’ associations with the purpose of delivering business-oriented consultancy services, providing technical cooperation, expertise and know-how and engaging in biddings for international development cooperation projects. LRGs’ direct engagement is limited or inexistent;

Limited policy ownership of LRGs as initiatives are launched by LRGs’ associations, together with national development agencies (or other multilateral organisations);

High degree of coordination and complementarity between LRGs’ associations and central governments’ entities and their strategies;

Strong capacity of LRGs’ associations to advocate for these initiatives at national and international level;

Broad, almost global coverage;

Emphasis on local governance;

Technical cooperation and project execution as main forms of intervention, although the use of trust funds is also increasingly common; and

Funding provision through central governments or multilateral actors (European Union, World Bank, regional development banks, etc.).

Finally, the network modality has emerged recently as an innovative way to channel decentralised development cooperation, bringing together LRGs, their associations and multilateral actors. LRGs’ in Europe have been pioneering and boosting this form of cooperation. Nowadays it is used globally and many successful experiences can be highlighted in Asia, Latin America or Africa. This modality can be characterised by: -

LRGs’ direct participation in the activities of the network;

A light management structure steered by one of the partners or by a professional entity funded by the partners;

A useful platform for technical assistance, exchange of experiences, and structured transfer of know-how and knowledge at the same time;

Having a common approach to project development, used to apply for funding from programmes by international organisations (EU, World Bank, UNDP) or in the context of decentralised development cooperation; and

Strong focus on advocacy, at national and global levels, to defend members’ interests.

Beyond these three characteristic horizontal modalities, there is a wide range of practices responding to a heterogeneous spectrum of vertical models based on the transfer of aid, commonly accepted as inefficient but still highly widespread among LRGs.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

VII - Challenges and good practices in accessing information and ensuring accountability LRGs are contributing to international development cooperation in different ways, both financially and by mobilising relevant stakeholders and other resources. There are major challenges involved in collecting comprehensive information on the sources and types of contribution as access to information is limited, though different systems are being developed. This scarcity of available information can be linked both to the reluctance to recognise LRGs’ as critical players in international development cooperation as well as to the methodological difficulty of collecting information from such a vast range of highly diversified actors. This challenge clearly goes beyond LRGs’ capacities, although national associations and networks can play an important role in supporting efforts to collect information. Central governments and international organisations are well positioned to take this on and establish and implement regular protocols and surveys. Some countries19 in the framework of the OECD count aspects of development cooperation, delivered by or through LRGs, as official development assistance (ODA). However, the OECD-DAC, collecting ODA information for all DAC donors, has not introduced a standard or a shared methodology among its member states to provide guidance on collection of information on decentralised development cooperation and registering it under ODA. So far, there is limited reference to LRGs’ activities in OECD DAC statistics and reports. The attached table contains information on decentralised development cooperation flows in some champion provider countries. However, in most cases, this information is either not available or the quality of the aggregated information is sub-optimal.

Belgium

Aprox. DDC Budget 2010 120M€

% Total country ODA 2010 5%

LRGs + Central Gov.

Canada

12M€

0,2%

Central Gov.

France

100M€

LRGs + Central Gov.

Germany

713

7,3%

LRGs

The Netherlands

12,3M€

0,19%

Central Gov.

Spain

510

13,4%

LRGs.

Country

Source

Comments

LRGs contribution to German ODA drops to 0,4% when university allocations are not taken into account

It would be beneficial to improve and standardise methods to collect such information as well as to address key concerns related to increasing the effectiveness of development cooperation, including 19

Spain, Germany, Belgium, Italy, Switzerland, Austria, Canada, Portugal, France, Japan, Australia, Greece. Source: OECD, Aid extended by Local and State Governments, Pre-Print of the DAC Journal, Volume 6, Nº4. 2005.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

