Reform Without Financing, is Reform Without Empowerment
At the Central Asian Local Self-Governance Forum, organised by Development Policy Institute, the SALAR International expert, Shane Quinn gave an overview of the importance of fiscal reform and local financing, including challenges and opportunities from territorial reform processes in Armenia, Sweden and Albania.
When it comes down to it, reform without financing is reform without empowerment. Taking into account the following will create the necessary foundation for what the money should do, how it should be done and the level of autonomy needed to get it done.
- Efficiency and Responsiveness: Local governments are better positioned to identify and respond to local needs and avoid overlapping functional assignments
- Accountability and Transparency: Fiscal autonomy fosters clearer responsibility for outcomes and avoids unfunded mandate traps
- Balanced National Development: Fiscal decentralisation can mitigate regional inequalities and addresses an overly narrow tax base and growing fiscal disparities.
One outcome of the Forum is to explore the creation of a sustainable platform to discuss and address shared subnational development challenges in Central Asia. These include local self-governance and community development, improving the investment climate, environmental protection, promoting the participation of women and youth, and strengthening regional and cross-border cooperation.
In this context, SALAR can bring its long experience as one of the world’s oldest local government associations. With a strong role in Sweden, the EU, and internationally, SALAR focuses on dialogue and advocacy for its municipalities, representing their interests in the EU, supporting international cooperation, and helping coordinate and implement EU cohesion funds in Sweden.
We are ready to support our municipal and association friends in Central Asia explore this avenue together.