Written evidence submitted by the UK Local Government Alliance for International Development (LG-AID)

 

This is a response from the UK Local Government Alliance for International Development (LG-AID) - a partnership established to provide a single voice for UK local government in relation to international development[1].

 

DFID made a commitment in Accra[2] to ensure that developing country governments will "work more closely...with local authorities...in preparing, implementing & monitoring national development policies & plans". It also committed to. "identify areas where there is a need to strengthen the capacity to perform & deliver services at all levels - national, sub-national, sectoral and thematic - and design strategies to address them".

 

Decades of Aid programme delivery, review and revision suggest that, whilst vital, aid alone is not the answer to reducing poverty. As DFID's previous White Paper - 'Making Governance Work for the Poor' - recognised, DFID and other donors must focus on tackling the causal factors of poverty - through breaking down the institutional barriers to progress, building self-sufficiency, empowering communities and promoting real democracy on the ground. Strengthening local government is a critical part of that process.

 

"Devolving power and the provision of services to local units and layers of government has potential as an effective means of bringing politicians and policy makers closer to clients and making services more effective. However at the local level, institutions and participatory development mechanisms are often weak, resulting in poor service delivery" UK Commission for Africa 2005.

 

Therefore LG-AID invites the Select Committee for International Development to call on DFID to fulfil their Accra commitment and work with local government in the UK and in developing countries, in particular to:

 

 

Ø Adopt a departmental strategy for strengthening local government - promoting pro-poor and pro-planet local governance and decentralisation programmes;

 

Ø Work in partnership with local government actors, in the UK and developing countries, alongside other donor agencies, private sector and NGO groups, to elaborate and implement this strategy.

 

 

he following response below from LG-AID refers to each of the specific questions posed by the Select Committee in more detail.

 

1. How effectively developing country governments and donors, particularly DFID, are addressing the challenges presented by urban poverty?

 

Enhancing impact of aid for urban communities - There "is a growing consensus that the Paris Declaration has fallen short in its objective of enhancing aid effectiveness. Part of this failure can be attributed to the great emphasis placed by donors on the mechanics of aid delivery rather than the development impact generated by aid. Another key weakness that has been highlighted is the absence of key development stakeholders" (United Cities and Local Government, UCLG 2009)[3]. To enhance the impact of aid for urban communities, DFID needs to work more effectively with local government actors - local, national and global. See Table 1 below.

 

Direct Budgetary Support - DFID needs to work with national local government associations where they exist to ensure a coordinate approach to decentralisation and local governance strengthening. For example the Kenyan Local Government Association is currently developing a National Development Strategy for Local Government - linked to the central government's national development plan. All donors can then effectively coordinate the local governance and decentralisation work they are doing via the national association and local government ministry, to ensure a more effective response.

 

 

Table 1. Local Government contribution to the five principles of 'Aid effectiveness'

 

Principle	Local government contribution
Ownership	Where directly involved in development strategies, LG can strengthen democratic ownership at a local level. In particular to: promote social mobilisation; participatory planning, budgets and monitoring; produce national LG development strategies; contribute, via LGAs, to national consultations for plans and PRSPs.
Alignment	Development strategies must be aligned with decentralized fiscal frameworks and resource transfer mechanisms, including through: linking national Local Government development strategies with national development plans and PRSPs; intergovernmental fiscal mechanisms to flow funds which support the implementation of development strategies at the local level; reducing transaction costs, as decentralized cooperation relies on partner country systems for procurement
Harmonisation	This must be embraced by all development actors, not just donors and partner countries. Through the UCLG Capacity and Institution Building (CIB) Working Group, member LGAs are working to enhance program coherence and coordination, promote collaboration on policy analysis, share practical knowledge and lessons learned from the collective experience of northern and southern LGAs, and reduce administrative burden on local partners. Through closer engagement with local government DFID could further promote aid harmonisation outcomes
Mutual Accountability	Strengthening transparency and accountability for improved development results: Northern and southern LGAs are working toward true co-management of decentralised cooperation programs, holding each other mutually accountable in planning and assessing progress in implementing country strategies and programs; Through the UCLG CIB working group, northern and southern LGAs have agreed to work toward a code of ethics reinforcing mutual accountability and transparency to each other as partners, to their constituents and to donors.
Managing for results	Keeping in mind donor requirements, northern LGAs are working with host country LGAs to develop, harmonized results-oriented reporting and monitoring frameworks, including indicator sets. Through working more closely with local government in country and providing the necessary resources and training, programmes could be better evaluated, leading to a stronger focus on targeted results

