Local governance and decentralization in Europe & CIS

Local governance and decentralization

In most countries of the region, the establishment of market economies is accompanied by efforts to modernize public institutions and improve democratic governance. Political, administrative and fiscal decentralization are an integral part of the process of making public institutions more efficient, responsive and accountable to citizens.

Decentralization in the countries of the region is taking place in different forms and at varying speeds. One common feature in many countries is the limited capacity to design, implement and monitor decentralization policies. At the same time, the unpreparedness of local government institutions and local stakeholders to operate in a reformed environment adds further obstacles. Considerable support continues to be needed both at the central and local levels to ensure that decentralization and local government reform are translated into sustainable local development results, which contribute to the achievement of the MDGs.

The overarching goal of the LDG sub-practice is to contribute to democratic and effective local government. This goal promotes inclusive local economic development, improved living standards and better public services, particularly for the poorest and most vulnerable groups. To achieve this goal the LDG sub-practice supports the establishment of an enabling policy, legislative and institutional environment for decentralization. The LDG sub-practice group also contributes to developing the capacity of all the relevant local actors in key areas of local competence.

The target groups of the work of the LGD sub-practice are:

• Central and local governments
• Local institutions representing civil society and the private sector
• UNDP staff in the region

The focus areas of the work of the LGD sub-practice are:

I. Supporting the establishment of an enabling policy, legislative and institutional environment for decentralization focusing on:

• Administrative decentralization
• Fiscal decentralization

II. Strengthening sub-national level individual and institutional capacities focusing on:

• The organization and management of local administrations
• Efficient and quality decentralized public service delivery
• Inclusive local economic development
• Citizens’ participation and accountability (cross-cutting theme)
• Absorption of EU funds

The mechanisms through which the LGD sub-practice provides its support include:

Policy advice: Policy advice is made available either through country missions or desk assistance. In specific areas where in-house expertise is not available the LDG sub-practice maintains a roster of experts who can be called upon to provide the necessary support.

Knowledge management (KM): Knowledge management facilitates a Community of Practice on LGD, gathering practitioners from UNDP Country Offices in the region. The Community of Practice supports networking and horizontal learning through exchange of information, knowledge and experience. Another major KM activity is the preparation of practical guides and publications in different areas of LGD, which respond to priority needs in the region.

Regional programmes: Regional programmes support LGD initiatives of regional significance (covering a minimum of three countries) and seek to complement the activities of the UNDP-supported country level projects.