skl international - annual results 2014

AFFILIATED TO THE SWEDISH ASSOCIATION OF LOCAL AUTHORITIES AND REGIONS

Dialogue | eu integration | Cities | leaDership

ANNUALRESULTS

2014

SKL International is one of Sweden’s leading organisations in the field of local democracy, decentralisation and local governance. We work with developing countries and countries in transition.

At SKL International we don’t just focus on the problems and challenges at hand, but do our best to harness our partners’ inherent potential for development. We often build on Swedish experiences, but always adapt our services to a local context.

We are a subsidiary of the Swedish Association of Local Authorities and Regions (SALAR), which is a member organisation for all of Sweden’s 290 municipalities and 20 county councils and regions. Its mission is to provide its members with better conditions for local and regional self-government.

This puts us in a unique position as we can draw on their expertise and network of Swedish local and regional authorities.

SKL International responds to a strong demand from developing and transitional countries who want to know more about Swedish experiences of decentralisation, local self-government and local government associations.

During the years we have implemented projects in over 30 countries on four continents.

Our services focus on the enhancement of local democracy and on building a well-functioning local and regional administra-tion. This is based on our knowledge of Sweden’s uniquely decentralised public sector, as well as a vast experience of decentralisation processes in diverse contexts.

We work in a range of areas: local democracy and governance; municipal management and service delivery; local and regional development; decentralisa-tion policies; support to local government associations; and sustainable urban development. We often establish partner-ships between municipalities as a way to learn and grow together.

Our work is demand-driven and result-oriented. We utilise expertise and know-how from our extensive pool of experts within SALAR and from Swedish local and regional governments. When appropriate, we engage international and local experts in our project teams to add complemen-tary specialist skills and knowledge.

It is our firm conviction that gender equal-ity is an essential part of a well-function-ing democracy; something municipalities have contributed to considerably in Sweden. That’s why gender mainstream-ing is an important feature in our projects.

We believe that growth and development have to be sustainable. The idea of envi-ronmental, social and financial sustain-ability is at the centre of every project.

Our partners range from government min-istries, associations of local governments and individual municipalities and regions, to local partners in the form of NGOs or other civil society representatives.

SKL International is financed entirely through its projects. Our clients include the Swedish International Development Agency (Sida) and other bilateral donors, the European Commission and the UN.

We focus on local democracy

Our work is demand- driven and result-oriented. We utilise expertise and

know-how from our extensive pool of experts

within SALAR and from Swedish local

and regional governments.

SKL International AB | 118 82 Stockholm, Sweden | Phone +46 8 452 70 00 | www.sklinternational.se

All texts and photos by SKL International staff and colleagues, unless otherwise mentioned.

At SKL International a core team of employed staff manages the commitments of the organisation, mainly as project managers. In addition to this, our associated consultants add valuable knowledge and dedication to the foundation on which we base our long term commitment to projects and relations.

The CoreFROM LEFT TO RIGHT ROW 1 Aneza Dizdarevic | Anna Backmann Annakarin Lindberg | Arben Qesku | Belhassen Turki ROW 2 Catharina Sparr | David Young | Erik Faxgård Florence Mutumba | Fredrik Lundkvist ROW 3 Gülsen Can | Håkan Gustafsson | Hoda Saad Klas Groth | Lars-Eric Ericsson ROW 4 Lena Falcón | Magnus Liljeström Mats Jarnhammar | Oya Otman | Paul Dixelius ROW 5 Ryan Knox | Suzanne Krook Tommy Holm | Tony Levitas

The core team and associated consultants during 2014 have been:

SKL INTERNATIONAL ANNUAL RESULTS 2014 01

OPERATIONAL REVIEW

Sometimes overlooked by project managers and from time to time challenging for management, but the reality is that financial controls and project administration are the start and end of SKL International’s business. The obligations involved in donor agree-ments and partner contracts govern how things are run in the company, in terms of results but clearly also when it comes to having the right checks and balances in place. A stable finance department, well established routines and clear processes governing the work is a fundament for the company.

“Every year the company goes through the statutory audit, in accordance with the Companies Act. This examination is done on the company’s accountancy and annual report and of the manage-ment,” says Ms Catharina Sparr, Finance Manager at SKL International.

In addition to this, every project is audited at least on an annual basis.

“During the year we have put a lot of focus on strengthening the capacity of project managers in terms of financial management and to define the roles in the finance and administration pro-cesses” Catharina Sparr continues. “Our auditors have encouraged us to do this to increase accuracy and to mitigate the risk of putting all eggs in one basket, which is the case if too much of financial manage-ment is taking place only at the finance department.”

Today SKL International has two full time staff in the finance and admin depart-ment, apart from Catharina Sparr, Ms Florence Mutumba joined the company during the year as finance assistant. In addition, Ms Hoda Saad is dividing her time between her job as project coordi-nator with the role of day-to-day finance/admin support to the more complex projects.

“I see a clear constructive development in terms of the division of roles when it comes to financial management in the projects,” says Mr Håkan Gustafsson, Managing Director. Catharina Sparr agrees, and adds; “The changes we have made to roles and routines are definitely a development, and the audit report this year really supports the results. But this is an ongoing process and we will continue to push for change also during 2015.”

Developing checks and balances at the finance department

Finance Manager Catharina Sparr and Finance Assistant Florence Mutumba

During the year we have put a lot of focus on

strengthening the capacity of project managers in terms

of financial management and to define the roles in

the finance and administration

processes


We asked the outgoing board members to reflect on their personal engagement and their four years leading the company.

Mr Lars O. MOLinMy interest and engagement in inter-national development goes back to the sixties, when southern Africa was in the focus. During the seventies it switched to Afghanistan, which turned into a full-time engagement for me personally. In the eighties I started a development organisation working in cooperation with the Tunisian women’s organisation Union National de la Femme Tunisienne. Since the turn of the century, I have mainly been engaged in the Council of Europe as a thematic rapporteur on Human Rights and as chair of the Congress Monitoring Committee.

No matter where I’ve been active, my engagement has always been built on values that form the basis for my life: the unique and equal value of all human beings.

As I have an old and dear relation to Tunisia, I’m very happy about the company’s engagement there. The decentralisation project is important in the process of building a local democracy that is firmly rooted in the population. The Arab spring started here and Tunisia is the country in the region that has the best conditions for

building a true democracy with respect for human rights.

Ms ann BeskOwAt our annual meeting, my involvement in the board of SKL International will come to an end. After 40 years in local politics it’s time for something else.

One thing I want to leave behind is a genuine wish that more people and organisations knew about the work of SKL International. Take for example two of the countries where the company is deeply involved, Ukraine and Iraq. Every day we are flooded with news from these areas. News that provokes thoughts around how people manage to carry on with their lives under these circum-stances. How can they continue building a democracy and create an open society for the future? To then realise the contributions in the name of democracy that are actually being made in these countries by SKL International, and that we have so much to share and so much to learn would be an eye-opener for many people.

I believe it would increase the trust in the possibilities of democracy and the understanding of Sweden’s role in the world.

Mr MichaeL sandinI have always seen myself as an internationalist, which to me means working for a deeper understanding across borders and against intolerance. And I believe that it is important that municipalities adapt to this perspective, particularly if we are to be serious when we talk about better inclusion in society for people coming from other countries to Sweden.

Looking back at 2014, I’m particularly proud of our new project in Ukraine. Of

course it’s a challenging environment, but I think that we always shall be prepared to enter into difficult settings, as long as we know where to put our feet and whom to cooperate with. The potential results of such interventions are often larger than in other settings.

During the four years I have fol-lowed the company, I can see a clear development towards an ever more professional organisation with a wider range of sources for financing and wider geographic and thematic areas of work.

Mr Jerker stattinAs Head of the International section at SALAR I see the work of SKL International in perhaps a bit of a different light than other board members. SALAR’s involvement in international affairs is deeply rooted in our political structure as well as in our administrative system organisation and SKL International is one of three vehicles for our work. The other two are the International Section at SALAR, which focuses mainly on the European Union, because of its direct and indirect effect on our members, and the International Centre for Local Democracy, which promotes municipal partnerships between local authorities in Sweden and their peers in low and middle income countries.

If I look back at my time on the Board, I conclude that the company has grad-ually moved from thematically based projects to more complex and reform oriented programmes. The recently contracted SymbioCity Kenya is a very interesting example of this as it sets off from the decentralisation process in the country, and is strengthening a local government association by using sustainable urban development as a thematic intervention area.

Reflections from the

boardThe board of SKL International AB during 2014 has consisted of Mr Jerker Stattin, Director of

International Affairs at SALAR, Mr Lars O Molin, Chair of the Municipal Assembly in Örebro and Chairman of the Monitoring Committee of the Council of Europe’s Charter of Local Self-Government,

Mr Michael Sandin, Councillor in Skåne Region and Ms Ann Beskow, Elected representative in the City of Gothenburg. Managing Director Håkan Gustafsson to the right.

The board of SKL International is composed of elected representatives

and staff from the Swedish Association of Local Authorities

and Regions. They are appointed in accordance with the election cycle of

the mother organisation which means that the current board will soon end

its formal engagement and a new board will be nominated during 2015.

By Magnus LiLJeströM

& hOda saad

OPERATIONAL REVIEW

The most common denominators among these new projects are that they have decentralisation in focus and that they all have their origin in a new type of need and expectation from donors as well as beneficiaries.

I see three main aspects behind this trend:

▶ Decentralisation and reform programs in general are complex undertakings. This means that unpredictable challenges can be expected down the road, which makes detailed terms of references and plans easily outdated and too rigid for their purpose.

▶ Working on reforms tends to exhaust resources of the pioneering institutions. This is a motivating factor for them to go for a limited number of supporting agencies that are working with them in a flexible set-up, rather than the traditional project setting of working for them, sometimes with overall delivery pressure making them less responsive to the real roadblocks for the reform.

▶ Reform processes take time to implement and rely on elec-tion cycles before they can be fully realised. It means that the institution in charge will not see real change without long term commit-ment covering crucial parts of the duration of the reform. If a reform process is partial and incomplete in its details – keeping the ultimate beneficiary, the citizen, in mind – there is always a risk that counter arguments will prevail.

We have responded to these realities from donors and beneficiaries by recom-mending a type of navigation team

responsible for creating a structure for process coaching. The navigation team is working in close contact with the people in charge of the reforms, to better understand what kind of support will add value to existing gaps and what is consid-ered necessary to bring reforms forward in what in itself is an unpredictable and complex environment.

As we have more recently been confronted with similar requests from different regions such as MENA and Eastern Europe, it seems to me that this is not a coincidence. The trend is rather driven by a demand from overburdened institutions to pursue reforms in a policy climate in which citizens expect more from the political elite than what they have delivered up to this point. So there is a sense of urgency among these cham-pions (of the reform process), an urgency which creates demand for proper and easily accessed support that does not cause administrative burdens.

A novelty in the arrangements for support Given harsh conditions for reforms due to scepticism rooted in previous failures and - as always - vested interests in the status quo, there seems also to be a widespread consensus that this is the last opportunity for a successful move from a corrupt past. This sense of urgency and pressure on the agents in charge of reform creates an emphasis on efficiency and simplicity in how support is provided. It seems however that the donor community, with the exception of Sida, has yet to adjust to this reality.

The workload caused by ongoing reforms tends to exhaust the institutions in charge, which indirectly limits the capacity to fully utilise donor support due to scarce human resources. This can be problematic as it risks creating vague

demands and thereby reducing the potential added value provided by the international community.

