The Delegation for External Action of Local Authorities (DAECT) of the French Ministry of Foreign Affairs and the global network United Cities and Local Governments (UCLG) are launching the first call for projects to support decentralized cooperation in the field of local finances. This call for projects aims to support joint initiatives of French and foreign local and regional governments with the objective of enhancing the capacities of subnational governments in managing their finances.
When they have the legal and financial leeway to act, local and regional governments are best positioned to respond to the needs of their population. The work carried out by UCLG and the Organization for Economic Cooperation and Development (OECD) within the framework of the World Observatory on Subnational Government Finance and Investment reveals that fiscal decentralization enables a more efficient provision of public services.
However, the current financial systems at national and international levels do not involve local and regional authorities to the extent that they should. The lack of financial resources and budgetary flexibility, limited human resources, lack of institutional autonomy and limited access to capital markets are among the factors that hinder the ability of local and regional governments to act. Therefore, local and regional governments require additional support to make the most of their resources and access new financing opportunities, thus contributing to the implementation of the Sustainable Development Goals (SDGs).
For several decades, decentralized cooperation has provided practical solutions closest to the ground and the population. With just over 10 000 cooperation projects involving nearly 5 000 French subnational governments, none of them have focused on local finances until now. By concentrating decentralized cooperation initiatives on actions related to local finances, local and regional governments contribute to structurally strengthening the room for action of their partners and peers.
Support in the search for co-financing, diversification of financial resources, strengthening of technical capacities of local administrations, expenditure management, and creation of new revenues are among the areas of work that can be supported. All French local and regional governments and their partners are invited to explore this new financing opportunity for their cooperation initiatives.
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Closing date: September 14th 2023