Local Governance and Local Development

Local Governance and Local Development (LGLD) processes aim at improving the quality of citizens’ lives while building more resilient state-society relationships at the local level.  Local Governance and Local Development processes, which were often carried out separately in the past, are now integrated and pursued jointly. Their focus is on how public policies and economic decisions are made as a result of interactions, relationships and networks between different sectors (institutions, public sector, private sector and civil society).

LGLD processes also involve decisions, negotiation, and power relations between stakeholders to determine who gets what, when and how. The relationships between government and different sectors of society determine how things are done, and how services are provided. The very concept of ‘good governance’ at the local level denotes the quality, effectiveness and efficiency of local administration and public service delivery; the quality of local public policy and decision-making procedures, their inclusiveness, their transparency, and their accountability; and the manner in which power and authority are exercised at the local level. Moreover, Local Governance and Local Development processes include financing investments to improve people’s lives, such as water systems, schools, roads, and irrigation systems, allowing local authorities to provide more effective and responsive local infrastructures and social services for the vulnerable groups.

These processes also include improvements in policy and institutional frameworks for a more effective use of allocated funds, hence their correlation link to the development of appropriate national decentralization policies.Local Governance and Local Development objectives are pursued at the territorial level through the implementation of concrete tools such as the Local Economic Development Agencies (LEDAs). The Organization for Economic Cooperation and Development (OECD) defines LEDAs as ‘legal, non for profit structures, generally owned by the public and private entities of the territory, acting as mechanisms through which local actors plan and activate in a shared way initiatives for territorial economic development, identify the most convenient instruments for their realization and enhance a coherent system for their technical and financial support.’ More concretely, LEDAs aim at: (1) generating employment; (2) increasing access to credit; (3) assessing economic potential e.g. local production chains; and (4) promoting national and international marketing strategies for local products.LEDAs promote inclusive growth, gender equality and the development of small and medium-sized enterprises. Their aim is to boost endogenous resources and know-how by means of effective territorial strategies fine-tuned to specifically include social, economic and environmental factors.

The positive assessment of this instrument has led to the creation of a Permanent Local Development Forum as a venue for ongoing open dialogue and knowledge exchange. Each LEDA strategy is the result of an inclusive process that pays paramount attention to the needs and priorities of the most vulnerable and marginalized groups.To read more on the UNDP strategy on Local Governance and Local Development click here.

Territorial Approach to Development

There is growing awareness of —and support for— a territorial approach to development, whereby Territorial Development entails the sum of all social, cultural and economic activities taking place in a given territory (metropolitan area, urban center, municipality, province, region, etc.), all of which foster its sustainable development while improving the quality of life of its inhabitants. Through this approach, development challenges are viewed via an integrated multi-stakeholder, multi-sectorial and multilevel “territorial lens”. Not only does this require sub-national stakeholders to identify their own development priorities while influencing national and global policy making, but it also encourages national and global debates to look through the same lens. This dynamic process strengthens interactions between economic actors, local institutions and civil society at large, while capitalizing upon the know-how and resources of the territories.

Potential benefits of the territorial approach include the prospect of integrating the three pillars of sustainable human development (environmental sustainability, inclusive growth and social cohesion) at the local level, delivering quality public services tailored to citizens’ needs, empowering local stakeholders, and fine-tuning national decentralization and de-concentration policies.

Development Cooperation effectiveness
The rapid diversification and multiplication of development cooperation stakeholders creates both opportunities (diversity, increased engagement and support) and challenges (duplication, overlapping, and lack of coordination). The fact that they mostly operate at the territorial level makes it critical to align and harmonize all development initiatives not only with local priorities, but also with the aims of diverse players operating at different levels. In this context, the territorial approach allows more effective interaction between development cooperation actors operating in the same geographical area. As a result, development interventions are implemented within the framework of integrated territorial plans, thus reducing fragmentation and increasing the impact and sustainability of all efforts geared towards achieving sustainable human development objectives.

Lastly, in times of economic crisis and budgetary constraints, it becomes imperative to make the best use of the financial resources available.Some of the tools available for Territorial Networks and the multilateral systems are:Local Planning Cycles (LPCs) are participatory “bottom-up” processes through which local institutions and stakeholders design and implement locally owned development plans, incorporating the three pillars of sustainable human development (social cohesion, environmental sustainability and inclusive growth), which at the national level fall within the responsibilities of different Ministries.International Cooperation Guidelines (ICGs) are an instrument aimed at bridging locally owned development plans and development partners interested in supporting local development initiatives. ICGs ensure that all interventions are coordinated with —and supportive of— Local Planning Cycles. Furthermore, they guarantee that all development partners’ financial contributions are aligned with the sub-national governments’ priorities.

Multilevel governance

Multilevel governance entails continuous interactions between the local, national and international levels and is geared to define sustainable development policies tailored to the citizens’ needs and aspirations. Some existing multilevel governance instruments are available to Territorial Networks, governments and development partners, among which:Local Working Groups (LWGs) are consultative bodies open to representatives from all technical areas of expertise present at the municipal level. Providing an open forum for exchanges of perspectives and experiences, these forums act as a “transmission belt” between levels and across sectors, fostering greater coordination and accountability. Territorial Working Groups (TWGs) are consultative bodies open to representatives from all technical areas of expertise present at the regional, provincial, district and/or departmental level. Providing an open forum for exchanges of perspectives and experiences, these forums act as a “transmission belt” between levels and across sectors, fostering greater coordination and accountability.

National Coordination Committees (NCCs) are consultative bodies formed at the national level with the aim of involving territorial stakeholders in national planning and legislative processes. Their members encourage multilevel dialogue and interaction to integrate participatory local planning into national sectorial policymaking. NCCs also promote leadership and ownership by sub-national stakeholders, while ensuring their views and prospective are taken into account by national and international institutions.