by enhancing its transparency and accountability. Open access to information is crucial to allow all stakeholders, including citizens, to hold providers accountable and thereby boost commitment to international development cooperation. Given the lack of legitimacy of decentralised development cooperation in some contexts, transparency is essential, as it helps to hold LRGs and associations accountable for their commitments. Access to information would also assist in making progress in reducing fragmentation in the highly diversified landscape of decentralised development cooperation by encouraging greater coordination, use of synergies and complementarity. Such information should be reliable and comparable in order to offer a truly coherent reference framework that will allow stakeholders to improve the quality of their operations and guide the division of labour, for example, by setting up coordination platforms. Access to data and information is a matter of good governance and requires an effective system of collaboration between different levels of government: local, regional and national. Indeed, countries that have developed strong systems of multilevel governance are usually more transparent and provide interesting experiences where LRGs’ associations have played an important role as catalysts for the provision of aggregated information. Based on experience by different stakeholders, mechanisms to collect data should focus on different data aspects, including: development cooperation flows; actors involved; sectors of intervention; forms of intervention; development results; and good practices. The rest of this section will present some experiences with potential for replication: The Ministry of Foreign Affairs in France has promoted an interesting online portal together with the National Commission on Decentralised Cooperation: the Decentralised Cooperation Atlas20. It collects relevant information on decentralised development cooperation, including: active LRGs. countries of intervention, areas/sectors of intervention and flows. Data is presented in a user-friendly way and details on individual projects and initiatives launched by LRGs are accessible. However, the tool does not aggregate information, which makes it difficult to observe broader trends.

Atlas de la Coopération Décentralisée: http://www.diplomatie.gouv.fr/fr/enjeux-internationaux/cooperation-decentralisee/atlasfrancais-de-la-cooperation/article/acces-a-atlas UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

In Spain, the Spanish Federation of Municipalities and Provinces, with the support of the Ministry for Foreign Affairs and Cooperation, publishes a Decentralised Cooperation Report21. This tool provides comprehensive aggregated information as well as detailed data on individual local governments. It represents a valuable and reliable source of information on trends in international development cooperation by municipalities, provinces and local development funds. But it excludes regional governments (Comunidades Autónomas), and thus only shows a partial picture of the Spanish decentralised development cooperation landscape. In the Netherlands, VNG International, the Dutch municipalities’ association agency for international development cooperation, publishes relevant information on their projects through an interactive world map22 and regular reports (including the annual independent audit report). However, the system does not provide information on the activities by its members, despite the active engagement of Dutch municipalities and provinces in international development cooperation.

The Swedish LRGs Association agency (SLK)23 for international development cooperation and the Danish interest group LGDK24 have a similar approach. They focus on international development by running information systems providing data on their projects (an interactive world map by SLK and an activity report by LGDK). However, in both cases, and similar to the Dutch example, information on their members’ international activities is not accessible. It is more difficult to identify systems that provide open access to information on decentralised development cooperation among the recipient countries. Ecuador has established a mapping system with detailed information on projects executed in the different provinces of the country25. Senegal launched some years ago, with the support of the French Embassy and UNDP, an interesting portal26. In a user-friendly manner it presents information on recipient LRGs, projects and partners. The degree to which information contained in the data base is up-to-date and regularly updated is unclear. 21

http://cooperacion.femp.es/

http://www.vng-international.nl/world-map.html 23 http://sklinternational.se/projects 24 25 26

http://www.kl.dk/PageFiles/242380/LGDK%20Profile%20with%20List%20of%20References%202012.pdf?epslanguage=da http://www.seteci.gob.ec/ http://www.cooperationdecentralisee.sn

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Senegal

Ecuador

However, transparency should not be considered as an end on its own. The challenge lies in using available information to improve development results, including through greater mutual accountability. As described in previous DCF analysis on mutual accountability,27 an intrinsic component of mutual accountability – typically described as a process by which two (or multiple) partners agree to be held responsible for the commitments that they have voluntarily made to each other – is the use of dialogue fora for all relevant stakeholders. This assists all stakeholders in holding each other accountable and promotes complementarity of initiatives and an effective division of labour, through the use and sharing of available information. The existence of dialogue and coordination platforms is particularly important for the highly fragmented landscape of LRGs, in order to effectively assign tasks and responsibilities between different operators based on their respective capacities and strengths. Different existing coordination platforms operate with a variety of approaches. In some provider countries, central governments have established coordination mechanisms to discuss strategies and interventions of decentralised development cooperation together with active LRGs. They are highly institutionalised in countries following the partnership modality, with results often being shared in an overly formal manner. In these countries, LRGs representatives are normally selected from within active associations and network members to participate, whereas in federal or quasi-federal countries, regions and federal states are fully represented in such dialogues. For example, in France, the Commission Nationale de la Coopération Décentralisée (CNCD)28, is a space dedicated to promoting and enhancing dialogue and consultation between LAs and the central Government. It is conceived as a joint instrument presided by the Minister of Foreign Affairs and attended by 16 representatives from the LAs’ associations and networks and 16 from the central government. The Délégué pour l’action extérieure des collectivités territoriales acts as secretary. According to article L 1115-6 of the Code General des Collectivités Territoriales, the CNCD can make proposals aimed at improving decentralised cooperation modalities.