Adapted from UCLG 2009 (op cit)

 

Climate change - global urban challenge. Climate change cuts across the whole development agenda - especially in terms of urban areas, where an estimated 80% of Green House Gas Emission are emitted[4]. Whilst the IPCC predicts the greatest climatic changes are expected in the northern hemisphere, it is clearly the developing nations that are least equipped to mitigate against and adapt to the threat posed. Indeed they are not adequately responding to current climate variability (ODI 2009[5]). Many cities lie on the floodplains and coastal areas - half of Africa's cities are on the coast or very close to it (IIED 2007[6]). Locating cities on such sites is of strategic value - at least historically - in terms of being natural harbours, access to fresh water and fertile land. However, once situated in these locations, cities rarely move even in spite of severe disasters such as floods and earthquakes as too many have an interest in sustaining the site - for commerce, homes and institutions.

 

"There is a clear urban agenda focusing on more competent and accountable city and municipal governments, with adaptation built into development plans. But there is little evidence of national governments and international agencies responding to this. In most nations. National and state/provincial governments still concentrate most of the power and control over public investments. Most international agencies reinforce the power of central governments, as their funding goes through central governments. In addition, too many climate change experts see urban change as a local issue that they do not need to understand, let alone address. It is within urban centres and urban governments that so much of the battle to prevent climate change from becoming a global catastrophe will be won or lost. Yet when urban governments do try to respond, they receive little support"(IIED 2007). DFID must therefore ensure its programmes and aid specifically supports urban local government to face up to the climate challenge - helping them to integrate climate mitigation and adaptation strategies into local development plans, policy and practice.

Missing the urban crisis - around 3 million people are added to cities in the developing world every week according to UN-HABITAT's State of the World's Cities Report 2008/9. The report finds that the rate of change of the urban population in Africa is the highest in the world. And if trends continue, by 2050 half of Africa 's population will be urban. With 1.2 billion people living in cities and towns, African cities will soon host nearly a quarter of the world's urban population (UN Habitat 2008[7]). The pace of urban growth is phenomenal and not only in the 'mega-cities' but also in medium-sized conurbations. This growth is occurring at a rate which many municipal authorities are unable to keep up with - faced by the joint pressures of economic decline, climate change, population growth / flows. Within Poverty Reduction Strategy Papers (PRSPs), there is little evidence of long term strategic planning for growth in urban populations and the consequent pressures on access to land (ComHabitat 2005[8]).

 

Despite clear warnings DFID, along with other doors, continues to ignore the significance of the growing urban crisis. In-country DFID needs to work directly with national representative bodies, local government associations - where they exist - as well as central government ministries to ensure that its work (direct and indirect via development agencies, including the World Bank and EuropeAID, the Regional Development Banks) builds up the strategic and practical capacity of urban government and their communities.

 

International policy dialogue and coordination - DFID should build on the work of the world local government body - UCLG supporting national local government strategies, and other organisations like the Commonwealth Local Government Forum(CLGF), which coordinate the development work of local authorities internationally and provide support for building local democracy and good governance.