So part of the demand that we have seen lately is obviously rooted in donor fatigue combined with pressure on beneficiaries to avoid engagements that might not meet expectations. On the other hand, if the international support can meet the need for simple and responsive interaction, then there is a match! This is basically a positive development in line with the common understanding that innovation is borne from demand. In this case this is through insights among lead-ers of poorly staffed institutions that the modalities for technical assistance need another setup in order to be efficient. A setup that is built on closer and longer relationships.

What we have witnessed during 2014 is a demand for easily accessed guidance, which is built on relevant, and preferably timely and on-the-spot, experience, so as to avoid straining the limited resources of the institutions in charge. In the case of SKL International we are able to provide this kind of long term commit-ment through partnership agreements, a well suited model for building close relationships as a foundation for flexible response to upcoming demands. This means technical advisors can be defined as the need occurs rather than being locked into detailed predetermined proposals and commitments before the project has even started.

Flexible support downplays pre-defined project resultsThe global perspective among donor organisations seems to be increasingly moving towards result-based agendas and strategies. Projects that take stock of uncertainty and open agendas provide a contrast to mainstream project design

For SKL International, 2014 was characterised by more complex projects than ever before – moving from predominantly sector-specific support to all-encompassing multifaceted reform processes.

By håkan gustafssOn, Managing Director

Navigating complex public sector reforms


where results should be pre-defined. The differ-ence between a flexible and a result oriented approach can partly be a matter of definition, as the overall objectives of capacity building projects can be set at early stage but this is definitely not the case for how support is provided. Support in complex reform processes need to be extremely flexible and profound in addition to having a constant orientation towards activities that can add most value. For donors and supporting organisations, these jointly managed projects also seem to create challenges for evaluators as the results and outcome will depend on joint actions. Who deserves to be blamed or honoured for the (lack of) achievements? And how to assess ongo-ing guidance provided by the supporting (implementing is not really a valid termi-nology in this context) partner?

Efficiency to redress dualism in project designThere is an underlying logic in the donor community as well as among imple-menting agencies to be visible and also to try to impose methods, concepts and practices referred to as national good practice or “European standards”. Among project implementers there is another trend which is about promoting econo-mies of scale through “products” that are provided “off-the-shelf”.

Our experience is that well informed leaders in charge of reform processes are increasingly suspicious about such offers. I believe that the way the “new” demand is articulated is also a symptom

of reactions towards a dualism in the setup of projects - built on assumptions that projects are not just designed to be supportive to the beneficiary but also to the image of the implementing agency as well as the goodwill of a donor. This can be visualised through high profiles of projects manifested in smart logos and acronyms.

SKL International prefers to work in close cooperation with the institutions and organisations that we are supporting and in tight dialogue with the donor. This provides for opportunities to build up confidence among the actors involved and is in a way a means to de-brand activities in favour of the institutions in charge, which can make something positive out of the credibility achieved through the projects.

So how do we act on these demands for support?We are looking at these tendencies manifested in a demand for navigation in reform processes as something very positive and we are certainly eager to promote this kind of support. We are doing this in different ways:

The dialogue with donors and beneficiar-ies is key. Inception periods should be long enough to provide well informed input about the conditions for project implementation.

A system perspective must guide the operations - meaning that the set-up should be inclusive, transparent and flexible to allow for adjustments as key aspects and true “vehicles” for change are taken on board.

Avoid ready-made models and concepts applied in other contexts and countries. Examples can be useful to keep in mind and learn from, but every country and

every situation is unique. Copy-and-paste is not just per se a questionable approach but can also result in a nar-rowing of the scope or wrong focus and cause a costly loss of energy.

Promoting flexible design of projects and programs for constant adjustments to enable delivery on demand rather in line with a pre-defined result. This is however a challenge given that result strategies and guaranteed results are the vocabu-lary à la mode.

The need for more adaptable setups to evolving challenges in projects will create a partly new trilateral interaction between project, beneficiary and donor which is also sensitive, given the obvious insight that donors should stay out of implementation and that their time and resources are limited.

A connected challenge related to the more blurred roles in these kinds of project setups is that results might not always be easy to isolate in terms of cause and effect, attribution and contri-bution.

Another challenge relates to forecasts of risks when projects rely on fragile partners, a situation where, on the other hand, this type of support is most needed.

I believe that these are challenges that will need to be confronted by donors. They are also reason to think and strategise in more pluralistic manners on how support is best provided. Our missions during 2014 provide an interest-ing set of experiences that I think will provide thought-provoking lessons for future capacity building in complex and sensitive policy contexts. We have been very motivated to embark on these chal-lenges and we will be happy share the experiences down the road.

Managing Director Håkan Gustafsson (left) together with Deputy Minister Vyacheslav Negoda at the signing of the MoU between SALAR, SKL International and the Ministry of Regional Development in Ukraine.

“Support in complex reform processes need to be extremely flexible

and profound in addition to having a constant orientation towards

activities that can add most value.”

OPERATIONAL REVIEW

2014Headlines in apriL

feBruary

January

As part of the Sida Framework Agreement for Democracy and Public Administration, SKL International conducted a study to assess specific areas and programmes for Sida sup-port to public administration reform in Kosovo. The study was a follow-up to an analysis conducted by SKL International and its partners in 2013, which

had focused at support options more broadly within both Kosovo and Albania. The study assessed three proposed prior-ity areas and potential partners for assistance as identified by Sida, namely the Office of the Prime Minister and Ministry of Finance Agency for Gender Equality and Local Governance and Decentralisation.

The municipalities of Helsing-borg, Borås and Eskilstuna participated in SymbioCity pilot projects in China and Indonesia during 2012 and 2013. The purpose was to strengthen the cooperating cities’ (Duyun, Probolinggo and Palu) ability and capacity to engage in sustainable urban development. In early 2014 the three municipalities participated in an evaluation

seminar in Stockholm with the ambition of reviewing the lessons learnt and experiences from the collaborations in order to improve similar project collaborations in the future. The seminar highlighted the important role that the municipal participants had in making the projects successful through their involvement, input and not least, commitment.

SKL International hosts Jordanian delegation in Stockholm and Skåne

March

You are invited to join the discussion at the World Urban Forum in Medellin!

SKL International made a broad invitation to its Networking Event; “How can one plus one make three?! Finding innovative solutions through the SymbioCity Approach” at the seventh World Urban Forum in Medellín, Colombia.

Follow up study on Public Administration Reform in Kosovo

Reunion of Swedish municipalities participating in SymbioCity pilot projects

In late April, a high-level delegation from Jordan vis-ited Sweden as a part of an EU-funded Twinning and Institutional Exchange (TAIEX) study visit on Decentralisation of Public Services. The group was composed of the Governor of the Local Development Directorate in the Ministry of Interior, Governor of Amman and Amman City Manager.In light of recently-articulated proposals for decentralisation in Jordan, the purpose of the visit was to explore EU best practices in decentralisation of public service, concentrating in particular on the division of responsibility within and between different tiers of government and to investigate the mechanisms for public

accountability and transpar-ency.In addition to visiting the host institution SKL International, the group also had meetings in Stockholm with the Swedish Association of Local Authorities and Regions, Stockholm County Council, Stockholm Business Alliance, the Council of Stockholm Mälar Region and SRV waste management authority.In Skåne, the group had con-structive discussions based on the evolving context in Jordan with the County Governor and County Administrative Board, Region Skåne and the City of Malmö. In addition, the group was able to visit a Centre for Citizens Dialogue in the City of Malmö.


May

Research paper on the State of Decentralisation in Eurasia presented in Tblisi, GeorgiaAt the “Seminar for Dialogue and Capacity Building of Local and Regional Authorities in Eurasia in the Fields of Development and Local Governance”, SKL International and partners presented a research paper focusing on the state of decentralisation in the region. The seminar was arranged by Platforma, a European platform of local and regional authorities engaged in development cooperation.The research paper concludes that there have certainly been decentralisation reforms in most countries of the Eurasia region, and a development of local self-governance during the past 10-15 years. Yet decentralisation processes are frequently inspired by a wish to do away with the excessive centralisation inherited from Soviet times, rather than by an understanding of the advantages of a proper distribution of authority between various levels of power. As a result, many local authorities have had to assume the responsibilities without the relevant author-ity or resources required to fulfil them successfully.It is within this framework that Platforma partners try to help reinforce the institutional and operational capacities of local and regional authorities in Eurasia countries, particularly in the field of good governance and local development.

Within the framework of the municipal partnership project “Turkish Swedish Equality Network”, Ordu and Giresun municipalities in Turkey hosted a partner meeting to sign the European Charter for Equality of Women and “Men in Local Life”. The Charter was signed by Mr Seyit Torun, Mayor of Ordu, and Mr Kerim Aksu, Mayor of Giresun. By signing the Charter the local authorities of Ordu and Giresun have made a pub-lic commitment to the principle of equality of women and men. They are well on their way to draw up an Equality Action Plan based on the standards of the Charter.In connection with the two signing events, the Swedish

gender equality expert Ms Ann-Sofie Lagercrantz from Kalmar municipality performed a lecture on the principles of the Charter. The audience for this presentation was representa-tives from NGOs, politicians, managers and employees in the municipality.The core group of the project met in a workshop focused on the baseline reports from each municipality. The figures and statistics presented show that there is an undisputed gender gap in most areas. The partner-ship project will continue to ana-lyse the information and collect complementary data.

On June 18, SKL International participated in an inspiring kick-off for the Vinnova-funded project called ”Collaborative Platform for Sustainable Suburban Dynamics” or “Södertörnsmodellen” in Swedish.The project is designed to meet the challenges for sustainable, attractive cities by developing innovative forms for citizen participation and stakeholder collaboration for sustainable urban development in suburban municipalities. Ten “test beds” will be connected to municipal activities in

the Swedish municipalities of Södertörn (Huddinge, Haninge, Botkyrka, Södertälje, Nynäshamn, Tyresö, Nykvarn och Salem). For each test bed, a think tank will be formed with representatives from the municipalities, the construction industry, consultants and researchers who will develop innovative solutions for sustainable urban development based on stakeholder collaboration.The project is managed by the Swedish architectural firm White. Other actors involved in the project are: the Royal

Institute of Technology; the municipalities of Södertörn; Sweden Green Building Council; engineering firm WSP; Skanska; Ecoloop; Nordregio and Södertörn University. SKL International’s role will be to provide international best practices and knowledge as well as to disseminate project results through its vast network of international stakeholders in the field of sustainable urban development.

SKL International’srole will be to provide

international best practices and knowledge as well as to disseminate project results through its vast network of international stakeholders in the field of sustainable

urban development.

Giresun and Ordu signing up for equality

Kick-off for Collaborative Platform for Sustainable Suburban Dynamics

June

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OPERATIONAL REVIEW

During the summer a delegation of 14 participants from Iraq vis-ited Gothenburg and Stockholm to study aspects of local govern-ance. The delegation was headed by the Governor of Diwaniyah, Dr Ammar Albualikhan and con-sisted of members from the pro-vincial council, a parliamentarian and leading managers from the social care sector.The visit was part of a compo-nent of the “Governance in Social Care” project, which focus on the role of local elected representa-tives and their role in planning, managing and following up on public service delivery. Iraq is in the middle of a radical decen-tralisation reform where the social services sector, amongst others, will be devolved to the provincial level. This will drasti-cally change the mandates and

roles for elected representatives and staff in all provinces.“We have noticed how vital it is with a continuous dialogue, not just between central and local decision makers, but also between elected representatives and the executive organs of the province. The lack of dialogue risks creating conflicts or misun-derstandings that in the end will be a threat to the most vulner-able groups“ said Ms Zainab Al-Abedi, head of the women’s committee in the Diwaniyah provincial council. During the week the delegation met a variety of local decision makers in Gothenburg as well as Västra Hisingen, visited social care institutions in Gothenburg and Stockholm and discussed with former minister Ms Lena Hjelm Wallén about her

Local decision makers from Iraq in Swedenexperience of what it takes to achieve long term sustainable political decisions.The ongoing Syrian crisis and IS developments have affected the Diwaniyah province to a lesser extent that many other parts of the country, although many young men from the province have travelled north to par-ticipate in the conflict and many internal refugees have entered the province. Diwaniyah province is one of the poorest areas in Iraq with many groups that are socially and economically exposed. In order to develop the province with a long-term perspective, the lead-ership of the province are eager to cooperate also with partners outside the country. It is the hope of the Diwaniyah Governor that a continued and broadened

cooperation with Gothenburg will be created; “We don’t lack money or other resources. What we need is knowledge and long-term relations with sound cooperation partners. Sweden has a good reputation in Iraq and we hope to work together closely in the future”.