27 28

See DCF analysis related to mutual accountability: http://www.un.org/en/ecosoc/newfunct/dcf_accountability.shtml http://www.cncd.fr

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

In Spain, the Inter-territorial Commission established by law in 200029 brings together representatives of the Ministry of Foreign Affairs and Cooperation of the Central Government, Autonomous Communities and local governments twice a year to tackle two objectives: to facilitate the participation of LRGs’ in the elaboration, monitoring and evaluation of the Spanish development cooperation plan; and to provide a space for coordination and collaboration among Spanish public administrations. In order to ensure adequate monitoring, the Commission is supported by a permanent body that meets at least four times a year. In countries grouped under the agency modality (The Netherlands, Sweden or Canada), coordination between central government and LRGs’ is anchored in an even more permanent and direct channel and supported by technical representatives from the national LRGs’ associations. Coordination and complementarity is highly effective and oriented to incorporate LRGs’ capacities into central governments’ plans and policies. Beyond these examples, more research needs to be carried out to promote and strengthen coordination mechanisms for decentralised development cooperation in recipient countries. This would be particularly relevant to ensure greater ownership and alignment to help reinforce national and local development policies. Three experiences supported by the UNDP ART Initiative should be highlighted: the Ecuadorian System of International Cooperation in Ecuador30, the Municipal Working Groups in Morocco31 and the National Strategy of Decentralised Cooperation in El Salvador. Best practice 5: National Strategy for Decentralized Cooperation in El Salvador The government of El Salvador has recently launched a new strategy to support LRGs in their international development partnerships and to strengthen their capacities in this field. The strategy, which is included in the National Plan of Cooperation Efficiency, offers a coordination mechanism to facilitate alignment between local and national priorities. http://www.rree.gob.sv/index.php?option=com_k2&view=item&id=2779:canciller%C3%ADa-presentabases-para-la-estrategia-nacional-de-cooperaci%C3%B3n-descentralizada-en-el-pa%C3%ADs

While some progress has been made, this section concludes that decentralised development cooperation at the global scale is facing a governance challenge. New technologies offer solutions and methodologies and successful experiences are available and easily replicable. It will depend on political support to further harmonise efforts and take advantage of this new multi-stakeholder scenario.

Real Decreto 22/2000, de 14 de enero, por el que se regula la composición, competencias, organización y funciones de la Comisión Interterritorial de Cooperación para el Desarrollo. 30 http://www.seteci.gob.ec/index.php?option=com_content&view=article&id=15&Itemid=162 31

See best practice 7.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

VIII - Effective decentralised development cooperation: How to improve development results? Efforts are growing to conceive decentralised development cooperation initiatives in ways that ensure they are strategically oriented and respond to real needs. This is partially due to greater awareness of the necessity to focus on outputs, outcomes and, ultimately, a positive impact on development in the long run. The added value of this type of cooperation is also increasingly evident, even though many initiatives indicate continued waste of efforts and resources, as they are not oriented towards a common goal and vision, or coordinated with similar operations. Indeed, LRGs’ capacity to provide sound impact can be analyzed on the basis of six benchmarks: -

Alignment: Their capacity to ensure decentralised development cooperation initiatives they engage with are aligned to their own development strategies, or, their commitment to align to partners’ development needs and countries’ ongoing governance, local development and decentralisation settings; Coordination: Their ability to define and support multi-stakeholder coordination; Focus on strengths: Their focus on specific activities clearly linked to their competences and capacities, thereby avoiding fragmentation, by not shying away from opting out in the event that duplication is detected; Focus on results: Their operational ability to ensure management and implementation practices consistently focus on final outcomes and development results; Engagement of end users: Their potential to reinforce citizens’ commitment and involvement in decentralised cooperation initiatives through participation schemes based on transparency and accountability. Engagement of stakeholders: Their ability to define priorities and agree on types of programmes/projects, action plans and modalities in a participatory manner through the engagement of all relevant stakeholders.

