ANNUAL RESULTS 2014
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Dialogue | EU Integration | Cities | Leadership<br />
<strong>ANNUAL</strong><br />
<strong>RESULTS</strong><br />
<strong>2014</strong><br />
SKL International<br />
is one of Sweden’s<br />
leading organisations<br />
in local governance,<br />
decentralisation and<br />
local democracy.<br />
Ms Zainab Obaid, Ms Huda Mahmood and Ms<br />
Dhuha Ridha (right to left) from Iraq during<br />
a visit to Svartedalsskolan in Gothenburg.<br />
The three elected representatives from<br />
Diwaniyah (national and local parliament)<br />
participated in a learning journey to Sweden<br />
within the Governance in Social Care project<br />
in June <strong>2014</strong>. Mr Kim Hermansson (far<br />
left), coordinator at the school shares his<br />
experiences from working with children<br />
with special needs.<br />
AFFILIATED TO THE SWEDISH ASSOCIATION OF LOCAL AUTHORITIES AND REGIONS
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 01<br />
We focus on<br />
local democracy<br />
SKL International is one of Sweden’s leading organisations in the field of<br />
local democracy, decentralisation and local governance. We work with<br />
developing countries and countries in transition.<br />
At SKL International we don’t just focus<br />
on the problems and challenges at hand,<br />
but do our best to harness our partners’<br />
inherent potential for development. We<br />
often build on Swedish experiences,<br />
but always adapt our services to a local<br />
context.<br />
We are a subsidiary of the Swedish<br />
Association of Local Authorities and<br />
Regions (SALAR), which is a member<br />
organisation for all of Sweden’s 290<br />
municipalities and 20 county councils<br />
and regions. Its mission is to provide its<br />
members with better conditions for local<br />
and regional self-government.<br />
This puts us in a unique position as we<br />
can draw on their expertise and network<br />
of Swedish local and regional authorities.<br />
SKL International responds to a strong<br />
demand from developing and transitional<br />
countries who want to know more about<br />
Swedish experiences of decentralisation,<br />
local self-government and local<br />
government associations.<br />
During the years we have implemented<br />
projects in over 30 countries on four<br />
continents.<br />
Our services focus on the enhancement of<br />
local democracy and on building a wellfunctioning<br />
local and regional administration.<br />
This is based on our knowledge of<br />
Sweden’s uniquely decentralised public<br />
sector, as well as a vast experience of<br />
decentralisation processes in diverse<br />
contexts.<br />
Our work is demanddriven<br />
and result-oriented.<br />
We utilise expertise and<br />
know-how from our<br />
extensive pool of experts<br />
within SALAR and<br />
from Swedish local<br />
and regional<br />
governments.<br />
We work in a range of areas: local<br />
democracy and governance; municipal<br />
management and service delivery; local<br />
and regional development; decentralisation<br />
policies; support to local government<br />
associations; and sustainable urban<br />
development. We often establish partnerships<br />
between municipalities as a way to<br />
learn and grow together.<br />
Our work is demand-driven and resultoriented.<br />
We utilise expertise and knowhow<br />
from our extensive pool of experts<br />
within SALAR and from Swedish local and<br />
regional governments. When appropriate,<br />
we engage international and local experts<br />
in our project teams to add complementary<br />
specialist skills and knowledge.<br />
It is our firm conviction that gender equality<br />
is an essential part of a well-functioning<br />
democracy; something municipalities<br />
have contributed to considerably in<br />
Sweden. That’s why gender mainstreaming<br />
is an important feature in our projects.<br />
We believe that growth and development<br />
have to be sustainable. The idea of environmental,<br />
social and financial sustainability<br />
is at the centre of every project.<br />
Our partners range from government ministries,<br />
associations of local governments<br />
and individual municipalities and regions,<br />
to local partners in the form of NGOs or<br />
other civil society representatives.<br />
SKL International is financed entirely<br />
through its projects. Our clients include<br />
the Swedish International Development<br />
Agency (Sida) and other bilateral donors,<br />
the European Commission and the UN.<br />
The Core<br />
At SKL International a core team of employed<br />
staff manages the commitments of the<br />
organisation, mainly as project managers.<br />
In addition to this, our associated consultants<br />
add valuable knowledge and dedication to the<br />
foundation on which we base our long term<br />
commitment to projects and relations.<br />
The core team and associated consultants<br />
during <strong>2014</strong> have been:<br />
FROM LEFT TO RIGHT<br />
ROW 1 Aneza Dizdarevic | Anna Backmann<br />
Annakarin Lindberg | Arben Qesku | Belhassen Turki<br />
ROW 2 Catharina Sparr | David Young | Erik Faxgård<br />
Florence Mutumba | Fredrik Lundkvist<br />
ROW 3 Gülsen Can | Håkan Gustafsson | Hoda Saad<br />
Klas Groth | Lars-Eric Ericsson<br />
ROW 4 Lena Falcón | Magnus Liljeström<br />
Mats Jarnhammar | Oya Otman | Paul Dixelius<br />
ROW 5 Ryan Knox | Suzanne Krook<br />
Tommy Holm | Tony Levitas<br />
SKL International AB | 118 82 Stockholm, Sweden | Phone +46 8 452 70 00 | www.sklinternational.se<br />
All texts and photos by SKL International staff and colleagues, unless otherwise mentioned.
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 03<br />
During the year we have<br />
put a lot of focus on<br />
strengthening the capacity of<br />
project managers in terms<br />
of financial management and<br />
to define the roles in<br />
the finance and<br />
administration<br />
processes<br />
Developing checks and<br />
balances at the finance<br />
department<br />
Sometimes overlooked<br />
by project managers<br />
and from time to<br />
time challenging for<br />
management, but the<br />
reality is that financial<br />
controls and project<br />
administration are the<br />
start and end of SKL<br />
International’s business.<br />
The obligations involved in donor agreements<br />
and partner contracts govern how<br />
things are run in the company, in terms of<br />
results but clearly also when it comes to<br />
having the right checks and balances in<br />
place. A stable finance department, well<br />
established routines and clear processes<br />
governing the work is a fundament for<br />
the company.<br />
“Every year the company goes through<br />
the statutory audit, in accordance with<br />
the Companies Act. This examination<br />
is done on the company’s accountancy<br />
and annual report and of the management,”<br />
says Ms Catharina Sparr, Finance<br />
Manager at SKL International.<br />
In addition to this, every project is<br />
audited at least on an annual basis.<br />
“During the year we have put a lot of<br />
focus on strengthening the capacity of<br />
project managers in terms of financial<br />
management and to define the roles<br />
in the finance and administration processes”<br />
Catharina Sparr continues. “Our<br />
auditors have encouraged us to do this to<br />
increase accuracy and to mitigate the risk<br />
of putting all eggs in one basket, which is<br />
the case if too much of financial management<br />
is taking place only at the finance<br />
department.”<br />
Today SKL International has two full time<br />
staff in the finance and admin department,<br />
apart from Catharina Sparr, Ms<br />
Florence Mutumba joined the company<br />
during the year as finance assistant. In<br />
addition, Ms Hoda Saad is dividing her<br />
time between her job as project coordinator<br />
with the role of day-to-day finance/<br />
admin support to the more complex<br />
projects.<br />
“I see a clear constructive development<br />
in terms of the division of roles when it<br />
comes to financial management in the<br />
projects,” says Mr Håkan Gustafsson,<br />
Managing Director. Catharina Sparr<br />
agrees, and adds; “The changes we have<br />
made to roles and routines are definitely<br />
a development, and the audit report this<br />
year really supports the results. But this is<br />
an ongoing process and we will continue<br />
to push for change also during 2015.”<br />
Finance Manager Catharina Sparr and<br />
Finance Assistant Florence Mutumba<br />
By Magnus Liljeström<br />
& Hoda Saad<br />
Reflections<br />
from the<br />
board<br />
The board of SKL International is<br />
composed of elected representatives<br />
and staff from the Swedish<br />
Association of Local Authorities<br />
and Regions. They are appointed in<br />
accordance with the election cycle of<br />
the mother organisation which means<br />
that the current board will soon end<br />
its formal engagement and a new<br />
board will be nominated during 2015.<br />
We asked the outgoing board<br />
members to reflect on their personal<br />
engagement and their four years<br />
leading the company.<br />
Mr Lars O. Molin<br />
My interest and engagement in international<br />
development goes back to the<br />
sixties, when southern Africa was in the<br />
focus. During the seventies it switched<br />
to Afghanistan, which turned into a<br />
full-time engagement for me personally.<br />
In the eighties I started a development<br />
organisation working in cooperation<br />
with the Tunisian women’s organisation<br />
Union National de la Femme Tunisienne.<br />
Since the turn of the century, I have<br />
mainly been engaged in the Council<br />
of Europe as a thematic rapporteur<br />
on Human Rights and as chair of the<br />
Congress Monitoring Committee.<br />
No matter where I’ve been active, my<br />
engagement has always been built<br />
on values that form the basis for my<br />
life: the unique and equal value of all<br />
human beings.<br />
As I have an old and dear relation to<br />
Tunisia, I’m very happy about the<br />
company’s engagement there. The<br />
decentralisation project is important<br />
in the process of building a local<br />
democracy that is firmly rooted in the<br />
population. The Arab spring started<br />
here and Tunisia is the country in the<br />
region that has the best conditions for<br />
The board of SKL International AB during <strong>2014</strong> has consisted of Mr Jerker Stattin, Director of<br />
International Affairs at SALAR, Mr Lars O Molin, Chair of the Municipal Assembly in Örebro and Chairman<br />
of the Monitoring Committee of the Council of Europe’s Charter of Local Self-Government,<br />
Mr Michael Sandin, Councillor in Skåne Region and Ms Ann Beskow, Elected representative in the City<br />
of Gothenburg. Managing Director Håkan Gustafsson to the right.<br />
building a true democracy with respect<br />
for human rights.<br />
Ms Ann Beskow<br />
At our annual meeting, my involvement<br />
in the board of SKL International will<br />
come to an end. After 40 years in local<br />
politics it’s time for something else.<br />
One thing I want to leave behind is a<br />
genuine wish that more people and<br />
organisations knew about the work of<br />
SKL International. Take for example two<br />
of the countries where the company is<br />
deeply involved, Ukraine and Iraq. Every<br />
day we are flooded with news from these<br />
areas. News that provokes thoughts<br />
around how people manage to carry<br />
on with their lives under these circumstances.<br />
How can they continue building<br />
a democracy and create an open<br />
society for the future? To then realise the<br />
contributions in the name of democracy<br />
that are actually being made in these<br />
countries by SKL International, and that<br />
we have so much to share and so much<br />
to learn would be an eye-opener for<br />
many people.<br />
I believe it would increase the trust in<br />
the possibilities of democracy and the<br />
understanding of Sweden’s role in the<br />
world.<br />
Mr Michael Sandin<br />
I have always seen myself as an<br />
internationalist, which to me means<br />
working for a deeper understanding<br />
across borders and against intolerance.<br />
And I believe that it is important that<br />
municipalities adapt to this perspective,<br />
particularly if we are to be serious when<br />
we talk about better inclusion in society<br />
for people coming from other countries<br />
to Sweden.<br />
Looking back at <strong>2014</strong>, I’m particularly<br />
proud of our new project in Ukraine. Of<br />
course it’s a challenging environment,<br />
but I think that we always shall be<br />
prepared to enter into difficult settings,<br />
as long as we know where to put our<br />
feet and whom to cooperate with. The<br />
potential results of such interventions<br />
are often larger than in other settings.<br />
During the four years I have followed<br />
the company, I can see a clear<br />
development towards an ever more<br />
professional organisation with a wider<br />
range of sources for financing and wider<br />
geographic and thematic areas of work.<br />
Mr Jerker Stattin<br />
As Head of the International section at<br />
SALAR I see the work of SKL International<br />
in perhaps a bit of a different light<br />
than other board members. SALAR’s<br />
involvement in international affairs is<br />
deeply rooted in our political structure<br />
as well as in our administrative system<br />
organisation and SKL International is<br />
one of three vehicles for our work. The<br />
other two are the International Section<br />
at SALAR, which focuses mainly on the<br />
European Union, because of its direct<br />
and indirect effect on our members,<br />
and the International Centre for Local<br />
Democracy, which promotes municipal<br />
partnerships between local authorities<br />
in Sweden and their peers in low and<br />
middle income countries.<br />
If I look back at my time on the Board,<br />
I conclude that the company has gradually<br />
moved from thematically based<br />
projects to more complex and reform<br />
oriented programmes. The recently<br />
contracted SymbioCity Kenya is a very<br />
interesting example of this as it sets<br />
off from the decentralisation process<br />
in the country, and is strengthening a<br />
local government association by using<br />
sustainable urban development as a<br />
thematic intervention area.
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 05<br />
By Håkan Gustafsson,<br />
Managing Director<br />
Navigating complex<br />
public sector reforms<br />
For SKL International, <strong>2014</strong> was characterised by more complex projects than ever<br />
before – moving from predominantly sector-specific support to all-encompassing<br />
multifaceted reform processes.<br />
The most common denominators among<br />
these new projects are that they have<br />
decentralisation in focus and that they<br />
all have their origin in a new type of need<br />
and expectation from donors as well as<br />
beneficiaries.<br />
I see three main aspects behind this<br />
trend:<br />
▶▶<br />
▶▶<br />
▶▶<br />
Decentralisation and reform<br />
programs in general are complex<br />
undertakings. This means that<br />
unpredictable challenges can be<br />
expected down the road, which<br />
makes detailed terms of references<br />
and plans easily outdated and too<br />
rigid for their purpose.<br />
Working on reforms tends<br />
to exhaust resources of the<br />
pioneering institutions. This is<br />
a motivating factor for them to go<br />
for a limited number of supporting<br />
agencies that are working with them<br />
in a flexible set-up, rather than the<br />
traditional project setting of working<br />
for them, sometimes with overall<br />
delivery pressure making them less<br />
responsive to the real roadblocks for<br />
the reform.<br />
Reform processes take time to<br />
implement and rely on election<br />
cycles before they can be<br />
fully realised. It means that the<br />
institution in charge will not see real<br />
change without long term commitment<br />
covering crucial parts of the<br />
duration of the reform. If a reform<br />
process is partial and incomplete<br />
in its details – keeping the ultimate<br />
beneficiary, the citizen, in mind –<br />
there is always a risk that counter<br />
arguments will prevail.<br />
We have responded to these realities<br />
from donors and beneficiaries by recommending<br />
a type of navigation team<br />
responsible for creating a structure for<br />
process coaching. The navigation team<br />
is working in close contact with the<br />
people in charge of the reforms, to better<br />
understand what kind of support will add<br />
value to existing gaps and what is considered<br />
necessary to bring reforms forward<br />
in what in itself is an unpredictable and<br />
complex environment.<br />
As we have more recently been<br />
confronted with similar requests from<br />
different regions such as MENA and<br />
Eastern Europe, it seems to me that this<br />
is not a coincidence. The trend is rather<br />
driven by a demand from overburdened<br />
institutions to pursue reforms in a policy<br />
climate in which citizens expect more<br />
from the political elite than what they<br />
have delivered up to this point. So there<br />
is a sense of urgency among these champions<br />
(of the reform process), an urgency<br />
which creates demand for proper and<br />
easily accessed support that does not<br />
cause administrative burdens.<br />
A novelty in the arrangements<br />
for support<br />
Given harsh conditions for reforms<br />
due to scepticism rooted in previous<br />
failures and - as always - vested interests<br />
in the status quo, there seems also to<br />
be a widespread consensus that this<br />
is the last opportunity for a successful<br />
move from a corrupt past. This sense of<br />
urgency and pressure on the agents in<br />
charge of reform creates an emphasis on<br />
efficiency and simplicity in how support<br />
is provided. It seems however that the<br />
donor community, with the exception of<br />
Sida, has yet to adjust to this reality.<br />
The workload caused by ongoing<br />
reforms tends to exhaust the institutions<br />
in charge, which indirectly limits the<br />
capacity to fully utilise donor support<br />
due to scarce human resources. This can<br />
be problematic as it risks creating vague<br />
demands and thereby reducing the<br />
potential added value provided by the<br />
international community.<br />
So part of the demand that we have seen<br />
lately is obviously rooted in donor fatigue<br />
combined with pressure on beneficiaries<br />
to avoid engagements that might not<br />
meet expectations. On the other hand,<br />
if the international support can meet<br />
the need for simple and responsive<br />
interaction, then there is a match! This is<br />
basically a positive development in line<br />
with the common understanding that<br />
innovation is borne from demand. In this<br />
case this is through insights among leaders<br />
of poorly staffed institutions that the<br />
modalities for technical assistance need<br />
another setup in order to be efficient. A<br />
setup that is built on closer and longer<br />
relationships.<br />
What we have witnessed during <strong>2014</strong> is<br />
a demand for easily accessed guidance,<br />
which is built on relevant, and preferably<br />
timely and on-the-spot, experience, so as<br />
to avoid straining the limited resources<br />
of the institutions in charge. In the case<br />
of SKL International we are able to<br />
provide this kind of long term commitment<br />
through partnership agreements,<br />
a well suited model for building close<br />
relationships as a foundation for flexible<br />
response to upcoming demands. This<br />
means technical advisors can be defined<br />
as the need occurs rather than being<br />
locked into detailed predetermined<br />
proposals and commitments before the<br />
project has even started.<br />
Flexible support downplays<br />
pre-defined project results<br />
The global perspective among donor<br />
organisations seems to be increasingly<br />
moving towards result-based agendas<br />
and strategies. Projects that take stock of<br />
uncertainty and open agendas provide<br />
a contrast to mainstream project design<br />
where results should be<br />
pre-defined. The difference<br />
between a flexible<br />
and a result oriented<br />
approach can partly be<br />
a matter of definition,<br />
as the overall objectives<br />
of capacity building<br />
projects can be set at<br />
early stage but this is<br />
definitely not the case for<br />
how support is provided.<br />
Support in complex<br />
reform processes need<br />
to be extremely flexible<br />
and profound in addition<br />
to having a constant orientation towards<br />
activities that can add most value. For<br />
donors and supporting organisations,<br />
these jointly managed projects also<br />
seem to create challenges for evaluators<br />
as the results and outcome will depend<br />
on joint actions. Who deserves to be<br />
blamed or honoured for the (lack of)<br />
achievements? And how to assess ongoing<br />
guidance provided by the supporting<br />
(implementing is not really a valid terminology<br />
in this context) partner?<br />
Efficiency to redress dualism in<br />
project design<br />
There is an underlying logic in the donor<br />
community as well as among implementing<br />
agencies to be visible and also<br />
to try to impose methods, concepts and<br />
practices referred to as national good<br />
practice or “European standards”. Among<br />
project implementers there is another<br />
trend which is about promoting economies<br />
of scale through “products” that are<br />
provided “off-the-shelf”.<br />
Our experience is that well informed<br />
leaders in charge of reform processes<br />
are increasingly suspicious about such<br />
offers. I believe that the way the “new”<br />
demand is articulated is also a symptom<br />
“Support in complex<br />
reform processes need<br />
to be extremely flexible<br />
and profound in addition<br />
to having a constant<br />
orientation towards<br />
activities that can add most<br />
value.”<br />
of reactions towards a dualism in the<br />
setup of projects - built on assumptions<br />
that projects are not just designed to be<br />
supportive to the beneficiary but also to<br />
the image of the implementing agency<br />
as well as the goodwill of a donor. This<br />
can be visualised through high profiles of<br />
projects manifested in smart logos and<br />
acronyms.<br />
SKL International prefers to work in close<br />
cooperation with the institutions and<br />
organisations that we are supporting<br />
and in tight dialogue with the donor. This<br />
provides for opportunities to build up<br />
confidence among the actors involved<br />
and is in a way a means to de-brand<br />
activities in favour of the institutions<br />
in charge, which can make something<br />
positive out of the credibility achieved<br />
through the projects.<br />
So how do we act on these<br />
demands for support?<br />
We are looking at these tendencies<br />
manifested in a demand for navigation<br />
in reform processes as something very<br />
positive and we are certainly eager to<br />
promote this kind of support. We are<br />
doing this in different ways:<br />
The dialogue with donors and beneficiaries<br />
is key. Inception periods should be<br />
long enough to provide well informed<br />
input about the conditions for project<br />
implementation.<br />
A system perspective must guide the<br />
operations - meaning that the set-up<br />
should be inclusive, transparent and<br />
flexible to allow for adjustments as key<br />
aspects and true “vehicles” for change<br />
are taken on board.<br />
Avoid ready-made models and concepts<br />
applied in other contexts and countries.<br />
Examples can be useful to keep in mind<br />
and learn from, but every country and<br />
every situation is unique. Copy-andpaste<br />
is not just per se a questionable<br />
approach but can also result in a narrowing<br />
of the scope or wrong focus and<br />
cause a costly loss of energy.<br />
Promoting flexible design of projects and<br />
programs for constant adjustments to<br />
enable delivery on demand rather in line<br />
with a pre-defined result. This is however<br />
a challenge given that result strategies<br />
and guaranteed results are the vocabulary<br />
à la mode.<br />
The need for more adaptable setups<br />
to evolving challenges in projects will<br />
create a partly new trilateral interaction<br />
between project, beneficiary and donor<br />
which is also sensitive, given the obvious<br />
insight that donors should stay out of<br />
implementation and that their time and<br />
resources are limited.<br />
A connected challenge related to the<br />
more blurred roles in these kinds of<br />
project setups is that results might not<br />
always be easy to isolate in terms of<br />
cause and effect, attribution and contribution.<br />
Another challenge relates to forecasts<br />
of risks when projects rely on fragile<br />
partners, a situation where, on the<br />
other hand, this type of support is most<br />
needed.<br />
I believe that these are challenges that<br />
will need to be confronted by donors.<br />
They are also reason to think and<br />
strategise in more pluralistic manners<br />
on how support is best provided. Our<br />
missions during <strong>2014</strong> provide an interesting<br />
set of experiences that I think will<br />
provide thought-provoking lessons for<br />
future capacity building in complex and<br />
sensitive policy contexts. We have been<br />
very motivated to embark on these challenges<br />
and we will be happy share the<br />
experiences down the road.<br />
Managing<br />
Director Håkan<br />
Gustafsson (left)<br />
together with<br />
Deputy Minister<br />
Vyacheslav<br />
Negoda at the<br />
signing of the<br />
MoU between<br />
SALAR, SKL<br />
International<br />
and the Ministry<br />
of Regional<br />
Development in<br />
Ukraine.