JuLy

Snapshots from social care institutions and political meetings in Gothenburg and Stockholm. LEFT: Governor of Diwaniyah, Dr Ammar Albualikhan visiting the Gothenburg City Council Chairman, Ms Lena Malm and the Chairman of the Executive Board of the City of Gothenburg, Ms Anneli Hulthén.


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SKL International carried out its first evaluation mission in Kyrgyzstan during August. The assignment reviewed the project “Strengthen Voice and Accountability: citizens participa-tion in budgetary process” (VAP), which is jointly funded by the Swiss Development Cooperation and UK Department for International Development.

The aim of VAP is to strengthen demand for services (voice of citizens) by working with the population and Local Self-Governments (LSGs) in rural areas. The project includes three main focus areas:

▶ Local communities (includ-ing civil society organisa-tions) are participating in public service delivery management

▶ LSGs governing and manag-ing capacity improved to respond citizens’ needs

▶ Improved LSG legislation to enhance proper decentralisation process.

The overall project duration of VAP is eleven years, delivered in phases. The first phase of implementation started in May 2012 and is due to end in March 2015, with funding of CHF 7.68 million.

The purpose of the evaluation was to review of the perfor-

mance of VAP during its first implementation phase and define the strategy for the sec-ond phase, which will run from April 2015 to March 2018. The mission involved an intensive programme with visits to LSGs in Jalalabad and Issky-Kul Oblasts, in addition to meetings in Bishkek with project stake-holders, including concerned Ministries, the Parliament and the Union of LSGs.

Mashrek seminar for regional and local authoritiesTogether with Cités Unies France (CUF) and United Cities and Local Government (UCLG), SKL International’s regional office in Amman hosted a seminar involving local and regional authorities from the Mashrek region from 24 – 25 September. The semi-nar is part of a global project managed by Platforma, an initiative co-financed by the European Commission that aims to improve European support to local and regional authorities and involve them in policy development. As a part of the seminar, SKL International delivered a discussion paper on the challenges and opportunities to support decentralisation in the region, with a focus on three country case studies of Lebanon, Jordan and Yemen. This was followed by a panel discussion involving representatives from across the region, where further reflections were provided to be integrated into the discus-sion paper.The seminar was noteworthy given the context in the region, with participants high-lighting both challenges and opportunities that might stem from the current instability.Over 60 participants from Jordan, Palestine, Syria, Lebanon, Egypt, Yemen and Sudan attended the seminar. Representatives came from a range of actors including cen-tral governments, regional and local authorities, civil society and international development partners.

A high-level delegation from Myanmar visited Sweden from 27 September – 3 October, sup-ported by UNDP Myanmar and its programme for strengthen-ing institutions in local govern-ance and decentralisation. The group composed of 16 delegates including the Deputy Minister of Home Affairs, two Regional Ministers, senior gov-ernment directors, policy mak-ers and key personnel directing public administration reform in Myanmar and senior staff from UNDP. The study visit supported the Myanmar delegation to explore

Dr Zaw Oo, senior research fellow and Director of research at the Centre for

Economic and Social Development of the Myanmar Development Resource

Institute, also serving as a member of President Thein Sein’s National

Economic and Social Advisory Council.

the Swedish multi-layered system of governance and the division of responsibilities between national government, ministries, government agencies, regions, county councils and municipalities. The visit aimed at supporting a broader explora-tion of practices and procedures related to the local and regional levels, as well as the establish-ment of effective monitoring and dialogue between public institutions. The visit involved several meetings with concerned national and local authorities/governments and agencies as well as the Swedish Association

of Local Authorities and Regions (SALAR), to assess and under-stand the institutional relation-ships between actors. Further, a detailed exploration of political, administrative and financial aspects concerning decentralisa-tion was provided and discussed in the context of Myanmar local administration.

High-level delegation from Myanmar to study multi-level governance and decentralized public administration systems

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Strengthening the voice of citizens in Kyrgyzstan

OPERATIONAL REVIEW

After having fostered and developed the SymbioCity Approach from 2010 to 2014 the Approach is taking a step to the next level. Part of designing the SymbioCity 2.0 programme has been to identify countries and cities suitable for SymbioCity city projects. Suitable in the sense that for example the national government shows engage-ment in the urban sector, that there is political support and capacity at local level and that there is openness to testing new approaches and chal-lenging existing structures. In November 2014, Zimbabwe was among the first countries to be assessed. Although there have been

some regressive trends in Zimbabwe over the past 15 years, capacity at local level is still high in comparison to neighbouring countries. The international attitude towards Zimbabwe has also softened in recent times and sanctions have been lifted. This also means that bilat-eral co-operation is gradually increasing and the Swedish Embassy looks with opti-mism on future develop-ments. The assessment team from SKL International was generally posi-tive, particularly with regard to the future potential of Zimbabwe. Urban Advisor, Mr Mats

Jarnhammar, had vivid impressions; “I see great potential in combining the SymbioCity Approach with the human capacity of Zimbabwean local govern-ments. We can really help them get back on track”.

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New plans to build the capacity of local government actors in JordanThis five-month assignment to assess Jordan’s institutional and organisational capac-ity for local government was undertaken as part of the EU project “Promoting Local Economic Development in Jordan” (PLEDJ). The project is being implemented at the central level by the Local Development Directorate (LDD) of the Ministry of Interior and Local Development Units in the 12 Governorates of Jordan (GLDUs). The global objective of this assignment was to help build the organisational capaci-ties of LDD and GLDUs.SKL International’s team assisted the Director of LDD to assess the institutional and organisational capacity devel-opment needs for LDD/GLDUs and to develop three-year training plans for each category of staff of LDD and LDUs. This was based on a sound analysis of priorities and emphasised the provision of training offered in Jordan.During the course of the assignment the Government of Jordan launched the preliminary drafts of a new regulation concern-ing Governorate Councils and a new Municipality Law. Consequently, SKL International’s team was requested to expand their scope of work to take into consideration the decentralisa-tion proposals, specifically by outlining anticipated future roles and capacity develop-ment needs in addition to the short- and medium-term train-ing needs that were included within the original scope of the assignment.In addition to the above deliverables, the team was asked to outline anticipated LDD and GLDU roles and func-tions, as well as staff profiles, manpower requirements and organisational structures for LDD and GLDUs.

Although there have been some regressive trends in Zimbabwe

over the past 15 years, capacity at local level is still high in comparison

to neighbouring countries.

SymbioCity studies Zimbabwe

ONE YEAR AFTER EUROMAIDAN

Ukraine navigating between opportUnities and constraints

About the Project:Project name: Support to Decentralisation in Ukraine

Duration: 2014 - 2017

Budget: 31 750 000 SEK from Sida

Main Partner: Ministry of Regional Development, Construction and Municipal Economy of Ukraine

Project Organisation: A joint Ukrainian- Swedish Secretariat with office in Kiev and Stockholm

Since the EuroMaidan revolution in February 2014, Ukraine has experienced dramatic changes and challenges. On the one hand, the revolution revived hopes for change and created widespread public support and political will to resume reforms of the country. On the other hand, there are numerous constraints

to successful implementation of the reforms, like the conflict in Eastern Ukraine that continues to claim victims and deteriorate the country’s economy. In this critical situation, decentralisation is seen as one of the most important reforms to stabilise the country and to move Ukraine towards integration with the European community.

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Photos by Oksana Sappa


OPERATIONAL REVIEW

As an important part of the Swedish Government’s support to Ukraine, SKL International kick-started a three-year long project in September 2014 to support the decentralisation process in Ukraine.

Ambitious Reform Agenda Since the mid-1990s, Ukraine’s system of public administration has been the sub-ject of almost continual reform, without yet really freeing itself from its Soviet-past. Discussion on the need for decentralisa-tion has been ongoing for years but without any real changes.

The EuroMaidan revolution triggered an urgent need for large-scale reform that can move the country towards effective and stable governance and provide for the country’s citizens while also address-ing the regional tensions that have been inflamed through the conflict in the east. This opportunity was grasped by the new government that was formed after ex-president Viktor Yanukovych’s flight to Russia. In April 2014, a concept for reformation of local self-government was approved by the new government whose primary goal is actual devolution and delegation of powers, together with adequate financial means, to representa-tives of local communities. This decen-tralisation reform is seen as one of the most critical for creating effective public institutions. It can also help to ensure that regions feel that their local specifics are taken into account while being part of the Ukrainian state.

Reform-oriented ParliamentThe Ukrainian Parliament, Verkhovna Rada, has an important role to play in the country’s decentralisation process since it requires adoption of new laws and changes to the existing constitution. Therefore, the results of the parliamentary

elections in October are seen as a signal in right direction with a majority of the seats taken by political parties that are dedicated to democratic reforms and EU-integration. At the end of 2014, the new parliament approved a series of changes to budget and tax legislation that will allow regional and local administrations to collect more money for their budgets. During 2015, additional key laws will have to be approved related to important issues such as territorial reforms and distribution of authority.

Q In your view, how can the parliament play an important

role during the reform process? In what way does the new composition present an opportunity for reforms?

“For the first time since independence,

the Ukrainian people have elected a pro-European and reform-oriented Parliament. The Coalition Agreement between politicians shows a strong political will to reform the State. Considering the very busy reform schedule and an urgent need to carry out the reforms, most of which rely on amending current or introducing new legislation, Parliament may become a “watchdog” of the reform launch and follow-up process.”

kOstiantyn gavryLOvLiaison Officer for SKL International in Ukraine

People Demanding Change The realisation of proposed decentralisa-tion reforms depends heavily on demand for change among the population. Lack of public support may result in the postponement of urgent, but potentially unpopular reforms. The EuroMaidan revolution, sometimes referred to as the “Revolution of Dignity”, has helped to facilitate a relatively strong consensus in the country regarding the urgency of reforms, and Russian aggression towards Ukraine has helped to strengthen this. Further, the consensus on the need for reform has helped to establish a broad coalition of civil society organisations. Therefore, this support among the wider population represents an opportunity for decentralisation reforms to succeed.

Q Why is popular support important for the reform process? Popular

support is never to be taken for granted, what can be done to keep it up?

“Popular support for reform is as

important as it is complex and difficult to predict. I believe that in order to grant any popular support one has to connect to the national “mood” of the people. Only talking about how well things are going will not be effective if a majority of the public believes that the country is heading in the wrong direction. Leaders need instead to connect with public sentiment on how people feel. There is a need to take these sentiments seriously and to communicate in a way that acknowledges that things are not going as they should. If the reforms are already in place and things are not going well, explain why that is the case or how the reforms will deal with it.”

erik faxgårdProject Manager at SKL International

Escalating Conflict in the East At present, it is impossible to forecast how the conflict in eastern Ukraine will end and when. After the annexation of Crimea by Russia, some 5 000 people have


already lost their lives and over 11 000 been wounded since the conflict started in April 2014. The continuing conflict also creates complications for the decentralisation process. As of early 2015, the national gov-ernment does not control highly urbanised, border areas of Donetsk and Luhansk regions, and it is unclear if and when these regions will return to the control of the Ukrainian state. Although the decentralisa-tion reforms could serve as critical means for re-integrating these regions into the state on the terms of the local population, there remains a serious threat that portions of eastern Ukraine will either fully secede from Ukraine or become disputed regions for a long time to come.

