Strasbourg, 14 April 2010                                                                     LR-GG(2010)6

                                                                                                                         

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)


COMMITTEE OF EXPERTS ON GOOD DEMOCRATIC

GOVERNANCE AT LOCAL AND REGIONAL LEVEL

(LR-GG)

CENTRE OF EXPERTISE FOR LOCAL GOVERNMENT REFORM

Secretariat Memorandum

prepared by the Directorate General of

Democracy and Political Affairs

Directorate of Democratic Institutions


This document is public. It will not be distributed at the meeting. Please bring this copy.

Ce document est public. Il ne sera pas distribué en réunion. Prière de vous munir de cet exemplaire.


Introduction

Created at the beginning of 2006 following the decision of the Third Summit of Heads of State and Government and confirmed in May 2008 by decision of the Committee of Ministers, the Centre of Expertise for Local Government Reform aims at building capacity in local authorities throughout Europe by the use of impact-oriented programmes.

The Centre of Expertise's capacity-building programmes go beyond training local authorities: such programmes aim at improving local institutional capacity by offering to local authorities practical tools that they can use in order to improve their governance and by helping them to use such tools. Moreover, actual reform is very often the result of implementing such programmes and is highly encouraged throughout the process.

The Centre of Expertise innovates but also takes inspiration from the best capacity-building programmes implemented in European countries, in order to develop effective template programmes (“tools”) which can easily be adapted and implemented by local authorities in any European country. They make use of original instruments (score cards, self-assessment forms, benchmarks, etc.) and methodologies (comparing and learning from others, 360° reviews, peer reviews, etc.) in order to achieve maximum impact.

It is recalled that the Centre’s priorities and programmes are discussed in its Advisory Board, a member of which is appointed by the CDLR (currently Mrs Greta Billing, Norway).

Until now, the Centre has based the development of its tools on the work of the CDLR (e.g. the Public Ethics Benchmark, the Local Finance Benchmark), has taken inspiration from good experience of various partners (e.g. the UK Beacon Scheme inspired, to a large extent, the Centre's Best Practice Programme) or has innovated (e.g. tools from the "Towards a modern local government association Toolkit", the future Human Resources Management Toolkit...).

It is however considered that involvement of the CDLR and its subordinate committees (and in particular the LR-GG) early in the process of preparing new tools could be beneficial from several points of view:

-     the CDLR and the LR-GG Committee could give useful guidance as to the specific needs that the tool in question should address and as to the types of answers the tools should give to such needs;

-     CDLR and LR-GG members could identify useful practice and experience in the field dealt with (similar programmes, tools, but also templates and case studies), which could serve as inspiration in the development of the tool or which could usefully be added to the Toolkit;

-     CDLR and LR-GG members could identify experts who could either (further) develop the tool or help in its implementation in the various committed municipalities.


In the long run, the tools that the Centre develops should ideally cover all the 12 Principles included in the Strategy for Innovation and Good Governance at Local Level. This is needed in order to offer practical solutions to municipalities which realise, in the process of implementing the Strategy and/or of applying for the European Label, that their practice needs to improve in respect of one or several of these principles.

This document contains:

-        a brief overview of the activities conducted in 2009 (Appendix I);

-        an overview of the activities planned for 2010 (Appendix II);

-        a list of the tools developed so far and under development (Appendix III);

-        the preliminary concept of the next tool on Human Resources Management.

Action required

The LR-GG is invited to:

-      examine and comment on the activity of the Centre in 2009 and its prospects for 2010;

-      examine the list of tools already developed or under development and give guidance to the Centre of Expertise as to other topics which could be the subject of new tools to be developed; if appropriate, offer information concerning existing tools which may be employed by or which may serve as inspiration for the Centre;

-      discuss the structure of the future Toolkit on Human Resources Management.