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 07<br />
Headlines in<br />
<strong>2014</strong><br />
January<br />
Follow up study on Public<br />
Administration Reform in Kosovo<br />
As part of the Sida Framework<br />
Agreement for Democracy<br />
and Public Administration,<br />
SKL International conducted a<br />
study to assess specific areas<br />
and programmes for Sida support<br />
to public administration<br />
reform in Kosovo. The study<br />
was a follow-up to an analysis<br />
conducted by SKL International<br />
and its partners in 2013, which<br />
February<br />
had focused at support options<br />
more broadly within both<br />
Kosovo and Albania. The study<br />
assessed three proposed priority<br />
areas and potential partners<br />
for assistance as identified by<br />
Sida, namely the Office of the<br />
Prime Minister and Ministry<br />
of Finance Agency for Gender<br />
Equality and Local Governance<br />
and Decentralisation.<br />
Reunion of Swedish municipalities<br />
participating in SymbioCity pilot projects<br />
The municipalities of Helsingborg,<br />
Borås and Eskilstuna<br />
participated in SymbioCity pilot<br />
projects in China and Indonesia<br />
during 2012 and 2013. The<br />
purpose was to strengthen<br />
the cooperating cities’ (Duyun,<br />
Probolinggo and Palu) ability and<br />
capacity to engage in sustainable<br />
urban development. In early<br />
<strong>2014</strong> the three municipalities<br />
participated in an evaluation<br />
March<br />
seminar in Stockholm with<br />
the ambition of reviewing the<br />
lessons learnt and experiences<br />
from the collaborations in<br />
order to improve similar project<br />
collaborations in the future.<br />
The seminar highlighted the<br />
important role that the municipal<br />
participants had in making the<br />
projects successful through their<br />
involvement, input and not least,<br />
commitment.<br />
April<br />
SKL International hosts Jordanian<br />
delegation in Stockholm and Skåne<br />
In late April, a high-level<br />
delegation from Jordan visited<br />
Sweden as a part of an<br />
EU-funded Twinning and<br />
Institutional Exchange (TAIEX)<br />
study visit on Decentralisation<br />
of Public Services. The group<br />
was composed of the Governor<br />
of the Local Development<br />
Directorate in the Ministry of<br />
Interior, Governor of Amman<br />
and Amman City Manager.<br />
In light of recently-articulated<br />
proposals for decentralisation<br />
in Jordan, the purpose of the<br />
visit was to explore EU best<br />
practices in decentralisation of<br />
public service, concentrating<br />
in particular on the division<br />
of responsibility within and<br />
between different tiers of<br />
government and to investigate<br />
the mechanisms for public<br />
accountability and transparency.<br />
In addition to visiting the host<br />
institution SKL International,<br />
the group also had meetings<br />
in Stockholm with the Swedish<br />
Association of Local Authorities<br />
and Regions, Stockholm<br />
County Council, Stockholm<br />
Business Alliance, the Council<br />
of Stockholm Mälar Region<br />
and SRV waste management<br />
authority.<br />
In Skåne, the group had constructive<br />
discussions based on<br />
the evolving context in Jordan<br />
with the County Governor and<br />
County Administrative Board,<br />
Region Skåne and the City of<br />
Malmö. In addition, the group<br />
was able to visit a Centre for<br />
Citizens Dialogue in the City of<br />
Malmö.<br />
You are invited to join the discussion at<br />
the World Urban Forum in Medellin!<br />
SKL International made<br />
a broad invitation to its<br />
Networking Event; “How<br />
can one plus one make<br />
three?! Finding innovative<br />
solutions through the<br />
SymbioCity Approach”<br />
at the seventh World<br />
Urban Forum in Medellín,<br />
Colombia.<br />
May<br />
Research paper on the State of<br />
Decentralisation in Eurasia presented in<br />
Tblisi, Georgia<br />
At the “Seminar for Dialogue and Capacity Building of Local and<br />
Regional Authorities in Eurasia in the Fields of Development and<br />
Local Governance”, SKL International and partners presented<br />
a research paper focusing on the state of decentralisation<br />
in the region. The seminar was arranged by Platforma, a<br />
European platform of local and regional authorities engaged in<br />
development cooperation.<br />
The research paper concludes that there have certainly been<br />
decentralisation reforms in most countries of the Eurasia<br />
region, and a development of local self-governance during the<br />
past 10-15 years. Yet decentralisation processes are frequently<br />
inspired by a wish to do away with the excessive centralisation<br />
inherited from Soviet times, rather than by an understanding<br />
of the advantages of a proper distribution of authority between<br />
various levels of power. As a result, many local authorities have<br />
had to assume the responsibilities without the relevant authority<br />
or resources required to fulfil them successfully.<br />
It is within this framework that Platforma partners try to help<br />
reinforce the institutional and operational capacities of local and<br />
regional authorities in Eurasia countries, particularly in the field of<br />
good governance and local development.<br />
June<br />
Kick-off for Collaborative Platform for Sustainable<br />
Suburban Dynamics<br />
On June 18, SKL International<br />
participated in an inspiring<br />
kick-off for the Vinnova-funded<br />
project called ”Collaborative<br />
Platform for Sustainable<br />
Suburban Dynamics” or<br />
“Södertörnsmodellen” in<br />
Swedish.<br />
The project is designed to meet<br />
the challenges for sustainable,<br />
attractive cities by developing<br />
innovative forms for citizen<br />
participation and stakeholder<br />
collaboration for sustainable<br />
urban development in<br />
suburban municipalities. Ten<br />
“test beds” will be connected<br />
to municipal activities in<br />
the Swedish municipalities<br />
of Södertörn (Huddinge,<br />
Haninge, Botkyrka, Södertälje,<br />
Nynäshamn, Tyresö, Nykvarn<br />
och Salem). For each test<br />
bed, a think tank will be<br />
formed with representatives<br />
from the municipalities,<br />
the construction industry,<br />
consultants and researchers<br />
who will develop innovative<br />
solutions for sustainable<br />
urban development based on<br />
stakeholder collaboration.<br />
The project is managed by<br />
the Swedish architectural firm<br />
White. Other actors involved<br />
in the project are: the Royal<br />
Giresun and Ordu signing up for equality<br />
Within the framework of the<br />
municipal partnership project<br />
“Turkish Swedish Equality<br />
Network”, Ordu and Giresun<br />
municipalities in Turkey hosted<br />
a partner meeting to sign the<br />
European Charter for Equality<br />
of Women and “Men in Local<br />
Life”. The Charter was signed by<br />
Mr Seyit Torun, Mayor of Ordu,<br />
and Mr Kerim Aksu, Mayor of<br />
Giresun. By signing the Charter<br />
the local authorities of Ordu<br />
and Giresun have made a public<br />
commitment to the principle<br />
of equality of women and men.<br />
They are well on their way to<br />
draw up an Equality Action<br />
Plan based on the standards of<br />
the Charter.<br />
In connection with the two<br />
signing events, the Swedish<br />
Institute of Technology;<br />
the municipalities of<br />
Södertörn; Sweden<br />
Green Building Council;<br />
engineering firm WSP;<br />
Skanska; Ecoloop; Nordregio<br />
and Södertörn University.<br />
SKL International’s role will<br />
be to provide international<br />
best practices and knowledge<br />
as well as to disseminate<br />
project results through its<br />
vast network of international<br />
stakeholders in the field<br />
of sustainable urban<br />
development.<br />
gender equality expert Ms Ann-<br />
Sofie Lagercrantz from Kalmar<br />
municipality performed a<br />
lecture on the principles of the<br />
Charter. The audience for this<br />
presentation was representatives<br />
from NGOs, politicians,<br />
managers and employees in the<br />
municipality.<br />
The core group of the project<br />
met in a workshop focused on<br />
the baseline reports from each<br />
municipality. The figures and<br />
statistics presented show that<br />
there is an undisputed gender<br />
gap in most areas. The partnership<br />
project will continue to analyse<br />
the information and collect<br />
complementary data.<br />
SKL International’s<br />
role will be to provide<br />
international best practices<br />
and knowledge as well as to<br />
disseminate project results<br />
through its vast network of<br />
international stakeholders<br />
in the field of sustainable<br />
urban development.<br />
→
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 09<br />
July<br />
Local decision makers from Iraq in Sweden<br />
During the summer a delegation<br />
of 14 participants from Iraq visited<br />
Gothenburg and Stockholm<br />
to study aspects of local governance.<br />
The delegation was headed<br />
by the Governor of Diwaniyah,<br />
Dr Ammar Albualikhan and consisted<br />
of members from the provincial<br />
council, a parliamentarian<br />
and leading managers from the<br />
social care sector.<br />
The visit was part of a component<br />
of the “Governance in Social<br />
Care” project, which focus on the<br />
role of local elected representatives<br />
and their role in planning,<br />
managing and following up on<br />
public service delivery. Iraq is in<br />
the middle of a radical decentralisation<br />
reform where the<br />
social services sector, amongst<br />
others, will be devolved to the<br />
provincial level. This will drastically<br />
change the mandates and<br />
roles for elected representatives<br />
and staff in all provinces.<br />
“We have noticed how vital it<br />
is with a continuous dialogue,<br />
not just between central and<br />
local decision makers, but also<br />
between elected representatives<br />
and the executive organs of the<br />
province. The lack of dialogue<br />
risks creating conflicts or misunderstandings<br />
that in the end will<br />
be a threat to the most vulnerable<br />
groups“ said Ms Zainab<br />
Al-Abedi, head of the women’s<br />
committee in the Diwaniyah<br />
provincial council.<br />
During the week the delegation<br />
met a variety of local decision<br />
makers in Gothenburg as well<br />
as Västra Hisingen, visited social<br />
care institutions in Gothenburg<br />
and Stockholm and discussed<br />
with former minister Ms<br />
Lena Hjelm Wallén about her<br />
experience of what it takes to<br />
achieve long term sustainable<br />
political decisions.<br />
The ongoing Syrian crisis and IS<br />
developments have affected the<br />
Diwaniyah province to a lesser<br />
extent that many other parts<br />
of the country, although many<br />
young men from the province<br />
have travelled north to participate<br />
in the conflict and many<br />
internal refugees have entered<br />
the province.<br />
Diwaniyah province is one of the<br />
poorest areas in Iraq with many<br />
groups that are socially and<br />
economically exposed. In order<br />
to develop the province with a<br />
long-term perspective, the leadership<br />
of the province are eager<br />
to cooperate also with partners<br />
outside the country. It is the<br />
hope of the Diwaniyah Governor<br />
that a continued and broadened<br />
cooperation with Gothenburg will<br />
be created; “We don’t lack money<br />
or other resources. What we need<br />
is knowledge and long-term<br />
relations with sound cooperation<br />
partners. Sweden has a good<br />
reputation in Iraq and we hope<br />
to work together closely in the<br />
future”.<br />
Snapshots from social care institutions and political meetings in Gothenburg and Stockholm. LEFT: Governor of Diwaniyah, Dr Ammar Albualikhan visiting the Gothenburg City<br />
Council Chairman, Ms Lena Malm and the Chairman of the Executive Board of the City of Gothenburg, Ms Anneli Hulthén.<br />
August<br />
Strengthening the voice of citizens in Kyrgyzstan<br />
SKL International carried out<br />
its first evaluation mission<br />
in Kyrgyzstan during August.<br />
The assignment reviewed the<br />
project “Strengthen Voice and<br />
Accountability: citizens participation<br />
in budgetary process” (VAP),<br />
which is jointly funded by the<br />
Swiss Development Cooperation<br />
and UK Department for<br />
International Development.<br />
The aim of VAP is to strengthen<br />
demand for services (voice of<br />
citizens) by working with the<br />
population and Local Self-<br />
Governments (LSGs) in rural<br />
areas. The project includes three<br />
main focus areas:<br />
▶▶<br />
▶▶<br />
Local communities (including<br />
civil society organisations)<br />
are participating<br />
in public service delivery<br />
management<br />
LSGs governing and managing<br />
capacity improved to<br />
respond citizens’ needs<br />
October<br />
▶▶<br />
Improved LSG legislation<br />
to enhance proper<br />
decentralisation process.<br />
The overall project duration of<br />
VAP is eleven years, delivered<br />
in phases. The first phase of<br />
implementation started in May<br />
2012 and is due to end in March<br />
2015, with funding of CHF 7.68<br />
million.<br />
High-level delegation from Myanmar to<br />
study multi-level governance and<br />
decentralized public administration systems<br />
A high-level delegation from<br />
Myanmar visited Sweden from<br />
27 September – 3 October, supported<br />
by UNDP Myanmar and<br />
its programme for strengthening<br />
institutions in local governance<br />
and decentralisation.<br />
The group composed of 16<br />
delegates including the Deputy<br />
Minister of Home Affairs, two<br />
Regional Ministers, senior government<br />
directors, policy makers<br />
and key personnel directing<br />
public administration reform in<br />
Myanmar and senior staff from<br />
UNDP.<br />
The study visit supported the<br />
Myanmar delegation to explore<br />
the Swedish multi-layered<br />
system of governance and the<br />
division of responsibilities<br />
between national government,<br />
ministries, government agencies,<br />
regions, county councils and<br />
municipalities. The visit aimed<br />
at supporting a broader exploration<br />
of practices and procedures<br />
related to the local and regional<br />
levels, as well as the establishment<br />
of effective monitoring<br />
and dialogue between public<br />
institutions. The visit involved<br />
several meetings with concerned<br />
national and local authorities/<br />
governments and agencies as<br />
well as the Swedish Association<br />
The purpose of the evaluation<br />
was to review of the performance<br />
of VAP during its first<br />
implementation phase and<br />
define the strategy for the second<br />
phase, which will run from<br />
April 2015 to March 2018. The<br />
mission involved an intensive<br />
programme with visits to LSGs<br />
in Jalalabad and Issky-Kul<br />
Oblasts, in addition to meetings<br />
in Bishkek with project stakeholders,<br />
including concerned<br />
Ministries, the Parliament and<br />
the Union of LSGs.<br />
Dr Zaw Oo, senior research fellow and<br />
Director of research at the Centre for<br />
Economic and Social Development of<br />
the Myanmar Development Resource<br />
Institute, also serving as a member<br />
of President Thein Sein’s National<br />
Economic and Social Advisory Council.<br />
of Local Authorities and Regions<br />
(SALAR), to assess and understand<br />
the institutional relationships<br />
between actors. Further, a<br />
detailed exploration of political,<br />
administrative and financial<br />
aspects concerning decentralisation<br />
was provided and discussed<br />
in the context of Myanmar local<br />
administration.<br />
September<br />
Mashrek seminar<br />
for regional and<br />
local authorities<br />
Together with Cités Unies<br />
France (CUF) and United<br />
Cities and Local Government<br />
(UCLG), SKL International’s<br />
regional office in Amman<br />
hosted a seminar involving<br />
local and regional authorities<br />
from the Mashrek region from<br />
24 – 25 September. The seminar<br />
is part of a global project<br />
managed by Platforma, an<br />
initiative co-financed by the<br />
European Commission that<br />
aims to improve European<br />
support to local and regional<br />
authorities and involve them<br />
in policy development.<br />
As a part of the seminar,<br />
SKL International delivered<br />
a discussion paper on the<br />
challenges and opportunities<br />
to support decentralisation<br />
in the region, with a focus on<br />
three country case studies<br />
of Lebanon, Jordan and<br />
Yemen. This was followed by<br />
a panel discussion involving<br />
representatives from across<br />
the region, where further<br />
reflections were provided to<br />
be integrated into the discussion<br />
paper.<br />
The seminar was noteworthy<br />
given the context in the<br />
region, with participants highlighting<br />
both challenges and<br />
opportunities that might stem<br />
from the current instability.<br />
Over 60 participants from<br />
Jordan, Palestine, Syria,<br />
Lebanon, Egypt, Yemen and<br />
Sudan attended the seminar.<br />
Representatives came from a<br />
range of actors including central<br />
governments, regional<br />
and local authorities, civil<br />
society and international<br />
development partners.<br />
→
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 11<br />
December<br />
NovembeR<br />
SymbioCity studies Zimbabwe<br />
After having fostered and<br />
developed the SymbioCity<br />
Approach from 2010 to <strong>2014</strong><br />
the Approach is taking a<br />
step to the next level. Part<br />
of designing the SymbioCity<br />
2.0 programme has been to<br />
identify countries and cities<br />
suitable for SymbioCity city<br />
projects. Suitable in the sense<br />
that for example the national<br />
government shows engagement<br />
in the urban sector, that<br />
there is political support and<br />
capacity at local level and that<br />
there is openness to testing<br />
new approaches and challenging<br />
existing structures. In<br />
November <strong>2014</strong>, Zimbabwe<br />
was among the first countries<br />
to be assessed.<br />
Although there have been<br />
some regressive trends in<br />
Zimbabwe over the past 15<br />
years, capacity at local level<br />
is still high in comparison to<br />
neighbouring countries. The<br />
international attitude towards<br />
Zimbabwe has also softened<br />
in recent times and sanctions<br />
have been lifted.<br />
This also means that bilateral<br />
co-operation is gradually<br />
increasing and the Swedish<br />
Embassy looks with optimism<br />
on future developments.<br />
The assessment team<br />
from SKL International<br />
was generally positive,<br />
particularly with<br />
regard to the future<br />
potential of Zimbabwe.<br />
Urban Advisor, Mr Mats<br />
Jarnhammar, had vivid<br />
impressions; “I see great<br />
potential in combining<br />
the SymbioCity Approach<br />
with the human capacity of<br />
Zimbabwean local governments.<br />
We can really help<br />
them get back on track”.<br />
Although there have<br />
been some regressive<br />
trends in Zimbabwe<br />
over the past 15 years,<br />
capacity at local level is<br />
still high in comparison<br />
to neighbouring<br />
countries.<br />
New plans to build<br />
the capacity of<br />
local government<br />
actors in Jordan<br />
This five-month assignment to<br />
assess Jordan’s institutional<br />
and organisational capacity<br />
for local government was<br />
undertaken as part of the<br />
EU project “Promoting Local<br />
Economic Development in<br />
Jordan” (PLEDJ). The project<br />
is being implemented at the<br />
central level by the Local<br />
Development Directorate (LDD)<br />
of the Ministry of Interior and<br />
Local Development Units in<br />
the 12 Governorates of Jordan<br />
(GLDUs). The global objective<br />
of this assignment was to help<br />
build the organisational capacities<br />
of LDD and GLDUs.<br />
SKL International’s team<br />
assisted the Director of LDD<br />
to assess the institutional and<br />
organisational capacity development<br />
needs for LDD/GLDUs<br />
and to develop three-year<br />
training plans for each category<br />
of staff of LDD and LDUs. This<br />
was based on a sound analysis<br />
of priorities and emphasised<br />
the provision of training offered<br />
in Jordan.<br />
During the course of the<br />
assignment the Government<br />
of Jordan launched the<br />
preliminary drafts of a<br />
new regulation concerning<br />
Governorate Councils<br />
and a new Municipality<br />
Law. Consequently, SKL<br />
International’s team was<br />
requested to expand their<br />
scope of work to take into<br />
consideration the decentralisation<br />
proposals, specifically by<br />
outlining anticipated future<br />
roles and capacity development<br />
needs in addition to the<br />
short- and medium-term training<br />
needs that were included<br />
within the original scope of the<br />
assignment.<br />
In addition to the above<br />
deliverables, the team was<br />
asked to outline anticipated<br />
LDD and GLDU roles and functions,<br />
as well as staff profiles,<br />
manpower requirements and<br />
organisational structures for<br />
LDD and GLDUs.<br />
Photos by Oksana Sappa<br />
One year after<br />
EuroMaidan<br />
Ukraine navigating between<br />
opportunities and constraints<br />
About the<br />
Project:<br />
Project name: Support to<br />
Decentralisation in Ukraine<br />
Duration: <strong>2014</strong> - 2017<br />
Budget: 31 750 000 SEK from<br />
Sida<br />
Main Partner: Ministry of<br />
Regional Development,<br />
Construction and Municipal<br />
Economy of Ukraine<br />
Project Organisation: A<br />
joint Ukrainian- Swedish<br />
