Strasbourg, 12 December 2013                                    CDLR(2013)31 ADDENDUM III

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)

INITIATIVES TO STRENGTHEN GOOD GOVERNANCE, CAPACITY BUILDING AND CITIZEN’S DEMOCRATIC PARTICIPATION AT LOCAL LEVEL

INITIATIVES TO STRENGTHEN GOOD GOVERNANCE, CAPACITY BUILDING AND CITIZEN’S DEMOCRATIC PARTICIPATION AT LOCAL LEVEL

CDLR Report to the Committee of Ministers

15 November 2013

In accordance with its terms of reference, the CDLR was asked to prepare:

 

A report on initiatives to strengthen good governance, capacity building and citizens’ democratic participation at local level.

At their 1156^th meeting on 28 November 2012, as a follow up to the Kyiv Ministerial Conference of November 2011, the Committee of Ministers instructed the CDLR to:

Examine how the principles of good democratic governance at local and regional level can be promoted and applied in the practices of local and regional authorities.

The CDLR invited its members to provide information on current work and practice related to good governance and to identify trends in (a) enhancing the quality of local and regional governance and (b) reforming the framework and structure of local and regional government. These information and trends were discussed at a seminar on Good Democratic Governance, held in Strasbourg 17-18 June 2013.

The CDLR positively noticed that many states are currently involved in preparing or promoting policies aimed at strengthening good governance capacities and practice. The Strategy’s twelve principles of Good Governance set the parameters for good public policy development, efficient and effective execution of public services and the prevention of corruption.  When addressing the 52nf Meeting of the CDLR, the President of GRECO emphasized how good governance and transparency are essential prerequisites for the effective fight against corruption.  Good governance is also crucial to establishing economic growth, which is a priority for all member states.

The CDLR stresses that the Council of Europe has a very important role to play in strengthening good governance in terms of principle - because its core mission is to provide and protect the fundamental standards of human rights, democracy and the rule of law; and in terms of practicality - because the Council of Europe offers an appropriate forum where officials from central government responsible for local and regional government can exchange, learn from and help each other.

Where governance is poor, corruption thrives, competition is biased, resources are not allocated efficiently and the quality of life of the citizens is challenged. Political democracy is in danger too. Assisting governments in taking measures to improve the quality of its governance is a means of addressing these shortcomings while at the same time enhancing democracy across Europe. The Council of Europe can promote good governance by facilitating member States’ access to tools (The Strategy for Innovation and Good Governance at Local Level) and experience (Centre of Expertise for Local Government Reform) that would enable them to access best practice and share experience.  In addition, the CDLR would commend the measures to promote good governance identified in the report to the CDDG for that committee to draw on in its future work in accordance to the terms of reference given to it by the Committee of Ministers.

APPENDIX

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)

Report to the Committee of Ministers

REPORT ON INITIATIVES TO STRENGTHEN GOOD GOVERNANCE, CAPACITY BUILDING AND CITIZEN’S DEMOCRATIC PARTICIPATION AT LOCAL LEVEL

TABLE OF CONTENTS

I.                    INTRODUCTION

II.                  WHAT IS GOOD GOVERNANCE

Governance in international politics

The Council of Europe principles of good governance

Making the Twelwe principles of good governance meaningful

III.                EXAMPLES OF GOOD PRACTICE

IV.         HOW THE PRINCIPLES OF GOOD DEMOCRATIC GOVERNANCE CAN BE PROMOTED AND APPLIED AT LOCAL AND REGIONAL LEVEL

V.                   CONCLUSION

I.                    INTRODUCTION

In accordance with its terms of reference the European Committee on Local and Regional Democracy (CDLR) is expected to prepare:

“a report on initiatives to strengthen good governance, capacity building and citizens’ democratic participation at local level.”

Furthermore, following specific decisions taken by the Committee of Ministers as follow-up to the 17th Session of the Council of Europe Conference of Ministers responsible for Local and Regional Government (Kyiv, 3-4 November 2011), the CDLR was entrusted to:

“examine how the principles of good democratic governance at local and regional level can be promoted and applied in the practices of local and regional authorities.”