Q Why/how does the conflict in Eastern Ukraine present a threat

to the reform process? In your view, how can decentralisation be a mean to address the conflict and related tensions?

“The conflict constitutes a threat not

only to the national security and territorial integrity of Ukraine but also to the reform process. The conflict puts a heavy burden on the Government of Ukraine that needs to handle a serious humanitarian situation while also maintaining a focus on the reform process. It will be important to support the Government to keep this parallel focus and support their reform efforts despite the financial and human constraints caused by the ongoing conflict.”

Lena faLcOnProject Manager at SKL International

Deteriorating Economy and CorruptionPreparation and implementation of large-scale reforms is a long process that requires large amounts of organisational capacity and financial resources. The conflict in Eastern Ukraine is having serious conse-quences for the country’s economy due to different factors such as increased defence spending, a weakened investment climate as well as loss of production and trade par-ticularly after separatists seized Ukraine’s

main industrial and coal-mining eastern regions of Donetsk and Luhansk. The deteriorating economic situation therefore also represents a serious challenge to the implementation of reform.

Another constraint is the widespread cor-ruption that emerges from different client-patron networks in the country. Corruption in Ukraine has been an institutional phe-nomenon both at local and central levels for a long time, and it is difficult to see how this situation quickly could change.

Q In what way do the deteriorating economy and corruption present

threats to the reform process?

“Strangely enough, both these factors can also be

seen in a positive light. Recent population surveys revealed that citizens tend to trust their local self-governments more than they trust national and oblast governments. The aim of decentralisation reform is to channel more public money to lower levels of public administration and in that way promote higher transparency and control over the use of public money. As for economic downturn, it is always good to remember that economy is cyclical - there will always be ups which will be followed by downs, and downs will never last forever. Economic downturn presents an opportunity to look for diversification possibilities, to cut the unnecessary expenditures, to re-focus investments on education and innovation. Independent local self-governments can have more freedom to act in these areas.”

ieva kaLninaLead Expert for SKL International in Ukraine

Looking into the Future (Keeping the Spirit Alive) Despite Ukraine’s difficult situation at the present, the political will and expecta-tion of change among society provide a

window of opportunity for reforms.

To keep this spirit alive, it will be important to continue to promote decentralisation and highlight how reforms can result in real improvements for the country’s resi-dents. SKL International will address this aspect by collaborating with the Ukrainian Government and other key stakeholders and supporting important areas such as fiscal decentralisation, financing for education, and public communication of governance reforms.

The EuroMaidan revolution, sometimes

referred to as the “Revolution of Dignity”, has helped to facilitate a

relatively strong consensus in the country regarding

the urgency of reforms

OPERATIONAL REVIEW

Official Launch of Ukrainian-Swedish cooperationOn November 17, the Swedish Embassy in Kyiv, the Swedish Association of Local Authorities and Regions (SALAR) and SKL International officially launched the three-year project “Support to Decentralization in Ukraine” in Kyiv. The successful event was jointly hosted with partners the Government of Ukraine (GoU) and attracted a broad representation of key stakeholders in decentralisation reforms in Ukraine.

Mr Andreas von Beckerath, Ambassador of Sweden to Ukraine, opened the event by saying: “The Swedish Government is pleased to support Ukraine’s plans for decentralisation. We believe this is a positive step towards a stronger and more inclusive democracy in Ukraine. Sweden has a long tradition of local self-government and can share many experiences and examples with Ukraine”.

The speech was followed by a key-note address by the First Deputy Minister of Regional Development Mr Vyacheslav Negoda. Remarks on behalf of SALAR were presented by Ms Carola Gunnarsson, Vice President of SALAR, followed by an outline of the project scope and design presented by the SKL International team. The launching event closed with a signing of Memorandum of Understanding MoU between the Ministry of Regional Development, SALAR and SKL International. A well-visited attended press conference followed. TOP: Ms Iryna Skaliy, Programme Officer at the Section for Reform Support at the Swedish Embassy in Kiev

BOTTOM: Mr Vyacheslav Negoda, First Deputy Minister at the Ministry for Regional Development in Ukraine


IRAq - THE PERFECT CASE FOR

DECENTRALISATION?

About the Project:Project name: Governance in Social Care

Duration: Early 2013 until end of 2015

Budget: MSEK 17 from Sida

Main Partners: Governorates of Diwaniyah and Duhok

The objectives: To strength-en governance and manage-ment in the social care sector by addressing issues of service provision and quality, accessibility, accountability, responsiveness, effectiveness and coordination between legislative and executive powers at sub-national level.

Ambitions of the project: To work with small-scale, step by step, practical, and tangible improvements in the way decision-makers and officials, organisations, and institutions are functioning and interacting in the two governorates.

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A country with a multitude of tribes, a colourful palette of religions and a myriad of ethnicities could potentially be the ideal ground for a decentralised governing system. In April 2013, a critical amendment was made to the previously (2008) established Law 21, an amendment that opened up for local authorities in Iraq to govern themselves.

By anna BackMann

Iraq is just like in the rest of the world where each region, no matter which tribe or ethnicity the majority of its inhabitants are, has different needs.

And formally, there is a lot of space for local officials to make their own decisions. Article 122 of the Iraqi constitution actu-ally gives the provincial councils power “in accordance with the principle of decentralised administration” and Article 115 says that anything that the federal government isn’t responsible for, should be the responsibility of the provincial councils.

But the Iraqi government has been hesitant to enforce those stipulations. Some would say that their principles have pushed Iraq

closer to splitting, and becoming three dif-ferent countries: Sunni, Shiite and Kurdish. Others mean that the reluctance comes from good grounds and that it in fact is the strong centralisation that has kept the country intact, until now.

The amended version of the Provincial Powers Act, also known as Law 21, would have seen local governments choosing their own judiciary and their own heads of security. The law also gave them the power to deploy the Iraqi army inside and outside major cities. In fact the amendment, Article 14, says “the governor shall have direct authority over all the apparatuses operating in the province which are tasked with security

and with maintaining public order”.

One of the complexities of Law 21, which may explain the Government’s reluctance to implement it, is that it would also have given the provinces more control over their own money. This would have made some of them a lot richer – as Law 21

would increase the percentage of money that oil-producing provinces get.

Signs of change?A gradual decentralisation is now seem-ingly in preparation for the 15 provinces that are not part of a region (Kurdistan).

Starting with three ministries with long traditions such as health, education and municipalities, seven of the provinces are assisted by the USAID funded Taqadum project with basic inventory of roles and functions, gap analysis and other fact-finding types of assistance.

As early as August 2015, eight ministries are supposed to be “decentralised” to the provincial level.

This decentralisation process is compli-cated for several reasons. Until now it has not been formulated clearly with regard to model (deconcentration, delegation or devolution?), aspect (administrative, political, fiscal?) or its legal framework (legislation is inconclusive and incom-plete). Therefore, stakeholders get insuf-ficient guidance, and there is a tendency to postpone efforts to solve the problems that they ultimately will be confronted with. Furthermore, the roles and respon-sibilities of the actors are often blurred, overlapping and mixed, which makes it difficult to take action.

With regard to the model for decentralisa-tion there are indications that the various functions will be managed through different solutions, and some may not be decentralised at all. Also the aspects will be dealt with in different ways; planning, budgeting, management, political power, resource allocation/tax extraction seem to have been managed only partially by the central authorities.

Fertile ground for dialogue prepared in DiwaniyahAfter working with social care related institutions and leadership in Diwaniyah for close to two years through the “Governance in Social Care” project, the

Some would say that their [the government’s] principles have pushed Iraq closer to splitting, and becoming three different countries: Sunni, Shiite and

Kurdish.

OPERATIONAL REVIEW


Social care leaders in IraqDuring 2013-2014 a leadership development programme was implemented for social care managers of Duhok and Diwaniyah, Iraq.

As a reinforcement of the three original training seminars organized, a learning and exchange visit was arranged in May 2014 for managers from Duhok province. The delega-tion visited social care administration and institutions in Gothenburg and the vicinity of Stockholm. The visit also entailed a num-ber of workshops related to leadership, e.g. one on gender and leadership.

Among the learning points mentioned by

participants as especially interesting were:

• The close and honest collaboration between the administration and the elected council/s

• The participation of staff in planning and budgeting – a bottom-up approach to plan-ning

• The informal relationship between offi-cials, staff, and beneficiaries

• The way private companies and other organizations work with public funding

decentralisation process has now become the entry point for SKL International’s support in the province. By promoting a dialogue process among key stakeholders in the province, SKL International can help the partners define a strategic approach to the decentralisation of the Ministry of Labor and Social Affairs (MOLSA).

The upside of working with social care related issues in Iraq is that there tends to be more consensus between groups than is the case in other sectors. Protection of vulnerable people is a cross-cutting con-cern, regardless of political affiliation, tribe or religion. The downside is that MOLSA is a somewhat neglected and weak ministry.

The key stakeholders/institutions for the dialogue are:

▶ The implementing actor, the recent-ly-established General Directorate, that will take over the decentralised functions and responsibilities of MOLSA

▶ The budget distributor, the Governor’s Office that will also get the role as a Ministry as regards the reporting line for decentralised responsibilities

▶ The oversight body, the Governorate Council, which by law is ”an administrative unit of the central government working alongside the local ministerial department of the federal government”.

A number of committees, task forces and working groups have already been established, with the aim to prepare for the imminent decentralisation. But given the plethora of groups and com-mittees created, there may be a risk that the formation of new structures is considered a solution to the problem and not a means.

A remarkable substance has already been prepared however, although scattered in bits and pieces, with no one feeling mandated to take the lead in keeping it all together in its entirety. There are efforts, but not concerted, and there are approaches, but not unified. Concerted efforts and unified approaches are urgently needed to be put in place, especially for functions of a ministry like MOLSA.

Under the guidance of SKL International staff, the Diwaniyah dialogue is now preparing the province for the upcoming decentralisation of the Ministry of Labor and Social Affairs, to the extent possible given the deadline of August 2015.

OPERATIONAL REVIEW

Despite lofty aspirations, there was still a lack of clarity among

policymakers concerning a number of key questions on decentralisation: What forms of local democracy should Tunisia consider? What forms of ter-ritorial organisation are feasible? What would be the most appropriate func-tional assignment between different levels of government? Which financing model will enable subnational govern-ments to assume their assigned func-tions?

The Tunisia Local Governance Pilot Project (TLG2P) was developed to respond to these questions through the provision of high quality, evidence-based policy analysis. It was to contribute directly to Tunisia’s democratic transition process by supporting capacity development of con-cerned stakeholders and encouraging the adoption of an inclusive multi-stakeholder consultation process.

Mr Ryan Knox, project manager for TLG2P, has initiated and managed the project from the SKL International regional office in Amman together with local col-leagues based in Tunis. This has been done against a backdrop of political and institutional instability following two political assassinations in 2013 and the closure of the National Assembly for nearly two months. In addition, 2014 saw the introduction of a second caretaker Government within the project implemen-tation period.

When asked to summarise the core achievements of the project, Ryan Knox says; “The project has delivered a number of important outputs, including a proposal for a National Decentralisation Mechanism, at the request of the Ministry of Interior. Policy analysis was carried out on a range of topics including territorial reform, human resources, local finance and competences such as local economic development, solid waste management and primary education.