Secretariat with office in Kiev<br />
and Stockholm<br />
Since the EuroMaidan revolution in February <strong>2014</strong>, Ukraine has experienced<br />
dramatic changes and challenges. On the one hand, the revolution revived hopes<br />
for change and created widespread public support and political will to resume<br />
reforms of the country. On the other hand, there are numerous constraints<br />
to successful implementation of the reforms, like the conflict in Eastern Ukraine that<br />
continues to claim victims and deteriorate the country’s economy. In this critical<br />
situation, decentralisation is seen as one of the most important reforms to stabilise the<br />
country and to move Ukraine towards integration with the European community.<br />
→
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 13<br />
As an important part of the Swedish<br />
Government’s support to Ukraine, SKL<br />
International kick-started a three-year long<br />
project in September <strong>2014</strong> to support the<br />
decentralisation process in Ukraine.<br />
Ambitious Reform Agenda<br />
Since the mid-1990s, Ukraine’s system of<br />
public administration has been the subject<br />
of almost continual reform, without<br />
yet really freeing itself from its Soviet-past.<br />
Discussion on the need for decentralisation<br />
has been ongoing for years but<br />
without any real changes.<br />
The EuroMaidan revolution triggered an<br />
urgent need for large-scale reform that<br />
can move the country towards effective<br />
and stable governance and provide for<br />
the country’s citizens while also addressing<br />
the regional tensions that have been<br />
inflamed through the conflict in the<br />
east. This opportunity was grasped by<br />
the new government that was formed<br />
after ex-president Viktor Yanukovych’s<br />
flight to Russia. In April <strong>2014</strong>, a concept<br />
for reformation of local self-government<br />
was approved by the new government<br />
whose primary goal is actual devolution<br />
and delegation of powers, together with<br />
adequate financial means, to representatives<br />
of local communities. This decentralisation<br />
reform is seen as one of the<br />
most critical for creating effective public<br />
institutions. It can also help to ensure that<br />
regions feel that their local specifics are<br />
taken into account while being part of the<br />
Ukrainian state.<br />
Reform-oriented Parliament<br />
The Ukrainian Parliament, Verkhovna<br />
Rada, has an important role to play in<br />
the country’s decentralisation process<br />
since it requires adoption of new laws<br />
and changes to the existing constitution.<br />
Therefore, the results of the parliamentary<br />
elections in October are seen as a signal<br />
in right direction with a majority of the<br />
seats taken by political parties that are<br />
dedicated to democratic reforms and<br />
EU-integration. At the end of <strong>2014</strong>, the new<br />
parliament approved a series of changes<br />
to budget and tax legislation that will<br />
allow regional and local administrations<br />
to collect more money for their budgets.<br />
During 2015, additional key laws will have<br />
to be approved related to important issues<br />
such as territorial reforms and distribution<br />
of authority.<br />
Q<br />
In your view, how can the<br />
parliament play an important<br />
role during the reform process? In<br />
what way does the new composition<br />
present an opportunity for reforms?<br />
Kostiantyn Gavrylov<br />
Liaison Officer for<br />
SKL International<br />
in Ukraine<br />
“For the first<br />
time since<br />
independence,<br />
the Ukrainian people have<br />
elected a pro-European and<br />
reform-oriented Parliament. The<br />
Coalition Agreement between<br />
politicians shows a strong<br />
political will to reform the<br />
State. Considering the very busy<br />
reform schedule and an urgent<br />
need to carry out the reforms,<br />
most of which rely on amending<br />
current or introducing new<br />
legislation, Parliament may<br />
become a “watchdog” of the<br />
reform launch and follow-up<br />
process.”<br />
People Demanding Change<br />
The realisation of proposed decentralisation<br />
reforms depends heavily on demand<br />
for change among the population. Lack<br />
of public support may result in the<br />
postponement of urgent, but potentially<br />
unpopular reforms. The EuroMaidan<br />
revolution, sometimes referred to as the<br />
“Revolution of Dignity”, has helped to<br />
facilitate a relatively strong consensus<br />
in the country regarding the urgency of<br />
reforms, and Russian aggression towards<br />
Ukraine has helped to strengthen this.<br />
Further, the consensus on the need for<br />
reform has helped to establish a broad<br />
coalition of civil society organisations.<br />
Therefore, this support among the wider<br />
population represents an opportunity for<br />
decentralisation reforms to succeed.<br />
Q<br />
Why is popular support important<br />
for the reform process? Popular<br />
support is never to be taken for granted,<br />
what can be done to keep it up?<br />
Erik Faxgård<br />
Project<br />
Manager at SKL<br />
International<br />
“Popular<br />
support for<br />
reform is as<br />
important as it is complex and<br />
difficult to predict. I believe that<br />
in order to grant any popular<br />
support one has to connect to<br />
the national “mood” of the<br />
people. Only talking about<br />
how well things are going will<br />
not be effective if a majority<br />
of the public believes that the<br />
country is heading in the wrong<br />
direction. Leaders need instead<br />
to connect with public sentiment<br />
on how people feel. There is a<br />
need to take these sentiments<br />
seriously and to communicate<br />
in a way that acknowledges<br />
that things are not going as<br />
they should. If the reforms are<br />
already in place and things are<br />
not going well, explain why that<br />
is the case or how the reforms<br />
will deal with it.”<br />
Escalating Conflict in the East<br />
At present, it is impossible to forecast<br />
how the conflict in eastern Ukraine will<br />
end and when. After the annexation of<br />
Crimea by Russia, some 5 000 people have<br />
already lost their lives and over 11 000 been<br />
wounded since the conflict started in April<br />
<strong>2014</strong>. The continuing conflict also creates<br />
complications for the decentralisation<br />
process. As of early 2015, the national government<br />
does not control highly urbanised,<br />
border areas of Donetsk and Luhansk<br />
regions, and it is unclear if and when these<br />
regions will return to the control of the<br />
Ukrainian state. Although the decentralisation<br />
reforms could serve as critical means<br />
for re-integrating these regions into the<br />
state on the terms of the local population,<br />
there remains a serious threat that portions<br />
of eastern Ukraine will either fully secede<br />
from Ukraine or become disputed regions<br />
for a long time to come.<br />
Q<br />
Why/how does the conflict in<br />
Eastern Ukraine present a threat<br />
to the reform process? In your view,<br />
how can decentralisation be a mean to<br />
address the conflict and related<br />
tensions?<br />
Lena Falcon<br />
Project<br />
Manager at SKL<br />
International<br />
“The conflict<br />
constitutes<br />
a threat not<br />
only to the national security and<br />
territorial integrity of Ukraine<br />
but also to the reform process.<br />
The conflict puts a heavy burden<br />
on the Government of Ukraine<br />
that needs to handle a serious<br />
humanitarian situation while<br />
also maintaining a focus on<br />
the reform process. It will<br />
be important to support the<br />
Government to keep this parallel<br />
focus and support their reform<br />
efforts despite the financial and<br />
human constraints caused by the<br />
ongoing conflict.”<br />
Deteriorating Economy and<br />
Corruption<br />
Preparation and implementation of largescale<br />
reforms is a long process that requires<br />
large amounts of organisational capacity<br />
and financial resources. The conflict in<br />
Eastern Ukraine is having serious consequences<br />
for the country’s economy due to<br />
different factors such as increased defence<br />
spending, a weakened investment climate<br />
as well as loss of production and trade particularly<br />
after separatists seized Ukraine’s<br />
main industrial and coal-mining eastern<br />
regions of Donetsk and Luhansk. The<br />
deteriorating economic situation therefore<br />
also represents a serious challenge to the<br />
implementation of reform.<br />
Another constraint is the widespread corruption<br />
that emerges from different clientpatron<br />
networks in the country. Corruption<br />
in Ukraine has been an institutional phenomenon<br />
both at local and central levels<br />
for a long time, and it is difficult to see how<br />
this situation quickly could change.<br />
Q<br />
In what way do the deteriorating<br />
economy and corruption present<br />
threats to the reform process?<br />
Ieva Kalnina<br />
Lead Expert for SKL<br />
International in<br />
Ukraine<br />
“Strangely<br />
enough, both<br />
these factors<br />
can also be<br />
seen in a positive light. Recent<br />
population surveys revealed<br />
that citizens tend to trust<br />
their local self-governments<br />
more than they trust national<br />
and oblast governments.<br />
The aim of decentralisation<br />
reform is to channel more<br />
public money to lower levels<br />
of public administration and<br />
in that way promote higher<br />
transparency and control over<br />
the use of public money. As<br />
for economic downturn, it is<br />
always good to remember that<br />
economy is cyclical - there<br />
will always be ups which will<br />
be followed by downs, and<br />
downs will never last forever.<br />
Economic downturn presents<br />
an opportunity to look for<br />
diversification possibilities,<br />
to cut the unnecessary<br />
expenditures, to re-focus<br />
investments on education and<br />
innovation. Independent local<br />
self-governments can have more<br />
freedom to act in these areas.”<br />
Looking into the Future<br />
(Keeping the Spirit Alive)<br />
Despite Ukraine’s difficult situation at the<br />
present, the political will and expectation<br />
of change among society provide a<br />
The EuroMaidan<br />
revolution, sometimes<br />
referred to as the<br />
“Revolution of Dignity”,<br />
has helped to facilitate a<br />
relatively strong consensus<br />
in the country regarding<br />
the urgency of<br />
reforms<br />
window of opportunity for reforms.<br />
To keep this spirit alive, it will be important<br />
to continue to promote decentralisation<br />
and highlight how reforms can result in<br />
real improvements for the country’s residents.<br />
SKL International will address this<br />
aspect by collaborating with the Ukrainian<br />
Government and other key stakeholders<br />
and supporting important areas such<br />
as fiscal decentralisation, financing for<br />
education, and public communication of<br />
governance reforms.
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 15<br />
Iraq - the<br />
PERFECT case for<br />
DECENTRALISATION?<br />
By Anna Backmann<br />
Official Launch of<br />
Ukrainian-Swedish<br />
cooperation<br />
On November 17, the Swedish<br />
Embassy in Kyiv, the Swedish<br />
Association of Local Authorities<br />
and Regions (SALAR) and SKL<br />
International officially launched<br />
the three-year project “Support to<br />
Decentralization in Ukraine” in Kyiv.<br />
The successful event was jointly hosted<br />
with partners the Government of<br />
Ukraine (GoU) and attracted a broad<br />
representation of key stakeholders in<br />
decentralisation reforms in Ukraine.<br />
Mr Andreas von Beckerath,<br />
Ambassador of Sweden to Ukraine,<br />
opened the event by saying: “The<br />
Swedish Government is pleased<br />
to support Ukraine’s plans for<br />
decentralisation. We believe this is a<br />
positive step towards a stronger and<br />
more inclusive democracy in Ukraine.<br />
Sweden has a long tradition of local<br />
self-government and can share many<br />
experiences and examples with<br />
Ukraine”.<br />
The speech was followed by a keynote<br />
address by the First Deputy<br />
Minister of Regional Development<br />
Mr Vyacheslav Negoda. Remarks on<br />
behalf of SALAR were presented by Ms<br />
Carola Gunnarsson, Vice President of<br />
SALAR, followed by an outline of the<br />
project scope and design presented<br />
by the SKL International team. The<br />
launching event closed with a signing<br />
of Memorandum of Understanding<br />
MoU between the Ministry of Regional<br />
Development, SALAR and SKL<br />
International. A well-visited attended<br />
press conference followed.<br />
Top: Ms Iryna Skaliy, Programme Officer at the Section for Reform Support at the Swedish Embassy in Kiev<br />
Bottom: Mr Vyacheslav Negoda, First Deputy Minister at the Ministry for Regional Development in Ukraine<br />
A country with a multitude of tribes, a colourful palette of religions and a myriad of<br />
ethnicities could potentially be the ideal ground for a decentralised governing system. In<br />
April 2013, a critical amendment was made to the previously (2008) established Law 21, an<br />
amendment that opened up for local authorities in Iraq to govern themselves.<br />
Iraq is just like in the rest of the world<br />
where each region, no matter which<br />
tribe or ethnicity the majority of its<br />
inhabitants are, has different needs.<br />
And formally, there is a lot of space for<br />
local officials to make their own decisions.<br />
Article 122 of the Iraqi constitution actually<br />
gives the provincial councils power<br />
“in accordance with the principle of<br />
decentralised administration” and Article<br />
115 says that anything that the federal<br />
government isn’t responsible for, should<br />
be the responsibility of the provincial<br />
councils.<br />
But the Iraqi government has been hesitant<br />
to enforce those stipulations. Some would<br />
say that their principles have pushed Iraq<br />
closer to splitting, and becoming three different<br />
countries: Sunni, Shiite and Kurdish.<br />
Others mean that the reluctance comes<br />
from good grounds and that it in fact is<br />
the strong centralisation that has kept the<br />
country intact, until now.<br />
The amended version of the Provincial<br />
Powers Act, also known as Law 21,<br />
would have seen local governments<br />
choosing their own judiciary and their<br />
own heads of security. The law also<br />
gave them the power to deploy the Iraqi<br />
army inside and outside major cities.<br />
In fact the amendment, Article 14, says<br />
“the governor shall have direct authority<br />
over all the apparatuses operating in the<br />
province which are tasked with security<br />
About the<br />
Project:<br />
Project name: Governance<br />
in Social Care<br />
Duration: Early 2013 until<br />
end of 2015<br />
Budget: MSEK 17 from Sida<br />
Main Partners: Governorates<br />
of Diwaniyah and Duhok<br />
The objectives: To strengthen<br />
governance and management<br />
in the social care sector<br />
by addressing issues of<br />
service provision and quality,<br />
accessibility, accountability,<br />
responsiveness, effectiveness<br />
and coordination between<br />
legislative and executive<br />
powers at sub-national level.<br />
Ambitions of the project:<br />
To work with small-scale,<br />
step by step, practical, and<br />
tangible improvements in<br />
the way decision-makers and<br />
officials, organisations, and<br />
institutions are functioning<br />
and interacting in the two<br />
governorates.<br />
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17<br />
Some would say that<br />
their [the government’s]<br />
principles have pushed<br />
Iraq closer to splitting,<br />
and becoming three<br />
different countries:<br />
Sunni, Shiite and<br />
Kurdish.<br />
decentralisation process has now become<br />
the entry point for SKL International’s<br />
support in the province. By promoting a<br />
dialogue process among key stakeholders<br />
in the province, SKL International can help<br />
the partners define a strategic approach<br />
to the decentralisation of the Ministry of<br />
Labor and Social Affairs (MOLSA).<br />
The upside of working with social care<br />
related issues in Iraq is that there tends to<br />
be more consensus between groups than<br />
is the case in other sectors. Protection of<br />
vulnerable people is a cross-cutting concern,<br />
regardless of political affiliation, tribe<br />
or religion. The downside is that MOLSA is<br />
a somewhat neglected and weak ministry.<br />
Starting with three ministries with long<br />
traditions such as health, education and<br />
municipalities, seven of the provinces are<br />
assisted by the USAID funded Taqadum<br />
project with basic inventory of roles and<br />
functions, gap analysis and other factfinding<br />
types of assistance.<br />
As early as August 2015, eight ministries<br />
are supposed to be “decentralised” to the<br />
provincial level.<br />
This decentralisation process is complicated<br />
for several reasons. Until now it has<br />
not been formulated clearly with regard<br />
to model (deconcentration, delegation<br />
or devolution?), aspect (administrative,<br />
political, fiscal?) or its legal framework<br />
(legislation is inconclusive and incomplete).<br />
Therefore, stakeholders get insufficient<br />
guidance, and there is a tendency<br />
to postpone efforts to solve the problems<br />
that they ultimately will be confronted<br />
with. Furthermore, the roles and responsibilities<br />
of the actors are often blurred,<br />
overlapping and mixed, which makes it<br />
difficult to take action.<br />
The key stakeholders/institutions for the<br />
dialogue are:<br />
▶▶<br />
▶▶<br />
▶▶<br />
The implementing actor, the recently-established<br />
General Directorate,<br />
that will take over the decentralised<br />
functions and responsibilities of<br />
MOLSA<br />
The budget distributor, the<br />
Governor’s Office that will also get<br />
the role as a Ministry as regards<br />
the reporting line for decentralised<br />
responsibilities<br />
The oversight body, the Governorate<br />
Council, which by law is ”an<br />
administrative unit of the central<br />
government working alongside the<br />
local ministerial department of the<br />
federal government”.<br />
A number of committees, task forces<br />
and working groups have already been<br />
established, with the aim to prepare<br />
for the imminent decentralisation. But<br />
given the plethora of groups and committees<br />
created, there may be a risk<br />
that the formation of new structures is<br />
considered a solution to the problem<br />
and not a means.<br />
Social care leaders in Iraq<br />
During 2013-<strong>2014</strong> a leadership development<br />
programme was implemented for social care<br />
managers of Duhok and Diwaniyah, Iraq.<br />
As a reinforcement of the three original<br />
training seminars organized, a learning and<br />
exchange visit was arranged in May <strong>2014</strong> for<br />
managers from Duhok province. The delegation<br />
visited social care administration and<br />
institutions in Gothenburg and the vicinity<br />
of Stockholm. The visit also entailed a number<br />
of workshops related to leadership, e.g.<br />
one on gender and leadership.<br />
Among the learning points mentioned by<br />
participants as especially interesting were:<br />
• The close and honest collaboration<br />
between the administration and the elected<br />
council/s<br />
• The participation of staff in planning and<br />
budgeting – a bottom-up approach to planning<br />
• The informal relationship between officials,<br />
staff, and beneficiaries<br />
• The way private companies and other<br />
organizations work with public funding<br />
and with maintaining public order”.<br />
One of the complexities of Law 21, which<br />
may explain the Government’s reluctance<br />
to implement it, is that it would also have<br />
given the provinces more control over<br />
their own money. This would have made<br />
some of them a lot richer – as Law 21<br />
would increase the percentage of money<br />
that oil-producing provinces get.<br />
Signs of change?<br />
A gradual decentralisation is now seemingly<br />
in preparation for the 15 provinces<br />
that are not part of a region (Kurdistan).<br />
With regard to the model for decentralisation<br />
there are indications that the various<br />
functions will be managed through<br />
different solutions, and some may not be<br />
decentralised at all. Also the aspects will<br />
be dealt with in different ways; planning,<br />
budgeting, management, political power,<br />
resource allocation/tax extraction seem<br />
to have been managed only partially by<br />
the central authorities.<br />
Fertile ground for dialogue<br />
prepared in Diwaniyah<br />
After working with social care related<br />
institutions and leadership in Diwaniyah<br />
for close to two years through the<br />
“Governance in Social Care” project, the<br />
A remarkable substance has already<br />
been prepared however, although<br />
scattered in bits and pieces, with no<br />
one feeling mandated to take the lead<br />
in keeping it all together in its entirety.<br />
There are efforts, but not concerted,<br />
and there are approaches, but not<br />
unified. Concerted efforts and unified<br />
approaches are urgently needed to be<br />
put in place, especially for functions of a<br />
ministry like MOLSA.<br />
Under the guidance of SKL International<br />
staff, the Diwaniyah dialogue is now<br />
preparing the province for the upcoming<br />
decentralisation of the Ministry of Labor<br />
and Social Affairs, to the extent possible<br />
given the deadline of August 2015.