It is crucial that decentralised development cooperation programmes and projects are oriented towards reinforcing partners’ decisions and plans. Multilateral and bilateral institutions (European Union, UNDP ART Initiative, national agencies) are well placed to provide good and bad practice examples, lessons learned and additional support on how to make improvements in the future. Moreover, this aspect is highly linked to the broader debate on the effectiveness of development cooperation in the context of the evolving post-2015 development agenda. In this context, it is also important to show how to steer strategic planning towards greater ownership and results-orientation of decentralised development cooperation initiatives, in order to improve effectiveness. While accepted at international level, LRGs and their associations need to meet important requirements for this to be feasible: strong political leadership; clear institutional commitment; adequate human and other resources and capacities; strong technical skills; effective monitoring and evaluation systems; and the capacity to establish measures that guarantee transparency and accountability.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

In the rest of this section, a selection of good practices with potential for replication will illustrate different efforts to enhance the effectiveness and results focus of decentralised development cooperation. There are some good examples on how LRGs are leading international development efforts in their territories (including bi- and multilateral programmes and decentralised development cooperation) to implement initiatives included in their strategic plans. Best practice 6: Urban Community of Al-Fayhaa (Tripoli â&#x20AC;&#x201C; Lebanon) Through the definition of shared priorities and the implementation of a joint strategy, the Urban Community of El Fayhaa, with support from the MedCitĂŠs Network, is attempting to overcome the situation of stagnation affecting the Tripoli metropolitan area by reviving its natural historical role as the economic and cultural hub of the northern region of the country. http://www.medcities.org

At local and regional level, there is a strong link between leadership and impact on development. LRGs managed by strong leaders tend to be more efficient in defining priorities and implementing them, taking advantage of available resources at all levels. They also tend to involve regional stakeholders in the definition and execution of priorities and lines of intervention, coordinating spaces for dialogue and participation, without shying away from their responsibilities as political leaders. There are some good examples on how to establish platforms at regional level to coordinate the implementation of development plans involving key economic and social actors and stakeholders in international cooperation. Best practice 7: GTM Chefchaouen, Morocco With the support of the UNDP ART Initiative and the strong leadership of the mayor and the municipal councillors, the Urban Community of Chefchaouen has set up a municipal working group. All international actors are invited to participate in order to ensure monitoring and coordination among development cooperation initiatives. http://maisondechaouene.blogspot.com.es http://www.chaouen.ma/Accueil/Pratique/Blog/tabid/726/Default.aspx

Many actors in decentralised development cooperation continue to use projects as their only tool for interventions. Existing development funds or platforms that encourage sharing of experiences and knowledge transfer are ideally placed to facilitate the creation of bi- and multilateral long-term programmes that pool resources and enhance coordination based on the respective strengths of partners, including national governments and other stakeholders.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

Best practice 8: Global Fund for Cities Development The Global Fund for Cities Development (FMDV) was created under the initiative of the Metropolis, United Cities and Local Governments (UCLG) and 34 founding members (cities and city networks). It is an international political organisation that aims to strengthen solidarity and financial capacity among local authorities and to complement existing mobilisation, coordination and advocacy networks. http://www.fmdv.net/index.php?id=2&L=2

Existing programmes – launched and managed by LRGs – could be better used to promote predictability of financial resources, operational practices and monitoring and evaluation activities, similar to those supported by international organisations (such as EU-URBAL and the World Bank Cities Alliance). Monitoring and evaluation are increasingly used in the framework of decentralised cooperation initiatives, although there is a clear lack of resources and capacities. Evaluations are usually oriented to the assessment of project results, but measuring the qualitative impact is difficult, especially when partners operate within a project-based framework. Best practice 9: UNDP ART Initiative measuring cooperation effectiveness at local level The UNDP ART Initiative has developed an innovative tool to measure cooperation effectiveness at regional and local level that has been tested and is now producing relevant results in Ecuador. http://www.undp.org.ec/art/frontEnd/images/objetos/2013%20ART_Medición%20de%20la%20eficacia%2 0de%20la%20cooperación%20a%20nivel%20local_1.pdf