Appendix I

The Centre of Expertise - Activity in 2009

General assessment

2009 was a challenging year. The Centre's notoriety has increased and this means that more and more demands are received. However, several activities funded by Joint Programmes with the European Commission or by voluntary contributions came to an end and the funding was not renewed. On the one hand, the  rules applicable to applying for EC funding have evolved and more often than not the Centre of Expertise is no longer eligible as beneficiary of  direct funding or even as applicant in the procurement processes. On the other, the current financial crisis entailed a reduction of resources the Centre could tap from voluntary contributions by member states.

Moreover, several programmes already planned had to be cancelled because partners could not find the matching funds. The budget was quickly redeployed in order to increase the impact of existing programmes but the available funding was not sufficient to launch new ones.

The position of Head of the Centre, created in 2009, also had to be cancelled for budgetary reasons.

The Centre was therefore faced with the dilemma of answering to an increased number of requests with a diminishing budget and with fewer staff than planned.

Activities implemented

A new Toolkit, based entirely on the work of the CDLR (in particular its Handbook on public ethics at local level and the Committee of Ministers Recommendations Rec(2004)1 and Rec(2005)1), was published.  This Toolkit includes a tool on Benchmarking Public Ethics at local level (based on an original programme tested in Spain and implemented in Ukraine, Moldova and Romania) and another one on Benchmarking Local Finance (based on an original tool developed and road-tested in Bulgaria in co-operation with the Open Society Institute).

Moreover, a series of tools for the Leadership Academy Programme were developed and should be published in one of the next Toolkits. The new tools on Performance Management and Municipal Planning are being finalised and should be published in 2010.

The Centre also contributed to the preparation of the new Toolkit on Inter-municipal Co-operation, developed in a broad partnership including the Division of Programmes for Democratic Stability, OSI-LGI and UNDP-Bratislava Regional Centre.


In 2009, the Centre of Expertise implemented 15 capacity-building programmes in 11 countries. Planning activities for the introduction of specific programmes were held in three other countries, Croatia, Turkey and Ukraine, but the full implementation of these programmes should be performed in 2010.

All programmes were implemented in close co-operation with local partners, in particular Ministries, local government associations and training institutions. National Steering Groups were set up for all programmes except the Leadership Academy Programme. Several programmes were implemented in co-operation with international partners in Albania (OSCE), Georgia (KS and MFA of Norway), Serbia (JP with European Commission and Embassy of France in Belgrade) and Montenegro (OSCE). The Centre currently has statements of co-operation with INET (France) and the Academy of St-Petersburg (Russia) and co-operation arrangements with the University of Pau (France) and KS (Norway). Negotiations are in progress with the Union of Municipalities of Marmara Region (Turkey).

The Centre also assisted in the implementation of the Strategy, in particular as regards supporting the countries which have joined it, promoting the Strategy among European countries and local authorities, ensuring the secretariat of the Stakeholders’ Platform and defining the main criteria for granting the Good Governance  Label.

The following tables present overviews of the activity in 2009.

I.         General overview of activities implemented in 2009

Development of tools

 

Publication of Toolkit III including the following tools (based entirely on the work of the CDLR):

-        Public Ethics Benchmarking

-        Financial Management Benchmarking, developed jointly with OSI

Finalisation of the Performance Management tool and of the Municipal planning tool. The two should be published in a new toolkit in 2010.

Participation in the development of  the Inter-municipal co-operation programme, developed in a partnership including the Division of Programmes for democratic stability, UNDP and OSI-LGI.

Finalisation of a new Leadership Academy tool.


Country-specific programmes

Albania

-        Performance management and financial planning

Armenia

      -        Updating the Training Needs Assesment

France

-    Participation/co-organisation of various activities in cooperation with INET, University of Pau, City of Strasbourg, the Region Ile de France, contribution to OPPALE activities

Georgia

-          Municipal Councillors Training Programme

-          Strategic Municipal Planning

Hungary

-          Leadership Benchmarking Programme

-          Best Practice Programme

Malta

-          Performance management programme

Montenegro

-          Public Ethics at Local Level

Russian Federation

-          Leadership Academy Programme in NW Russia

(Chechnya)