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19<br />
Jasmine revolution<br />
opening up for<br />
decentralisation in<br />
Tunisia<br />
The popular uprising<br />
in Tunisia of January<br />
2011 was followed by a<br />
democratic transition<br />
process. It initially<br />
focused on the election<br />
of a National Assembly<br />
whose task was to decide<br />
over a new Constitution.<br />
The Constitutional<br />
dialogue prompted<br />
discussions around a<br />
new set of aspirations<br />
for democracy and<br />
social inclusion, with<br />
decentralisation in<br />
primary focus.<br />
Despite lofty<br />
aspirations, there<br />
was still a lack<br />
of clarity among<br />
policymakers concerning a<br />
number of key questions on<br />
decentralisation:<br />
What forms of local democracy should<br />
Tunisia consider? What forms of territorial<br />
organisation are feasible? What<br />
would be the most appropriate functional<br />
assignment between different<br />
levels of government? Which financing<br />
model will enable subnational governments<br />
to assume their assigned functions?<br />
The Tunisia Local Governance Pilot<br />
Project (TLG2P) was developed to respond<br />
to these questions through the provision<br />
of high quality, evidence-based policy<br />
analysis. It was to contribute directly to<br />
Tunisia’s democratic transition process by<br />
supporting capacity development of concerned<br />
stakeholders and encouraging the<br />
adoption of an inclusive multi-stakeholder<br />
consultation process.<br />
Mr Ryan Knox, project manager for TLG2P,<br />
has initiated and managed the project<br />
from the SKL International regional<br />
office in Amman together with local colleagues<br />
based in Tunis. This has been<br />
done against a backdrop of political<br />
and institutional instability following<br />
two political assassinations in 2013 and<br />
the closure of the National Assembly for<br />
nearly two months. In addition, <strong>2014</strong> saw<br />
the introduction of a second caretaker<br />
Government within the project implementation<br />
period.<br />
When asked to summarise the core<br />
achievements of the project, Ryan<br />
Knox says; “The project has delivered a<br />
number of important outputs, including a<br />
proposal for a National Decentralisation<br />
Mechanism, at the request of the Ministry<br />
of Interior. Policy analysis was carried out<br />
on a range of topics including territorial<br />
reform, human resources, local finance<br />
and competences such as local economic<br />
development, solid waste management<br />
and primary education.<br />
We have held regional consultations with<br />
148 municipalities on territorial-administrative<br />
reform, human resource development<br />
and the transfer of competences,<br />
in addition to a national workshop on<br />
inter-governmental finance. To allow for<br />
the inclusion of a wider range of perspectives,<br />
other stakeholders from the central<br />
government, regional authorities and civil<br />
society were engaged in the process.”<br />
A core objective of the project has been<br />
to mobilise the National Federation of<br />
Tunisian Cities (FNVT) so that it could<br />
begin to familiarise itself with a new role<br />
in national policy advocacy. Consequently,<br />
an FNVT Working Group was mobilised as<br />
the ‘institutional home’ for a large share of<br />
project activities.<br />
Despite its relatively short lifespan, the<br />
project has managed to leave a clear mark<br />
in the development towards FNTV truly<br />
representing the voice of municipalities<br />
in Tunisia. This is confirmed by Mr Saber<br />
Houchati, Executive Director of FNTV:<br />
“TLG2P has played an essential role in<br />
helping us to reinvent FNVT. At the start of<br />
the project, we were an organisation with<br />
limited capacity and there were questions<br />
about our legitimacy among the municipalities<br />
and central government. This has<br />
now changed, thanks in no small part to<br />
the support we received on TLG2P.<br />
We now know more about our role, the<br />
needs of our members and we have even<br />
begun to take on a role in challenging the<br />
central government in a constructive and<br />
meaningful way. In the last few months, we<br />
have been involved in a several cases of<br />
reactive and proactive lobbying, and will<br />
soon submit a position paper on decentralisation<br />
to the new Government. Our<br />
Swedish partners always tried to contextualise<br />
their advice within the Tunisian reality,<br />
and the process was primarily aimed at<br />
supporting capacity development, of our<br />
own Association, our members and the<br />
central government.”<br />
FNVT’s Position Paper on Decentralisation<br />
included a set of demands to the central<br />
government, articulated over the short-,<br />
medium- and long-term, concerning<br />
powers, finances, human resources and<br />
territorial reform. It represents the first<br />
experience in FNVT’s history where it will<br />
proactively articulate a comprehensive<br />
position for Tunisian decentralisation to<br />
the central government.<br />
For Ryan Knox the TLG2P experience has<br />
been unique; “TLG2P was in many ways<br />
the most challenging project I have managed.<br />
We were presented with a very short<br />
timeframe within which we not only had to<br />
acquaint ourselves with a completely new<br />
set of partners, context and country, but<br />
we also had to learn how to adjust to the<br />
Despite its relatively short<br />
lifespan, the project has<br />
managed to leave a clear<br />
mark in the development<br />
towards FNTV truly<br />
representing the voice of<br />
municipalities<br />
in Tunisia<br />
Photo: ©iStock.com/numbeos<br />
→
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rapidly-changing context within the country<br />
and wider region. At the same time, while<br />
Tunisia was the first Arab State to genuinely<br />
recognise decentralisation as a serious policy<br />
alternative, there were a number of question<br />
marks concerning its validity and applicability<br />
to the Tunisian context. We therefore needed<br />
to develop and deliver a multifaceted work<br />
plan that would, on the one hand, build<br />
the capacity of, and correctly position out<br />
Tunisian partners while, on the other, carry<br />
out high-quality policy analysis related to<br />
decentralisation in the Tunisian context. I think<br />
our strategy to use the one year pilot project<br />
to engage local actors, build mechanisms<br />
for decentralisation dialogue, and populate<br />
the policy arena with evidence-based and<br />
context-specific analysis was successful, but<br />
there is now a greater expectation for us to<br />
continue our work and support the fulfilment<br />
of the aspirations of the Constitution (Chapter<br />
7). This is why we, together with our Tunisian<br />
partners, have requested financing for a new<br />
phase of support starting in 2015.”<br />
“The exposure provided by TLG2P<br />
on Swedish and other country<br />
decentralisation experiences has been<br />
invaluable to us. As indicated in our<br />
Constitution, we are united in our<br />
view that the best form of Government<br />
for Tunisia is a decentralised one. It<br />
is fair to say that the proposals and<br />
ideas put forward by TLG2P have<br />
influenced the preparation of the<br />
Constitution. TLG2P has provided us<br />
with know-how and competences on<br />
various processes including the value<br />
of a strong and independent lobbying<br />
voice for municipalities. A number of<br />
my NCA colleagues have even reversed<br />
their opinion on the importance of<br />
having a strong national federation of<br />
municipalities!”<br />
MR Imed Hammami<br />
Chairman of the Committee on Local and Regional<br />
Authorities, Tunisian National Constituent<br />
Assembly (NCA)<br />
The year in Amman<br />
By Ryan Knox<br />
Despite witnessing numerous<br />
challenges, <strong>2014</strong> has been<br />
a successful year for SKL<br />
International in the Middle East<br />
and North Africa (MENA) region,<br />
where our regional office was<br />
opened in 2013.<br />
As well as our ongoing projects<br />
in Lebanon, Iraq and Tunisia,<br />
we have provided consultancy<br />
inputs to a range of donors and<br />
supported our civil society partners<br />
on issues of key concern.<br />
Having a base in the region has<br />
given us greater insights and<br />
allowed us to continue our effort<br />
to build awareness about the<br />
rapidly-changing context for<br />
local authorities, particularly<br />
with an eye towards future programming.<br />
In February, we carried out<br />
an evaluation of a UNDP<br />
project in Jordan focusing on<br />
Youth Participation on Local<br />
Governance. Subsequently,<br />
during the period March –<br />
September, we carried out an<br />
institutional and organisational<br />
capacity assessment of the<br />
Jordanian Ministry of Interior’s<br />
Local Development Directorate<br />
and 12 Governorate Local<br />
Development Units, as part<br />
of the EU project “Promoting<br />
Local Economic Development in<br />
Jordan” (PLEDJ). In September,<br />
we co-hosted (together with<br />
Cités Unies France and United<br />
Cities and Local Government)<br />
a seminar in Amman involving<br />
over 60 representatives from<br />
local and regional authorities<br />
from the wider Mashrek region<br />
(Jordan, Palestine, Syria,<br />
Lebanon, Egypt, Yemen and<br />
Sudan), where we delivered a<br />
discussion paper on the challenges<br />
and opportunities to<br />
support decentralisation in<br />
the region (focus on three case<br />
studies of Lebanon, Jordan and<br />
Yemen).<br />
In October, we delivered the<br />
final activities of the Tunisia<br />
Local Governance Pilot<br />
Project (TLG2P) and finally, in<br />
December, we carried out a feasibility<br />
study on the applicability<br />
of the SymbioCity Approach for<br />
Tunisia.<br />
Based on our discussions with<br />
Sida and the Swedish Ministry<br />
of Foreign Affairs, as well as an<br />
increased demand from different<br />
donors and partners for our<br />
technical support and cooperation,<br />
we look forward to 2015.<br />
We anticipate it will present a<br />
wide range of challenges and<br />
opportunities, focusing both<br />
on our traditional fields of<br />
assistance, as well as new areas<br />
such a peace-building, resilience<br />
and post-conflict local<br />
development.<br />
About the<br />
Project:<br />
Project name: Support<br />
to Local Governments<br />
in Serbia in the EU<br />
Integration process<br />
Main Partners: Standing<br />
Conference of Towns<br />
and Municipalities<br />
(SCTM) in Serbia, and<br />
the Swedish Association<br />
of Local Authorities<br />
and Regions (SALAR),<br />
with SKL International<br />
as implementing<br />
organisation.<br />
Program implementation<br />
period: Dec 2011 to<br />
Oct 2015<br />
Budget: 32 MSEK.<br />
Overall objectives: To<br />
contribute to strengthened<br />
democracy, equitable<br />
and sustainable<br />
development in relation<br />
to local governance<br />
and closer ties between<br />
Serbia and EU.<br />
Enhanced knowledge<br />
and capacity together<br />
with organisational<br />
changes are expected to<br />
lead to better inclusion<br />
of local governments<br />
in the EU integration<br />
process and improve<br />
outcomes at local level.<br />
Focus areas: EU integration,<br />
gender equality,<br />
environment protection,<br />
business climate and<br />
SCTM organisational<br />
development.<br />
Photos by Dennis Ersöz, Klarsyn<br />
Serbia on the road<br />
to EU accession<br />
the stakes for municipalities<br />
The formal opening of accession negotiations in January <strong>2014</strong> was a major milestone in<br />
Serbia’s relations with the EU. Yet even the most optimistic observers recognise that this<br />
is merely the start of a process that will take at least half a decade. Moreover, the onus<br />
throughout will be on Serbia to demonstrate its readiness, with little margin for give<br />
and take from the EU side. Still, even if the rules must be accepted largely as they are,<br />
there is some flexibility in exactly when and how they are implemented on the ground.<br />
By David Young<br />
→
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 23<br />
In 1992, the Swedish<br />
Association of Municipalities<br />
(SALAR’s forerunner) published<br />
what is known in local government<br />
circles as the “Green<br />
Book”. Entitled Municipal<br />
consequences of membership<br />
in the European Community, it<br />
proved to be a timely contribution.<br />
Two years later, with a<br />
close-fought referendum on<br />
membership to win, the government’s<br />
official commission<br />
found, for instance, that the<br />
rules on public procurement<br />
were ‘unlikely to make very<br />
much difference to municipal<br />
self-government.’<br />
TOP RIGHT: Ms Tanja Miščević BOTTOM RIGHT: Project Managers Mr Vladimir Jovanovic (STCM) and Ms Annakarin Lindberg (SALAR/SKL International)<br />
This is why the accession<br />
negotiations are of vital interest<br />
to local government. The<br />
experience of current member<br />
states suggests that most items on<br />
the day-to-day municipal agenda are<br />
influenced by the EU in one way or<br />
another – through its procurement rules,<br />
environmental standards, employment<br />
law and funding opportunities to give<br />
just a few examples.<br />
Local authorities – a Key but<br />
oft-neglected Partner<br />
Yet in many other recently acceded<br />
The Swedish Green Book<br />
But the municipalities knew<br />
better.<br />
“The Green Book forced<br />
the government to take the<br />
issue seriously and helped<br />
the association to influence<br />
Sweden’s preparations<br />
through high-level political<br />
contacts as well as at<br />
technical level through line<br />
ministries”,<br />
says Mr Håkan Gustafsson,<br />
Managing Director of SKL<br />
International and then head<br />
of the association’s European<br />
integration unit.<br />
countries, local government has<br />
had little if any say in the accession<br />
process. That has often proved to be a<br />
costly mistake, with frequent examples<br />
of fines for illegal state aids or failure<br />
to upgrade waste and water facilities,<br />
while at the same time municipalities<br />
were ill-prepared to access the EU<br />
funds that could have helped with vital<br />
investments.<br />
“We learn a lot from our neighbourhood<br />
countries, but also from<br />
successful member states and their<br />
experience,” says Ms Tanja Miščević,<br />
Nevertheless, it was impossible<br />
to predict the full extent of the<br />
impact of accession. In public procurement,<br />
for example, the number<br />
of appeals from losing bidders<br />
shot up by more than anyone had<br />
anticipated. Even in areas where<br />
Sweden considered itself a model<br />
for the rest of the EU, there were<br />
unexpected effects, such as when<br />
the country found itself before<br />
the EU Court in 2000 because<br />
some municipalities had failed to<br />
uphold bathing water standards.<br />
But on the whole, those who said<br />
the EU would weaken Sweden’s<br />
system of strong local government<br />
have been proved wrong.<br />
head of Serbia’s EU accession negotiating<br />
team. “SCTM has a multiple role<br />
in the process. It is raising awareness<br />
of EU-related issues at local level and<br />
enhancing local government capacities<br />
in the field of EU policies, standards<br />
and funds. Among many other<br />
activities, SCTM has a great initiative<br />
on establishment of municipal EU<br />
officers, which is strongly supported<br />
by the negotiation team. Also, I would<br />
like to emphasise SCTM’s role as a hub<br />
for information flow among all cities<br />
and municipalities, which greatly<br />
facilitates communication.”<br />
Of course the challenge for<br />
local authorities does not<br />
end with accession. SALAR<br />
continues to play a vital role in<br />
following new developments<br />
in the ever-evolving EU acquis.<br />
The association established a<br />
Brussels office in 1994, the year<br />
before Sweden’s accession.<br />
As its former head, Mr Tommy<br />
Holm, explains, “the Brussels<br />
office makes it possible for<br />
SALAR to gain early informal<br />
knowledge about possible<br />
future proposals, which allows<br />
us to react without delay. By the<br />
time formal proposals are on<br />
the table, it is often too late.”<br />
SCTM’s Impact Assessment –<br />
a Foot in the Door<br />
Inspired by SALAR’s experience prior to<br />
Sweden’s EU entry in 1995, SCTM drew<br />
up an analysis of the impact of accession<br />
on local authorities. “Nobody else in the<br />
region has done this, says Ms Aleksandra<br />
Vukmirović, head of EU integration and<br />
international cooperation at SCTM. Not<br />
only has the process helped municipalities<br />
to understand the scale of the challenge,<br />
but the final report was something<br />
that SCTM could bring to the national<br />
table. “The impact assessment was our<br />
foot in the door,” says Ms Ivan Božović,<br />
coordinator of the EU integration component<br />
of the programme.” Line ministries<br />
and the chief negotiator now see us as<br />
partners in the process.”<br />
Tanja Miščević explains how SCTM and<br />
the negotiating team organised a working<br />
session with mayors in October <strong>2014</strong> to<br />
share information on the issues at stake,<br />
with the message that ‘it is never too soon<br />
to get involved in negotiations with the EU<br />
and that local governments have a lot to<br />
offer in the preparation of the negotiating<br />
position for some important chapters. The<br />
plan is to make this ‘a permanent cooperation<br />
mechanism, with thematic sessions<br />
aimed at transfer of specific knowledge.’<br />
Subsequently, SCTM representatives<br />
have been invited to join working groups<br />
charged with preparing the negotiations<br />
in four key areas: public procurement<br />
(chapter 5), social policy and employment<br />
(ch. 19), regional policy (ch. 22) and<br />
environment (ch. 27). “SCTM’s contribution<br />
in these areas was of great importance,”<br />
says Ms Miščević, “and I believe<br />
that the significance of its participation<br />
in the process will be more visible in the<br />
following stages of negotiations.”<br />
State of play in the<br />
Negotiations<br />
The initial ‘screening’ – in which the EU<br />
Commission outlines the relevant acquis,<br />
and the Serbian government details progress<br />
so far – is complete for the above<br />
chapters. However, the starting date for<br />
negotiations proper is still uncertain.<br />
Some observers expect that EU member<br />
states will want to open heavier political<br />
chapters first, such as judiciary and<br />
fundamental rights (ch. 23) and justice,<br />
freedom and security (ch. 24), and may<br />
also want to see further progress on relations<br />
with Pristina.<br />
“Realistically, we are not expecting<br />
negotiations on environment to begin<br />
before 2016,” says Mr Miodrag Gluščević,<br />
programme coordinator and SCTM’s<br />
representative in the working group on<br />
environment. It is also likely that the EU<br />
will set ‘benchmarks’ – conditions that<br />
must be met before difficult chapters<br />
such as this one can be opened. “But<br />
now that our voice can be heard,” says Mr<br />
Gluščević, “we must organise ourselves<br />
to prepare specific negotiating positions<br />
and implementation plans that reflect the<br />
interests of local authorities.”<br />
Room for Improvement<br />
“There is still room for improvement<br />
as far as SCTM’s involvement is concerned,”<br />
says Aleksandra Vukmirović.<br />
For instance, some ministries wanted to<br />
invite SCTM representatives to Brussels<br />
for the screening meetings, but this<br />
was ruled out by the Serbian European<br />
Integration Office (SEIO). “Instead we<br />
were invited to follow the proceedings<br />
via video link and to collect questions<br />
from local authorities,” says Mr<br />
Gluščević.<br />
At the local level too, there have been<br />
hitches. Municipalities wishing to<br />
designate EU officers were challenged<br />
by administrative inspectors from the<br />
Ministry of Public Administration and<br />
Local Self-Government on the grounds<br />
that EU integration does not figure in<br />
the official list of local government<br />
powers. “This makes no sense”, says<br />
Ms Vukmirović: “Local authorities have<br />
to implement national laws related to<br />
the acquis, so they have to be informed<br />
about the process and involved in it, and<br />
they have to inform citizens.<br />
Municipal EU officers are even envisaged<br />
in the government’s own communication<br />
strategy,” she adds. But to be on the<br />
safe side, SCTM has, in dialogue with the<br />
ministry and with Ms Miščević’s support,<br />
secured an amendment to the law on<br />
local self-government that gives municipalities<br />
the formal legal right to address<br />
EU matters.<br />
Growing Local Influence on EU<br />
matters<br />
But on the whole Ms Vukmirović is satisfied<br />
with the growing influence of the local<br />
level on EU matters. She cites SCTM’s<br />
presence in the relevant bodies for<br />
planning, programming and monitoring<br />
Instrument for Pre-Accession II (IPA<br />
II) funding. Compared with IPA I, ‘the<br />
organisation of the whole process is<br />
much better, and local authorities have<br />
been consulted by SEIO on thematic<br />
priorities.’<br />
Challenges remain, not the least of<br />
which is that many local politicians, relatively<br />
new in office after recent elections,<br />
are unfamiliar with the EU acquis and<br />
how it will affect their day-to-day business.<br />
“We have to keep explaining,” says<br />
Ms Vukmirović. Tanja Miščević hopes that<br />
municipalities in Serbia will follow the<br />
example of their Swedish counterparts<br />
in strengthening ties and raising the<br />
voice of local governments in Europe.<br />
“Cooperation between municipalities,<br />
both within Sweden and across borders,<br />
is evident,” she says, “and it is partly<br />
thanks to this that European issues<br />
become issues of everyday life.”<br />
→
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 25<br />
Working together<br />
FOR local services<br />
Local leaders know that modern<br />
waste management demands<br />
action on a larger scale than municipalities<br />
alone can muster. With<br />
most household rubbish in Serbia today<br />
ending up on open tips, inter-municipal<br />
cooperation in some form is a must if the<br />
country is to live up to its own environmental<br />
aspirations, not to mention EU<br />
standards. Yet putting this into practice is<br />
often easier said than done.<br />
from Gävle to Zrenjanin<br />
By David Young<br />
The Serbian city of Zrenjanin and four surrounding<br />
municipalities, Žitiste, Sečanj,<br />
Titel and Kovačica, had tried to cooperate<br />
on waste management before. “But the<br />
mistake we made,” says Ms Ana Vujinov,<br />
project manager in Zrenjanin, “was to<br />
focus on only part of the system – landfills,<br />
for example. With Gävle, we looked<br />
at the whole chain, including recycling,<br />
composting, transfer stations, yards and<br />
vehicles, not only landfill.”<br />
Two and a half years later the five<br />
municipalities have set up a jointly owned<br />
company and drafted the first municipal<br />
investment project to make the single<br />
‘national pipeline’ for EU IPA II funds. The<br />
EU is expected to cover 75 per cent of the<br />
investment costs, with the rest coming<br />
from the municipalities themselves and<br />
the Serbian government. Much remains to<br />
be done, but the aim is a fully operational<br />
system that complies with all the relevant<br />
EU legislation by 2020.<br />
Open-minded Approach<br />
“And yet”, says Ms Annika Lundqvist,<br />
project coordinator at Gävle municipality,<br />
“it was not clear in the beginning that<br />
the ‘cluster’ with the Serbian municipalities<br />
would deal with waste.” Gävle was<br />
brought in for its expertise in intermunicipal<br />
cooperation more generally.<br />
But a key factor in the project’s success<br />
was that “we were able to connect with a<br />
process that was under way, on an issue<br />
that was already a political priority”, says<br />
Ms Lundqvist.<br />
Gävle’s open-mindedness has also been<br />
important. In the past, international<br />
consultants have tended to try and<br />
transplant their own models – “do it like<br />
we do, irrespective of local conditions<br />
and legislation,” says Ana Vujinov. “But<br />
Gävle gave us options.”<br />
Technical expertise was provided by<br />
Gästrike Återvinnare (GÅ), a municipal<br />
recycling and waste management<br />
association formed by Gävle and four<br />
other municipalities. But in the end, the<br />
Serbian municipalities opted not for an<br />
association but for a municipal-owned<br />
company similar to the Gästrike water<br />
company.<br />
Equal Shares<br />
Ms Vujinov stresses the importance<br />
of an equal partnership. “Previously,<br />
Zrenjanin, being the largest<br />
municipality, wanted to run things. But<br />
now each municipality has an equal share<br />