 

 

2. DFID's contribution to meeting the MDG 7 target which seeks to improve the lives of slum dwellers

 

"One out of every three people living in cities of the developing world lives in a slum." UN State of the World's Cities 2008/2009

 

Stimulating MDG-orientated Local Development Plans - The MDG slum target is clearly off track and this is in spite of the fact that the original target was criticised at the time for being unambitious. Clearly DFID cannot be responsible for this failure alone but it does have a strategic role to play in steering pockets of good practice (e.g. City Alliance, Community-Led Infrastructure Finance Facility (CLIFF), CLGF Good Practice Scheme) more into mainstream practice. DFID needs to examine how it can better contribute to ensure sustainable long-term self-sufficiency in addressing this issue within municipal government. Local government needs to address burgeoning slum communities, along with the full gamut of the MDG targets that are most relevant to their local communities i.e. demand-led local development plans. This will require ensuring their plans identify those targets that link local poverty priorities with national and global targets[9]. Therefore DFID needs to:

 

· Work directly and indirectly (via WB, EuropeAid, UN and other funding routes) to build in-house local government capacity to achieve more pro-poor and sustainable local development strategies in partnership with all sectors of their communities;

· Working with national, regional and global local government associations, Local Government ministries and networks to build up tools to strengthen urban authorities' capacity to plan for urban growth and slum upgrading

· Support programmes that target joint local government / civil society strengthening and partnership working in achieving the slum target and other locally relevant MDGs

 

 

3. The provision of basic services and infrastructure in slums, including energy, housing, transport, sanitation, water, health and education

 

Critical challenges for provision of basic services - Environmental health issues, such as a lack of access to clean water and sanitation; local air pollution; waste; poor housing quality; all pose massive burden on the health of the urban poor (UN Habitat 2008). Studies have show that urban child mortality can be higher than rural areas e.g. in Nairobi. Poor urban populations can more vulnerable to climate change threats (IIED 2007). Inadequate infrastructure also remains a major obstacle for sustainable urban development and economic stimulation (Tannerfeldt and Ljung 2006).

 

Decentralisation of finance and powers, as well as responsibilities - In SSA and North Africa, local government is still limited in its capacity to provide basic services. This is slightly greater in Asia and Latin America, and more significant in Eastern Europe and the former Soviet Union. Many countries have sought to decentralise service delivery without the necessary financial means and investing in establishing sufficient powers / technical capacity to allow authorities to deliver effectively. Municipal budgets typically require central government approval, however, in many countries fund allocation is not rational or transparent, they can be determined by political considerations and vary from year to year making it impossible to plan for infrastructural investments that may require capital outlay over a number of years (Tannerfeldt and Ljung 2006[10]).

 

Promoting partnerships for slum up-grading and pro-poor service delivery - An internal stock-take of DFID's work on Decentralisation and Local Governance in 2008 indicated that 70% of its work focused on supporting the delivery of core services (education, health, social, rural livelihoods). However this review was unclear to what degree this focused on the delivery of urban services. The review also noted that there needs to be willingness from local institutions to promote and implement pro-poor policies.

 

DFID therefore needs to work in partnership with local government ministries, civil society and local government bodies to provide incentives and the political push to ensure that decentralisation processes are more effective in promoting this agenda.

 

 

4. Supporting opportunities for employment and livelihoods for the urban poor

 

Strengthening local urban catalysts - Urban authorities can and should play a strategic role in this area - responding to the demands of their local communities to stimulate Small - Medium Enterprise (SME) start up and development, providing training and skills development for marginalised groups, and enhancing access to employment and business opportunities via improving transport and communication infrastructure. However this is often not the case in developing countries, partly due to lack of capacity, resources, powers and technical know-how.

 

Greening urban economies - As indicated by the Local Government Association publication 'creating green jobs', there is a huge potential for focusing on green technologies and approaches to produce both environmental benefits, as well as stimulate new business and working opportunities. For the UK, and looking at local carbon economies alone - investments in renewable energy, energy efficiency measures and climate adaptation, the LGA estimate that it could generate a minimum of 150 000 new employment opportunities[11]. This could be significantly higher for developing countries.