We have held regional consultations with 148 municipalities on territorial-adminis-trative reform, human resource develop-ment and the transfer of competences, in addition to a national workshop on inter-governmental finance. To allow for the inclusion of a wider range of perspec-tives, other stakeholders from the central government, regional authorities and civil society were engaged in the process.”

A core objective of the project has been to mobilise the National Federation of Tunisian Cities (FNVT) so that it could begin to familiarise itself with a new role

Jasmine revolution opening up for decentralisation in Tunisia

The popular uprising in Tunisia of January

2011 was followed by a democratic transition

process. It initially focused on the election of a National Assembly

whose task was to decide over a new Constitution.

The Constitutional dialogue prompted

discussions around a new set of aspirations

for democracy and social inclusion, with

decentralisation in primary focus.

in national policy advocacy. Consequently, an FNVT Working Group was mobilised as the ‘institutional home’ for a large share of project activities.

Despite its relatively short lifespan, the project has managed to leave a clear mark in the development towards FNTV truly representing the voice of municipalities in Tunisia. This is confirmed by Mr Saber Houchati, Executive Director of FNTV:

“TLG2P has played an essential role in helping us to reinvent FNVT. At the start of the project, we were an organisation with limited capacity and there were questions about our legitimacy among the munici-palities and central government. This has now changed, thanks in no small part to the support we received on TLG2P.

We now know more about our role, the needs of our members and we have even begun to take on a role in challenging the central government in a constructive and meaningful way. In the last few months, we have been involved in a several cases of reactive and proactive lobbying, and will

soon submit a position paper on decen-tralisation to the new Government. Our Swedish partners always tried to contextu-alise their advice within the Tunisian real-ity, and the process was primarily aimed at supporting capacity development, of our own Association, our members and the central government.”

FNVT’s Position Paper on Decentralisation included a set of demands to the central government, articulated over the short-, medium- and long-term, concerning powers, finances, human resources and territorial reform. It represents the first experience in FNVT’s history where it will proactively articulate a comprehensive position for Tunisian decentralisation to the central government.

For Ryan Knox the TLG2P experience has been unique; “TLG2P was in many ways the most challenging project I have man-aged. We were presented with a very short timeframe within which we not only had to acquaint ourselves with a completely new set of partners, context and country, but we also had to learn how to adjust to the

19 skL internationaL annuaL resuLts 2014

Despite its relatively short lifespan, the project has managed to leave a clear mark in the development

towards FNTV truly representing the voice of

municipalities in Tunisia

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Photo: ©iStock.com/numbeos

OPERATIONAL REVIEW

rapidly-changing context within the country and wider region. At the same time, while Tunisia was the first Arab State to genuinely recognise decentralisation as a serious policy alternative, there were a number of question marks concerning its validity and applicability to the Tunisian context. We therefore needed to develop and deliver a multifaceted work plan that would, on the one hand, build the capacity of, and correctly position out Tunisian partners while, on the other, carry out high-quality policy analysis related to decentralisation in the Tunisian context. I think our strategy to use the one year pilot project to engage local actors, build mechanisms for decentralisation dialogue, and populate the policy arena with evidence-based and context-specific analysis was successful, but there is now a greater expectation for us to continue our work and support the fulfilment of the aspirations of the Constitution (Chapter 7). This is why we, together with our Tunisian partners, have requested financing for a new phase of support starting in 2015.”

The year in AmmanBy ryan knOx

“The exposure provided by TLG2P on Swedish and other country decentralisation experiences has been invaluable to us. As indicated in our Constitution, we are united in our view that the best form of Government for Tunisia is a decentralised one. It is fair to say that the proposals and ideas put forward by TLG2P have influenced the preparation of the Constitution. TLG2P has provided us with know-how and competences on various processes including the value of a strong and independent lobbying voice for municipalities. A number of my NCA colleagues have even reversed their opinion on the importance of having a strong national federation of municipalities!”

Mr iMed haMMaMiChairman of the Committee on Local and Regional Authorities, Tunisian National Constituent Assembly (NCA)

Despite witnessing numerous challenges, 2014 has been a successful year for SKL International in the Middle East and North Africa (MENA) region, where our regional office was opened in 2013.

As well as our ongoing projects in Lebanon, Iraq and Tunisia, we have provided consultancy inputs to a range of donors and supported our civil society part-ners on issues of key concern. Having a base in the region has given us greater insights and allowed us to continue our effort to build awareness about the rapidly-changing context for local authorities, particularly with an eye towards future pro-gramming.

In February, we carried out an evaluation of a UNDP project in Jordan focusing on Youth Participation on Local Governance. Subsequently, during the period March – September, we carried out an institutional and organisational capacity assessment of the Jordanian Ministry of Interior’s Local Development Directorate and 12 Governorate Local Development Units, as part of the EU project “Promoting Local Economic Development in Jordan” (PLEDJ). In September, we co-hosted (together with

Cités Unies France and United Cities and Local Government) a seminar in Amman involving over 60 representatives from local and regional authorities from the wider Mashrek region (Jordan, Palestine, Syria, Lebanon, Egypt, Yemen and Sudan), where we delivered a discussion paper on the chal-lenges and opportunities to support decentralisation in the region (focus on three case studies of Lebanon, Jordan and Yemen).

In October, we delivered the final activities of the Tunisia Local Governance Pilot Project (TLG2P) and finally, in December, we carried out a fea-sibility study on the applicability of the SymbioCity Approach for Tunisia.

Based on our discussions with Sida and the Swedish Ministry of Foreign Affairs, as well as an increased demand from differ-ent donors and partners for our technical support and coopera-tion, we look forward to 2015. We anticipate it will present a wide range of challenges and opportunities, focusing both on our traditional fields of assistance, as well as new areas such a peace-building, resil-ience and post-conflict local development.

SERBIA ON THE ROAD TO EU ACCESSION

The formal opening of accession negotiations in January 2014 was a major milestone in Serbia’s relations with the EU. Yet even the most optimistic observers recognise that this is merely the start of a process that will take at least half a decade. Moreover, the onus throughout will be on Serbia to demonstrate its readiness, with little margin for give and take from the EU side. Still, even if the rules must be accepted largely as they are, there is some flexibility in exactly when and how they are implemented on the ground.

By david yOung

THE STAKES fOR mUNICIpALITIES

About the Project:Project name: Support to Local Governments in Serbia in the EU Integration process

Main Partners: Standing Conference of Towns and Municipalities (SCTM) in Serbia, and the Swedish Association of Local Authorities and Regions (SALAR), with SKL International as implementing organisation.

Program implementa-tion period: Dec 2011 to Oct 2015

Budget: 32 MSEK.

Overall objectives: To contribute to strength-ened democracy, equi-table and sustainable development in relation to local governance and closer ties between Serbia and EU. Enhanced knowledge and capacity together with organisational changes are expected to lead to better inclusion of local governments in the EU integration process and improve outcomes at local level.

Focus areas: EU integra-tion, gender equality, environment protection, business climate and SCTM organisational development.

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Photos by Dennis Ersöz, Klarsyn


OPERATIONAL REVIEW

Of course the challenge for local authorities does not end with accession. SALAR continues to play a vital role in following new developments in the ever-evolving EU acquis. The association established a Brussels office in 1994, the year before Sweden’s accession. As its former head, Mr Tommy Holm, explains, “the Brussels office makes it possible for SALAR to gain early informal knowledge about possible future proposals, which allows us to react without delay. By the time formal proposals are on the table, it is often too late.”

Nevertheless, it was impossible to predict the full extent of the impact of accession. In public pro-curement, for example, the num-ber of appeals from losing bidders shot up by more than anyone had anticipated. Even in areas where Sweden considered itself a model for the rest of the EU, there were unexpected effects, such as when the country found itself before the EU Court in 2000 because some municipalities had failed to uphold bathing water standards. But on the whole, those who said the EU would weaken Sweden’s system of strong local govern-ment have been proved wrong.

But the municipalities knew better.

“The Green Book forced the government to take the issue seriously and helped the association to influence Sweden’s preparations through high-level political contacts as well as at technical level through line ministries”,

says Mr Håkan Gustafsson, Managing Director of SKL International and then head of the association’s European integration unit.

In 1992, the Swedish Association of Municipalities (SALAR’s forerunner) published what is known in local govern-ment circles as the “Green Book”. Entitled Municipal consequences of membership in the European Community, it proved to be a timely contribu-tion. Two years later, with a close-fought referendum on membership to win, the gov-ernment’s official commission found, for instance, that the rules on public procurement were ‘unlikely to make very much difference to municipal self-government.’

The Swedish Green Book

This is why the accession negotiations are of vital interest to local government. The experience of current member

states suggests that most items on the day-to-day municipal agenda are influenced by the EU in one way or another – through its procurement rules, environmental standards, employment law and funding opportunities to give just a few examples.

Local authorities – a Key but oft-neglected PartnerYet in many other recently acceded

countries, local government has had little if any say in the accession process. That has often proved to be a costly mistake, with frequent examples of fines for illegal state aids or failure to upgrade waste and water facilities, while at the same time municipalities were ill-prepared to access the EU funds that could have helped with vital investments.

“We learn a lot from our neighbour-hood countries, but also from successful member states and their experience,” says Ms Tanja Miščević,

head of Serbia’s EU accession negoti-ating team. “SCTM has a multiple role in the process. It is raising awareness of EU-related issues at local level and enhancing local government capaci-ties in the field of EU policies, stand-ards and funds. Among many other activities, SCTM has a great initiative on establishment of municipal EU officers, which is strongly supported by the negotiation team. Also, I would like to emphasise SCTM’s role as a hub for information flow among all cities and municipalities, which greatly facilitates communication.”

TOP RIGHT: Ms Tanja Miščević BOTTOM RIGHT: Project Managers Mr Vladimir Jovanovic (STCM) and Ms Annakarin Lindberg (SALAR/SKL International)


SCTM’s Impact Assessment – a Foot in the DoorInspired by SALAR’s experience prior to Sweden’s EU entry in 1995, SCTM drew up an analysis of the impact of accession on local authorities. “Nobody else in the region has done this, says Ms Aleksandra Vukmirović, head of EU integration and international cooperation at SCTM. Not only has the process helped municipali-ties to understand the scale of the chal-lenge, but the final report was something that SCTM could bring to the national table. “The impact assessment was our foot in the door,” says Ms Ivan Božović, coordinator of the EU integration compo-nent of the programme.” Line ministries and the chief negotiator now see us as partners in the process.”

Tanja Miščević explains how SCTM and the negotiating team organised a working session with mayors in October 2014 to share information on the issues at stake, with the message that ‘it is never too soon to get involved in negotiations with the EU and that local governments have a lot to offer in the preparation of the negotiating position for some important chapters. The plan is to make this ‘a permanent coopera-tion mechanism, with thematic sessions aimed at transfer of specific knowledge.’

Subsequently, SCTM representatives have been invited to join working groups charged with preparing the negotiations in four key areas: public procurement (chapter 5), social policy and employ-ment (ch. 19), regional policy (ch. 22) and environment (ch. 27). “SCTM’s contribu-tion in these areas was of great impor-tance,” says Ms Miščević, “and I believe that the significance of its participation in the process will be more visible in the following stages of negotiations.”

State of play in the NegotiationsThe initial ‘screening’ – in which the EU

Commission outlines the relevant acquis, and the Serbian government details pro-gress so far – is complete for the above chapters. However, the starting date for negotiations proper is still uncertain. Some observers expect that EU member states will want to open heavier politi-cal chapters first, such as judiciary and fundamental rights (ch. 23) and justice, freedom and security (ch. 24), and may also want to see further progress on rela-tions with Pristina.