in the company, and each mayor has a<br />
seat on the executive board.”<br />
That waste management should remain a<br />
public concern was never in doubt. “You<br />
can never be rich enough to leave waste<br />
to a private company – this is one thing<br />
we have learned from the cluster,” says Ms<br />
Vujinov. Mr Thomas Nylund, Director of GÅ,<br />
agrees. “It is a question of resources – both<br />
environmental and financial,” he says. “Why<br />
should hard-pressed Serbian municipalities<br />
give up the chance to save the environment<br />
and make money?” The essential thing for<br />
Annika Lundqvist is “to be able to steer the<br />
system in the direction we want. That does<br />
not rule out using private companies to<br />
Timeline for<br />
Gävle and<br />
Zrenjanin<br />
cooperation<br />
September February June SeptembeR November March May<br />
December January<br />
2012 2013<br />
<strong>2014</strong><br />
2015<br />
Kick-off meeting in<br />
Belgrade and visits to<br />
Zrenjanin, Zitiste and<br />
Secanj<br />
Meeting and study<br />
visit in Gävle. Signing<br />
of Memorandum of<br />
Understanding<br />
Web seminar on<br />
findings from review<br />
of regional strategic<br />
waste management<br />
plan<br />
Study visit in Stockholm<br />
and Gävle looking at best<br />
practices and SALAR’s work<br />
on public awareness and<br />
citizen participation<br />
Training in<br />
Zrenjanin on public<br />
awareness and<br />
communication<br />
Training in Zrenjanin on<br />
modern integrated waste<br />
management and capacity<br />
building<br />
Job shadowing<br />
in Gävle<br />
Seminar in Zrenjanin with<br />
students from the Technical<br />
College of Applied Sciences<br />
of the University of Novi Sad<br />
(Zrenjanin branch)<br />
Final conference<br />
in Belgrade<br />
→
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 27<br />
At the service of its members<br />
developments at the Standing Conference of<br />
Towns and Municipalities IN SERBIA<br />
By David Young<br />
Left to right Ms Ana<br />
Vujinov, Mr Thomas<br />
Nylund and Ms Annika<br />
Lundqvist – drivers of<br />
the cooperation between<br />
Gävle and Zrenjanin<br />
deliver parts of the system, as long as<br />
municipalities retain control.”<br />
Spreading Best Practice<br />
“Experience from this cluster should be<br />
of great value for other Serbian municipalities,”<br />
says Mr Nylund. “Besides the<br />
holistic perspective, a key aspect is<br />
public awareness raising. Citizens must<br />
be on board, not least because they will<br />
have to pay directly for waste treatment<br />
services in future, through user fees<br />
rather than taxes.” Also important is<br />
that the Serbian municipalities have<br />
full ownership of the project. “We have<br />
contributed advice and support along<br />
the way,” says Mr Nylund, “but they have<br />
done the work.”<br />
“Other municipalities seeking to do<br />
likewise should ensure the active participation<br />
of mayors as well as high-level<br />
officials”, says Annika Lundqvist. “It is<br />
also essential that project leaders have<br />
the mandate and the capacity to drive<br />
the process forward.” And long-term<br />
commitment with a measure of patience<br />
is also required. “It takes time to develop<br />
a relationship,” says Ms Lundqvist. The<br />
teams visited each other a total of eight<br />
times, not counting web seminars,<br />
Skype meetings and job shadowing.<br />
Benefits for Gävle<br />
Asked what is in it for Gävle, Ms<br />
Lundqvist says the cluster has given<br />
the municipality a new perspective on<br />
its own activities, leading to greater<br />
internal cooperation between different<br />
departments and municipal companies.<br />
And, besides the reputational benefits,<br />
“the opportunity to spread this knowledge<br />
gives local staff a sense of pride in<br />
what we have achieved.”<br />
“By sharing our knowledge and experience<br />
we are contributing to a better<br />
environment,” says Thomas Nylund.<br />
And there are potential economic and<br />
employment benefits too. “By exporting<br />
Swedish know-how in waste management<br />
and environmental technology,<br />
we can also contribute to sustainable<br />
development at home.”<br />
Ms Zorica<br />
Vukelić<br />
Mr<br />
Vladimir<br />
Jovanović<br />
national and local<br />
government see us in<br />
a different light,” says<br />
“Both<br />
Mr Vladimir Jovanović,<br />
manager of the “Support to Local<br />
Governments in Serbia in the EU<br />
Integration Process” programme. Asked<br />
to summarise highlights so far, he cites<br />
the government’s recognition of SCTM<br />
as a partner in the process of negotiating<br />
EU accession – something which<br />
other local authority associations in the<br />
region have been denied. But equally,<br />
the association’s credibility with its<br />
members has grown. “Municipalities<br />
and mayors now take our advice much<br />
more seriously,” says Mr Jovanović.<br />
“Perhaps the greatest organisational<br />
change is a new strategic philosophy”,<br />
says Ms Zorica Vukelić, Deputy<br />
Secretary-General. In the past SCTM has<br />
tended to see itself as the prime beneficiary<br />
of donor funding. But SCTM’s<br />
latest strategic plan was drawn up on<br />
the basis of consultations with municipalities,<br />
and the work programme no<br />
longer reflects the association’s internal<br />
organisation, but rather its members’<br />
needs. “How can we influence politics<br />
and legislation to improve conditions<br />
for our members?” says Ms Vukelić.<br />
“How can we help them to work better<br />
for their citizens?”<br />
In addition, cooperation with SALAR has<br />
introduced SCTM to innovative tools and<br />
techniques. Ms Vukelić cites a new model<br />
for consulting local authorities on the<br />
programming of EU funds. “In the past we<br />
struggled to get the state to understand<br />
local government needs. Presenting the<br />
thoughts and demands of municipalities<br />
in their own terms has proved to be<br />
much more effective,” she says.<br />
Mr Jovanović adds the example of<br />
gender budgeting, implemented for<br />
the first time in Serbia with the help of<br />
SALAR experts, and the use of ‘clusters’<br />
of Serbian and Swedish municipalities<br />
to transfer technical know-how in fields<br />
such as waste management, energy<br />
efficiency and noise control.<br />
The programme has also forced SCTM to<br />
confront the issue of financial sustainability,<br />
says Ms Vukelić. With donor<br />
support set to tail off as EU accession<br />
approaches, the association will not<br />
only have to secure members’ contributions<br />
but also find other ways to<br />
generate income (through consultancy<br />
services, for example) and consider<br />
whether some of its activities that currently<br />
depend on donor funding will<br />
need to be scaled down or financed<br />
in other ways. “There remains a great<br />
deal to do”, says Mrs Vukelić, “but an<br />
important result of the programme<br />
is that SCTM’s thinking is now firmly<br />
oriented towards sustainability.”<br />
“Looking ahead, SCTM and its partners<br />
will need to shift their focus towards<br />
supporting municipalities on the<br />
ground”, says Mr Jovanović. “Otherwise<br />
it is hard to gain the attention of<br />
political leaders. In the current climate,<br />
mayors are understandably focused on<br />
attracting hard investments, and there is<br />
still work to do in explaining how ‘softer’<br />
improvements in the business environment<br />
are essential to bringing in funds.<br />
We have to encourage municipalities<br />
to implement concrete activities in the<br />
field of gender, for example,” says Mr<br />
Jovanović. But, he adds, “at the start of<br />
the programme there were no voices at<br />
local level in favour of gender equality<br />
and environmental sustainability. We<br />
stepped in almost from scratch.”<br />
Among the main challenges that SCTM<br />
faces are a changeable political climate,<br />
the fragile economy, persistent corruption<br />
and patchy implementation of<br />
legislation – and all this on top of limited<br />
capacity and scarce resources at the<br />
local level. “But through its support to<br />
municipalities”, says Mrs Vukelić, “the<br />
association is playing a much-needed<br />
part in institution-building”.
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 29<br />
Environment: Hot Topic for Serbian municipalities<br />
As a conclusion of their 2,5 year<br />
cooperation in the field of environment,<br />
representatives from 9<br />
Serbian and 3 Swedish municipalities<br />
met together with SCTM for two<br />
days to discuss and share experiences.<br />
Kula, Varvarin, Niš and Växjö<br />
presented their work on energy<br />
plans aiming to reduce carbon<br />
emissions and energy costs. Malmö<br />
together with Belgrade, Savski<br />
Venac and New Belgrade introduced<br />
guidelines for noise reduction<br />
in city planning while Zrenjanin,<br />
Žitište, Sečanj and Gävle shared<br />
experiences of forming a regional<br />
waste management company.<br />
As a result of lively discussions<br />
regarding political will (or the lack<br />
thereof), gender mainstreaming<br />
in environment and the need to<br />
involve of citizens; participants<br />
agreed that environment is a hot<br />
topic that needs more attention at<br />
national and local level in Serbia<br />
that requires increased cooperation<br />
between Serbian municipalities<br />
as well as inspiration and genuine<br />
support from international partners<br />
having faced similar challenges.<br />
As project manager for our<br />
programme in Turkey, I’m constantly<br />
challenged by change;<br />
in the Turkish context and in<br />
our partner organization, the Union of<br />
Municipalities of Turkey (UMT).<br />
From toddler<br />
TO teenager<br />
Charting the course of UMT’s growth<br />
By Magnus Liljeström<br />
During <strong>2014</strong> Turkey implemented what<br />
must be one of the largest territorial<br />
reforms in decades. Almost 3 000 municipalities<br />
became less than 1 400, and 30<br />
“mega municipalities” were created, some<br />
with territories almost as large as Denmark<br />
and with populations ranging from 14 million<br />
down to just under 1 million.<br />
And the process from first proposal to full<br />
implementation took less than two years!<br />
Meanwhile, the changes within UMT are<br />
similarly considerable, based on a clear<br />
long-term direction. Or, as expressed in<br />
an internal review of our programme:<br />
UMT was like a young child when the<br />
cooperation began, and now it’s more like<br />
an adolescent.<br />
Of course, such a change in an organisation<br />
is just as challenging to a project manager<br />
as the growing child is to its parents.<br />
When UMT and SKL International first met<br />
to discuss a possible joint project a decade<br />
ago, the union had only some ten employees<br />
and was almost unknown by others<br />
than mayors. So, rather than focusing on<br />
UMT, the “Tusenet” project was mainly<br />
built on thematic partnerships between<br />
Turkish and Swedish municipalities.<br />
When I entered that project in 2009, I<br />
got the opportunity to plan for a set of<br />
activities that addressed the institutional<br />
capacity of UMT. At the same time, UMT<br />
had grown to some 40 or 50 staff and<br />
started to formulate its first strategic plan.<br />
Together with UMT’s department for international<br />
relations, we sketched a new<br />
project, or rather a programme, focusing<br />
on activities that were in line with the<br />
strategic plan. This “Tuselog” programme<br />
has been implemented for three years<br />
now and is constantly updated and reformulated<br />
to adjust to UMT’s development.<br />
Early activities mostly focused on<br />
showing examples, producing reports<br />
and other inputs for UMT to make use of<br />
according to their priorities and capacity.<br />
Lately, input goes directly into the<br />
internal processes of UMT, such as the<br />
formulation of a new strategic plan.<br />
Our partner has grown, now the total<br />
number of staff is approximately 100. The<br />
growth is fortunately also matched with<br />
increasing maturity. Now UMT expresses<br />
clearly what support it needs and has the<br />
self-confidence to allow outsiders into the<br />
Offices of the Union of Municipalities of Turkey, located in Ankara<br />
organisation, even in sensitive processes.<br />
In essence, the work has become more<br />
demanding, but also more rewarding. It’s<br />
very stimulating to see how both individuals<br />
and departments develop.<br />
The joint programme management will<br />
end in 2015 but an extension is currently<br />
pending. At the end of 2016 we will hopefully<br />
be able to say that UMT is no longer<br />
a teenager but a promising university<br />
student.
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 31<br />
About the project<br />
Better communication,<br />
better results in Turkey<br />
Project name: Tuselog<br />
Main Partners: Union of<br />
Municipalities of Turkey (UMT) and<br />
the Swedish Association of Local<br />
Authorities and Regions (SALAR)<br />
with SKL International as implementing<br />
partner.<br />
It consists of five components:<br />
UMT institutional development,<br />
UMT lobbying and member service<br />
capacity, UMT’s EU integration<br />
capacity, thematic partnerships<br />
between Swedish and Turkish<br />
municipalities and capacity development<br />
in Turkish municipalities.<br />
Duration: Implementation<br />
started in December 2011. Although<br />
originally planned for four years, the<br />
partners are exploring an extension<br />
until December 2016<br />
Budget: 35 million Swedish kronor.<br />
The Union of Municipalities of<br />
Turkey is conducting a leadership<br />
development programme<br />
to improve the way its leaders<br />
communicate. The initiative responds to<br />
two organisational reviews carried out by<br />
SKL International. These found that communication<br />
remains a challenge, despite<br />
the organisation’s impressive development<br />
over the past five years.<br />
During these past five years SKL<br />
International has twice been entrusted<br />
to perform organisational development<br />
reviews of the Union of Municipalities<br />
of Turkey (UMT). The first one was conducted<br />
during the “Tusenet” project in<br />
2009 and the second one in <strong>2014</strong> as part<br />
of the follow-on “Tuselog” programme.<br />
When coming back for the second<br />
organisational development review, the<br />
team of experts found that UMT had<br />
gone through a very impressive development<br />
over the intervening five years.<br />
The association had grown not only in<br />
numbers but also in competence and<br />
public recognition.<br />
For any organisation, rapid growth<br />
puts challenges on the communication<br />
system. Due to very heavy workload the<br />
association has had difficulties dealing<br />
with these challenges. Communication<br />
was found to be a key issue in the<br />
reviews and although some steps have<br />
been taken, communication is an area<br />
that the organisation would benefit from<br />
developing further.<br />
Through the Tuselog programme, all<br />
of the managers of the association are<br />
taking part in a leadership development<br />
program with focus on communicative<br />
leadership. This is the first step towards<br />
building capacity to organise and lead<br />
towards common strategic goals. It<br />
responds to the recommendation in<br />
the second organisational development<br />
review “to adopt more strategic<br />
approach towards communication”.<br />
Initiating the programme<br />
The leadership development programme<br />
was planned and launched together<br />
with the management of UMT. Interviews<br />
were held with the Secretary General,<br />
two deputy Secretary Generals and eight<br />
directors in order to create a platform for<br />
the training. This phase pinpointed the<br />
status, needs and challenges for strategic<br />
leadership and communication within<br />
UMT.<br />
A number of positive aspects were<br />
identified, including a genuine aim for<br />
group community, social responsibility<br />
and experienced leadership. However<br />
the interviews also highlighted a lack<br />
of information and shared vision at<br />
various levels, lack of structured internal<br />
communications and an unclear team<br />
structure.<br />
The programme was planned as a series<br />
of workshops over a year. It was connected<br />
to the implementation of UMT’s<br />
new strategic plan in order to benefit the<br />
whole organisation. The training took<br />
a comprehensive approach based on<br />
modern leadership approaches where<br />
communication skills are valued highly. It<br />
aimed to develop assets already in place<br />
and strengthen the managers in their different<br />
roles, corresponding directly to the<br />
perceived needs and challenges both on<br />
an individual and aggregated level.<br />
Creating a platform<br />
The first workshop took place in January<br />
<strong>2014</strong> and gathered ten of the managers<br />
from both senior and middle management.<br />
The scope of the first sessions<br />
was to create a platform to understand<br />
the leaders’ communication goals and<br />
explore theories linked to behaviours.<br />
This knowledge platform consisted of<br />
recent research in the field, examination<br />
of leaders’ different roles, a reflection on<br />
current challenges and possible effects<br />
on the organisation’s results. There was<br />
also a team building exercise where the<br />
group identified abilities and skills and<br />
discussed UMT leaders’ role in anchoring<br />
the strategic plan. Furthermore the workshop<br />
clarified the desired values and<br />
expectations of UMT leaders and helped<br />
define UMT’s communication system.<br />
As study material, the training used a<br />
2011 Swedish research report on communication<br />
theory: “Communicative<br />
Leadership: Theories, Concepts, and<br />
Central Communication Behaviors”.<br />
The workshop leader, Ms Anne Scheffer<br />
Leander, a communication strategist,<br />
drew on her many years of experience<br />
working with communicative leadership<br />
in the City of Stockholm and of implementing<br />
and following developments in<br />
the field.<br />
“To follow the development of a communicative<br />
organisation in a completely<br />
different context and culture is very<br />
interesting and stimulating”, says Anne<br />
Scheffer Leander. “This project and<br />
programme for UMT leaders is very well<br />
timed as Sweden is well ahead of the<br />
research in the field and there will be<br />
opportunities for mutual benchmarking.<br />
Just recently a three-year research<br />
project started that aims to answer the<br />
question “What characteristics does a<br />
communicative organisation have?”. Ten<br />
companies and organizations - among<br />
Åmål and Mardin join forces to<br />
address shared challenges<br />
“I didn’t realise we were visited by<br />
a celebrity!” says Ms Anna Lundin,<br />
responsible for Europe Direct<br />
Fyrbodal in Åmål municipality.<br />
Anna Lundin is referring to the<br />
strong emotional reactions of<br />
Kurdish Swedes when spotting Mr<br />
Ahmed Türk, the newly elected<br />
mayor of Mardin, walking the<br />
streets of Åmål.<br />
Ahmed Türk together with co-mayor<br />
Ms Februniye Akyol visited Åmål<br />
to forge the two municipalities’<br />
joint project on local economic<br />
development and EU integration.<br />
Although Mardin is a big metropolitan<br />
municipality with close<br />
to 800 000 inhabitants and Åmål<br />
them the City of Stockholm - will<br />
get their abilities in communication<br />
highlighted by researchers at<br />
Lund University.”<br />
Next step in the programme<br />
The following workshops will be<br />
more practical and focused on<br />
the communication system itself,<br />
including channels, messages,<br />
actors and objectives. There is a<br />
need for training on cascading and<br />
transmitting overall messages and<br />
goals in order to improve performance<br />
on both individual and unit<br />
level. To increase efficiency, there<br />
needs to be a more developed<br />
approach in how to create and<br />
contribute to an open and respectful<br />
work environment where<br />
dialogue and feedback is a natural<br />
part of the internal structure.<br />
“We believe that there are real<br />
benefits for the organisation to<br />
construct an effective communication<br />
system that is agreed upon<br />
and known to all. This will help<br />
build strategic capacity to lead and<br />
organise towards common goals”,<br />
says project manager Gülsen Can.<br />
Following workshops within<br />
the leadership development<br />
programme will be held in March,<br />
June and October 2015.<br />
a small one with just over 12 000<br />
inhabitants, the mayors of both<br />
cities express more or less the<br />
same challenges concerning local<br />
economic and social development.<br />
This includes high unemployment<br />
rate in general and high youth<br />
unemployment in particular.<br />
Another very important issue that<br />
the mayors from Mardin want<br />
to work on within this project is<br />
gender equality. Especially since<br />
illiteracy and hence unemployment<br />
among women in the<br />
Turkish region is quite high.<br />
Gülsen Can, project manager at<br />
SKL International explains the<br />
After local elections in March<br />
<strong>2014</strong> and election of a new board<br />
for the Union of Municipalities of<br />
Turkey (UMT) the same year, the<br />
work to produce a strategic plan<br />
for the term 2015-2019 began at<br />
the association.<br />
The TUSELOG Programme has<br />
provided targeted support to<br />
UMT in this process in order to<br />
enhance capacity in strategic<br />
planning and institutionalise the<br />
process. Further results of this<br />
support are for example building<br />
team spirit, increasing interdepartmental<br />
communication<br />
and cooperation, and creating<br />
a common language within the<br />
organisation.<br />
Planning experts Mr Ferhat Emil<br />
and Mr Hakkı Hakan Yılmaz<br />
provided training and one-onone<br />
coaching all throughout the<br />
process. The Strategic Planning<br />
Team (SPT) members continuously<br />
received support and<br />
encouragement from experts,<br />
which increased self-confidence<br />
and provided fundamental learning<br />
for future planning. “Now, it is<br />
important for UMT departments<br />
to start implementing action<br />
Porya Khorshid Åmål, Oya Otman SKL International, Bahar Özden UMT,<br />
Michael Karlsson Mayor of Åmål, Ahmet Türk Mayor of Mardin, Februniye Akyol<br />
Mayor of Mardin, Anna Lundin Europe Direct Åmål, Shelly Rotshcild interpreter,<br />
Dilek Akyapi project manager Mardin<br />
reaction from people in the<br />
streets of Åmål; “Mardin and Åmål<br />
are actually already connected<br />
through immigrants from the<br />
region. Therefore this is not a just<br />
Strategic planning 2.0 at UMT<br />
By Ms Oya Otman<br />
plans and monitor the activities,”<br />
says Ferhat Emil to stress the<br />
importance of sustainability of<br />
this positive progress.<br />
Hakkı Hakan Yılmaz explains<br />
further; “UMT is now able to<br />
link plans and programmes<br />
with activities of departments,<br />
vertically (hierarchical) and horizontally<br />
(with other units). The<br />
process helped increasing awareness,<br />
ownership and motivation<br />
among staff, and new strategies<br />
were built to increase internal<br />
and external communication.”<br />
Head of Training Department,<br />
Mr Fikret Gültekin confesses that<br />
comparing with the first Strategic<br />
Plan of UMT, the new one is institutionally<br />
much more anchored<br />
and owned by managers and<br />
staff. The reason behind this is<br />
of course active participation<br />
and ownership of managers and<br />
staff. TUSELOG experts organised<br />
meetings with each department,<br />
as well as inter-departmental<br />
meetings for cross cutting issues.<br />
The Programme eam was also<br />
involved in these meetings to<br />
identify areas where TUSELOG<br />
could provide more support.<br />
any international municipal cooperation<br />
but a relationship that<br />
already is deeply anchored. It will<br />
be interesting and valued by the<br />
citizens of the municipalities”.<br />
Planning Expert Mr Ferhat Emil and<br />
Project Coordinator Ms Oya Otman<br />
Ms Bahar Özden, coordinator of<br />
SPT, stated that with TUSELOG’s<br />
support, UMT was able to prepare<br />
a professional, inclusive, realistic,<br />
plain and contextually rich<br />
strategic plan, which now can be<br />
proudly presented to its members.<br />
“We benefitted immensely<br />
to work with experienced senior<br />
experts who know UMT very<br />
well.”<br />
This process has helped UMT to<br />
reinforce institutional infrastructure<br />
and establish mechanisms<br />
for continuous monitoring.<br />
Action plans currently are in progress<br />
and once finalised, they will<br />
concretise future work for each<br />
department. And the now experienced<br />
Strategic Planning Team<br />
will be working as Monitoring and<br />
Evaluation Team until the next<br />
strategic planning period in 2020.