Finally, as a modality based on proximity, decentralised development cooperation has great potential to involve citizens in development and ensure their commitment. However, there is a clear lack of transparency and accountability, despite the substantial efforts made by many LRGs in the field. To achieve this, partnership between LRGs’ and Civil Society Organisations is essential and must be reinforced. There are several interesting experiences on which to build, especially in Latin America and Europe. Best practice 10: Transparency portal, Belo Horizonte Brazilian cities in general, and Belo Horizonte in particular, have significantly contributed to facilitating citizens’ access to public information and data, particularly data referring to budgetary and financial aspects and public procurement. http://portalpbh.pbh.gov.br/pbh/ecp/comunidade.do?app=pbhtransparencia

Bi- and multilateral actors have allocated considerable support to strengthening LRG’s institutional and operational capacities in this field through institutional support, training programmes, technical assistance and platforms to exchange experience and share knowledge.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Decentralised development cooperation can provide great value in this context. Key experiences in each of the four areas are described below: Institutional support: Best practice 11: The AL-LAs Project, Mexico DF The Latin-American cities participating in this innovative project funded by the EU and accompanied by two European platforms, share experience and knowledge with the aim of reinforcing their institutional and operational capacities in the field of international affairs and decentralised development cooperation. The project aims to create a community of experts in order to collect knowledge and expertise to feed into the improvement of the international projection of cities. https://www.proyectoallas.net

Training programmes: Best practice 12: Local Leadership Platform The Local Leadership Platform is a training platform launched with the support of the EU URBAL III Programme. This programme aims to strengthen the capacities of young local political leaders in Latin America. The Platform is managed by the Coordination and Orientation Office of the Programme led by a consortium of LRGs. http://www.urbal3-liderazgolocal.eu

Technical Assistance: Best practice 13: The VNG Local Government Capacity Programme The Local Government Capacity Programme, which will run until December 2016, will contribute to the capacity development of local governments and their umbrella organisations in nine partner countries in Africa and in the Palestinian Territories. http://www.vng-international.nl/our-projects/local-government-capacity-programme-lgcp.html

Platforms to exchange experiences and share knowledge: Best practice 14: Platform for International knowledge of the Future City Initiative The Future City Initiative was launched in 2010 by the Japanese government to challenge common human problems and to try to propose model solutions as a forerunner. The purpose is to realize world-leading successful cases in terms of technology, socioeconomic systems, services, business models and city building in order to resolve common 21st century human issues such as the environment and aging, and to disseminate them to the world through the platform for International knowledge. http://futurecity.rro.go.jp/en/

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernรกndez de Losada.

IX. - Challenges in the context of a more effective international development cooperation system Decentralised development cooperation is part of the global system of development cooperation. It can therefore not be analysed in isolation from global challenges that are surfacing, in particular in the context of the global debate on the future of development cooperation. The shifting landscape of development cooperation actors and approaches and a broadening agenda, with poverty eradication and sustainable development at its centre, can be expected to imply changes in the way decentralised development cooperation actors will operate in the near future. At the same time, the dynamic landscape of decentralised development cooperation actors suggests that its relevance will grow, justifying its consideration in the context of the evolving post-2015 development agenda and the follow-up to the Rio+20 Summit on sustainable development. The involvement of local and regional governments in the international policy dialogue on development cooperation has contributed to their acknowledgement as key development actors and their potential role in a post-2015 setting. The global partnership for development has influenced decentralised development cooperation and linked up with multi-stakeholder partnerships at local level (including Agenda 21, Habitat, MDG Acceleration Framework etc.). It will be critical to review how lessons from this process should be reflected in a renewed global partnership for development to support implementation of the post2015 development agenda.32 It is within the above context that the following three global trends in development cooperation have taken shape with regard to decentralised development cooperation in recent years and which merit further analysis, namely South-South development cooperation, public-private partnerships and the role of LRGs in the renewed global partnership for development. a) South-South development cooperation Southern partners engaged in international development cooperation have a long tradition of engaging in horizontal partnerships, based on principles and values similar to those motivating decentralised development cooperation. The potential of South-South decentralised development cooperation has increased in recent years, though it faces different challenges to those of donorrecipient decentralised development cooperation, including the type of capacity support needed for LRGs to engage effectively with each other. Since much of South-South decentralised development cooperation is provided in the form of knowledge sharing and strengthening partnerships among peers, the principle of proximity plays a critical role in its overall success. Cooperation can be very effective when developed among LRGsâ&#x20AC;&#x2122; from the same region and contributing to greater regional integration. Some platforms in Latin America, Asia or Africa exist where LRGs have built networks to exchange information and promote and defend common interests in a regional context33. 32 33

