More than 65% of Sustainable Development Goal (SDG) targets can only be achieved by subnational governments. Cities and regions in OECD countries can play a key role in supporting subnational governments in developing countries to provide essential public services. Development Assistance Committee (DAC) Members can support this by helping to unlock the potential of cities and regions, while ensuring effectiveness.
The role of cities and regions
Abstract
It is estimated that more than 65% of the 169 SDG targets rely on local and regional governments to achieve the goals. Over half of the world's top 40 economies, measured by gross domestic product (GDP), are regions, namely second tiers of government.
Cities and regions in OECD countries play a key role in supporting governments in developing countries to provide essential public services.
However, unlocking the full potential of cities and regions, while ensuring effectiveness, remains a challenge.
Where appropriate, DAC Members should enable their subnational entities, such as local and regional governments, cities and municipalities, to support sustainable development in partner countries. DAC members can support the development co-operation efforts of their cities and regions by:
developing their capacity
supporting mutual learning
mobilising expertise and resources
In addition to ensuring alignment with national policies and priorities, DAC members should encourage their subnational entities to adopt development effectiveness principles when working in developing countries. These are country ownership, focus on results, inclusive partnerships, and transparency and mutual accountability.
Findings from the OECD Decentralised development co‑operation (DDC) Global Policy Toolkit demonstrate how DDC has evolved from a North-South, provider-beneficiary approach to a partnership approach that increasingly fosters peer-to-peer learning and mutual benefits. Since the adoption of the 2030 Agenda in 2015, subnational entities increasingly engage in activities that leverage their comparative advantages and competencies, notably knowledge sharing in areas such as local governance and service delivery (e.g., water and waste management), peer-to-peer exchanges, and mutual learning.
Section II.3 of the OECD DAC Peer Review Analytical Framework sets out the DAC’s expectations about subnational entities in DAC countries, including ensuring that they adapt efforts to the local partner country context and base efforts on mutual learning.
1. Policy, strategy and institutions: National development co-operation policies reflect the role and contribution of cities and regions. Policies and legal frameworks enable them to engage in development co-operation and, where relevant, cities and regions are consulted at national level and in partner countries. Co-ordination is enabled through multi-level and multi-stakeholder partnerships and other mechanisms.
Spain’s 2024-2027 Co-operation Master Plan for Sustainable Development and Global Solidarity development co-operation strategy recognises the role of local and regional authorities in shaping and implementing development co-operation policy through their participation in central government co-ordination mechanisms.
Italy co-ordinates the efforts of its regions. Italy’s law on development co-operation promotes partnerships with subnational entities and enables local authorities to participate in consultative bodies that shape Italy’s development co-operation. Guiding principles for Italian development co-operation also apply to subnational entities.
2. Management systems: The central government provides advice and support to cities and regions on effective development co-operation. Official development assistance (ODA) channelled through or provided directly by subnational entities is monitored and results are reported.
Germany has a national agency that provides advisory services and networks for subnational entities engaging in development co-operation. When reporting on ODA, Germany disaggregates information on development co-operation using specific agency codes. All 16 federal states report on ODA individually.
France publishes an annual report on decentralised development co-operation, provides guidance on reporting and uses a web-based platform for reporting development results. The number of actors reporting has increased from 196 local governments in 2012 to 1 040 in 2019.
Global Affairs Canada provides funding to its local authorities, connects Canadian and partner country local leaders and experts, and facilitates technical exchange between peers.
3. Financing and mobilisation of resources: The central government provides financial support for development co-operation efforts of its cities and regions, and incentivises them to mobilise local resources and expertise.
In France, a law enables municipalities to use 1% of their water and sanitation budget for international co-operation in the sector, providing significant and stable funding. Fifteen years after its adoption in 2005, the law has mobilised a total of EUR 30 million per year.
Co-ordination and transparency: Local and regional authorities co-ordinate and communicate their actions. They participate in follow-up and monitoring processes for sustainable and inclusive development, notably those supporting the 2030 Agenda, Addis Ababa Action Agenda and Paris Agreement.
In Italy, regions and cities have adopted Regional Sustainable Development Strategies (RSDS) to link planning, budgeting and evaluation with sustainable development goals. Italian regions have established co-ordination mechanisms that bring together relevant actors and oversee the monitoring of RSDS implementation. Many regions also help monitor the national strategy and pilot policy coherence across the system.
How do we know if DAC Members are moving in the right direction?
Respect important tenets of development effectiveness, building on local ownership, focus on results, transparency and accountability.
Adds value by mobilising additional expertise and resources that are adapted to the partner country context.
Ensure sustainability and promote long-term planning and strategies.
Build on peer-to-peer partnership and mutual learning.
Include a framework to monitor and evaluate results and SDG impact.
Shaping a New Generation of Decentralised Cooperation: For Enhanced Effectiveness and Accountability, Conference of Peripheral Maritime Regions (CPMR) and Platforma.
Development Cooperation and Local Government, United Cities and Local Governments (UCLG).
Decentralised development co-operation: A global policy toolkit and guidance for practitioners, OECD Publishing, Paris.
Decentralised development co-operation: Unlocking the potential of cities and regions, OECD Publishing, Paris.
Reshaping Decentralised Development Co-operation: The Key Role of Cities and Regions for the 2030 Agenda, OECD Publishing, Paris.
DAC Evaluation Resource Centre (DEReC), OECD [website].
More Framework principles are available on Development Co-operation TIPs • Tools Insights Practices.