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 33<br />
Turkish EU experts impressed by Sala<br />
In March <strong>2014</strong>, a group from Turkey visited Sweden to study the Swedish experiences<br />
of EU-integration. Visits were made to the municipalities of Södertälje, Stockholm<br />
and Sala. The participants represented UMT as well as the Ministry for EU affairs and<br />
the visit was part of the “TUSELOG” program. When asked to reflect on what they had<br />
seen, heard and learned, this is what some of them said;<br />
Mr Ceyhan<br />
ÇIÇEK,<br />
Expert at the Ministry<br />
for EU Affairs of<br />
Turkey<br />
There are so many<br />
EU projects in Turkey implemented<br />
at the local level. However there is a<br />
problem of effectiveness and sustainability.<br />
We have observed in Sweden<br />
that in order to achieve an effective<br />
and comprehensive project targeting<br />
the citizens, you have to cooperate<br />
with other stakeholders. This is the<br />
main difference.<br />
I also think that Swedish municipalities<br />
and SALAR’s experiences on EU<br />
issues and projects can be good<br />
examples for Turkish municipalities.<br />
Therefore Turkish municipalities<br />
should cooperate with Swedish<br />
municipalities within the context of EU<br />
projects.<br />
One of the roles of the Ministry for<br />
EU Affairs is to coordinate EU affairs<br />
and projects in Turkey. While doing<br />
this it is important to cooperate with<br />
UMT because it is the biggest body<br />
concerned with local governments. In<br />
my opinion we, the Ministry and UMT,<br />
should focus on EU effects at the local<br />
level in specific chapters/sectors such<br />
as regional development and environment.<br />
UMT has good relations with<br />
municipalities and also has expertise<br />
in some sectors, and the Ministry for<br />
EU Affairs has a coordination and<br />
sector-based expertise. And these two<br />
institutions could develop projects<br />
focusing on the EU effects at the local<br />
level.<br />
The first lesson from Sweden is about<br />
the logic of local governance. There<br />
The group of EU Experts from Turkey together with Ms Carola Gunnarsson (yellow scarf), Chair of the<br />
Municipal Executive Board of Sala Municipality and Deputy Chairman of SALAR.<br />
is a big difference between Turkey<br />
and Sweden in this issue. The powers<br />
that local government in Sweden<br />
have, have made municipalities more<br />
responsive to citizens. And this creates<br />
a pressure on municipalities to provide<br />
better services for their citizens.<br />
The second lesson is about the culture<br />
of cooperation. In Turkey there is usually<br />
no cooperation among institutions<br />
in central and local level. In Sweden<br />
we have observed that without<br />
cooperation you cannot achieve your<br />
targets fully.<br />
The third lesson is about the impact<br />
of EU funds in municipalities. Even<br />
in a small municipality such as Sala,<br />
it is possible to achieve EU projects<br />
in different aspects. For example the<br />
business platform which is about<br />
entrepreneurship and Black River<br />
Valley is about local development and<br />
environment. On the other hand EU<br />
support in the Silver Mine is about<br />
tourism. If there is cooperation in a<br />
municipality and a team spirit, many<br />
things can be achieved.<br />
When I return to Turkey I will tell about<br />
the citizen-oriented policies, cooperation<br />
between institutions, focus on<br />
local self-governance, well developed<br />
social services, low interests for<br />
the EU elections, immigration challenges,<br />
Sala’s success with EU projects,<br />
Södertälje´s active involvement in<br />
social issues, and that it´s a very<br />
expensive country…<br />
Ms Fatma<br />
ŞAHIN<br />
Expert at UMT<br />
I was really<br />
impressed with Ms<br />
Carola Gunnarsson in Sala municipality.<br />
She has been in politics for such a long<br />
time but is still very active and passionate<br />
when it comes to the development<br />
of her own region. The biggest prison in<br />
Sweden is located in her municipality<br />
and she described how they work to<br />
create job opportunities through its<br />
existence. To tackle unemployment is the<br />
same challenge for her as for us.<br />
Through the visits in Stockholm,<br />
Södertälje and Sala we got a good insight<br />
into how the EU membership is handled<br />
at the local level in Sweden. Swedish<br />
municipalities are affected by EU laws<br />
and regulations in every aspect of their<br />
work. And they are aware of those<br />
regulations. They know the EU funds and<br />
how to get access to them. Still they told<br />
us that they have challenges using them,<br />
especially when it comes to sustainability<br />
of projects (this is a common problem<br />
between Sweden and Turkey).<br />
At SALAR there is expertise that follows<br />
the development of rules of EU every<br />
day. If something happens s/he gives<br />
information to the related expert at<br />
SALAR and at the end s/he can advise<br />
the municipalities on how to handle new<br />
regulation. In UMT we don’t have such a<br />
mechanism, but UMT and the EU Ministry<br />
in Ankara have joined in a project called”<br />
Turkish municipalities getting ready for<br />
the EU” . Our training sessions provide<br />
information about EU and what can be<br />
done with EU funds, together with trainers<br />
from the ministry.<br />
What I bring back from this visit is the<br />
reminder that the best way to develop is<br />
cooperation between different parties in<br />
the same municipality for the sake of the<br />
best outcome for a locality.<br />
A visit to the old silver<br />
mine in Sala made<br />
a lasting impression<br />
on Mr Cemal Bas<br />
from Union of<br />
Municipalities in<br />
Turkey and his<br />
colleagues.<br />
And finally, I must say that the train ride<br />
to Sala was very comfortable. I think it<br />
is a very good way to travel. When I get<br />
back I will tell my family about the Sala<br />
silver mine and the great attitude of the<br />
Swedish people that we met.<br />
Ms Aysel<br />
tOLunay,<br />
EU expert at the<br />
Ministry for EU<br />
Affairs of Turkey<br />
In Södertälje the biggest impression<br />
was to learn about its mixed population<br />
and how the city deals with that.<br />
The cultural mix in the city was a real<br />
highlight.<br />
In Sala the biggest impression was the<br />
passion of the people at the municipality<br />
and by far the visit to the Silver<br />
Mine. But not only in the sense of an<br />
touristic attraction, I was affected how<br />
the city made use of such an old mine<br />
and continued to keep it as a core cultural<br />
value of their city. They used EU<br />
funds to open the mine to tourism and<br />
I think this is a pure success of how EU<br />
funds can make such a great contribution<br />
to a small city.<br />
The three most important issues for<br />
me that I bring back from this visit<br />
are; participation of local actors in the<br />
decision making process is very important<br />
for local decision making, good<br />
cooperation between different actors<br />
is vital for local success and finally to<br />
have a strong will to take initiative<br />
and make changes and progress even<br />
in the smallest authority in the country<br />
is important.<br />
I think there’s not something like “the<br />
one outstanding thing” that should<br />
be changed in Sweden. When I look<br />
at Sweden from the outside I see it as<br />
a prosperous, wealthy state valuing<br />
democracy and its citizens. So that<br />
makes me to think that I wish this for<br />
my country too.<br />
Mr Cemal<br />
Bas,<br />
Expert at UMT<br />
After these visits<br />
to municipalities<br />
in Sweden it is obvious that EU is not an<br />
easy organisation to reach, learn and<br />
implement. There are many different<br />
aspects to consider. In this even municipalities<br />
are having some difficulties in<br />
reaching out and understanding EU legislations.<br />
However, municipalities close<br />
cooperation with local entrepreneurs<br />
and people makes EU more visual. In<br />
this sense for Turkey, municipalities can<br />
create offices such as EuroDirect and<br />
work with local groups and firms to apply<br />
for funds.<br />
It has been very interesting to hear about<br />
how SALAR works with EU relations. It is<br />
obvious that SKL has experts that have<br />
municipal background and international<br />
experience. SKL always works as a coordination<br />
agency and professional body<br />
that can get municipalities together and<br />
ultimately act together. UMT does not<br />
have such insight into EU related workings,<br />
at least not yet.<br />
My key learnings from the visit are;<br />
EU is not easy to integrate. It takes time,<br />
but coordination and deep understanding<br />
will always make local life better<br />
Always look for EU funds<br />
Be very careful with public procurement<br />
because national procurement laws are<br />
not that governing after all.<br />
The weather in Sweden can be very<br />
tough…
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 35<br />
Talking about<br />
cities!<br />
What makes a good city?<br />
A<br />
clean environment, wellfunctioning<br />
services and good<br />
communications? Opportunities<br />
for employment and education?<br />
Its history, culture or nightlife? The people<br />
who live there? If we ask ourselves<br />
who makes a good city, the answer is<br />
naturally that all the people, businesses,<br />
actors and organisations at the local<br />
level through their actions and choices<br />
contribute to making a good or less good<br />
city. Working with urban development<br />
thus means working with all the actors<br />
at the local level. The local government<br />
plays a fundamental role. It creates the<br />
framework on which cities grow, and it<br />
enables progress and development.<br />
Looking at the world’s cities today, it is<br />
By Mats Jarnhammar<br />
Around the world, cities are<br />
struggling to provide services,<br />
jobs, housing and education for an<br />
ever-increasing urban population.<br />
They are also trying to make cities<br />
attractive, competitive, livable, and<br />
ultimately more sustainable places<br />
to live. This is what the SymbioCity<br />
Approach can do to help.<br />
obvious there is a lot of work to be done,<br />
not least in developing countries. Cities<br />
face serious challenges of uncoordinated<br />
growth, malfunctioning garbage collection,<br />
polluted drinking water, traffic<br />
havoc and untreated sewerage polluting<br />
rivers. Urban safety is becoming an<br />
increasing problem as more and more<br />
people compete for limited resources.<br />
An approach to sustainable cities<br />
Since 2010, we have supported cities<br />
through the SymbioCity Approach, a<br />
participative approach to sustainable<br />
urban development based on Swedish<br />
experience. We have used it to help cities<br />
plan and develop in a more sustainable<br />
way and to manage the resources they<br />
have in a more effective manner.<br />
By creating a platform for dialogue<br />
between stakeholders at the local level,<br />
new forms of collaboration have been<br />
initiated and the local government<br />
has a better position to fulfil their role<br />
to enable progress. In early <strong>2014</strong>, the<br />
first phase of the SymbioCity Approach<br />
project came to an end, after five years of<br />
active engagement in the urban sector in<br />
Africa and Asia. When the biannual World<br />
Urban Forum took place in Medellin,<br />
Colombia in <strong>2014</strong>, we presented not<br />
only the results of our work, but also our<br />
ideas for the next phase.<br />
A year of exploration and<br />
dialogue<br />
In preparing for the next phase of the<br />
program, our aim has been to improve<br />
the ways in which we support cities,<br />
and to engage with new countries and<br />
regions. We want to become more effective,<br />
more relevant and to increase our<br />
impact. To do that, we have consulted<br />
cities, citizens, politicians, planners and<br />
civil society in partner countries.<br />
In Zimbabwe… we talked to peacebuilding<br />
foundation PACDEF about how<br />
to re-build trust between citizens and the<br />
local government after service provision<br />
had stopped.<br />
In Colombia… we explored how bottom-up<br />
initiatives like urban gardening<br />
can build social resilience and improve<br />
safety in deprived neighborhoods. We<br />
learned how unconventional approaches<br />
to urban development can transform<br />
cities both socially and physically.<br />
In Tunisia… we discussed how urban<br />
improvements can become an engine for<br />
rebuilding society after the Arab Spring.<br />
In Kenya... we designed a new initiative<br />
for innovative and inclusive development<br />
in urban areas together with the newly<br />
formed Council of Governors.<br />
We have also developed the SymbioCity<br />
Approach further based on the knowledge<br />
generated in our work. We have<br />
strengthened the way we support the<br />
whole planning process; from vision to<br />
action. We have increased focus on gender<br />
equality, inclusive development and<br />
local economic development. And we<br />
have switched on the search light to find<br />
innovative environmental solutions that<br />
are adapted to conditions in our partner<br />
countries.<br />
What happens now?<br />
The next phase of the SymbioCity<br />
Approach will put increased focus on<br />
direct support to cities in making more<br />
integrated and inclusive plans, piloting<br />
new and innovative solutions and in<br />
more efficiently managing its urban<br />
systems. Targeted capacity development<br />
will be provided through training<br />
programs, on-the-job-training and<br />
city-to-city learning. On the global level,<br />
the SymbioCity Approach Secretariat<br />
will continue to engage in dialogue with<br />
international organisations. When the UN<br />
General Assembly convenes Habitat III<br />
in 2016, focusing on the implementation<br />
of the new urban agenda, we hope that<br />
signs of the SymbioCity Approach will be<br />
evident in the documents.<br />
Help Desk studies the “shrinking<br />
space” for civil society in Africa<br />
Late <strong>2014</strong> SKL International completed<br />
a study for Sida on the<br />
conditions for civil society to operate<br />
in Africa. Civil society organisations<br />
(CSOs) are an important partner<br />
in Swedish development cooperation.<br />
However, government restrictions are<br />
making it increasingly difficult for CSOs to<br />
operate effectively. This so-called “shrinking<br />
space” for civil society is a growing<br />
trend around the world. Sida asked SKL<br />
International to explore the conditions for<br />
civil society in 15 African countries where<br />
Sida is active.<br />
“Some of the challenges that CSOs face<br />
include restrictions on the amount of<br />
foreign funding and assistance they can<br />
accept, the areas they can work in and<br />
the types of activities they can undertake,”<br />
said the report’s author, Mr Henrik<br />
Alffram.<br />
“In Ethiopia, for example, CSOs that work<br />
with democracy and human rights issues<br />
are not allowed to have more than ten<br />
percent of their income from foreign<br />
sources. This makes it difficult for civil<br />
society to effectively defend and champion<br />
human rights issues.”<br />
The assignment was commissioned<br />
by Sida through the Help Desk for<br />
Democracy and Public Administration<br />
in Africa. The Help Desk provides short<br />
term expert advice in the areas of<br />
public administration, local democracy,<br />
political institutions, and rule of law.<br />
SKL International manages the Help<br />
Desk in consortium with the Overseas<br />
Development Institute (ODI) and Public<br />
Administration International (PAI).<br />
“The Help Desk is designed to respond<br />
quickly to requests from Sida and<br />
Swedish embassies in Africa,” said Mr Erik<br />
Faxgård, who manages the Help Desk<br />
at SKL International. “Together with our<br />
partners we have a core group of experts<br />
that are available to respond to requests<br />
government restrictions<br />
are making it increasingly<br />
difficult for CSOs to<br />
operate effectively. This<br />
“shrinking space” for civil<br />
society is a growing<br />
trend around<br />
the world<br />
within two days. We also have a broader<br />
network of experts that can be available<br />
within a week for more complex or specialised<br />
assignments.”<br />
SKL International has partnered with<br />
ODI and PAI in Sida framework contracts<br />
for more than four years. ODI is Britain’s<br />
leading independent think tank on international<br />
development and humanitarian<br />
issues. In addition to its 12 core research<br />
programmes and flagship projects, ODI<br />
produces publications, reports and think<br />
pieces, and convenes public events<br />
and seminars on its most important<br />
research findings. PAI is a management<br />
consultancy that offers expert advice to<br />
governments going through political,<br />
constitutional, economic and structural<br />
change. PAI’s key objectives are promoting<br />
good governance and good practice<br />
in delivering public services.<br />
SKL International is contracted to manage<br />
the Help Desk until the end of 2016.