See detailed discussion on the renewed global partnership: http://www.un.org/en/ecosoc/newfunct/dcfethiopia.shtml See Mercociudades (www.mercociudades.org), AfrictĂŠs (www.africites.org) and CityNet (www.citynet-ap.org)

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

Best practice 15: Citynet CITYNET was created in response to the needs of growing cities in the Asia Pacific to promote cooperative links and partnerships throughout the region in order to improve and promote sustainable economic development www.citynet-ap.org

However, South-South cooperation is not limited to regional partnerships. Some development cooperation providers engage in countries from different regions where they have historical, cultural, religious or linguistic ties. This is leading to mixed development results.

Best practice 16: Brazil - Mozambique UCLG, in collaboration with development networks and agencies, is encouraging a partnership between the cities of Mozambique and Brazil, particularly between the National Government Associations, the National Government Association of Mozambique (ANAMM) and the National Front of Mayors (FNP) in Brazil. This will further motivate exchange and support the strengthening of both institutions as active drivers of decentralised cooperation http://www.uclg.org/en/node/5739

There is growing interest in South-South decentralised development cooperation. Actors in this field face the challenge of demonstrating the positive impact it can have for citizens and their most urgent needs. Its success may also depend on actors’ abilities to show they can and have learned from mistakes made by other actors in the context of other forms of international development cooperation. There is, however, a need to conduct further research to document practices of South-South decentralised development cooperation, its principles and its ability to produce results. There are numerous examples that illustrate how solidarity, mutual responsibility and accountability, as well as regional integration, are at the core of LRGs’ engagement in middle-income countries and emerging economies to approach this new type of cooperation from a strategic point of view and to implement partnerships in their anchor region or abroad. Best practice 17: South Africa Local Governments Association (SALGA) South - South programme Whilst SALGA has been able to facilitate support for its own development, it has similarly taken up the responsibility of assisting other LGAs in the Southern African region. This includes formalising structural arrangements with LGAs such as ALAN (Namibia), BALA (Botswana), ANAMM (Mozambique), ZILGA (Zimbabwe) and SWALGA (Swaziland). http://www.salga.org.za

Some global and regional programmes supported by International Organisations have strengthened South-South decentralised development cooperation. Programmes such as the EU Non-State Actors

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

and Local Authorities, URBAL or ENPI-CBC (Cross Border Cooperation), UNDP ART Initiative or the Cities Alliance have played a leading role over the past decades in promoting new forms of implementing decentralised development cooperation initiatives. Their challenge now lies in further strengthening and consolidating this. b) Public-private partnerships The private sector, especially small and medium-sized enterprises (SMEs), plays an important role in national and local development, given its strong influence over economic, social and environmental aspects. Its role is particularly remarkable at the territorial level, where it goes beyond macroeconomic indicators and touches citizens’ daily life. Local economic development is a central public policy focusing on supporting and articulating private sector actors to promote regional development by generating economic activity, employment and innovation. In recent years, decentralised development cooperation has been increasingly focused on local economic development, strengthening LRGs’ capacities to manage their responsibility in this area, defining strategies and guiding private sector actors in supporting development. Best practice 18: The Cities for Mobility Network "Cities for Mobility" is a global network that addresses all issues regarding urban mobility. The network is coordinated by the German City of Stuttgart and promotes transnational cooperation between local governments, transportation companies, businesses, science and the civil society, with the aim of supporting the development of sustainable and efficient transport systems in the member cities. http://www.cities-for-mobility.net/index.php/news

Depending on the specific contexts, LRGs’ face a number of challenges in engaging with the private sector as they implement decentralised development cooperation projects and programmes: -

Lack of recognition of the informal economy and ability to create micro-enterprises; Strengthening capacities of the complementary “third sector” to provide public services; Improving the role of SME’s and their capacity to generate sustainable development, integrating the economic, social and environmental pillars; Managing the regional and social impact of major companies; Promoting public-private partnership (PPPs) to implement infrastructure and public service at sub-national level; and Establishing mechanisms to enhance coordination and complementarity to ensure coherent vertical multilevel governance.