-     Five preparatory activities: workshop to democracy and best practice, seminar on municipal elections, study visit in a European country, workshop on the legal framework, workshop on strategic development

Serbia

-     Performance management programme

“the former Yugoslav Republic of Macedonia”

-          Leadership Benchmarking Programme

-          Public Ethics Programme “Transparent Municipality”

-          Best Practice Programme


Appendix II

Prospects for 2010

General considerations

Because of its success, there is a clear need for the Centre to consider its future development.  This reflection takes place in a context of the more general transformation announced by the Secretary General, of which the contours will become more clear over time. There is no reason to expect that the Centre or its mission will be called into question. However, it is also likely that the Centre will, as all other parts of the Organisation, have to bear its share. This development could only be offset by cuts elsewhere. Meanwhile demand for co-operation programmes is still on a rising curve.

One recent development and one reflection need to be taken into account at this stage.

The first one reflects in increased synergies with other services of the Council of Europe, in particular the other sectors of the DLRDGG and with the Congress. The Centre is highlighted in the Utrecht Agenda as one of the main strands of the overall work, which the representatives of ministers, members of the CDLR, are instructed to support and encourage. This could entail more consultations with the CDLR on the Centre’s plans and prospects and inviting more systematically input from the CDLR and its subordinate committees in the development of new tools.

Following the cancellation of the position of Head of the Centre it is envisaged that the post of Head of the Assistance Programmes, which has became vacant, be re-defined as one that heads up the Centre and the (legislative and policymaking) co-operation programmes. This should also allow for more horizontal co-operation between the two operational sectors and possibly some form of integration of work. While assistance programmes are mainly aimed at central authorities and not at local authorities themselves, capacity building for local authorities and legislative/policy assistance on institutional reforms have common points and re-enforce each other. There is value also in trying to integrate, to a degree to be examined more closely, the two teams: economies of scale, especially in staff travel time and costs, would be obtained if both types of activities were be managed, in a given country, by the same staff member.

The Centre’s support to the implementation of the Strategy for Innovation and Good Governance at Local Level will continue by addressing the specific needs of countries engaged in the Strategy.


The reflection addresses the need for the Centre to prioritise better its activities. The Centre does not work on the basis of strategic and long-term programmes, but rather on current demand, where three conditions are met: a clear need, strong commitment to improvement from the local authorities and associations concerned and enough funds. This is not about to change. However, the Centre needs to have more transparent criteria for deciding its activities in order to avoid frustration generated when demands cannot be responded to.

The following two criteria have been used for selecting programmes to be implemented in 2010:

-      first, programmes where the impact is highest through budgetary leverage offered by local or other partners or the guarantees as to the sustainability of the programme; typically, the Centre will fund the general management and expertise (one fourth to one third of the total costs) of the programme, while the local partner will need to finance all operational costs;

-      second, programmes which are a follow-up of the implementation of the Strategy for Innovation and Good Governance at Local Level.

The question is whether these criteria are appropriate in the current situation or they should be changed, and how.

Activities foreseen

The following tables present an overview of the activity envisaged for 2010.

Development of tools

- Publication of the new toolkit on performance management and municipal planning

- Publication (possibly in the same toolkit) of the tool developed for the Leadership Academy Programme;

- Preparation of the first version of a new tool/toolkit on human resources management


Country-specific programmes

Albania

-          Human resources management

Armenia

-          Up-date of the National Training Strategy

-          Support with municipal planning to the City of Yerevan

Belgium

-          Performance management

Bulgaria

-          Public Ethics

Croatia

-          Inter-municipal co-operation

France

-          Several activities in co-operation with INET (citizen participation and strategic management), Lille (Digital City) and OPPALE (piloting a working group) and Bordeaux (conference on the Strategy and performance management)

Georgia

-          Strategic Municipal planning Programme

Hungary

-          Best Practice programme

Malta

-          Performance Management

-          Inter-municipal co-operation

Russian Federation

-          Leadership Academy Programme

-          Public Ethics

-          Inter-municipal Co-operation Programme

Chechnya

-          Five preparatory activities (leadership, performance, planning, assistance to drafting city statutes and financial management)

