Strasbourg, 15 November 2010                                                            LR-IC(2010)11

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)


COMMITTEE OF EXPERTS ON LOCAL AND REGIONAL GOVERNMENT INSTITUTIONS AND COOPERATION

(LR-IC)

COOPERATION AND ASSISTANCE PROGRAMMES

(Budva and Dubrovnik Declarations)

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

This document contains two sets of recommendations emanating from regional conferences organised with partners in the framework of the cooperation programmes for local and regional democracy and which, as such contribute to the implementation of the Utrecht Agenda:

-        the Regional Conference "Good governance, Transparency and Ethics at the     Municipal Level, Budva - Becici, 2-4 June 2010;

-        the Conference on Inter-Municipal Co-operation, Dubrovnik, 23-24 September 2010.

The Secretariat will also present the IMC Toolkit developed in cooperation with UNDP and OSI/LGI.

Action required

The LR-IC members are invited to take note of the recommendations emanating from the conferences mentioned above and of the information provided by the Secretariat.


MINISTRY OF INTERNAL AFFAIRS

AND PUBLIC ADMINISTRATION OF MONTENEGRO

Regional Conference

“Good Governance, Transparency and Ethics at the Municipal Level”

Hotel Splendid, Budva-Becici, 2- 4 June 2010

RECOMMENDATIONS ON STRENGTHENING THE QUALITY OF LOCAL GOVERNANCE


1              At the invitation of the Ministry of Interior and Public Administration of Montenegro, with support of the Organisation for Security and Co-operation in Europe and the Council of Europe, and in co-operation with the Union of Municipalities of Montenegro, ministers, state secretaries, senior officials, local elected representatives and their associations of  South-eastern Europe have met in Budva to take stock of progress made in the action engaged at both central and local level to fight corruption and promote public ethics.

2             The participants have exchanged information and good practice, reviewed current policies and considered further measures aimed at enhancing the quality of local governance, with particular focus on the transparency and the ethical conduct of public affairs by all those involved.

3              All participants acknowledged that while significant progress has been achieved so far with a view to raising – and meeting – ethical standards in public affairs, there is still a need for sustained political commitment, appropriate legal measures and support for their implementation at all levels concerned. All agreed that fighting corruption, promoting ethical behaviour and cleaning up political life at local level is part of an overall effort aimed at the strategic goal of delivering good democratic governance at all levels. Corruption diverts resources, steers citizens away from political life, discredits institutions and erodes the very foundations of democracy.

4             It was recognised that the actions to be further undertaken should include the introduction of systems of performance management and that such actions would fit into – and benefit from being part of – the Strategy for Innovation and Good Governance at Local Level of the Council of Europe. The participants agreed to consider taking the appropriate action for the Strategy to be adopted in, and implemented by the countries of the region, with the involvement of governments and local authorities’ associations and with the support of the International community.

5             The participants further agreed on the following specific recommendations:

To central authorities

6             Ensure the existence and implementation of a simple and uniform legal framework governing the rights and obligations of public officials and local elected representatives, including accountability, guarantees and protection, remuneration and working conditions, supervision, disqualification, termination of office and suspension.

7              Ensure within the system of local self-government the existence of monitoring systems that verify the establisment and efficiency of anti-corruption measures in co-operation with NGOs and media.

8             Ensure arrangements enabling active participation of citizens in public controls of the work of local level institutions.


9             Encourage the adoption by local authorities of performance management systems that would supplement and enhance anti-corruption measures.

To each municipality

10           Publicly adopt a policy of zero-tolerance on corruption as an acknowledgement that the ethics of local government has a direct impact on the provision of good governance and that this is what citizens are entitled to and legitimately expect.

11           Introduce a Code of Ethics and an Ethics Committee in order to give direction to ethical local government and to respond vigourously to failures in ethical behaviour.

12           Supplement  the anti-corruption policy by  performance management systems that would engage all staff and stakeholders in contributing to achieving the municipality’s priorities and plans and give direction and sense of purpose to staff in their everyday work.

13           Establish an Internal Audit system to advise on the soundness of systems, processes and procedures, to carry out spot checks to determine their proper operation, particularly where functions are vulnerable to corruption, and to issue an d publish an Annual Internal Audit Report highlighting improvements made as well as risks that will need further management.

14           Develop a training policy and training programmes aimed at reinforcing in local staff and elected representatives the knowledge of, and compliance with the rules governing the rights and duties of public officials and local elected representatives.

To the Local Government Associations

15           Establish an Ethics Committee or Commission to promote ethical local government, prepare appropriate policies, oversee specific programmes and act as mediator in disputes on un-ethical behaviour at the level of municipalities.

16           Establish the professional capacity to support municipalities in delivering good local governance, particularly through capacity development programmes, performance management systems, best practice exchange, models and consultancy services.

17           Promote and facilitate the participation of local authorities in international benchmarking and sharing of best practice projects on good governance, ethics and transparency at local level.