There are some entry points to address these challenges: -

Decentralised development cooperation initiatives should be oriented towards strengthening LRGs’ institutional and operational capacities to allow them to better manage initiatives;

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

Opening spaces for the participation of private sector actors in the definition, implementation and monitoring of decentralised development cooperation strategies, programmes and initiatives; Defining strategies to promote exchanges between private sector actors within the framework of cross-border decentralised development cooperation partnerships.

Especially the last of these challenges has not been addressed adequately so far, despite its growing importance. Major companies have always had great impact at regional level, either through their capacity to employ workers, the knowledge they can mobilise, the natural resources they need or the impact of the infrastructure they build. This impact has to be managed by LRG’s, whose capacities are often insufficient to adequately engage, especially when large actors from the private sector with their headquarters out of reach for regional actors often define the ‘cross-border’ aspect of their cooperation. Yet, there is growing awareness of the need to strengthen this type of public-private decentralized partnerships across borders. Best practice 19: The Medellin Agency for International Cooperation The City of Medellin, one of the most dynamic cities in Latin America, created the ACI in 2002, the Agency for International Cooperation, in order to promote the city in the world and attract investments, talent and knowledge, experiences and international cooperation in line with its development plans. The ACI is the key actor for the internationalisation of the city and its metropolitan area and works together in a solid partnership with local, national and international private sector companies. http://www.acimedellin.org

Such collaboration can be fruitful when developing infrastructure and facilitating key services by providing financial support, knowledge, scientific know-how, innovation and technology. It is increasingly clear that LRGs should be strengthened in their ability to manage this innovative type of partnership to maximise the potential and avoid exposure to the interests of other actors. This calls for a strong legal framework that structures the collaboration between the different layers of government (and international organisations) that interact within a region (see also chapter 4). Complementarity of priorities is needed to fully harness the potential of proximity and reciprocity. c). - LRGs as legitimate actors in the new global partnership for development The international agenda is facing great challenges with the forthcoming review of the Millennium Development Goals and the commitment to a renewed global partnership for development. Despite a steady climb in the world’s overall GDP, wide gaps remain from country to country and region to region, and inequalities are increasing throughout.34 Poverty is still the first global challenge to tackle, while the development paradigm is evolving and becoming increasingly linked to inclusive and sustainable growth. The international community has repeatedly stressed the need to build an inclusive global partnership, involving emerging actors in the international cooperation system, such as civil society 34

ODCE Development Co-operation report 2012.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

organisations, private companies, universities and LRGs. Although the need to reinforce their capacities is clearly recognised, debate remains about their role. Democratic LRGs are part of the public system and their relation to central governments is, in every country’s context, subject to hierarchic rules, interests and permanent negotiation frameworks. This implies that central government representatives are reluctant to facilitate the access of LRGs to the international space, a space over which they have traditionally held a monopoly. However, as LRGs’ are recognised as crucial actors for sustainable development and most of the MDGs cannot be achieved without their participation, they should be involved in setting priorities and drawing a new common road map for development, if a coherent development agenda is to be met. In this framework, two groups of challenges are evident: Firstly, there is a clear need to reinforce LRGs’ capacities to allow them to participate in this global partnership and to contribute to the common agenda. There is a clear tendency among LRGs’ representatives to call for further recognition that has been more or less achieved. The challenge that remains, therefore, is to contribute to the new road map with political priorities, territorial knowledge and successful experiences related to development. In this framework, LRGs associations shall play a crucial role at national, regional and international level, where their commitment to reinforcing their institutional and operational capacities is crucial. Secondly, the international community has to be opened up and be ready to adapt its frameworks to the new geostrategic context, the emergence of new forms of development cooperation and the presence of new actors. Considering the aforementioned gaps in development that are also very important within countries, development should be measured at territorial level. Moreover, if we take into consideration the growing urbanisation of the world and that the problems these urban areas are facing are completely different from traditional development challenges, a new approach must be considered. LRGs can contribute significantly to the new development agenda. However, it is not enough to demand more space and awareness. It is time to show their capacities, their commitment and the added value of their proposals. After one hundred years, LRGs are now facing the great challenge of placing themselves in a central position within the international system as important members of the international community.

X - Conclusions and recommendations. After this analysis, the following conclusions and recommendations can be presented to clarify important concepts and in order to contribute to improve the quality and impact of decentralised development cooperation. A set of conclusions and recommendations focusing on the main challenges observed during the research carried out is proposed for discussion at the forthcoming 2014 Development Cooperation Forum (DCF).

