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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.


OPERATIONAL REVIEW<br />

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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 />


OPERATIONAL REVIEW<br />

SKL INTERNATIONAL <strong>ANNUAL</strong> <strong>RESULTS</strong> <strong>2014</strong> 21<br />

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

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