Local Self-Governance in Europe By Ginka Kapitanova, Expert on Good Governance June, 2017

Decentralization as a precondition to Local self-government The transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sector.

Decentralization - socially significant process In practice it is attempting to create a new "social contract between state and civil society“ Decentralization "is not only a political process that aims to change the matrix of power in society, it is a real cultural revolution" The real challenge to active decentralization is rooted in culture and mentality rather than in politics or administration

Types of decentralization Four types of decentralization: Political Administrative Fiscal Economic or market decentralization Drawing distinctions between these various concepts is useful for highlighting the many dimensions to successful decentralization and the need for coordination among them.

European Charter of Local Self-Government (1/2) Local self-government denotes the right and the ability of local authorities, within the limits of the law, to regulate and manage a substantial share of public affairs under their own responsibility and in the interests of the local population. This right shall be exercised by councils or assemblies composed of members freely elected, and which may possess executive organs responsible to them.

European Charter of Local Self-Government (2/2) Appropriate Administrative structures Local authorities shall be able to determine their own internal administrative structures in order to adapt them to local needs and ensure effective management. Available Financial resources Local authorities shall be entitled, within national economic policy, to adequate financial resources of their own, of which they may dispose freely within the framework of their powers.

Trends for development of LSG in Europe Territorial organization Management of local authorities Local democracy Powers, responsibilities and finances Local authority expenditure Systems of local government (Strong Mayor model, Collective Leadership model and Council Manager model)

Indicators for Assessment of LSG (1/2) A system can be called local self-government only if: Those taking the decisions (mayors and councillors) have been (fairly) selected by local people LSG are accountable to the local people for “affairs of local significance”– and to central government only for those delegated functions for which they are adequately financed LSG is able to deliver some public services to their local citizens

Indicators for Assessment of LSG (2/2) A system can be called local self-government only if: LSG has a transparent process for selecting priorities LSG decide their own local budget composition LSG have sufficient quantity and quality of staffing to perform their responsibilities legally and effectively LSG are allowed to get on with the job – unrestricted by constant interference from outside

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