From Vision to Practice: Kosovo Delegation Explores Sweden´s Model for Fiscal Decentralisation
How do you build a local government system that is both empowered and accountable? That question was at the heart of a recent study visit to Sweden, where a high-level delegation from Kosovo engaged with SALAR International and Swedish counterparts to explore how fiscal decentralisation and performance-based financing can drive more responsive, capable municipalities.
The visit was part of the DEMOS project, a long-term initiative funded by the Swiss Agency for Development and Cooperation and implemented by Helvetas, which supports Kosovo in strengthening democratic local governance and improving municipal performance. A central theme throughout the visit was the conviction that fiscal decentralization is key to enabling municipalities to deliver on their mandates and respond to local needs. At SALAR and SALAR International, it is viewed as a cornerstone of local self-governance—empowering local authorities with the autonomy and resources needed to provide high-quality public services and build citizen trust.
A platform for strategic exchange and peer learning
With that in mind, the study visit was designed not as a showcase of models to replicate, but as a platform for strategic exchange and peer learning. The delegation met with senior financial analysts and advisors from SALAR, including experts from the Department of Finance and Governance, as well as officials from the Swedish Tax Agency and the Ministry of Finance. Together, they shared practical insights into Sweden’s equalization system, tax administration, financial forecasting, and targeted state grants. The program also featured contributions from Kolada, Sweden’s municipal performance data platform, and the Swedish International Centre for Local Democracy (ICLD), highlighting the role of data and partnerships in strengthening local governance.
Mikaela Bodin from SALAR presented how municipal economy works in Sweden.
To complement the national-level perspectives, the delegation engaged directly with Swedish municipalities—including Vaxholm—where local leaders demonstrated how budgeting, planning, and community engagement are managed in practice. The group also visited a municipal residential facility for people with intellectual disabilities in Stockholm, where local service delivery and community-based care were discussed. These experiences helped bridge the gap between policy design and day-to-day governance.
Throughout the program, participants explored how Sweden strikes a balance between local autonomy and national objectives, using tools such as:
- Intergovernmental fiscal frameworks that promote equity, efficiency, and sustainability
- Data and performance systems that strengthen transparency and enable evidence-based decision-making
- Incentive-based grants that encourage innovation and align local development with broader policy goals
Just as importantly, the visit offered time for discussions: What does it take to make decentralization work—not just technically, but also politically and institutionally? How can Kosovo build a system that supports motivated local leadership, strengthens trust, and delivers meaningful results for its citizens? The exchanges underscored a shared commitment: governance reform is not about technical fixes, but about creating systems that enable public value.
SALAR International is proud to support this journey through partnerships grounded in mutual respect, evidence, and learning.