In order to gather information and “report on initiatives” in member states, the CDLR issued a questionnaire to member States and organised a seminar in Strasbourg open to all its members in order to exchange experience and develop understanding of the initiatives undertaken to strengthen good governance, capacity building and citizens´ democratic participation at local level.

Being also bound to “examine how the principles of good democratic governance can be promoted and applied”, the CDLR analysed the responses to the questionnaire and reflected on exchanges and presentations at the seminar with respect to the relevant principles of good democratic governance at local level.

This Report therefore seeks to present an outline definition of good governance in the public sector and highlight measures taken by (some) member states to promote and strengthen good governance at central and local level.  The report will also make suggestions as to how measures aimed at enhancing the effectiveness of those policies can be more effectively promoted and implemented in light of the Council of Europe´s standards for good democratic governance as prescribed in the Strategy for Innovation and Good Governance and the 12 Principles of Good Governance.

II.                  WHAT IS GOOD GOVERNANCE

Governance is the act of governing. It relates to the processes of steering and coordinating decisions and actors that define expectations, grant power, or verify performance. It consists of either a separate process or is part of decision-making or leadership processes and is typically administered by a public authority delivery services to citizens vertically or horizontally.[1]

Though use of the term “governance” has also now been extended to broader contexts such as corporate governance, the focus of this report will remain on governance at the local and regional level.

Governance refers to the “process” of decision-making and the process by which decisions are implemented. Therefore an analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been put in place to arrive at and implement the decision.

Government is only one of the many actors in governance. And government in this context needs to be understood from all levels (supranational, national, regional and local). Other actors involved comprise civil society, NGOs, media, lobbyists, international donors, multi-national corporations, etc. All may play a role in decision-making or in influencing the decision-making process.

Governance in international politics

Nowadays the term governance is extremely popular but it is often used very imprecisely.

Within international politics it is normally used to describe a phenomenon that goes beyond the government, embracing governmental institutions, but also informal non- governmental mechanisms. The governance concept allows us to discuss the role of governments in coping with public issues and the contribution that other players make.

The term “governance” has burrowed its way into different member states parlance since the mid-1990s, among academics as well as among public officials, but in the latter group to a limited extent not only with regard to frequency of use, but also in relation to connotations and audiences.[2]

Differently, in connection with the World Bank and the OECD, governance has taken on a clearly prescriptive connotation as in “good governance.” OECD argues that:

Good, effective public governance helps to strengthen democracy and human rights, promote economic prosperity and social cohesion, reduce poverty, enhance environmental protection and the sustainable use of natural resources, and deepen confidence in government and public administration. This usually also means reducing the risk of corruption and mal-administration as well as securing democracy and human rights.

However, governance has through the European Commission taken on a third meaning whereby the term encompasses the relationship between government and civil society.

Indeed, the European Commission published in 2001 its White Book on Governance, which has become one of the prime reference points in the discussion of governance in the EU. The White paper proposed opening up the policy-making process to get more people and organisations involved in shaping and delivering EU policy. It sets a series of principles of good governance, to promote greater openness, accountability and responsibility for all those involved.

In the 90’s scholars specialised in the EU integration process, started to use the term Multilevel Governance to explain how multiple levels of government have overlapping competencies and the existence of an interaction of political actors across these levels.

Deriving from the works of the EC, the Committee of the Regions also published in 2009 its works on The White book on Multilevel Governance, building upon the Commission 8 principles.

The Council of Europe principles of good governance

Good governance gives expression to the idea of the roles and functions of governments understood as strategic drivers for the adherence to a set of established common principles, agreed as instruments to achieve a common goal. The commonly agreed principles of good governance are the result of the continuous efforts conducted by several international organisations for the past few decades, trying to understand and monitor governance.

Indeed, good governance is now considered as the new paradigm to give full effect to democracy, human rights and the rule of law.  Citizens expect to have their voice heard, their human rights protected, their needs taken into account, and that pubic authorities exercise their power in a transparent and accountable manner.

While listing different sets of principles with the aim of using them for evaluation purposes on the performance of a given organisation or government, one needs to ensure a common understanding of the meaning of those principles.

Defining the principles of good governance is difficult and controversial. The United Nations Development Program (UNDP “Governance and Sustainable Human Development, 1997”) enunciates a set of principles that, with slight variations, appear in much of the literature. In the context of transparency for example, it is possible to determine “where we are now”, “where we want to be”, “how we get there” – the strategies, priorities and techniques, “how we stay there” – sustainability and “making sure we get there”- the implementation.