“Realistically, we are not expecting negotiations on environment to begin before 2016,” says Mr Miodrag Gluščević, programme coordinator and SCTM’s representative in the working group on environment. It is also likely that the EU will set ‘benchmarks’ – conditions that must be met before difficult chapters such as this one can be opened. “But now that our voice can be heard,” says Mr Gluščević, “we must organise ourselves to prepare specific negotiating positions and implementation plans that reflect the interests of local authorities.”

Room for Improvement “There is still room for improvement as far as SCTM’s involvement is con-cerned,” says Aleksandra Vukmirović. For instance, some ministries wanted to invite SCTM representatives to Brussels for the screening meetings, but this was ruled out by the Serbian European Integration Office (SEIO). “Instead we were invited to follow the proceedings via video link and to collect ques-tions from local authorities,” says Mr Gluščević.

At the local level too, there have been hitches. Municipalities wishing to designate EU officers were challenged by administrative inspectors from the Ministry of Public Administration and Local Self-Government on the grounds that EU integration does not figure in

the official list of local government powers. “This makes no sense”, says Ms Vukmirović: “Local authorities have to implement national laws related to the acquis, so they have to be informed about the process and involved in it, and they have to inform citizens.

Municipal EU officers are even envisaged in the government’s own communica-tion strategy,” she adds. But to be on the safe side, SCTM has, in dialogue with the ministry and with Ms Miščević’s support, secured an amendment to the law on local self-government that gives munici-palities the formal legal right to address EU matters.

Growing Local Influence on EU mattersBut on the whole Ms Vukmirović is satisfied with the growing influence of the local level on EU matters. She cites SCTM’s presence in the relevant bodies for planning, programming and monitoring Instrument for Pre-Accession II (IPA II) funding. Compared with IPA I, ‘the organisation of the whole process is much better, and local authorities have been consulted by SEIO on thematic priorities.’

Challenges remain, not the least of which is that many local politicians, rela-tively new in office after recent elections, are unfamiliar with the EU acquis and how it will affect their day-to-day busi-ness. “We have to keep explaining,” says Ms Vukmirović. Tanja Miščević hopes that municipalities in Serbia will follow the example of their Swedish counterparts in strengthening ties and raising the voice of local governments in Europe. “Cooperation between municipalities, both within Sweden and across borders, is evident,” she says, “and it is partly thanks to this that European issues become issues of everyday life.”

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Timeline for Gävle and Zrenjanin

cooperation

Kick-off meeting in Belgrade and visits to Zrenjanin, Zitiste and Secanj

Meeting and study visit in Gävle. Signing of Memorandum of Understanding

Study visit in Stockholm and Gävle looking at best practices and SALAR’s work on public awareness and citizen participation

Web seminar on findings from review of regional strategic waste management plan

20132012

September SeptemberFebruary June

OPERATIONAL REVIEW

Local leaders know that modern waste management demands action on a larger scale than munic-ipalities alone can muster. With

most household rubbish in Serbia today ending up on open tips, inter-municipal cooperation in some form is a must if the country is to live up to its own environ-mental aspirations, not to mention EU standards. Yet putting this into practice is often easier said than done.

The Serbian city of Zrenjanin and four sur-rounding municipalities, Žitiste, Sečanj, Titel and Kovačica, had tried to cooperate on waste management before. “But the mistake we made,” says Ms Ana Vujinov, project manager in Zrenjanin, “was to focus on only part of the system – land-fills, for example. With Gävle, we looked at the whole chain, including recycling, composting, transfer stations, yards and vehicles, not only landfill.”

Two and a half years later the five municipalities have set up a jointly owned company and drafted the first municipal investment project to make the single ‘national pipeline’ for EU IPA II funds. The EU is expected to cover 75 per cent of the investment costs, with the rest coming from the municipalities themselves and the Serbian government. Much remains to be done, but the aim is a fully operational system that complies with all the relevant EU legislation by 2020.

WORKING TOGETHER FOR LOCAL SERVICES

fROm GävLE TO ZRENJANIN

By david yOung

SKL INTERNATIONAL ANNUAL RESULTS 2014

Training in Zrenjanin on pub-lic awareness and communication

Training in Zrenjanin on modern integrated waste management and capacity building

Job shadow-ing in Gävle

Seminar in Zrenjanin with students from the Technical College of Applied Sciences of the University of Novi Sad (Zrenjanin branch)

Final conference in Belgrade

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november December Januarymarch may

25

Open-minded Approach“And yet”, says Ms Annika Lundqvist, project coordinator at Gävle municipality, “it was not clear in the beginning that the ‘cluster’ with the Serbian municipali-ties would deal with waste.” Gävle was brought in for its expertise in inter-municipal cooperation more generally. But a key factor in the project’s success was that “we were able to connect with a process that was under way, on an issue that was already a political priority”, says Ms Lundqvist.

Gävle’s open-mindedness has also been important. In the past, international consultants have tended to try and transplant their own models – “do it like

we do, irrespective of local conditions and legislation,” says Ana Vujinov. “But Gävle gave us options.”

Technical expertise was provided by Gästrike Återvinnare (GÅ), a municipal recycling and waste management association formed by Gävle and four other municipalities. But in the end, the Serbian municipalities opted not for an association but for a municipal-owned company similar to the Gästrike water company.

Equal SharesMs Vujinov stresses the importance of an equal partnership. “Previously, Zrenjanin, being the largest

municipality, wanted to run things. But now each municipality has an equal share in the company, and each mayor has a seat on the executive board.”

That waste management should remain a public concern was never in doubt. “You can never be rich enough to leave waste to a private company – this is one thing we have learned from the cluster,” says Ms Vujinov. Mr Thomas Nylund, Director of GÅ, agrees. “It is a question of resources – both environmental and financial,” he says. “Why should hard-pressed Serbian municipalities give up the chance to save the environment and make money?” The essential thing for Annika Lundqvist is “to be able to steer the system in the direction we want. That does not rule out using private companies to

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OPERATIONAL REVIEW

deliver parts of the system, as long as municipalities retain control.”

Spreading Best Practice“Experience from this cluster should be of great value for other Serbian munici-palities,” says Mr Nylund. “Besides the holistic perspective, a key aspect is public awareness raising. Citizens must be on board, not least because they will have to pay directly for waste treatment services in future, through user fees rather than taxes.” Also important is that the Serbian municipalities have full ownership of the project. “We have contributed advice and support along the way,” says Mr Nylund, “but they have done the work.”

“Other municipalities seeking to do likewise should ensure the active par-ticipation of mayors as well as high-level officials”, says Annika Lundqvist. “It is also essential that project leaders have the mandate and the capacity to drive the process forward.” And long-term commitment with a measure of patience

LEFT TO RIGHT Ms Ana Vujinov, Mr Thomas

Nylund and Ms Annika Lundqvist – drivers of

the cooperation between Gävle and Zrenjanin

is also required. “It takes time to develop a relationship,” says Ms Lundqvist. The teams visited each other a total of eight times, not counting web seminars, Skype meetings and job shadowing.

Benefits for GävleAsked what is in it for Gävle, Ms Lundqvist says the cluster has given the municipality a new perspective on its own activities, leading to greater internal cooperation between different departments and municipal companies. And, besides the reputational benefits, “the opportunity to spread this knowl-edge gives local staff a sense of pride in what we have achieved.”

“By sharing our knowledge and experi-ence we are contributing to a better environment,” says Thomas Nylund. And there are potential economic and employment benefits too. “By exporting Swedish know-how in waste manage-ment and environmental technology, we can also contribute to sustainable development at home.”


“Both national and local government see us in a different light,” says Mr Vladimir Jovanović,

manager of the “Support to Local Governments in Serbia in the EU Integration Process” programme. Asked to summarise highlights so far, he cites the government’s recognition of SCTM as a partner in the process of negotiat-ing EU accession – something which other local authority associations in the region have been denied. But equally, the association’s credibility with its members has grown. “Municipalities and mayors now take our advice much more seriously,” says Mr Jovanović.

“Perhaps the greatest organisa-tional change is a new strategic phi-losophy”, says Ms Zorica Vukelić, Deputy Secretary-General. In the past SCTM has tended to see itself as the prime ben-eficiary of donor funding. But SCTM’s latest strategic plan was drawn up on the basis of consultations with munici-palities, and the work programme no longer reflects the association’s internal organisation, but rather its members’ needs. “How can we influence politics and legislation to improve conditions for our members?” says Ms Vukelić. “How can we help them to work better for their citizens?”

In addition, cooperation with SALAR has introduced SCTM to innovative tools and techniques. Ms Vukelić cites a new model for consulting local authorities on the programming of EU funds. “In the past we struggled to get the state to understand local government needs. Presenting the thoughts and demands of municipalities in their own terms has proved to be much more effective,” she says.

Mr Jovanović adds the example of gender budgeting, implemented for the first time in Serbia with the help of SALAR experts, and the use of ‘clusters’ of Serbian and Swedish municipalities to transfer technical know-how in fields such as waste management, energy efficiency and noise control.

The programme has also forced SCTM to confront the issue of financial sustain-ability, says Ms Vukelić. With donor support set to tail off as EU accession approaches, the association will not only have to secure members’ con-tributions but also find other ways to generate income (through consultancy services, for example) and consider whether some of its activities that cur-rently depend on donor funding will need to be scaled down or financed in other ways. “There remains a great deal to do”, says Mrs Vukelić, “but an

important result of the programme is that SCTM’s thinking is now firmly oriented towards sustainability.”

“Looking ahead, SCTM and its partners will need to shift their focus towards supporting municipalities on the ground”, says Mr Jovanović. “Otherwise it is hard to gain the attention of political leaders. In the current climate, mayors are understandably focused on attracting hard investments, and there is still work to do in explaining how ‘softer’ improvements in the business environ-ment are essential to bringing in funds. We have to encourage municipalities to implement concrete activities in the field of gender, for example,” says Mr Jovanović. But, he adds, “at the start of the programme there were no voices at local level in favour of gender equality and environmental sustainability. We stepped in almost from scratch.”

Among the main challenges that SCTM faces are a changeable political climate, the fragile economy, persistent cor-ruption and patchy implementation of legislation – and all this on top of limited capacity and scarce resources at the local level. “But through its support to municipalities”, says Mrs Vukelić, “the association is playing a much-needed part in institution-building”.

dEvELOpmENTS AT THE STANdING CONfERENCE Of TOwNS ANd mUNICIpALITIES IN SERBIA

AT THE SERVICE OF ITS MEMBERS

By david yOung

Mr vLadiMir Jovanović

Ms ZOrica vukelić

OPERATIONAL REVIEW

Environment: Hot Topic for Serbian municipalities

As a conclusion of their 2,5 year cooperation in the field of envi-ronment, representatives from 9 Serbian and 3 Swedish municipali-ties met together with SCTM for two days to discuss and share experi-ences. Kula, Varvarin, Niš and Växjö presented their work on energy plans aiming to reduce carbon emissions and energy costs. Malmö

together with Belgrade, Savski Venac and New Belgrade introduced guidelines for noise reduction in city planning while Zrenjanin, Žitište, Sečanj and Gävle shared experiences of forming a regional waste management company. As a result of lively discussions regarding political will (or the lack thereof), gender mainstreaming

in environment and the need to involve of citizens; participants agreed that environment is a hot topic that needs more attention at national and local level in Serbia that requires increased cooperation between Serbian municipalities as well as inspiration and genuine support from international partners having faced similar challenges.