Conference

on Inter-Municipal Co-operation

  23 – 24 September 2010, Hotel Rixos Libertas, Dubrovnik

RECOMMENDATIONS ON EXTENDING INTER-MUNICIPAL CO-OPERATION

THROUGHOUT LOCAL GOVERNMENT

                                                       


1.        At the invitation of the Council of Europe and the UNDP Democratic Governance Practice for Europe and CIS, with the support of the Organisation for Security and Co-operation in Europe (OSCE) and the Local Government and the Public Service Reform Initiative of the Open Society Institute (LGI-OSI) and under the auspices of the Ministry of Public Administration of Croatia, and in co-operation with the Association of Towns and the Association of Municipalities, ministers, state secretaries, senior officials, local elected representatives and their associations have met in Dubrovnik to take stock of progress made at both central and local level to encourage Inter-municipal Co-operation[1].

2.       The participants have exchanged information and good practice, reviewed current policies and considered further measures aimed at enhancing the quality of local government through Inter-municipal Co-operation. They confirmed that IMC needs to play a greater role in raising the quality of public services, bringing efficiency and effectiveness in administrations and introducing sustainable local development policies. It can bring additional resources to allow local authorities to respond to climate change.

3.        In the light of the long-term challenges coming from public fiscal deficits, climate and demographic change, there is a need for more efficient local government and better management of public expenditure. Central and local government need to work together to give a strong sense of direction and make best use of resources.

4.       Participants recognise that IMC provides a robust alternative to the amalgamation of municipalities where amalgamation is proving particularly difficult; acknowledging at the same time that IMC can lay the foundation for later amalgamation when conditions are appropriate.

5.        IMC is an important option available to municipalities for meeting the expectations of citizens for better services, more jobs and a cleaner environment. It brings them visibility. It helps to attract public and private investments including access to external funds such as EU grants or climate change mitigation and adaptation funds.

6.       It is recognised that the spirit of cooperation is a foundation of IMC and is a fundamental element of in the exercise of democracy at the local level.

7.        IMC is particularly relevant to those countries that have a large number of small municipalities that lack the capacity to provide effective local government. In some European states, IMC has evolved to become an effective mechanism for improving the quality of local government services.

8.       All participants acknowledged that while a number of effective and sustainable IMC initiatives have been developed, the need for its further development remains significant. They recognised that IMC can best be developed within an appropriate institutional, legal and financial framework. The complexities of IMC mean that municipalities need significant support from government and local government institutions. The appropriate legal framework gives the necessary mechanisms and confidence that municipalities need to co-operate with each other. The appropriate financial framework provides the incentives that municipalities need to initiate and sustain IMC.

9.       IMC can be one of the actions that a municipality can take to implement the Strategy for Innovation and Good Governance at Local Level of the Council of Europe. This will help individual municipalities raise their standards of performance in a way that facilitates IMC.

10.    The participants further agreed on the following specific recommendations:

To central authorities

11.     The Ministry responsible for local government should promote IMC as a mechanism for delivering effective public services, in co-operation with the Parliament and other central and local government bodies.

12.    The Ministry responsible for local government should consult those ministries with a stake in local public services, together with local government associations, should review and amend as necessary the laws and regulations that govern co-operation between municipalities in order to create an institutional, legal and financial framework that positively encourages IMC.

13.     The Ministry responsible for local finance should set up arrangements for financial support to municipalities to enable them to carry out feasibility studies into potential IMC projects and to support the early operating costs of projects to help ensure their longer term sustainability.

14.    The Ministry responsible for local government, in consultation with local government associations and relevant ministries should encourage and support IMC initiatives in line with national priorities for public services.

15.     The Ministry responsible for local government should encourage and support the development of IMC proposals that can make use of international funding.

16.    The Ministry responsible for local government should establish a co-ordinating mechanism to ensure a shared approach and regular consultation between central and local government.

To each municipality

17.     The participants recognized the critical role of municipal leadership in ensuring the foundation for a successful IMC.

18.    To take steps to understand how IMC can help them strengthen their capacities and deliver good governance.

19.    To introduce policies that would encourage the exploration of IMC as a mechanism for delivering public services.

20.    To develop their capacities and expertise (including training policies for staff and elected representatives) to use IMC as a vehicle for better local government.

21.    To review their current performance and assess how IMC can help them achieve higher standards.

22.    To recognise that IMC requires an organisation culture in which co-operation is welcomed, review the quality of communications and transparency and take steps to create an environment in which IMC can operate successfully.

23.    To explore with neighbouring municipalities the opportunities for co-operation and come together to develop IMC proposals.

To the Local Government Associations

24.    Take policy responsibilities (through the appropriate committee) to encourage co-operation among municipalities, promote IMC as a mechanism for developing their capacities and delivering of good local governance and monitor its effectiveness.


25.    Establish the professional capacity to support municipalities in using IMC to deliver good local governance, particularly through capacity development programmes, performance management systems, best practice exchange and consultancy services.

26.    Translate and adapt the IMC toolkit and use it to promote IMC programs throughout local government.

ToInternational organisations

International Organisations including the Council of Europe, UNDP, OSCE and LGI should support the aforementioned key stakeholders in their efforts to develop IMC.  In particular they should:

27.    provide knowledge resources which would include but are not limited to: the provision of modern training materials, methodologies and capacity development and assessment tools, facilitating east-east and west-east exchange of best practices, and providing access to international networks of practitioners.

28.    organise regular events in order to facilitate further exchange of experience, expertise and information between stakeholders.



[1] Although the term inter-municipal cooperation is used in this document, this mechanism is relevant for all local authorities.