 

Financial arbitration - 'only bankers can get mortgages'. It is generally felt that financial institutions prefer clients with steady income and property with registered titles. The transaction cost of loaning to the poor is seen as high and staff are rarely trained to deal with them (Tannerfeldt and Ljung 2006). Local government can act as an arbitrator facilitating dialogue between the informal sector and formal service providers; and offer guarantees, aimed at improving the access of the poor to financial services e.g. for housing development as well as business generation. It can - given sufficient powers and resources - also provide mortgages itself. Local government therefore needs to be better equipped to adopt the most appropriate approach.

 

DFID needs to work with national associations, local government actors, CSOs and local government ministries to build in-house local government capacity in this critical area.

 

 

5. The role of property rights in improving the lives of slum dwellers

 

5.1 Security of tenure - Security of tenure is one of the five factors in the UN's definition of a slum household, and is the indicator for MDG Target 11. Security of tenure enables slum dwellers to invest in the improvement of their own homes and living conditions and to access essential services, whereas the threat of forced eviction inhibits investment and places people in constant fear that their homes may be demolished. Slum dwellers, by virtue of where they live or their tenure status, are often excluded from access to key elements of city life. They may be excluded from citizenship - for example the right to vote and rights to subsidies and entitlements - or from full protection through the operation of law. Not having a formal, legal address can prevent slum dwellers from accessing services including healthcare, education, water, electricity and credit[12].

 

5.2 The United Nations Millennium Project report in 2005 concluded that improving security of tenure is central to improving the lives of slum dwellers[13]. The report made it clear that there is a need to "Enact legislation against forced evictions and provide security of tenure. The forced demolition of urban slums has never reduced poverty-it creates poverty. Forced evictions have never reduced slums-they simply move slum formation elsewhere. Provision of secure tenure in existing informal settlements with the participation and contribution of existing residents is crucial to the process of slum upgrading. It is important to note that "security of tenure" describes a continuum of formal and informal legal arrangements that are highly context specific."

 

5.3 Local government role and central government support - the Millennium project report highlighted the role of local government in this regard - "Local authorities should provide secure tenure to women and men in informal settlements in cooperation with national governments and slum dwellers. All local authorities, supported by the national government, need policies to ensure a supply of land to keep down prices and ensure alternatives to slums for the present and future. Two necessary first steps are to establish a system of effective land regulation to ensure the future supply of well located land as cities grow and to ensure that private transactions in the land market are based on transparent information."

 

5.4 DFID should therefore focus on supporting local government ministries and local government directly, to promote secure rights of tenure, establish effective and sufficiently resourced systems of land regulation, and install good systems of governance (transparency, accountability etc) in land market transactions.

 

 

6. The implications of the current global financial downturn for urbanisation in developing countries

 

"It is clear that the slowdown is going to hit different places in different ways. Our response to the downturn must be tailored to local circumstance...Local councils are already showing they are best placed to respond to this economic crisis. They are at the centre of helping people, businesses and other groups through tough economic times ahead. When things go wrong, councils step in, both to help kick-start the economy when it hits rock bottom and to provide a safety net for people in need...It is councils that can keep people in their homes; that can get people back on their feet when they have lost their job; that can form partnerships with business; that can help keep the local economy going when the outlook is bleak." Cllr Margaret Eaton, Chair of the LGA[14]

 

Utilising UK Local Government expertise - In addition to all the challenges urban authorities already face in developing countries, they will be subject to huge pressures from the current economic crisis. As indicated above local urban government has a critical role to play to address such pressures. However they will need significant support and guidance to face up to the challenges. This will require DFID to focus much more directly on local government strengthening, as referred to above. In addition, it should tap into UK Local Government expertise that offers know-how that is directly relevant to this and other urban challenges. UK Local Government offers first rate practitioner knowledge that is directly relevant to the needs of development partners at local, regional and national levels. UK councils are at the forefront of good practice in public sector management, service delivery and performance improvement, including:

 

· Multi-cultural service delivery - local councils are at the front line of providing core services to all sectors of our communities;

· Locally strategic dialogue - English models, such as the Local Strategic Partnerships (LSPs) engaging core local partners and Multi Area Agreements (MAAs), ensure effective ownership on the ground and regional coordination of development processes;