As project manager for our programme in Turkey, I’m con-stantly challenged by change; in the Turkish context and in

our partner organization, the Union of Municipalities of Turkey (UMT).

During 2014 Turkey implemented what must be one of the largest territorial reforms in decades. Almost 3 000 munici-palities became less than 1 400, and 30 “mega municipalities” were created, some with territories almost as large as Denmark and with populations ranging from 14 mil-lion down to just under 1 million.

And the process from first proposal to full implementation took less than two years!

Meanwhile, the changes within UMT are similarly considerable, based on a clear long-term direction. Or, as expressed in an internal review of our programme: UMT was like a young child when the cooperation began, and now it’s more like an adolescent.

Of course, such a change in an organisa-tion is just as challenging to a project man-ager as the growing child is to its parents.

When UMT and SKL International first met to discuss a possible joint project a decade ago, the union had only some ten employ-ees and was almost unknown by others than mayors. So, rather than focusing on UMT, the “Tusenet” project was mainly built on thematic partnerships between Turkish and Swedish municipalities.

When I entered that project in 2009, I got the opportunity to plan for a set of activities that addressed the institutional capacity of UMT. At the same time, UMT had grown to some 40 or 50 staff and started to formulate its first strategic plan. Together with UMT’s department for inter-national relations, we sketched a new project, or rather a programme, focusing on activities that were in line with the strategic plan. This “Tuselog” programme has been implemented for three years now and is constantly updated and refor-mulated to adjust to UMT’s development.

Early activities mostly focused on

showing examples, producing reports and other inputs for UMT to make use of according to their priorities and capac-ity. Lately, input goes directly into the internal processes of UMT, such as the formulation of a new strategic plan.

Our partner has grown, now the total number of staff is approximately 100. The growth is fortunately also matched with increasing maturity. Now UMT expresses clearly what support it needs and has the self-confidence to allow outsiders into the

FROM TODDLER TO TEENAGER

CHARTING THE COURSE Of UmT’S GROwTH

organisation, even in sensitive processes.

In essence, the work has become more demanding, but also more rewarding. It’s very stimulating to see how both indi-viduals and departments develop.

The joint programme management will end in 2015 but an extension is currently pending. At the end of 2016 we will hope-fully be able to say that UMT is no longer a teenager but a promising university student.


Offices of the Union of Municipalities of Turkey, located in Ankara

OPERATIONAL REVIEW

The Union of Municipalities of Turkey is conducting a leader-ship development programme to improve the way its leaders

communicate. The initiative responds to two organisational reviews carried out by SKL International. These found that com-munication remains a challenge, despite the organisation’s impressive develop-ment over the past five years.

During these past five years SKL International has twice been entrusted to perform organisational development reviews of the Union of Municipalities of Turkey (UMT). The first one was con-ducted during the “Tusenet” project in 2009 and the second one in 2014 as part of the follow-on “Tuselog” programme. When coming back for the second organisational development review, the team of experts found that UMT had gone through a very impressive develop-ment over the intervening five years. The association had grown not only in numbers but also in competence and public recognition.

For any organisation, rapid growth puts challenges on the communication system. Due to very heavy workload the association has had difficulties dealing with these challenges. Communication was found to be a key issue in the reviews and although some steps have been taken, communication is an area that the organisation would benefit from developing further.

Through the Tuselog programme, all of the managers of the association are taking part in a leadership development program with focus on communicative leadership. This is the first step towards building capacity to organise and lead towards common strategic goals. It responds to the recommendation in the second organisational develop-ment review “to adopt more strategic approach towards communication”.

Initiating the programmeThe leadership development programme was planned and launched together with the management of UMT. Interviews were held with the Secretary General, two deputy Secretary Generals and eight directors in order to create a platform for the training. This phase pinpointed the status, needs and challenges for strategic leadership and communication within UMT.

A number of positive aspects were identified, including a genuine aim for group community, social responsibility and experienced leadership. However the interviews also highlighted a lack of information and shared vision at various levels, lack of structured internal communications and an unclear team structure.

The programme was planned as a series of workshops over a year. It was con-nected to the implementation of UMT’s new strategic plan in order to benefit the whole organisation. The training took a comprehensive approach based on modern leadership approaches where communication skills are valued highly. It aimed to develop assets already in place

and strengthen the managers in their dif-ferent roles, corresponding directly to the perceived needs and challenges both on an individual and aggregated level.

Creating a platformThe first workshop took place in January 2014 and gathered ten of the managers from both senior and middle manage-ment. The scope of the first sessions was to create a platform to understand the leaders’ communication goals and explore theories linked to behaviours. This knowledge platform consisted of recent research in the field, examination of leaders’ different roles, a reflection on current challenges and possible effects on the organisation’s results. There was also a team building exercise where the group identified abilities and skills and discussed UMT leaders’ role in anchoring the strategic plan. Furthermore the work-shop clarified the desired values and expectations of UMT leaders and helped define UMT’s communication system. As study material, the training used a 2011 Swedish research report on com-munication theory: “Communicative Leadership: Theories, Concepts, and Central Communication Behaviors”. The workshop leader, Ms Anne Scheffer Leander, a communication strategist, drew on her many years of experience working with communicative leadership in the City of Stockholm and of imple-menting and following developments in the field. “To follow the development of a com-municative organisation in a completely different context and culture is very interesting and stimulating”, says Anne Scheffer Leander. “This project and programme for UMT leaders is very well timed as Sweden is well ahead of the research in the field and there will be opportunities for mutual benchmark-ing. Just recently a three-year research project started that aims to answer the question “What characteristics does a communicative organisation have?”. Ten companies and organizations - among

BETTER COMMUNICATION,BETTER RESULTS IN TURKEY

About the projectProject name: Tuselog

Main Partners: Union of Municipalities of Turkey (UMT) and the Swedish Association of Local Authorities and Regions (SALAR) with SKL International as imple-menting partner.

It consists of five components: UMT institutional development, UMT lobbying and member service capacity, UMT’s EU integration capacity, thematic partnerships between Swedish and Turkish municipalities and capacity devel-opment in Turkish municipalities.

Duration: Implementation started in December 2011. Although originally planned for four years, the partners are exploring an extension until December 2016

Budget: 35 million Swedish kronor.


“I didn’t realise we were visited by a celebrity!” says Ms Anna Lundin, responsible for Europe Direct Fyrbodal in Åmål municipality. Anna Lundin is referring to the strong emotional reactions of Kurdish Swedes when spotting Mr Ahmed Türk, the newly elected mayor of Mardin, walking the streets of Åmål.

Ahmed Türk together with co-may-or Ms Februniye Akyol visited Åmål to forge the two municipalities’ joint project on local economic development and EU integration.

Although Mardin is a big metro-politan municipality with close to 800 000 inhabitants and Åmål

a small one with just over 12 000 inhabitants, the mayors of both cities express more or less the same challenges concerning local economic and social develop-ment.

This includes high unemployment rate in general and high youth unemployment in particular. Another very important issue that the mayors from Mardin want to work on within this project is gender equality. Especially since illiteracy and hence unemploy-ment among women in the Turkish region is quite high.

Gülsen Can, project manager at SKL International explains the

reaction from people in the streets of Åmål; “Mardin and Åmål are actually already connected through immigrants from the region. Therefore this is not a just

any international municipal coop-eration but a relationship that already is deeply anchored. It will be interesting and valued by the citizens of the municipalities”.

Porya Khorshid Åmål, Oya Otman SKL International, Bahar Özden UMT, Michael Karlsson Mayor of Åmål, Ahmet Türk Mayor of Mardin, Februniye Akyol Mayor of Mardin, Anna Lundin Europe Direct Åmål, Shelly Rotshcild interpreter,

Dilek Akyapi project manager Mardin

Åmål and mardin join forces to address shared challenges

After local elections in March 2014 and election of a new board for the Union of Municipalities of Turkey (UMT) the same year, the work to produce a strategic plan for the term 2015-2019 began at the association.

The TUSELOG Programme has provided targeted support to UMT in this process in order to enhance capacity in strategic planning and institutionalise the process. Further results of this support are for example building team spirit, increasing inter-departmental communication and cooperation, and creating a common language within the organisation.

Planning experts Mr Ferhat Emil and Mr Hakkı Hakan Yılmaz provided training and one-on-one coaching all throughout the process. The Strategic Planning Team (SPT) members con-tinuously received support and encouragement from experts, which increased self-confidence and provided fundamental learn-ing for future planning. “Now, it is important for UMT departments to start implementing action

plans and monitor the activities,” says Ferhat Emil to stress the importance of sustainability of this positive progress.

Hakkı Hakan Yılmaz explains further; “UMT is now able to link plans and programmes with activities of departments, vertically (hierarchical) and hori-zontally (with other units). The process helped increasing aware-ness, ownership and motivation among staff, and new strategies were built to increase internal and external communication.”

Head of Training Department, Mr Fikret Gültekin confesses that comparing with the first Strategic Plan of UMT, the new one is insti-tutionally much more anchored and owned by managers and staff. The reason behind this is of course active participation and ownership of managers and staff. TUSELOG experts organised meetings with each department, as well as inter-departmental meetings for cross cutting issues. The Programme eam was also involved in these meetings to identify areas where TUSELOG could provide more support.

Ms Bahar Özden, coordinator of SPT, stated that with TUSELOG’s support, UMT was able to prepare a professional, inclusive, realistic, plain and contextually rich strategic plan, which now can be proudly presented to its mem-bers. “We benefitted immensely to work with experienced senior experts who know UMT very well.”

This process has helped UMT to reinforce institutional infrastruc-ture and establish mechanisms for continuous monitoring. Action plans currently are in pro-gress and once finalised, they will concretise future work for each department. And the now expe-rienced Strategic Planning Team will be working as Monitoring and Evaluation Team until the next strategic planning period in 2020.

them the City of Stockholm - will get their abilities in communica-tion highlighted by researchers at Lund University.”

Next step in the pro-grammeThe following workshops will be more practical and focused on the communication system itself, including channels, messages, actors and objectives. There is a need for training on cascading and transmitting overall messages and goals in order to improve perfor-mance on both individual and unit level. To increase efficiency, there needs to be a more developed approach in how to create and contribute to an open and respect-ful work environment where dialogue and feedback is a natural part of the internal structure.

“We believe that there are real benefits for the organisation to construct an effective communica-tion system that is agreed upon and known to all. This will help build strategic capacity to lead and organise towards common goals”, says project manager Gülsen Can. Following workshops within the leadership development programme will be held in March, June and October 2015.

Strategic planning 2.0 at UmTBy Ms Oya OtMan

Planning Expert Mr Ferhat Emil and Project Coordinator Ms Oya Otman

OPERATIONAL REVIEW

Turkish EU experts impressed by SalaIn March 2014, a group from Turkey visited Sweden to study the Swedish experiences of EU-integration. Visits were made to the municipalities of Södertälje, Stockholm and Sala. The participants represented UMT as well as the Ministry for EU affairs and the visit was part of the “TUSELOG” program. When asked to reflect on what they had seen, heard and learned, this is what some of them said;

Mr ceyhan ÇiÇek, Expert at the Ministry for EU Affairs of Turkey

There are so many EU projects in Turkey implemented at the local level. However there is a problem of effectiveness and sustain-ability. We have observed in Sweden that in order to achieve an effective and comprehensive project targeting the citizens, you have to cooperate with other stakeholders. This is the main difference.

I also think that Swedish municipali-ties and SALAR’s experiences on EU issues and projects can be good examples for Turkish municipalities. Therefore Turkish municipalities should cooperate with Swedish municipalities within the context of EU projects.