Classifying and comparing these principles often reveals overlap or conflict at some point, relevance linked to the actual social context, complexities associated with implementation, and that they are not only associated with the consequences of power but also how well it is exercised.

Figure 1: Concepts of monitoring governance by different organisations (extended compilation based on Radaelli, 2005)

	European Commission (White Paper on European Governance 2001)	OECD (Organization for Economic Co-operation and development)	WB (World Bank)	MG (Mandelkern Group on Better Regulation)	CoR (White Paper on MLG 2009)
Responsibility	X	X	X	X	X
Effectiveness	X	X	X	X	X
Openness	X	X		X	X
Participation	X		X		X
Coherence	X				X
Subsidiarity	X			X	X
Proportionality	X			X	X

The Council of Europe has embraced and structured all of these principles with a commonly agreed set of qualitative indicators:

1.    Fair conduct of elections, representation and participation

2.    Responsiveness

3.    Efficiency and effectiveness

4.    Openness and transparency

5.    Rule of Law

6.    Ethical conduct

7.    Competence and capacity

8.    Innovation and openness to change

9.    Sustainability and long term orientation

10. Sound financial management

11. Human rights, cultural diversity and social cohesion

12. Accountability

A comparative table taking the principles set by the European Commission in its 2001 White Paper on European Governance and the 12 principles established in the Strategy by the Council of Europe makes it possible to draw some parallels as follows.

Figure 2: Principles of good governance. Comparative table of the principles established by The European Commission White Paper (2001) and the Council of Europe

EUROPEAN GOVERNANCE A WHITE PAPER	THE 12 PRINCIPLES OF GOOD GOVERNANCE COUNCIL OF EUROPE
Openness	Innovation and openness to change	Openness and Transparency
Participation	Respect for human rights and cultural diversity	Fair elections and citizen participation
Accountability	The rule of law/ Ethical conduct	Accountability/Responsiveness/ Human rights
Effectiveness	Efficiency and effectiveness	Sound financial management
Coherence	Sustainability and long term orientation	Competence and capacity (Skills and capacity are constantly improved)
Subsidiarity and proportionality

Making the Twelve principles of good democratic governance meaningful

Using this table (and the definitions and indicators provided by the United Nations) the following basic definitions for the same principles named sometimes differently by different international organisations can be established.

Transparency and openness

Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media.

Participation

Participation by both women and men is a key cornerstone of good governance. Participation could be either direct or through legitimate intermediate institutions or representatives. It is important to point out that representative democracy does not necessarily mean that the concerns of the most vulnerable in society would be taken into consideration in decision making. Participation needs to be informed and organised. This means freedom of association and expression on the one hand and an organised civil society on the other hand.

Accountability

Accountability is a key requirement of good governance. Not only governmental institutions but also the private sector and civil society organisations must be accountable to the public and to their institutional stakeholders. Who is accountable to who varies depending on whether decisions or actions taken are internal or external to an organisation or institution. In general an organisation or an institution is accountable to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rule of law.

Responsiveness (competence and capacity)

Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe

Rule of law

Good governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force.

Consensus oriented (sustainability and long term orientation)

There are several actors and as many viewpoints in a given society. Good governance requires mediation of the different interests in society to reach a broad consensus in society on what is in the best interest of the whole community and how this can be achieved. It also requires a broad and long-term perspective on what is needed for sustainable human development and how to achieve the goals of such development. This can only result from an understanding of the historical, cultural and social contexts of a given society or community.

Equity and inclusiveness (respect for human rights and cultural diversity)

A society’s well-being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the mainstream of society. This requires that all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well-being.

Effectiveness and efficiency (sustainability)

Good governance means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal. The concept of efficiency in the context of good governance also covers the sustainable use of natural resources and the protection of the environment.

III.                EXAMPLES OF GOOD PRACTICE

Almost all members States have policies and actions aimed at promoting good governance at all levels of government, developing and enhancing dialogue between tiers of government, strengthening accountability and fostering citizens’ participation. The list that follows[3] provides a summary of actions in relation to the relevant principle(s) of good democratic governance.