Serbia

-          Performance Management

-          Human Resources Management

Spain

-          Citizen participation

Switzerland

-          Best Practice Programme in the Ticino canton

 “the former Yugoslav Republic of Macedonia”

-          Performance Management Programme

Turkey

-          Leadership Academy Programme

Ukraine

-          Follow-up to the Public Ethics Benchmarking Programme

-          Best Practice Programme

-          Performance Management Programme


Appendix III

Capacity-building tools already developed or under development

a.       National Training Strategies

In many countries local government training needs further development. National and local training capacity and training budgets are often inadequate. Core training packages may not have been sufficiently developed. Trainers may themselves need more training. There may be insufficient training standards for training programmes or materials.

Against this background, the development of a National Training Strategy (NTS) is based on a comprehensive Training Needs Analysis including:

-          A qualitative investigation based on a series of in-depth individual and focus group interviews with municipal representatives;

-          A verifying survey based on questionnaires addressed to local officials of all ranks and conducted in co-operation with municipalities.

The NTS allows organisations with a stake in local government to establish a more professional training environment.

This tool has been or is being implemented with the assistance of the Centre of Expertise in Albania, Armenia, Croatia, Georgia, Moldova and Montenegro.

b.       Leadership Development

Strong leadership, i.e. the capacity of local authorities to develop a clear vision for the municipality and to make it come true through strategic management and involvement of the local community, is an essential feature of an effective local authority.

The Council of Europe has therefore developed a model “Benchmark of an Effective Democratic Local Authority” (The Leadership Benchmark) that sets out the expected levels of performance by a local authority in 9 leadership competences. It can be used in several ways, including a practical Peer Review methodology:


-        Through local workshops. This introduces mayors, senior officials and elected members to the leadership competences expected of them.

-        Through self-assessment. The leadership of the local authority systematically identifies its strengths and areas for improvement against the Benchmark and draws up an Improvement Plan.

-        Through Peer Reviews. A national pool of competent senior officials and elected representatives are trained as ‘critical friends’ (external assessors); a team of 4 peers is invited into a local authority to identify its strengths and areas for improvement against the Benchmark by assessing strategic documents, using interview and workshop techniques with key stakeholders and participating in relevant meetings. The recommendations of the Peer Review team provide the basis for the leadership of the local authority to develop an Improvement Plan.

This tool has been or is being implemented in Albania, Bulgaria, Croatia, Hungary, Montenegro, the Russian Federation, Serbia and “the former Yugoslav Republic of Macedonia”.

c.       Best Practice

There are local authorities in every country that achieve the highest standards in some aspects of their work. This best practice can be identified and shared with other local authorities. Learning from each other, rather than from an external expert, is indeed a best practice methodology.

The Best Practice programme applies a systematic approach, where best practice achievement in selected themes is identified and celebrated, but carries with it an obligation to pass on the best practice to other local authorities through a systematic training programme.

In practical terms, the programme explains very clearly how to launch an awareness-raising campaign through the preparation of a booklet and an application form to be sent to all local governments and through the media. Once applications are received, a Selection Panel will shortlist a number of them and will make fact-finding missions to the respective municipalities. The Selection Panel will select the award-winning municipalities who will receive their awards during an official ceremony.

In the second stage, the dissemination phase includes Open Days and study visits organised in these municipalities, seminars and workshops, dissemination on paper and on CDROM, preparation and broadcasting of short documentary films etc.

Each year, a new Best Practice round with different themes can be launched.


This tool has been or is being implemented in Albania, Bosnia and Herzegovina, Croatia, Hungary, Moldova, Montenegro, the Russian Federation, Serbia and “the former Yugoslav Republic of Macedonia”.

d.       Fundamental Performance Review

Where a local authority recognises weakness in a service, it can use an internal review team to systematically review the service, identify best practice elsewhere and recommend the way forward. External assistance can provide objectivity and bring expertise. The tool is helpful when used in conjunction with, for example, the Leadership Benchmark or the performance management programme, when areas for development are identified.

