Decentralization and local good governance, ensuring development in line with the needs of communities

Figure: A large administration building is surrounded by four smaller buildings overlaid by objects symbolising decision-making powers and financial resources.
The SDC supports administrative reforms that allow powers and financial resources to be devolved from central to local government. © SDC

The majority of national policies are implemented on a devolved basis, i.e. at provincial level or within rural or urban communities. However, the communities concerned often lack the necessary expertise or resources. The SDC aims to address this through a realignment of the capabilities and finances needed to promote effective delivery of public services. This is the best way to attain the global objectives for sustainable development backed by Switzerland. 

The SDC believes that the concerns of local communities are better addressed at local level. The representatives of public-sector organisations usually have greater insight into the developmental needs of local communities and are more readily accessible to citizens. It is easier to manage and maintain an overview of economic and social conditions in medium-sized economies. It is also easier to organise cooperative development projects in this context. Communities are more likely to work on solutions in their specific locality.

The necessary conditions can be established by transferring decision-making powers, responsibility for public services and the requisite funding to decentralised bodies. However, the danger remains that mismanagement, the unjust enrichment of elites and inequality may permeate down to lower levels of government. As a result, the SDC also works to strengthen decentralised forms of good governance, including the efficient management of funds, transparency, public participation and accountability, with the ultimate aim of supporting local development for the benefit of all population groups. 

Supporting decentralisation reforms

Decentralisation reforms facilitate coordinated measures for transferring functions, decision-making powers and budgetary resources and promote effective interaction between different levels of government. To this end, the SDC supports broad-based dialogue on reforms and, for example, encourages local associations to address the concerns of their members. The SDC provides the expertise required by the relevant local bodies to ensure that responsibilities are properly shared and financial powers defined. Alongside economic considerations and efficiency criteria, the SDC is guided by the principle of subsidiarity, i.e. the principle that decisions should be taken as closely as possible to citizens. 

Enhancing good governance at local level

The SDC supports government agencies in delivering relevant services at local level (e.g. education and health, waste management, land-use planning and economic development). It helps agencies consolidate their planning and oversight authority and provides encouragement and guidance on consulting a range of social interest groups. It also supports measures to improve practices relating to data, public information and reporting. The SDC encourages local authorities to diversify their funding base by raising taxes or other forms of finance to help implement their plans. It also promotes balanced accounting and transparent budget management. The SDC also focuses on local parliaments and courts as well as ensuring involvement of citizens and the media to participate with critical scrutiny and public debate to balanced decision-making and reporting. 

Promoting economic development at local level

The development areas targeted by the SDC may extend beyond administrative borders or combine rural regions with urban development centres. Such areas may not be covered by central government. Switzerland therefore promotes measures to support coordinated development projects through partnerships between the public and private sectors and social interest groups. The SDC supports joint planning processes based on an analysis of the strengths and weaknesses of local economies and the opportunities and risks involved. It also promotes cooperation between devolved bodies, advising local authorities, for example, on creating optimum conditions for private sector investment. Such advice may cover matters such as market infrastructure, transport routes, methods of communication, transparent tax policy, legislative frameworks and legal certainty, with a view to creating better employment and income-earning opportunities.

Current projects

Object 1057 – 1061 of 1061

Water Programme Zenica and Tuzla

04.12.2010 - 30.09.2021

The project, which SECO co-finances with the German Bank for Development (KfW), contributes to ensuring reliable and affordable water supply in the municipalities of Tuzla and Zenica in the Federation of Bosnia and Herzegovina. To a lesser extent the project also support the rehabilitation of the sewerage network in Zenica.


Scaling-up Renewable Energy Program in Low Income Countries (SREP)

01.01.2010 - 31.12.2028

The Scaling-Up Renewable Energy in Low Income Countries Program (SREP) of the Climate Investment Funds is empowering countries to transform their economies by demonstrating the viability of renewable energy to increase energy access and economic opportunities. SREP financing is channeled through five multilateral development banks (MDBs).


Dam Safety Monitoring and Rockfall protection, Phase III

01.01.2010 - 31.12.2023

The overall objective of the Contribution is to assist the competent Albanian Institutions and the Albanian Power Corporation KESH in raising the safety of the dams at Drin and Mat River Cascades to European standards.


North Tajik Water Rehabilitation

01.01.2010 - 31.12.2021

Based on a request of the Tajik Government, SECO and EBRD started to develop a programmatic and integrated approach to replicate the successful Khujand Water Supply Projects in secondary cities throughout the country, including the North.


-

The project aims at supporting financial stability in Peru by strengthening the country's financial regulatory and supervisory framework, promoting efficient consumer protection practices and supporting the implementation of a national anti-money laundering - combating the financing of terrorism strategy. It further aspires to encourage financial inclusion by creating a favorable legal framework conducive to the development of new financial products and increasing financial literacy of existing and potential customers. The direct beneficiaries of this program are Superintendencia de Bancos y Seguros (SBS) and regulated stakeholders, including financial intermediaries, private pension managers and insurance companies. The indirect beneficiaries are the public in general an final services consumers in particular.

Object 1057 – 1061 of 1061