· Enhancing performance - Led by the Improvement and Development Agency (IDeA) English LG provides an institutional model of how to strengthen the local public sector internationally, including through tools such as the Beacon Council Scheme - which uses peer-to-peer learning and mentoring to enhance good practice;

· Regeneration and local economic development - As UK central government has now recognised, it is local councils which play the central role in fostering economic prosperity and growth across their areas - stimulating training and employment, supporting Small and Medium Enterprises;

· Climate mitigation and adaptation - councils are leading the way in terms of adopting a strategic approach to climate change across their local regions. This covers areas such as promoting energy efficiency, fighting fuel poverty, sustainable local planning and emergency / risk management.;

· Local data collection and analysis - currently for many municipalities in the south there is poor data relating to the MDGs. This is required to assess needs at the local level and therefore ensure more locally relevant policy and action. UK local government could assist in developing the skills base for effective monitoring and adaptation

 

6.3 Supporting "Public Excellence Overseas" - A partnership model where local and central government take a more coordinated approach works well in other countries such as Norway, Netherlands, Canada, and Flanders in Belgium. In these countries we see strong and effective collaborations between central and local government that directly seek to increase the effectiveness of aid (See Table 2 for examples below).

 

6.4 LG-AID therefore calls on DFID to work with them, to develop a new model of partnership between central and local government in the to seek to increase the impact of UK aid programmes.

 

 

 

 

 

 

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[1] The Alliance partners are: Commonwealth Local Government Forum (CLGF), Improvement and Development Agency (IDeA), Local Government Association (LGA), National Association of Local Councils (NALC) and Society of Chief Executives and Senior Managers (SOLACE).

[2] Accra Agenda for Action. Third High level Forum on Aid Effectiveness. Accra, Ghana, September 2008 http://www.accrahlf.net

[3] UCLG (2009) UCLG Position Paper. Aid Effectiveness and Local Government: Understanding the link between governance and development. Draft, 5 Feb 2009.

[4] Draft Local Government Declaration on Climate Change (2009) http://tinyurl.com/cofft4

[5] ODI (2009) Presentation from Andrew Watkinson - Director, Living with Environmental change, NERC at "Planning for the Future: Can climate change be brought into development planning through scenarios" Overseas Development Institute (ODI) Public seminar, 2 March 2009. http://tinyurl.com/dfjm2s

[6] IIED (2007) Reducing risks to cities from climate change: an environmental or a developmental agenda? Environment and Urbanisation Brief 15. www.iied.org/human/eandu/eandu_briefs.html

[7] UN Habitat (2008) State of the World's Cities report 2008/2009: Harmonious cities. http://tinyurl.com/d7qvqs

[8] ComHabitat, 2005 'PRSPs, human settlements and urban poverty', paper prepared by Kim Mullard and Ruth McLeod and submitted to the Commonwealth Finance Ministers' Meeting, FMM(05)(INF)1, Commonwealth Secretariat, London, August 2005. www.comhabitat.org.

[9] UNDP (2005) Toolkit for localising the Millennium Development Goals. Capacity Development Group, Bureau for Development Policy, United Nations Development Programme, New York, Bratislava 2005

[10] Tannerfeldt, G., and P. Ljung (2006) More Urban, Less Poor: an Introduction to Urban Development and Management, p. London: Swedish International Development Cooperation Agency and Earthscan.

[11] LGA (2009) Creating Green Jobs - developing a low carbon economies. http://tiny.cc/EPaXm

[12] Comments from Kim Mullard, Homeless International (2009)

[13] UN Millennium Project (2005), 'A Home in the City', Report of the Task Force on Improving the Lives of Slum Dwellers', Earthscan, London. www.unmillenniumproject.org/documents/Slumdwellers-complete.pdf.).

[14] LGA (2009) Global slow down, local solutions www.lga.gov.uk/lga/publications/publication-display.do?id=1191945