This tool has been developed and should be published in connection with the Performance Management tool in Toolkit IV.

e.       Guide to Local Democracy

To develop proper accountability for local government, the local population and organisations need to understand the rights, obligations and opportunities of their local authority. Where there is insufficient awareness, this Guide can be adapted and used as a tool in local seminars that bring together local people with the councilors and officials of their local authority. Such seminars can stimulate on-going dialogue between local authorities and the citizens they serve.

This tool has been developed and should be incorporated in Toolkit IV.

f.        Public Ethics Benchmark

Democracy depends fundamentally on public trust. Without broad confidence of the public in the integrity of those they elect to represent them, and of those employed to deliver services to them, democratic institutions will falter. Democracies across Europe are increasingly aware that standards of ethical behaviour must be actively nurtured.

To help do so, the Centre of Expertise has developed a tool that helps local authorities to assess and, above all, to improve public ethics.

This tool comprises a European Score Card and a methodology organised around objective self-assessments and reviews by trained peers.

It was road-tested in Spain in 2007 and subsequently implemented in Moldova, Ukraine and Romania. This tool was included in Toolkit III.


g.       Strengthening the Capacity of Local Government Associations

Local Government Associations (LGAs) are critical institutions in building strong local government. An LGA is about developing “good governance”. A strong and independent LGA can make a difference. It promotes decentralisation, strengthens local authorities and builds up local government institutions, such as training agencies and information centres that can help local authorities to develop their expertise, to build capacity and to drive up performance towards European standards. However, in many countries the LGAs should be much stronger than they are and local authorities could benefit considerably from more comprehensive LGA support.

The Council of Europe and UNDP have brought together tested materials from across Europe in a Toolkit entitled “Towards a Modern Local Government Association”. 

The Toolkit is a single collection of modern and practical tools which should help an LGA to play a more significant role as a national advocate for better local government and to provide effective training and capacity-building services to municipalities. It focuses on the performance (self-)assessment of a LGA, its strengths and organisational development. It includes tools which can help local government associations to assess where they are, to improve their relevance and performance and to adapt to the needs of their members.

The Toolkit was employed in Malta and is being used by VNG International (Dutch local government Association) in Moldova and by NALAS (Network of Associations of Local Authorities in SEE) in its Task Force on Capacity-building for local government associations.

h.       Performance Management

Performance management is a key discipline local authorities can use to drive up performance in internal and external services. Local authorities and their associations should identify those critical factors that determine good performance in a service (key performance indicators). Performance indicators can cover, for example, service efficiency and quality, users’ satisfaction, service accessibility, unit cost, etc.

A national Association can use research across local authorities and in other countries to determine what standards should be applied within each key performance indicator. Individual local authorities can agree performance targets with service managers to achieve or exceed the standard. Managers can use performance indicators to improve their own performance. Where performance indicators reveal weakness, action can be taken to initiate improvements.


Regular local authority reports with performance data will show the level of performance against the performance indicators over time and relative to other local authorities. The association (with the government where it has a direct interest) can use performance management to drive up performance across local government.

The Centre has developed a Performance Management tool which was piloted in Bulgaria in 2006-2007 and implemented in Serbia in co-operation with French local authorities in 2008-2009.

This tool should be published in Toolkit IV.

i.        Citizen Participation

Local government is accountable to local people. Accountability starts with elections. But it should go beyond that. Local people and organisations want a say in the local authority’s vision and priorities, in how it spend its revenues. Service users can contribute to the design and quality of services so that the service better meets local needs. Local organisations may be able to work in partnership with the local authority to deliver specific services more effectively.

How good is a local authority at engaging local people and organisations in local government? The Community Participation programme will enable a local authority to do a ‘stock take’ of its performance in this field and draw up an Action Plan to drive improvements.