AUSTRIA – Detected priority principles: Participation, sound financial management

Measures are being implemented in the regions focusing on financial aspects, effectiveness and efficiency. A number of initiatives have been undertaken to improve participation at the local level.

BELGIUM - BRUSSELS CAPITAL REGION- Detected priority principles: Participation, openness and transparency

Brussels capital has re-launched the Strategy for innovation and good governance at local level this year.

BELGIUM - WALLONIA - Detected priority principles: Participation, openness and transparency

In 2009 the region decided to become a “model” of governance through a reform process of the provinces and the establishment of regional hubs (bassins de vie) strengthening the collaboration among municipalities, on a voluntary basis. 

In 2009, Wallonia launched an action programme for the period 2009 – 2014 to carry out the reforms necessary for achieving “good governance” at all levels (regional, provincial, intercommunal, communal and beyond). Without making explicit reference to the “Strategy”, its underlying principles were clearly present in the regional plans of action. In addition, an innovative process for managing regional hubs was at the heart of the reflection on a given territory and on finding funding for it. This new form of supra-community strengthens collaboration between the cities and the municipalities on a voluntary basis.

BELGIUM - FLANDERS - Detected priority principles: Participation, openness and transparency, efficiency and effectiveness, competence and capacity, innovation and openness to change, sustainability and long-term orientation and sound financial management are guiding the reforms

An “internal state reform” in Flanders is being carried out with the aim of bringing government closer to the citizen through a bottom-up approach which includes a reduction to a maximum of two of the administrative levels for decision making. The number of provincial councillors has been reduced.  The voluntary amalgamation of local governments is encouraged.

BULGARIA - Detected priority principles: Participation, sound financial management

Bulgaria has adopted several strategic documents (packages) for regional and local development which can become key mechanisms for achieving the priorities of the Europe 2020 Strategy by mobilizing and developing the regional and local potential for achieving intelligent, sustainable and inclusive growth.

The additional protocol to the Charter of Local Self-government was signed by Bulgaria in 2012.

13 Bulgarian municipalities were awarded the European Label of Governance Excellence (ELoGE) in 2011.  16 Bulgarian municipalities were awarded ELoGE in 2013.

CZECH REPUBLIC - Detected priority principles: Transparency, efficiency and effectiveness, sound financial management

Changes are being implemented that affect e-government tools, harmonisation of territorial units, better financial management and budgetary allocation.

ESTONIA - Detected priority principles: Efficiency and effectiveness, sound financial management

Preparatory works are being conducted to create regional hubs, for better economic development and creations of jobs within the hub. They plan to use structural funds more efficiently to develop capacity-building, sound financial management, and enhanced support from the Centre for the performance of the tasks of the local level.

FRANCE - STRASBOURG- Detected priority principles: Transparency, efficiency and effectiveness, sound financial management

Emphasis is placed in the principle of transparency in order to enhance confidence of the citizens in local government. The District Councils is the tool used for the transformation of the public space, and accountability measures ensure sound financial control.

HUNGARY – Detected priority: efficiency and effectiveness, sound financial management-

With the approval of a new constitution in 2012, important constitutional articles refer to the local level of governance. A new task financing system and new inter-municipal associations were introduced while keeping the same amount of municipalities and settlements. Regional authorities, accountable to the state, have been created to supervise the work. The evaluation process is now underway.

ICELAND - Detected priority principles: Participation, openness and transparency, efficiency and effectiveness, innovation and openness to change, sustainability and long term orientation

A vision for the future is enshrined in Iceland 2020 policy statement. A new Local Government Act (which came into force in 2012) supports reinforced participation by the citizens in decision-making. Better use of ICT to promote the implementation of e-government and e-democracy is also a priority.

IRELAND - Detected priority principles: Participation, openness and transparency, efficiency and effectiveness, innovation and openness to change, sustainability and long term orientation

The action programme for effective local government was published in 2012 placing the citizens first, and providing for a wide range of measures to support this objective involving significant changes in local government structures, functions, funding, governance, and operational arrangements.  A comprehensive presentation of the reform programme was made at the 51^st CDLR meeting in April 2013.