OPERATIONAL REVIEW<br />
SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 37<br />
SKL International expands its<br />
advisory support to Sida<br />
DFID Governance and<br />
Security Framework<br />
aGreement, Lot A<br />
Client: UK Department for<br />
International Development<br />
Dates: 2012-<strong>2014</strong> with extension<br />
up until 2016<br />
Lead Partner: Adam Smith<br />
International<br />
Focus areas: Public sector<br />
governance and reform<br />
EU Framework Contract:<br />
Governance and Home<br />
affairs, Lot 7<br />
Client: European Commission<br />
Dates: 2013-2015 with extension<br />
up to 2017<br />
Lead Partner: DAI<br />
Focus areas: Human rights,<br />
SKL International has<br />
expanded its advisory<br />
support to Sida with the<br />
award of two new Sida<br />
Framework Contracts in<br />
democratic governance<br />
and human rights, and<br />
gender equality.<br />
Through these contracts, SKL<br />
International and its partners<br />
will provide Sida with short-term<br />
consulting and advisory services<br />
in areas such as local democracy, political<br />
participation, gender mainstreaming and<br />
a human rights based approach.<br />
“These framework contracts are<br />
a strategic opportunity for SKL<br />
International,” said Ms Suzanne Krook,<br />
Project Development Manager at SKL<br />
International. “We can inform the<br />
development of new results strategies,<br />
operational plans and new initiatives in<br />
our areas of expertise.”<br />
The framework contracts are also an<br />
opportunity for SKL International to<br />
democratisation, public administration<br />
reform, justice and<br />
rule of law, decentralisation<br />
and local development, civil<br />
society, home affairs<br />
EU Framework Contract:<br />
Studies related to the<br />
future development of<br />
Cohesion Policy and the<br />
ESI Funds, Lot 3<br />
Client: European Commission<br />
Dates: 2013-2016 with extension<br />
up to 2017<br />
Lead Partner: Altus Investment<br />
and Assets Management<br />
Focus areas: Analysing and<br />
making recommendations<br />
on Cohesion Policy and the<br />
European Structural Investment<br />
(ESI) Funds<br />
expand its collaboration with other<br />
Swedish organisations. SKL International<br />
leads consortiums with new partners<br />
Kvinna till Kvinna, Emerga and Global<br />
Reporting, as well as existing partners<br />
Overseas Development Institute (ODI),<br />
Public Administration International (PAI).<br />
“At SKL International we have a core competence<br />
in areas such as local democracy,<br />
decentralisation, political participation<br />
and public administration,” said Mr Håkan<br />
Gustafsson, Managing Director of SKL<br />
International. “Our partners complement<br />
and add specific expertise in other areas<br />
such as non-discrimination, rule of law,<br />
human rights systems, and freedom of<br />
speech”.<br />
Together the framework contracts target<br />
two of the three strategic priorities for<br />
Swedish development cooperation.<br />
Gender equality has long been one of<br />
the pillars of Sweden’s aid policy. In<br />
2013 gender equality was the principal<br />
or significant objective for 85 percent<br />
of Sida’s total portfolio and 15 percent<br />
of this support targeted specific gender<br />
equality efforts.<br />
“We believe that gender equality is one<br />
of the most important areas where we<br />
Sida Framework Contract,<br />
Democratic Governance<br />
and Human Rights<br />
Client: Sida<br />
Dates: 2015-2017 with extension<br />
up to 2019<br />
Lead Partner: SKL International<br />
Focus areas: Local democracy,<br />
decentralisation, political institutions/participation,<br />
public<br />
administration and financial<br />
management, state building,<br />
rule of law, freedom of expression<br />
and media, human rights<br />
Sida Framework Contract,<br />
Gender Equality<br />
Client: Sida<br />
Dates: 2015-2017 with extension<br />
up to 2019<br />
Lead Partner: SKL International<br />
can make a difference in our work,” said<br />
Håkan Gustafsson. “We have achieved<br />
good results in this area through our<br />
projects in countries such as India, Turkey<br />
and Serbia. We look forward to bringing<br />
this experience and expertise to bear<br />
through the framework contract.”<br />
Likewise democracy and human rights<br />
comprised a third of Sida’s spending,<br />
equivalent to 5.4 billion Swedish kronor.<br />
Swedish development cooperation<br />
is guided by a human rights based<br />
approach, where the rights and needs of<br />
individuals are in focus.<br />
“At SKL International we have supported<br />
human rights from a range of perspectives,”<br />
said Suzanne Krook. “For example,<br />
we help improve the accountability and<br />
transparency of governments to their<br />
citizens and increase citizens’ participation<br />
in decisions that affect them. We also<br />
promote the needs and rights of women,<br />
children and minority groups, which<br />
affects the way that policies and public<br />
services are formulated and delivered.”<br />
The framework contracts will both run<br />
from early 2015 until January 2017, with<br />
the potential to extend for a further two<br />
years.<br />
Framework Contracts: Providing high quality advice around the world<br />
SKL International has a number of Framework Contracts through which it provides strategic advice,<br />
research and analysis to international donors around the world.<br />
Focus areas: Women’s political<br />
participation, women’s economic<br />
empowerment, sexual<br />
and reproductive health and<br />
rights, education, women’s<br />
security<br />
Sida Help Desk in<br />
Democracy and Public<br />
Administration in Africa<br />
Client: Sida<br />
Dates: <strong>2014</strong>-2016<br />
Lead Partner: SKL International<br />
Focus areas: Public administration,<br />
local democracy, political<br />
institutions/participation, rule<br />
of law<br />
Council of Governors at the core of<br />
Kenyan change process<br />
In the new Kenyan Constitution all services that affect the daily lives of Kenyans<br />
have become the responsibility of 47 counties, each with an average population of<br />
almost 1 million people. While the new Constitution is viewed as progressive and<br />
brings hope for something new, in reality the challenges could not be greater.<br />
By Paul Dixelius<br />
Kenya faces huge backlogs in critical<br />
infrastructure, in turn hampering productivity<br />
of business and service delivery.<br />
This eventually impacts on the quality<br />
of life for Kenya’s residents. The counties are<br />
gradually adapting to their new circumstances<br />
but are still overwhelmed by the challenges and<br />
need help to adapt their structures for future<br />
growth. The Council of Governors is the body<br />
that can best monitor the general situation in<br />
Kenya and will be instrumental in guiding the<br />
counties on the right track.<br />
The Kenyan elections in December 2007 were<br />
contentious on many levels. The Kriegler<br />
Commission that assessed the elections<br />
concluded that it was impossible to declare<br />
a rightful winner. The discontent amongst<br />
Kenyan citizens was widespread, leading to<br />
riots and more than a thousand casualties.<br />
With the assistance of then-UN Secretary<br />
General, Mr Kofi Annan, a new coalition government<br />
was formed in early 2008. However,<br />
allegations of fraud, corruption and political<br />
involvement in the post-election violence<br />
put heavy pressure on the government both<br />
from the population and from the outside<br />
world. The tense political situation led to the<br />
development of a new Kenyan Constitution,<br />
with the intention of reducing the presidential<br />
power and enhancing the power of the<br />
people. The new Constitution was approved<br />
in August 2010 marking a historical step and<br />
a break from colonial times. As envisaged, the<br />
new Constitution enhanced the role of parliament<br />
and citizens, increased independence<br />
of the judiciary and included a progressive<br />
Bill of Rights.<br />
Power to the counties<br />
A key feature in the new Constitution is the<br />
devolution of power from central government<br />
to the county government level. There are 47<br />
semi-autonomous county governments in<br />
Kenya. The counties currently have mandate<br />
Photo: ©iStock.com/miroslav
OPERATIONAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 39<br />
“The SymbioCity<br />
programme will entail<br />
institutional co-operation<br />
between CoG and SALAR<br />
with emphasis on the<br />
theme of sustainable urban<br />
development.”<br />
and responsibility for virtually all services<br />
that affect Kenyan citizens. This includes<br />
schools, clinics and hospitals, which in<br />
most countries are central government<br />
responsibilities. But county government<br />
responsibilities also encompass traditional<br />
local government services such<br />
as urban planning and development,<br />
parks and roads, sanitation and waste<br />
management.<br />
The elections in March 2013 marked the<br />
official launch of decentralisation, as<br />
47 new county governors and county<br />
assemblies were elected and began<br />
the challenging work of setting up new<br />
institutions. The common organ for the<br />
governors is the Council of Governors<br />
(CoG) - a non–partisan organisation<br />
established in accordance with the<br />
Intergovernmental Relations Act. As such<br />
it is a formal part of Kenya’s government<br />
structure. Since the new constitution<br />
was approved a key task for the CoG<br />
has been to lobby for the actual transfer<br />
of mandates from central to county<br />
level and to ensure matching financial<br />
transfers. As a result, almost all functions<br />
were formally transferred to the counties<br />
between February and August 2013. This<br />
was a deviation from the original plan<br />
Photo: ©iStock.com/DavorLovincic<br />
of gradual transfer of functions during a<br />
three-year period.<br />
An overwhelming task<br />
This quick and wide-scale transfer of<br />
functions and responsibilities has been<br />
a huge challenge for counties. Not only<br />
in terms of setting up new administrations<br />
for service delivery areas but also<br />
to make sure that all services on which<br />
citizens are dependent are actually<br />
delivered on the ground. And that they<br />
have enough funds. The reality is that the<br />
vast majority of urban residents in Kenya<br />
have inadequate access to basic services,<br />
and opportunities for communities<br />
to influence the quality and delivery of<br />
services have not been realised. Despite<br />
strong lobby efforts from county level,<br />
the agreed financial transfers from<br />
national government have been slow<br />
and irregular. This contributes further to<br />
deficient service delivery on the ground.<br />
Financial allocations mainly go to recurrent<br />
expenditure, with limited amounts<br />
spent on development projects.<br />
Similar transfers of power that have<br />
occurred elsewhere around the world<br />
show that there is a risk this tendency<br />
becomes cemented. The Dayton agreement<br />
in Bosnia and Hercegovina increased<br />
the mandates and power of cantons at<br />
the expense of the municipalities and<br />
the country has since experienced less<br />
public influence and deteriorated service<br />
delivery. To overcome this risk there is a<br />
need to establish adequate forums for<br />
dialogue with the local councillors on the<br />
one hand and the general public on the<br />
other. Transparency and accountability are<br />
even more important when the centre of<br />
power is geographically far away from the<br />
inhabitants.<br />
Institutional co-operation<br />
between SALAR and CoG<br />
The CoG can play a crucial role in this<br />
endeavour, for example in helping counties<br />
to establish forums and principles<br />
that ensure public participation in<br />
decision making processes. The Kenya<br />
SymbioCity programme, for which The<br />
Swedish Association of Local Authorities<br />
and Regions and SKL International are<br />
jointly responsible with the CoG, can<br />
become an important cornerstone in<br />
this work. The SymbioCity programme<br />
will entail institutional co-operation<br />
between CoG and SALAR with emphasis<br />
on the theme of sustainable urban<br />
development. The SymbioCity Approach<br />
brings Swedish expertise on how to<br />
work holistically with urban development<br />
and practical experiences of the<br />
long-term benefits of including people<br />
from all walks of life in the process. Both<br />
horizontal and vertical cooperation are<br />
key features in the SymbioCity Approach.<br />
These will also be central themes in<br />
CoG’s and SALAR’s joint ambition to support<br />
counties to become the new and<br />
improved generation of service delivery<br />
institutions in Kenya.<br />
In December 2012, SKL<br />
International held a SymbioCity<br />
workshop in Nairobi, which was<br />
hosted by the Swedish Embassy.<br />
A variety of Kenyan representatives<br />
from central and local level,<br />
private sector and civil society<br />
were challenged to build a sustainable<br />
city in two days with the<br />
help of the SymbioCity Approach.<br />
The response was overwhelmingly<br />
positive and marked the start<br />
of a broad Swedish effort to introduce<br />
the SymbioCity Approach as<br />
a concept to support sustainable<br />
urban development in Kenya.<br />
Together with central Kenyan<br />
urban development stakeholders,<br />
the “Kenya SymbioCity<br />
Programme” proposal was developed<br />
during <strong>2014</strong> where SALAR<br />
and CoG are both the institutional<br />
and key implementing partners.<br />
The programme is intended to<br />
strengthen CoG in its function<br />
to support counties in urban<br />
development and will entail comprehensive<br />
project interventions<br />
in seven counties around Kenya.<br />
Peace process heralds a new era<br />
for local democracy in Colombia<br />
By Magnus Liljeström<br />
After more than five decades<br />
of armed conflict in Colombia<br />
and several failed attempts to<br />
find a political solution to the<br />
conflict, a peace agreement between<br />
the Government and the FARC (Fuerzas<br />
Armadas Revolucionarias de Colombia)<br />
guerrillas seems more feasible today<br />
than in many years. The peace process<br />
presents great opportunities for change<br />
and a window of opportunity for<br />
strengthening the capacity and role of<br />
local governments in Colombia. Local<br />
governments are seen as key players in<br />
the implementation of an agreement<br />
and for building trust and inclusive institutions<br />
at the local level to guarantee all<br />
citizens equal rights and equal access to<br />
public services.<br />
Challenges for Decentralisation<br />
Decades of fiscal, political, and constitutional<br />
reform to decentralise government<br />
in Colombia have attempted to bring<br />
government closer to the people and<br />
made local governments responsible<br />
for critical services such as health and<br />
education. But the performance of the<br />
devolved system has been uneven due<br />
to the great disparities between local<br />
governments of different sizes and in different<br />
regions. The majority of Colombia’s<br />
municipalities are very small and many of<br />
the municipalities in the rural areas are the<br />
ones most affected by the conflict. These<br />
municipalities have often a low capacity<br />
both in terms of human and financial<br />
resources and suffer from inadequate<br />
administrative capacity, poor planning<br />
processes, uneven capacity to support<br />
local economic development, and lack of<br />
citizen trust and public participation. The<br />
great number of internally displaced people<br />
and the reintegration of combatants<br />
into society represents major challenges<br />
for municipalities and governments at<br />
all levels.<br />
Barriers to Democracy<br />
Political exclusion, violence, clientelism<br />
and corruption are some of the factors<br />
that have contributed to distrust in the<br />
public system among the Colombian<br />
population over the years and created<br />
barriers to public participation especially<br />
for poor and marginalised groups. The<br />
Constitution in 1991 strived to change this<br />
by promoting participatory democracy<br />
and assigning new functions to departments<br />
and local governments in matters<br />
relating to consultation, decision-making,<br />
implementation, control and financing.<br />
Forums and mechanisms for citizen voice<br />
and participation were also established.<br />
The Colombian<br />
Government,<br />
through the National<br />
Department for<br />
Planning (DNP), has<br />
expressed an interest<br />
for support based on<br />
Swedish experiences<br />
and expertise in the<br />
fields of public participation,<br />
intergovernmental<br />
financing and<br />
benchmarking. Experts<br />
from SKL International<br />
made two visits to<br />
Colombia during <strong>2014</strong><br />
in order to explore how<br />
Swedish support could<br />
improve local democracy<br />
and build capacity<br />
in these areas.<br />
However, many challenges for public participation<br />
remained. The history of nonconsultation<br />
had created a gap between<br />
decision-makers and citizens that still to<br />
this day prevents citizens and civil society<br />
organisations to fulfill their role in the<br />
field. In addition, public participation is<br />
also limited by local governments’ limited<br />
autonomy of resources, lack of capacity<br />
and know-how and cumbersome regulations.<br />
The ongoing peace negotiations<br />
address some of these issues such as<br />
means for public participation in decision<br />
making processes and social control of<br />
the territorial entities of the Colombian<br />
state, but much more needs to happen<br />
before public participation becomes the<br />
norm.<br />
Fiscal Decentralisation<br />
In terms of fiscal decentralisation,<br />
Colombia is considered one of the most<br />
decentralised countries in Latin America.<br />
But despite this and the notable economic<br />
growth rates in the past decade,<br />
income inequality and regional disparities<br />
remain wide. The current system for<br />
intergovernmental financing lacks strong<br />
re-distributional features to assure equal<br />
access to public services throughout the<br />
country. In total, the result is very different<br />
conditions for different localities. Local<br />
governments that are small, remote and/<br />
or in conflictive zones have special problems<br />
to finance local services of the same<br />
accessibility and quality as other structurally<br />
more advantaged administrations.<br />
The dependency of national transfers also<br />
limits many local governments’ discretion<br />
over spending and service delivery as well<br />
as opportunities for citizen engagement<br />
and accountability measures in local<br />
planning and budgeting processes.
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 1<br />
<strong>ANNUAL</strong><br />
ACCOUNTS<br />
of<br />
SKL International AB<br />
556414-4201<br />
The board of directors and the managing<br />
director hereby present the annual accounts<br />
for the financial year<br />
<strong>2014</strong>-01-01 - <strong>2014</strong>-12-31<br />
The annual accounts include:<br />
Auditor’s report 1<br />
The administration report 2<br />
Income statement 4<br />
Balance sheet 5<br />
Additional information (notes) 6<br />
page<br />
AFFILIATED TO THE SWEDISH ASSOCIATION OF LOCAL AUTHORITIES AND REGIONS<br />
AUDITOR’S REPORT<br />
To the annual meeting of the shareholders of<br />
SKL International AB Corporate identity number<br />
556414-4201<br />
Report on the annual accounts<br />
We have audited the annual accounts of SKL International AB<br />
for the financial year <strong>2014</strong>-01-01 – <strong>2014</strong>-12-31.<br />
Responsibilities of the Board of Directors and the Managing<br />
Director for the annual accounts<br />
The Board of Directors and the Managing Director are<br />
responsible for the preparation and fair presentation of these<br />
annual accounts in accordance with the Annual Accounts Act<br />
and for such internal control as the Board of Directors and<br />
the Managing Director determine is necessary to enable the<br />
preparation of annual accounts that are free from material<br />
misstatement, whether due to fraud or error.<br />
Auditor’s responsibility<br />
Our responsibility is to express an opinion on these annual<br />
accounts based on our audit. We conducted our audit in<br />
accordance with International Standards on Auditing and generally<br />
accepted auditing standards in Sweden. Those standards<br />
require that we comply with ethical requirements and plan<br />
and perform the audit to obtain reasonable assurance about<br />
whether the annual accounts are free from material misstatement.<br />
An audit involves performing procedures to obtain audit<br />
evidence about the amounts and disclosures in the annual<br />
accounts. The procedures selected depend on the auditor’s<br />
judgement, including the assessment of the risks of material<br />
misstatement of the annual accounts, whether due to fraud or<br />
error. In making those risk assessments, the auditor considers<br />
internal control relevant to the company’s preparation and fair<br />
presentation of the annual accounts in order to design audit<br />
procedures that are appropriate in the circumstances, but not<br />
for the purpose of expressing an opinion on the effectiveness of<br />
the company’s internal control. An audit also includes evaluating<br />
the appropriateness of accounting policies used and the<br />
reasonableness of accounting estimates made by the Board of<br />
Directors and the Managing Director, as well as evaluating the<br />
overall presentation of the annual accounts.<br />
We believe that the audit evidence we have obtained is sufficient<br />
and appropriate to provide a basis for our audit opinions.<br />
Opinions<br />
In our opinion, the annual accounts have been prepared in<br />
accordance with the Annual Accounts Act and present fairly, in<br />
all material respects, the financial position of SKL International<br />
AB as of 31 December <strong>2014</strong> and of its financial performance for<br />
the year then ended in accordance with the Annual Accounts<br />
Act. The statutory administration report is consistent with the<br />
other parts of the annual accounts.<br />
We therefore recommend that the annual meeting of<br />
shareholders adopt the income statement and balance.<br />
Report on other legal and regulatory<br />
requirements<br />
In addition to our audit of the annual accounts, we have also<br />
audited the proposed appropriations of the company’s profit<br />
or loss and the administration of the Board of Directors and the<br />
Managing Director of SKL International AB for the financial year<br />
<strong>2014</strong>-01-01 – <strong>2014</strong>-12-31.<br />
Responsibilities of the Board of Directors and the<br />
Managing Director<br />
The Board of Directors is responsible for the proposal for<br />
appropriations of the company’s profit or loss, and the Board<br />
of Directors and the Managing Director are responsible for<br />
administration under the Companies Act.<br />
Auditor’s responsibility<br />
Our responsibility is to express an opinion with reasonable<br />
assurance on the proposed appropriations of the company’s<br />
profit or loss and on the administration based on our audit. We<br />
conducted the audit in accordance with generally accepted<br />
auditing standards in Sweden.<br />
As a basis for our opinion on the Board of Directors’ proposed<br />
appropriations of the company’s profit or loss, we examined<br />
the Board of Directors’ reasoned statement and a selection of<br />
supporting evidence in order to be able to assess whether the<br />
proposal is in accordance with the Companies Act.<br />
As a basis for our opinion concerning discharge from liability,<br />
in addition to our audit of the annual accounts, we examined<br />
significant decisions, actions taken and circumstances of the<br />
company in order to determine whether any member of the<br />
Board of Directors or the Managing Director is liable to the<br />
company. We also examined whether any member of the<br />
Board of Directors or the Managing Director has, in any other<br />
way, acted in contravention of the Companies Act, the Annual<br />
Accounts Act or the Articles of Association.<br />
We believe that the audit evidence we have obtained is<br />
sufficient and appropriate to provide a basis for our opinions.<br />
Opinions<br />
We recommend to the annual meeting of shareholders that the<br />
profit be appropriated in accordance with the proposal in the<br />
statutory administration report and that the members of the<br />
Board of Directors and the Managing Director be discharged<br />
from liability for the financial year.<br />
Stockholm 11/2 2015<br />
Deloitte AB<br />
Elisabeth Werneman<br />
Authorized public accountant
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 3<br />
ADMINISTRATION REPORT<br />
Operations<br />
SKL International AB designs, plans and implements development projects in developing countries and countries in transition.<br />
Funding for projects is provided by external donors, with Sida being the main contributor. Other financiers are international organisations<br />
such as the UN and the EU as well as bilateral aid donors such as Danish DANIDA and German GIZ.<br />
SKL International's projects centre on local democracy and local governance. Its main areas of expertise are: decentralisation; local<br />
democracy and governance; EU integration; local and regional development; municipal management and service delivery; thematic<br />
local partnerships; and support to Local Goverment Associations. SKL International also works in sustainable urban development,<br />
most notably through the so-called SymbioCity Approach.<br />
The projects are carried out by employees as project managers/consultants together with experts and elected representatives from<br />
SALAR. SKL International also engages staff from SALAR´s members (310 municipalities, counties and regions of Sweden) as well<br />
other local and international experts.<br />
Year on year comparison<br />
(KSEK) <strong>2014</strong> 2013 2012 2011 2010<br />
Net sales 31 335 37 526 30 446 23 885 26 464<br />
Operating profit 50 1 445 2 384 260 846<br />
Profit/ loss after financial items 143 1 364 2 422 198 813<br />
Total assets 12 978 16 453 14 784 9 171 10 350<br />
Equity ratio (%) (1) 58,23 48,52 51,26 63,86 58,12<br />
Return on equity (%) (2) 1,31 13,57 19,41 2,34 9,93<br />
Return on assets (%) (3) 1,01 8,78 20,35 2,12 7,57<br />
Average number of employees 14 14 12 14 11<br />
(1) Adjusted equity/total assets. Adjusted equity means equity + untaxed reserves with deduction of deferred tax liability.<br />
(2) Net profit/loss for the year/average adjusted equity.<br />
(3) Profit/loss after financial items + interest expenses/average total assets.<br />
Ownership<br />
The parent company of which SKL International is a subsidiary is SKL Företag AB, corporate identity number 556117-7535, which is a<br />
wholly owned subsidiary of SALAR. SALAR and SKL Företag AB have their domicile in Stockholm.<br />
Significant events during the fiscal year<br />
SKL International AB's activities have a geographical spread clearly influenced by the Swedish Government's development priorities.<br />
The activities of the company are project-based and in <strong>2014</strong> assignments were implemented in countries such as Turkey, Serbia, Iraq,<br />
Albania, Ukraine, Jordan, Kyrgyzstan and Tunisia. Towards the end of the year SKL International agreed with Sida on a new project in<br />
Kenya. The project will use the SymbioCity Approach; a participatory approach to sustainable urban development that was developed<br />
in Sweden and is now implemented around the world by SKL International.<br />
During the year, a new two-year framework agreement was signed with SALAR with the option for a two-year extension. Sida also<br />
procured SKL International to manage a help desk function that provides research and advice on democracy and public administration<br />
in Africa. SKL International is also part of a consortium that has a framework agreement with the EU for consulting services to EU<br />
delegations around the world. In <strong>2014</strong> SKL International carried out its first consultancy assignment under this framework contract, in<br />
Jordan.<br />
New Accounting principles<br />
From 1 January <strong>2014</strong>, the company applies BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).<br />
The comparative year 2013 has been restated in accordance with K3. Restatement of prior years has not been made. The<br />
company previous applied Annual Accounts Act (Årsredovisningslagen) and The Swedish Accounting Standards Board's general<br />
recommendations for smaller companies (Bokföringsnämndens allmänna råd för mindre företag).<br />
Significant events after fiscal year<br />
The work on a new strategy for the company will start in early 2015, which is the final year of the current three-year strategy.<br />
During <strong>2014</strong> the company started to prepare for this work by analysing, for example, Sida's new result strategies and the opportunities<br />
for new projects in different geographies. SKL International's strategy will direct and guide decision making in critical areas<br />
such as business development, organisational growth, types of new projects and financers, partners and regional areas of focus.<br />
In the last quarter of <strong>2014</strong>, two strategic projects were contracted and initiated (Ukraine and Kenya). These projects, together<br />
with a number of specific requests from organisations such as Sida and Cities Alliance, contribute to a positive market outlook<br />
for both the short and medium term.<br />
Proposal for the appropriation of profits<br />
The following profits are available for appropriation at the annual general meeting<br />
Profit brought forward from previous years 5 767 441<br />
Profit/ loss for the year 102 226<br />
The board and managing director proposes that<br />
5 869 667<br />
dividends be paid to the shareholders 51 113<br />
the following be carried forward 5 818 554<br />
Proposal resolution on dividend<br />
5 869 667<br />
The Board proposes a dividend of SEK 51 113, corresponding to 5.11 per share.<br />
The Board proposes that the dividend payment shall be made immediately after the annual meeting.<br />
The Board consider that the proposed dividend is justifiable in view of the demands that the nature, scope and risks on the size<br />
of equity and the company's consolidation needs, liquidity and financial position.<br />
The opinion should be seen against the background of the information contained in the Annual Report.<br />
The management plan no significant changes in existing operations such as significant investments, divestments or settlement.<br />
Regarding the company's result and financial position, please consult the income statement and balance sheet for additional<br />
information. All amounts are in thousands of Swedish kronor unless otherwise stated.<br />
In terms of its employees, no major changes were made which reflect this year's development in terms of consolidation and reprocessing<br />
efforts for new projects. The accounting assistant post was changed and replaced. Efforts was intensified regarding business<br />
development that began in 2013. In Tunisia, as well as in Ukraine, local consultants were recruited on a longer-term basis but with<br />
limited commitment in terms of time. With a number of new projects coming on board in late <strong>2014</strong>, the company faces a need for<br />
recruitment.