The Steering Committee on Local and Regional Democracy (CDLR) has developed and piloted a “CLEAR” participation model[1] in five member states. The first wave of tests ended with a final conference in June 2006 in Tampere (Finland); a second wave took place in 2007 in another group of countries. Subject to available resources, the results of this activity could be used to update and enrich the current Citizen Participation tool (already published in Toolkit I). The revised and completed version should be published in Toolkit III.

Moreover, a Citizen Participation programme based on a "health-check list" of questions and on a 360° review process is included in Toolkit I.

j.        Local Finance Benchmarks

Good local government depends fundamentally on the existence of sufficient financial resources, which allow local authorities to offer services that are adapted to their residents’ expectations, and on good financial management procedures, which provide both for the necessary flexibility in local budgetary questions and for clear accountability for financial decisions.


Based on the Council of Europe acquis, the Open Society Institute – Local Government and Public Services Initiative (LGI) and the Centre of Expertise have jointly developed a new tool, composed of two benchmarks, addressed respectively to local and central authorities and dealing both with the income and the expenditure side of local finance.

The Centre of Expertise and OSI successfully piloted this tool in Bulgaria, in co-operation with the National Association of Municipalities in the Republic of Bulgaria (NAMRB) and five municipalities.

This tool was published in Toolkit III.

k.       “Leadership Academy” programme

Starting from its tools for leadership development and subject to resources, in 2008 the Centre of Expertise developed a “Leadership Academy” programme. The aim of such a “virtual” Academy is to improve the abilities of local leaders. In practice, the programme provides for a series of national and international activities for senior elected representatives and officials (i.e. Mayors, Heads of Administration and their deputies) to develop their leadership capabilities and to take leadership initiatives in their own local authorities.

This programme was implemented in North-West Russia in co-operation with the NW Academy of Public Administration and should be published in one of the next toolkits.

l.        Municipal Urban Planning

Starting from the Leadership Benchmarking Programme, this Programme has for main objectives are to support local authorities to create a vision for their municipality by involving citizens and in the form of the participative development of concrete municipal strategic plans. This tool includes a Guide to Municipal Strategic Planning, template plans as well as tools for ensuring information dissemination and exchange in the form of training and peer reviews.

It should be published in Toolkit IV.


Appendix IV

Concept of the next Toolkit on Human Resources Management

Human Resources management is a field where local authorities in many Eastern countries have little if any experience and expertise. Many local authorities have no HR function at all. The needs are therefore quite substantial; however, the CDLR has not yet dealt with this topic.

Conversely, local authorities from Western and Nordic countries may have a quite developed HR function but they are looking for solutions to improve it.

The Centre of Expertise has already worked in the field of Human Resources management. It has helped local authorities in Georgia to develop various HR functions and has prepared a number of templates and guides for them, such as template job descriptions for basic local authorities' jobs, performance appraisals forms and interview guides. It has now started to work in Montenegro and Serbia. A Staff Handbook and a Managers' Guide should soon be prepared. Moreover, it has prepared model Codes of Conduct for local staff in Moldova and Ukraine.

A number of basic HR tools, in particular for Eastern Europe, have therefore already been developed. What is missing is one or two comprehensive programmes, associated to specific tools, which can help local authorities to understand their strengths and weaknesses and which can guide them throughout the process of reform.

The Centre has therefore launched, with the help of an expert, Ms. Sanda Ionescu, the preparation of two such programmes:

1.       A programme based on an innovative three-day capacity-building seminar aimed at offering participants the occasion not only to improve their basic HR skills, but also to conduct a self-assessment based on a simplified benchmark, to take inspiration from a benchmarking process and to prepare a  plan of action for their municipalities after sessions of one-to-one coaching;

2.       A more extensive programme, including self-assessment based on a more detailed benchmark, benchmarking and benchlearning, training to the peer review process and conducting peer reviews in order to help participating municipalities to improve.

To this, various helpful tools, guides and templates should be added in order to create a practical and comprehensive Toolkit.

The expert will present the concept of this toolkit and will take part in the debates.



[1]               CLEAR is an acronym for : Can do, Like to, Enabled to, Asked to and Responded to.