LUXEMBOURG - Detected priority principles: Participation, openness and transparency, efficiency and effectiveness

The city of Luxembourg presents an interesting example of good practice in the context of citizen’s participation, with different best practice initiatives explained in different municipal websites.

NETHERLANDS - Detected priority principles:Openness and transparency and participation, accountability, efficiency and effectiveness, competence and capacity

A Code for good public governance was adopted by the Dutch government in January 2009. It sets out the principles of proper public administration. The aim of the Code is to promote self-reflection among public administration bodies and to foster dialogue on good governance and it was prepared following extensive consultations.

The initiative “Be democracy” from 2012 has been launched with the aim of enhancing participatory democracy. Examples of best practice can be found in three municipalities (Enschede, Dordrecht, and Zeist) where citizens are asked to participate in budgeting decision-making. Several other cities with populations of between 50.000 and 150.000 are looking for formulas to govern with the involvement of all stakeholders, including in relation to issues of budgeting.

NORWAY - Detected priority principles: Participation, Innovation and openness to change

A White Paper called “A strong local democracy” was presented to the Parliament in 2008 and is now being implemented. Examples are reform processes through trials in a number of municipalities, evaluation of results and the reform initiatives (for example reducing voting age to 16 for local elections).

The Council of Europe Strategy for innovation at local level was adopted in 2008. The municipality of Time was awarded the European Label of Governance Excellence in 2012 with emphasis on the principle of transparency.

PORTUGAL – Detected priority principles 2012-2013: Rule of law, Sound financial management, innovation and openness to change

Legislation enacted in 2012 allows for the merger of municipal enterprises and a reduction in the number of parishes (around 25% reduction), intermunicipal cooperation and greater fiscal accountability.

SLOVAKIA – Detected priority principles: Transparency, Efficiency and effectiveness

In May 2012 the Manifesto of the Government (including local government) defines the priority areas, working together with unions and associations of local governments. The Ministry of the Interior is currently conducting an evaluation of the decentralisation process and its financing, in order to recommend measures for improvement.

SLOVENIA – Detected priority: Efficiency and effectiveness, sustainability, long-term orientation

Slovenia is preparing a long-term strategy on future development in the field of local self–government focused on the reduction in the number of municipalities. At the end of 2013 a decision is expected on whether to join the Council of Europe Strategy for innovation and good governance at local level.

SWEDEN – Detected priority principles: Efficiency and effectiveness, Innovation and openness to change, Competence and capacity, Ethical conduct, Openness and transparency, participation

A strong priority is given to benchmarking, done in close cooperation with SALAR (the local government association), in order to promote effectiveness and improving competence and skills of the staff in municipalities and county councils.

“THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA” – Detected priority principles: Rule of law, sound financial management, efficiency and effectiveness

The law from 2004 on territorial organisation is currently being developed to enable implementation of further decentralisation. The funding system, capacity-building, and performance orientation, are the priority items. Evaluation of public policies has also been redesigned to facilitate evaluation on how the process fulfils the envisaged objectives of the reform.

IV.         HOW THE PRINCIPLES OF GOOD DEMOCRATIC GOVERNANCE CAN BE PROMOTED AND APPLIED AT LOCAL AND REGIONAL LEVEL

Analysis of the concept of governance and its implementation through established sets of principles and procedures clearly shows that the Strategy for Innovation and Good Governance of the Council of Europe provides an appropriate set of principles and a useful reference framework to ensure compatibility between national/regional reforms and democratic governance criteria.

Limited yet effective experience also shows that member States reforms implicitly or sometimes explicitly “use” the Strategy as the backdrop against which those reforms can be pinned.

The next step is therefore to consider how to promote the principles of good democratic governance having regard to the existing instrument, i.e. the Strategy, or regardless of the Strategy. The following could be considered:

As regards the Strategy for Innovation and Good Governance

·         Categorise the principles in two sets, only for methodological purposes, in order to facilitate evaluating adherence to them.[4]

·         Involve a broader set of stakeholders, embracing a full range of multilevel actors in the performance of the Strategy: apart from those already set out in the Strategy such as the State and the relevant regional associations, NGOs and civil society organisations should also be involved. This would ensure a real multilevel approach to guarantee the implementation of good governance at all levels.