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

1. - The concept of decentralised cooperation has long been uncertain and there is no consensus among academics, experts and practitioners on its scope and determinants. The present study proposes a definition linked to the partnership between LRGs. Recommendation 1: Propose a general agreement among national governments and international organisations to build a consensus on the concept of decentralised cooperation as a recognised and legitimate form of international development cooperation led by LRGs. 2. - Despite the fact that decentralised cooperation is characterised by a high degree of reciprocity and mutual benefit between partners and that proximity is at the core of its strategy, citizens’ commitment should be enhanced, given the current global economic crisis, which runs the risk of undermining it. Recommendation 2: Foster, with the participation of LRGs, awareness raising measures to highlight the pertinence of decentralised development cooperation among citizens. 3. - Decentralised development cooperation has evolved in a remarkable manner anchored in a heterogeneous range of legal frameworks and shifting towards the set-up of horizontal and reciprocal development partnerships established to share knowledge, interests and to involve economic and social territorial actors in international development cooperation. Recommendation 3: Support the efforts made by LRGs and their associations to implement more pertinent and effective modalities of decentralised development cooperation. This can be achieved by sensitising national governments and parliaments on the added value of providing legal coverage to LRGs’ international activities through specific legislative instruments including mechanisms to fund their activities. 4. - Decentralised development cooperation has shown great dynamism and capacity to have a positive impact in citizens’ lives. However, the lack of resources and institutional and operational skills demonstrated by the majority of LRGs undermines this potential. Recommendation 4: Improve mechanisms to reinforce institutional and operational capacities of LRGs in the field of decentralised development cooperation, taking advantage of the existing expertise of LRGs, associations and networks, and boost innovative forms of intervention, especially budget support and trust funds. Highlight the efforts made by various multilateral organisations to improve LRGs’ capacities in the field and their complementarity with decentralised development cooperation. 5. - Although LRGs are contributing to international development by providing funds, expertise and knowledge and mobilising local stakeholders and other resources, access to information is constrained and improving transparency and ensuring accountability remains challenging Recommendation 5: Standardise methods to collect information on decentralised cooperation taking advantage of the pertinent knowledge of some relevant international organisations, capitalising on the existing experiences and strengthening the role of LRGs associations and networks. 6. - In a context of multi-level governance, the existence of dialogue and coordination mechanisms is particularly relevant given the growing impact of local contexts to inform national and global development strategies. Within the context of a highly fragmented LRG landscape, these governance UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

mechanisms should be focused on effectively assigning tasks and responsibilities between different actors based on their respective capacities and strengths. Recommendation 6: Sensitise national governments and multilateral organisations working with LRGs on the need to define shared development strategies, harmonise efforts and coordinate interventions through appropriate multi-level governance mechanisms (vertical and horizontal). 7. - Effective decentralised development cooperation programmes and projects are to be oriented towards reinforcing partners’ political decisions and strategic plans based on their development needs and countries on-going governance. Recommendation 7: Reinforce local and regional leaderships and strengthen LRGs capacities to steer their political decisions and strategic plans towards more effective development initiatives. 8. - The potential of South-South decentralised development cooperation has increased in recent years, though different challenges to those of donor-recipient decentralised development cooperation are being experienced. Recommendation 8: Promote South-South decentralised development cooperation by strengthening LRGs’ capacities to take full advantage of this new form of international development cooperation and benefit from the lessons learned in the framework of the standard models implemented to date. 9. - The private sector, especially small and medium-sized enterprises (SMEs), plays an important role in local development. Decentralised development cooperation has increasingly focused on local economic development. Recommendation 9: Promote programmes that strengthen LRGs’ capacities to manage their responsibilities in local economic development, defining political strategies and guiding private sector actors in their efforts to support territorial development. 10. - The international agenda is facing great challenges with the forthcoming review of the Millennium Development Goals and the commitment to a new global partnership where LRGs should play a relevant role as legitimate actors. Recommendation 10: Promote the participation of LRGs and their respective associations in the new global partnership through the participation of their representatives in the common political dialogues and ensuring their contribution in structured international fora (such as the Development Cooperation Forum) to benefit from their rich and heterogeneous experience.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernández de Losada.

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UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. FernĂĄndez de Losada.

UNDESA. Study on Effective Decentralised Development Cooperation: Flows, modalities and challenges. A. Fernรกndez de Losada.