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 5<br />
INCOME STATEMENT<br />
Note <strong>2014</strong>-01-01 2013-01-01<br />
<strong>2014</strong>-12-31 2013-12-31<br />
BALANCE SHEET<br />
ASSETS<br />
Note <strong>2014</strong>-01-01 2013-01-01<br />
<strong>2014</strong>-12-31 2013-12-31<br />
Fixed assets<br />
Operating income, etc.<br />
Net sales 1, 2 31 335 37 526<br />
Other operating income 3 378 167<br />
31 713 37 693<br />
Operating expenses<br />
Other external costs 5 -17 128 -21 944<br />
Personnel costs 6 -11 029 -10 058<br />
Depreciation and write-downs -91 -128<br />
Other operating expenses 4, 5 -3 415 -4 118<br />
-31 663 -36 248<br />
Operating profit 50 1 445<br />
Tangible assets<br />
Equipment, tools, fixtures and fittings 10 147 238<br />
Total fixed assets 147 238<br />
Current assets<br />
Current receivables<br />
Accounts receivable-trade 901 270<br />
Receivables from group companies 7 327 8 790<br />
Other receivables 273 111<br />
Accrued not invoiced income 11 4 168 6 873<br />
Prepaid expenses and accrued income 162 171<br />
12 831 16 215<br />
Total current assets 12 831 16 215<br />
TOTAL ASSETS 12 978 16 453<br />
Result from financial investments<br />
Other interest income and similar profit/loss items 7 4 11<br />
Other interest income from group companies 7 122 13<br />
Interest expense and similar profit/loss items 8 -32 -98<br />
Interest expense for group companies 8 -1 -7<br />
93 -81<br />
Profit/ loss after financial items 143 1 364<br />
Tax on profit for current year 9 -41 -308<br />
NET PROFIT/ LOSS FOR THE YEAR 102 1 056<br />
EQUITY AND LIABILITIES<br />
Equity 12<br />
Restricted equity<br />
Share capital (10 000 shares) 13 1 000 1 000<br />
Statutory reserve 200 200<br />
1 200 1 200<br />
Non-restricted equity<br />
Profit brought forward 5 768 5 239<br />
Profit/loss for the year 102 1 056<br />
5 870 6 295<br />
Total equity 7 070 7 495<br />
Untaxed reserves 14 625 625<br />
Current liabilities<br />
Accounts payable - trade 1 675 3 625<br />
Income tax liability 196 565<br />
Other liabilities 1 088 1 321<br />
Accrued expenses and deferred income 15 2 324 2 822<br />
5 283 8 333<br />
TOTAL EQUITY AND LIABILITIES 12 978 16 453<br />
MEMORANDUM ITEMS<br />
Pledged assets None None<br />
Contingent liabilities None None
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 7<br />
ADDITIONAL INFORMATION<br />
General information<br />
Lease agreements<br />
Group contribution<br />
Related Party Disclosures<br />
SKL International AB designs, plans and implements<br />
development projects in developing countries and countries in<br />
transition. Funding for projects is provided by external donors,<br />
with Sida being the main contributor. Other financiers are<br />
international organizations such as the UN and the EU but also<br />
national national development assistance organisations such as<br />
Danish DANIDA and German GIZ.<br />
The parent company of which SKL International is a subsidiary is<br />
SKL Företag AB, corporate identity number 556117-7535, which<br />
is a wholly owned subsidiary of SALAR. SALAR and SKL Företag<br />
AB have their domicile in Stockholm.<br />
Accounting principles<br />
The company applies the Swedish Annual Accounts Act and<br />
BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).<br />
This is the first year the company applies K3 and the date of<br />
the transition to K3 is 1st January 2013. The company earlier<br />
applied the Annual Accounts Act (Årsredovisningslagen)<br />
and The Swedish Accounting Standards Board’s general<br />
recommendations for smaller companies (Bokföringsnämndens<br />
allmänna råd för mindre företag). The comparative year 2013<br />
has been restated in accordance with K3. Restatement of prior<br />
years has not been made. In the transition to K3, chapter 35<br />
has been applied which requires applying K3 retroactively. This<br />
means that comparative figures for 2013 have been restated in<br />
accordance with K3. The transition to K3 has not had any effect<br />
on the Company’s result and financial position.<br />
Revenue<br />
Revenues are reported at actual value received or receivable.<br />
Revenues are reported net after deducting VAT, discounts and<br />
exchange differences for sales made in foreign currencies.<br />
The company’s revenues consists primarily of fees and expenses<br />
from the sales of consulting services.<br />
Sales of services<br />
Income and expenses for completed service and contractual<br />
assignments are reported as income and costs, respectively,<br />
in proportion to the degree of completion on the balance date<br />
(percentage of completion). The percentage of completion of<br />
an assignment is determined by comparing expenses incurred,<br />
on the balance date, with the estimated total expenditure.<br />
When the outcome of the service assignment or contractual<br />
assignment cannot be estimated with any degree of certainty,<br />
the income is reported only to the extent that it corresponds to<br />
the accrued assignment costs that are likely to be reimbursed<br />
by the client. An anticipated loss on an assignment is reported<br />
promptly as a cost.<br />
Financial leasing occurs when the financial risks and benefits<br />
associated with ownership have essentially been transferred to<br />
the lessee; if this is not the case, then it is an operating lease.<br />
All of the company’s lease agreements are reported according<br />
to the rules for operating leases. For an operating lease, the<br />
leasing fee is reported as a cost linearly over the duration, from<br />
the point at which utilization begins, which may differ from the<br />
actual lease fee paid during the year.<br />
Foreign currency<br />
The company’s reporting currency is the Swedish krona (SEK).<br />
At the end of each reporting period, monetary assets and<br />
liabilities denominated in foreign currencies are translated at<br />
the closing rates existing at that date. Exchange rate differences<br />
arising from operating receivables or liabilities are recognized<br />
in operating income, while differences attributable to financial<br />
assets or liabilities are recognized in finance costs. Exchange<br />
rate differences on available-for-sale equity instruments and<br />
on cash flow hedges are recognized in other comprehensive<br />
income.<br />
Government grant<br />
A government grant is not recognized until there is reasonable<br />
assurance that the entity will comply with the conditions<br />
attaching to it, and that the grant will be received. Receipt of<br />
a grant does not of itself provide conclusive evidence that the<br />
conditions attaching to the grant have been or will be fulfilled.<br />
Government grants are recognized in profit or loss on a<br />
systematic basis over the periods in which the entity recognizes<br />
as expenses the related costs for which the grants are intended<br />
to compensate.<br />
Remuneration to employees<br />
Remuneration to employee in the form of salaries, bonuses,<br />
paid holidays, paid sick leave, etc. and pensions are<br />
recognized in the vesting period. Pensions and other postemployment<br />
benefits are classified as benefit-determined<br />
and fee-determined pension plans. The company has only<br />
fee-determined pension plans. There are no other long-term<br />
remuneration to employees.Pension plans to which the<br />
company pays fixed contributions to a separate legal entity<br />
and where the company has no legal or informal obligation<br />
to pay additional fees, are fee-determined pension plans.<br />
Pension plans other than fee-determined pension plans are<br />
benefit-determined plans. Obligations regarding contributions<br />
to fee-determined plans are reported as a cost in the income<br />
statement when they occur.<br />
Received and paid group contributions are reported as<br />
appropriations in the income statement.<br />
Income taxes<br />
Incomes taxes comprise current and deferred tax. Current tax<br />
are recognized in net income. The taxable profit differs from<br />
the result reported in income statement when it is adjusted for<br />
non-taxable income and non-deductible expenses and revenues<br />
and expenses taxable or deductible in other periods. Current tax<br />
is determined using tax rates and tax legislation that have been<br />
enacted or substantively enacted at the end of the reporting<br />
period.<br />
Tangible fixed assets<br />
Tangible fixed assets are reported at acquisition value<br />
diminished through depreciation. Costs for improving the<br />
performance of assets, beyond their original level, increase<br />
the reported value of the assets. Expenses for repairs and<br />
maintenance are reported as costs in the period that they occur.<br />
Tangible fixed assets are systematically depreciated over the<br />
estimated useful life of each asset. When the assets’ depreciable<br />
amounts are set, the residual values are consequently observed.<br />
A linear method of depreciation is used for all types of fixed<br />
assets.<br />
The following depreciation periods are applied:<br />
Equipment, fixtures and fittings 5 years<br />
Accelerated depreciation, permitted for tax purposes,<br />
in addition to planned depreciation is reported as an<br />
appropriation in the income statement and as an untaxed<br />
reserve in the balance sheet.<br />
Write-downs<br />
The reported values of the company’s assets are determined<br />
on the balance date to see whether any write-down is needed.<br />
If such a need is indicated, the recoverable value of the asset<br />
is calculated as the higher of the useful value and the net<br />
realisable value. The asset is written down if the recoverable<br />
value is less than the reported value. A write-down is reversed if<br />
a change has occurred in the calculations used to determine the<br />
realisable value. A reversal is made only to the extent that the<br />
asset’s book value does not exceed the book value that would<br />
have been reported, with deductions for depreciation, if no<br />
write-down had been made.<br />
Transactions between the company and its related parties took<br />
place on market terms.<br />
Key sources of estimation uncertainty<br />
No estimates have been made that may have a significant<br />
effect on the amounts recognized in the financial statement.<br />
No assumptions about the future and other key sources of<br />
estimation uncertainty at the closing day have been made<br />
that involve a significant risk of material adjustment to the<br />
recognized assets and liabilities within the next financial year.
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 9<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
Note 1<br />
Net sales<br />
Net sales per line of business are allocated as follows:<br />
<strong>2014</strong> 2013<br />
Development assistance fee 22 111 27 305<br />
Development assistance costs charged 9 224 10 221<br />
Total 31 335 37 526<br />
Net sales per geographical market are allocated as follows:<br />
<strong>2014</strong> 2013<br />
Africa excl. North 640 2 606<br />
Asia 990 9 209<br />
Europe 15 585 15 538<br />
Global 2 813 3 954<br />
MENA 11 307 6 219<br />
Total 31 335 37 526<br />
Net sales per customer are allocated as follows:<br />
<strong>2014</strong> 2013<br />
Sida (by SALAR) 27 226 30 362<br />
Sida 629 5 356<br />
EU 1 246 115<br />
UN Habitat/UNDP/UNITAR 912 839<br />
Other 1 322 854<br />
Total 31 335 37 526<br />
Note 2<br />
Sales and purchases within the group<br />
<strong>2014</strong> 2013<br />
Sales 87,0% 81,0%<br />
Purchases 8,0% 7,0%<br />
Note 3<br />
Other operating income<br />
<strong>2014</strong> 2013<br />
Government grants 355 157<br />
Isurance reimbursement 23 6<br />
Other reimbursement 0 4<br />
Total 378 167<br />
Note 4<br />
Leasing Agreements - Operating lease - lessee<br />
<strong>2014</strong> 2013<br />
Lease payments 96 80<br />
Future minimum leasing fees, expected maturity:<br />
Within 1 year 89 80<br />
Between 2 and 5 years 145 0<br />
Later than 5 year 0 0<br />
234 80<br />
Note 5<br />
Remuneration to auditors<br />
<strong>2014</strong> 2013<br />
Deloitte AB<br />
Audits 45 45<br />
Audit-related services 351 238<br />
All other services 94 3<br />
EY<br />
Audit-related services 0 136<br />
490 422<br />
Audits relates to the statutory audit - examination, in accordance with the Companies Act, of the company’s accountancy<br />
and annual report and the management by the board of directors and the managing director of the company. Auditrelated<br />
services relates to audit of finacial information regarding projects. Other services relates to consultations regarding<br />
tenders.<br />
Note 6<br />
Employees<br />
security charges<br />
<strong>2014</strong> 2013<br />
Average number of employees<br />
Average number of employees is based on paid attendance hours in relation to average working hours.<br />
Average number of employees 14,00 14,00<br />
of whom women 8,00 7,00<br />
Salaries, remunerations etc.<br />
The board and managing director<br />
Salaries and remunerations 973 995<br />
Pension costs 333 210<br />
1 306 1 205<br />
Other employees<br />
Salaries and remunerations 6 612 5 750<br />
Pension costs 758 858<br />
7 370 6 608
FINANCIAL REVIEW SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 11<br />
Social security charges 2 036 1 965<br />
Total 10 712 9 778<br />
Salaries and remunerations 7 585 6 745<br />
Pension costs 1 091 1 068<br />
Social security charges 2 036 1 965<br />
Total 10 712 9 778<br />
Gender distribution of the board and management<br />
Number of boardmembers 4 5<br />
of whom women 1 1<br />
Number of members of management including managing director 1 1<br />
of whom women 0 0<br />
No compensation in addition to salary is paid to the managing director. The Board has received fees as determined<br />
amount decided by the Annual General Meeting. Managing director's period of notice is 6 months. Upon termination by<br />
the company, the company has also to pay severance pay of 12 monthly salaries. In the event of immediate termination<br />
of the managing director's contract no severance benefits are to be provided.<br />
Note 7<br />
Interest income etc.<br />
<strong>2014</strong> 2013<br />
Interest income, group companies 4 11<br />
Exchange gains 122 13<br />
126 24<br />
Note 8<br />
Interest expense etc.<br />
<strong>2014</strong> 2013<br />
Interest expense 4 0<br />
Interest expense, group companies 1 7<br />
Exchange losses 29 97<br />
Other 0 1<br />
34 105<br />
Note 9<br />
Tax on profit for current year<br />
<strong>2014</strong> 2013<br />
Current tax -41 -308<br />
Reconcilation effective tax<br />
-41 -308<br />
Profit/ loss before tax 143 1 364<br />
Tax, 22% -31 -300<br />
Tax effect on:<br />
Non-deductible expenses -8 -7<br />
Standard income on tax allocation reserve -2 -1<br />
-41 -308<br />
Note 10<br />
Equipment, tools, fixtures and fittings<br />
<strong>2014</strong> 2013<br />
Acquisition value brought forward 625 607<br />
Purchases 0 59<br />
Sales/disposals -89 -41<br />
Accumulated acquisition values carried forward 536 625<br />
Depreciation brought forward -386 -298<br />
Sales/disposals 87 41<br />
Depreciation for the year -91 -128<br />
Accumulated depreciation carried forward -390 -386<br />
Residual value according to plan carried forward 147 238<br />
Note 11<br />
Accrued not invoiced income<br />
<strong>2014</strong>-12-31 2013-12-31<br />
Accrued fees 3 046 4 874<br />
Accrued overhead cost fee 1 122 1 999<br />
Total 4 168 6 873<br />
Note 12<br />
Equity<br />
Amounts comparative year's opening balance according<br />
to adopted balance sheet<br />
Adjustments regarding transition to BFNAR 2012:1 (K3)<br />
Sharecapital<br />
Restricted<br />
equity<br />
Nonrestricted<br />
equity<br />
Profit for<br />
current<br />
year<br />
1 000 200 4 588 1 304<br />
Adjusted amounts comparative year's opening balance 1 000 200 4 588 1 304<br />
Appropriation of profits as resolved by the annual general<br />
meeting<br />
Dividends -652<br />
1 304 -1 304<br />
Net profit/loss for the year 1 056<br />
Adjusted amounts comparative year's opening balance 1 000 200 5 240 1 056<br />
Adjustments regarding transition to BFNAR 2012:1 (K3)<br />
Appropriation of profits as resolved by the annual general<br />
meeting<br />
Dividends -528<br />
1 056 -1 056<br />
Net profit/loss for the year 102<br />
Amounts closing balance 1 000 200 5 768 102
FINANCIAL REVIEW<br />
Note 13<br />
Share capital<br />
Amount<br />
Value per share<br />
Amount/value opening balance 10 000 100<br />
Amount/value closing balance 10 000 100<br />
Key Partner<br />
Municipalities in <strong>2014</strong><br />
This year, 8 Swedish, 9 Serbian and 19 Turkish<br />
municipalities have partnered in two of our most<br />
important commitments.<br />
Linköping<br />
Erzincan, Malatya,<br />
Burdur, Karaman<br />
Huddinge<br />
Tarsus, Manisa,<br />
Çorum, Şişli<br />
Note 14<br />
Untaxed reserves<br />
<strong>2014</strong>-12-31 2013-12-31<br />
SERBIA<br />
Karlstad<br />
Nilüfer, Gaziantep,<br />
Mulğa, Antakya<br />
Kalmar<br />
Osmangazi,<br />
Giresun, Ordu<br />
Tax allocation reserve, tax 2013 625 625<br />
TURKEY<br />
Total 625 625<br />
Note 15<br />
Accrued expenses and deferred income<br />
<strong>2014</strong>-12-31 2013-12-31<br />
Accrued salary 340 356<br />
Accrued vacation pay 679 535<br />
Accrued social security charges 525 488<br />
Accrued project expenses 468 1 106<br />
Other accrued expenses 312 337<br />
Total 2 324 2 822<br />
Gävle<br />
Zrenjanin,<br />
Žitište, Sečanj<br />
Malmö<br />
Belgrade,<br />
New Belgrade,<br />
Savski Venac<br />
Umeå<br />
Bornova, Karsıyaka,<br />
Zeytinburnu,<br />
Büyükçekmece<br />
Växjö<br />
Niš, Varvarin, Kula<br />
Design:<br />
Sam Bainbridge,<br />
Design Infestation,<br />
www.infestation.co.za<br />
Cover photo:<br />
Carl-Henrik Trapp, Elite<br />
Studio Gothenburg