·         Link the ELoGE label to a set of pre-defined practices which constitute success stories / best practice.

·         Categorise, within the success stories, gaps (principles not yet fully adhered to) and potentials (challenges ahead and potential for success). 

·         Organise a ceremony with explicit presentation and recognition of concrete examples of good practices. Publish a project catalogue with description of the best performers.

·         Follow up on those practices in order to identify the “enablers” which make the project a success story, what the project has achieved and the lessons learned.

·         Disseminate these lessons through learning projects. For this a “project manager” or “coach” is needed on a long term basis (minimum five years). This role could well be performed by either an internal or external expert, entrusted with the task of coordinating and actively promoting the participation of as many stakeholders as possible in the awarding of the label, and the corresponding communication campaign.

·         Open up an online page with all the best practices (easily accessible interactive web), and ask the project manager to continuously feed information into the web, making use of social media as intensively as possible.

As regards other measures aimed at promoting the principles of good democratic governance:

·         Share good practices among governments and local authorities, both in the context of intergovernmental work at the Council of Europe through thematic debates, and in the Congress of Local and Regional Authorities

·         Organise summer/winter schools in pre-selected member states where local authorities are performing well in order to raise awareness and understanding of the work of the Council of Europe and the benefits of engaging in the Strategy and Label award

·         Request and make use of such tools as the peer-reviews of national policies

·         Promote the tools of the Centre of Expertise for Local Government Reform.

V.                   CONCLUSION

Many states are currently involved in preparing or promoting policies aimed at strengthening good governance capacities and practice.  As ”governance” is an abstract concept, it needs a concrete definition anchored in the reality of a specific territory; it is also important to ensure a common understanding of the principles that are internationally accepted and used to evaluate governance in different countries. Therefore, while the concept of good governance is not uniformly interpreted throughout the world, a common understanding of the meaning of the concept and the basic principles underlining it should be established to serve as guidance to member states embarking on governance reforms.

Based on replies to the CDLR questionnaire, and through exchange of views and good practice in the CDLR, it is clear that states have many and varied approaches to understanding and promoting good governance. What also comes to light is that while some states are embarking on important comprehensive reform processes, others are adopting a more cautious and piecemeal approach towards initiatives to strengthen good governance.

From the information available, it would appear that states adopting strategic and all-encompassing initiatives to strengthen good governance, including by enacting legal reforms and promoting longer-term strategies, are more readily able to adapt and adhere to the 12 Principles.  

However, what is also clear is that member states often take a more step-by-step approach in promoting reforms of the governance framework.  As such reforms won’t deal with all aspects of the 12 Principles, it is important to enable a degree of flexibility that supports the individual context. Such a flexible approach should allow stakeholders to obtain recognition of progress made through gradual steps towards adherence to all 12 Principles of good governance.

The main challenge for member states embarking on governance reforms is not how to implement the 12 Principles as such, but rather to establish a conceptual idea of the desired governance framework that will respond to the needs of citizens and also meet the standards required in the flexible and globalised society we live in.

While it is possible to see a trend away from more traditional vertical hierarchical governance frameworks into more horizontal governance frameworks based on shared (legal) norms and values, many of these recent reforms stem from a top down approach. Horizontal governance frameworks are considered to be more flexible and better equipped to meet the demands of today’s citizens, but in order for such change to be effective it is important to ensure trust and cooperation across all levels of government.

Sharing experience and good practice in an intergovernmental context is therefore an invaluable tool to help identify successful initiatives to promote the principles of good governance and strengthen relations between tiers of government. Developing such initiatives to strengthen good governance is central to current modernisation efforts in most member states, with a particular emphasis on the crucial role of promoting citizen participation and involving civil society.  Nevertheless, only a few member states have an integrated approach interlinking the different tiers of government.

Particularly in this era of reforms instigated as a consequence of, or in response to, the effects of the financial crisis, central governments should be careful to ensure that proposed changes take in to account standards on good governance, capacity building and citizens’ democratic participation.  Government reform should not be focused solely on austerity policies, but should instead be centred on adopting measures to encourage and strengthen good governance and citizens’ participation by improving efficiency and effectiveness, promoting engagement and participation, encouraging innovation and sustainable solutions in a climate of accountability and transparency with respect for human rights and the rule of law.