One of the roles of the Ministry for EU Affairs is to coordinate EU affairs and projects in Turkey. While doing this it is important to cooperate with UMT because it is the biggest body concerned with local governments. In my opinion we, the Ministry and UMT, should focus on EU effects at the local level in specific chapters/sectors such as regional development and environ-ment. UMT has good relations with municipalities and also has expertise in some sectors, and the Ministry for EU Affairs has a coordination and sector-based expertise. And these two institutions could develop projects focusing on the EU effects at the local level.

The first lesson from Sweden is about the logic of local governance. There

is a big difference between Turkey and Sweden in this issue. The powers that local government in Sweden have, have made municipalities more responsive to citizens. And this creates a pressure on municipalities to provide better services for their citizens.

The second lesson is about the culture of cooperation. In Turkey there is usu-ally no cooperation among institutions in central and local level. In Sweden we have observed that without cooperation you cannot achieve your targets fully.

The third lesson is about the impact of EU funds in municipalities. Even in a small municipality such as Sala, it is possible to achieve EU projects in different aspects. For example the business platform which is about entrepreneurship and Black River Valley is about local development and environment. On the other hand EU

support in the Silver Mine is about tourism. If there is cooperation in a municipality and a team spirit, many things can be achieved.

When I return to Turkey I will tell about the citizen-oriented policies, coopera-tion between institutions, focus on local self-governance, well developed social services, low interests for the EU elections, immigration chal-lenges, Sala’s success with EU projects, Södertälje´s active involvement in social issues, and that it´s a very expensive country…

The group of EU Experts from Turkey together with Ms Carola Gunnarsson (yellow scarf), Chair of the Municipal Executive Board of Sala Municipality and Deputy Chairman of SALAR.


Ms fatMa Şahin Expert at UMT

I was really impressed with Ms

Carola Gunnarsson in Sala municipality. She has been in politics for such a long time but is still very active and passion-ate when it comes to the development of her own region. The biggest prison in Sweden is located in her municipality and she described how they work to create job opportunities through its existence. To tackle unemployment is the same challenge for her as for us.

Through the visits in Stockholm, Södertälje and Sala we got a good insight into how the EU membership is handled at the local level in Sweden. Swedish municipalities are affected by EU laws and regulations in every aspect of their work. And they are aware of those regulations. They know the EU funds and how to get access to them. Still they told us that they have challenges using them, especially when it comes to sustainabil-ity of projects (this is a common problem between Sweden and Turkey).

At SALAR there is expertise that follows the development of rules of EU every day. If something happens s/he gives information to the related expert at SALAR and at the end s/he can advise the municipalities on how to handle new regulation. In UMT we don’t have such a mechanism, but UMT and the EU Ministry in Ankara have joined in a project called” Turkish municipalities getting ready for the EU” . Our training sessions provide information about EU and what can be done with EU funds, together with train-ers from the ministry.

What I bring back from this visit is the reminder that the best way to develop is cooperation between different parties in the same municipality for the sake of the best outcome for a locality.

And finally, I must say that the train ride to Sala was very comfortable. I think it is a very good way to travel. When I get back I will tell my family about the Sala silver mine and the great attitude of the Swedish people that we met.

Ms ayseL tOLunay, EU expert at the Ministry for EU Affairs of Turkey

In Södertälje the biggest impression was to learn about its mixed popula-tion and how the city deals with that. The cultural mix in the city was a real highlight.

In Sala the biggest impression was the passion of the people at the munici-pality and by far the visit to the Silver Mine. But not only in the sense of an touristic attraction, I was affected how the city made use of such an old mine and continued to keep it as a core cul-tural value of their city. They used EU funds to open the mine to tourism and I think this is a pure success of how EU funds can make such a great contribu-tion to a small city.

The three most important issues for me that I bring back from this visit are; participation of local actors in the decision making process is very impor-tant for local decision making, good cooperation between different actors is vital for local success and finally to have a strong will to take initiative and make changes and progress even in the smallest authority in the coun-try is important.

I think there’s not something like “the one outstanding thing” that should be changed in Sweden. When I look at Sweden from the outside I see it as

a prosperous, wealthy state valuing democracy and its citizens. So that makes me to think that I wish this for my country too.

Mr ceMaL Bas, Expert at UMT

After these visits to municipalities

in Sweden it is obvious that EU is not an easy organisation to reach, learn and implement. There are many different aspects to consider. In this even munici-palities are having some difficulties in reaching out and understanding EU leg-islations. However, municipalities close cooperation with local entrepreneurs and people makes EU more visual. In this sense for Turkey, municipalities can create offices such as EuroDirect and work with local groups and firms to apply for funds.

It has been very interesting to hear about how SALAR works with EU relations. It is obvious that SKL has experts that have municipal background and international experience. SKL always works as a coor-dination agency and professional body that can get municipalities together and ultimately act together. UMT does not have such insight into EU related work-ings, at least not yet.

My key learnings from the visit are;

EU is not easy to integrate. It takes time, but coordination and deep understand-ing will always make local life better

Always look for EU funds

Be very careful with public procurement because national procurement laws are not that governing after all.

The weather in Sweden can be very tough…

A visit to the old silver mine in Sala made a lasting impression on Mr Cemal Bas from Union of Municipalities in Turkey and his colleagues.

What makes a good city?

A clean environment, well-functioning services and good communications? Opportunities for employment and education?

Its history, culture or nightlife? The peo-ple who live there? If we ask ourselves who makes a good city, the answer is naturally that all the people, businesses, actors and organisations at the local level through their actions and choices contribute to making a good or less good city. Working with urban development thus means working with all the actors at the local level. The local government plays a fundamental role. It creates the framework on which cities grow, and it enables progress and development.

Looking at the world’s cities today, it is

obvious there is a lot of work to be done, not least in developing countries. Cities face serious challenges of uncoordinated growth, malfunctioning garbage col-lection, polluted drinking water, traffic havoc and untreated sewerage polluting rivers. Urban safety is becoming an increasing problem as more and more people compete for limited resources.

An approach to sustainable citiesSince 2010, we have supported cities through the SymbioCity Approach, a participative approach to sustainable urban development based on Swedish experience. We have used it to help cities plan and develop in a more sustainable way and to manage the resources they have in a more effective manner.

By creating a platform for dialogue between stakeholders at the local level, new forms of collaboration have been initiated and the local government has a better position to fulfil their role to enable progress. In early 2014, the first phase of the SymbioCity Approach project came to an end, after five years of active engagement in the urban sector in Africa and Asia. When the biannual World Urban Forum took place in Medellin, Colombia in 2014, we presented not only the results of our work, but also our ideas for the next phase.

A year of exploration and dialogueIn preparing for the next phase of the program, our aim has been to improve the ways in which we support cities, and to engage with new countries and regions. We want to become more effec-tive, more relevant and to increase our impact. To do that, we have consulted cities, citizens, politicians, planners and civil society in partner countries.

In Zimbabwe… we talked to peace-building foundation PACDEF about how to re-build trust between citizens and the local government after service provision had stopped.

In Colombia… we explored how bot-tom-up initiatives like urban gardening can build social resilience and improve safety in deprived neighborhoods. We learned how unconventional approaches to urban development can transform cities both socially and physically.

In Tunisia… we discussed how urban improvements can become an engine for rebuilding society after the Arab Spring.

In Kenya... we designed a new initiative for innovative and inclusive development in urban areas together with the newly formed Council of Governors.

We have also developed the SymbioCity Approach further based on the knowl-edge generated in our work. We have strengthened the way we support the whole planning process; from vision to action. We have increased focus on gen-der equality, inclusive development and local economic development. And we have switched on the search light to find innovative environmental solutions that are adapted to conditions in our partner countries.

What happens now?The next phase of the SymbioCity Approach will put increased focus on direct support to cities in making more integrated and inclusive plans, piloting new and innovative solutions and in more efficiently managing its urban systems. Targeted capacity develop-ment will be provided through training programs, on-the-job-training and city-to-city learning. On the global level, the SymbioCity Approach Secretariat will continue to engage in dialogue with international organisations. When the UN General Assembly convenes Habitat III in 2016, focusing on the implementation of the new urban agenda, we hope that signs of the SymbioCity Approach will be evident in the documents.

TALKING ABOUT CITIES!

By Mats JarnhaMMar

OPERATIONAL REVIEW

Around the world, cities are struggling to provide services,

jobs, housing and education for an ever-increasing urban population. They are also trying to make cities

attractive, competitive, livable, and ultimately more sustainable places to live. This is what the SymbioCity

Approach can do to help.


Late 2014 SKL International com-pleted a study for Sida on the conditions for civil society to oper-ate in Africa. Civil society organisa-

tions (CSOs) are an important partner in Swedish development cooperation. However, government restrictions are making it increasingly difficult for CSOs to operate effectively. This so-called “shrink-ing space” for civil society is a growing trend around the world. Sida asked SKL International to explore the conditions for civil society in 15 African countries where Sida is active.

“Some of the challenges that CSOs face include restrictions on the amount of foreign funding and assistance they can accept, the areas they can work in and the types of activities they can under-take,” said the report’s author, Mr Henrik Alffram.

“In Ethiopia, for example, CSOs that work with democracy and human rights issues

are not allowed to have more than ten percent of their income from foreign sources. This makes it difficult for civil society to effectively defend and cham-pion human rights issues.”

The assignment was commissioned by Sida through the Help Desk for Democracy and Public Administration in Africa. The Help Desk provides short term expert advice in the areas of public administration, local democracy, political institutions, and rule of law. SKL International manages the Help Desk in consortium with the Overseas Development Institute (ODI) and Public Administration International (PAI).

“The Help Desk is designed to respond quickly to requests from Sida and Swedish embassies in Africa,” said Mr Erik Faxgård, who manages the Help Desk at SKL International. “Together with our partners we have a core group of experts that are available to respond to requests

within two days. We also have a broader network of experts that can be available within a week for more complex or spe-cialised assignments.”

SKL International has partnered with ODI and PAI in Sida framework contracts for more than four years. ODI is Britain’s leading independent think tank on inter-national development and humanitarian issues. In addition to its 12 core research programmes and flagship projects, ODI produces publications, reports and think pieces, and convenes public events and seminars on its most important research findings. PAI is a management consultancy that offers expert advice to governments going through political, constitutional, economic and structural change. PAI’s key objectives are promot-ing good governance and good practice in delivering public services.

SKL International is contracted to man-age the Help Desk until the end of 2016.

Help Desk studies the “shrinking space” for civil society in Africa

government restrictions are making it increasingly

difficult for CSOs to operate effectively. This

“shrinking space” for civil society is a growing

trend around the world

OPERATIONAL REVIEW

DFID Governance anD SecurIty Framework aGreement, Lot aClient: UK Department for International Development Dates: 2012-2014 with exten-sion up until 2016Lead Partner: Adam Smith InternationalFocus areas: Public sector governance and reform

eu Framework contract: Governance anD home aFFaIrS, Lot 7Client: European CommissionDates: 2013-2015 with exten-sion up to 2017Lead Partner: DAI Focus areas: Human rights,

democratisation, public admin-istration reform, justice and rule of law, decentralisation and local development, civil society, home affairs

eu Framework contract: StuDIeS reLateD to the Future DeveLopment oF coheSIon poLIcy anD the eSI FunDS, Lot 3Client: European CommissionDates: 2013-2016 with exten-sion up to 2017Lead Partner: Altus Investment and Assets ManagementFocus areas: Analysing and making recommendations on Cohesion Policy and the European Structural Investment (ESI) Funds

SIDa Framework contract, DemocratIc Governance anD human rIGhtSClient: SidaDates: 2015-2017 with exten-sion up to 2019Lead Partner: SKL InternationalFocus areas: Local democracy, decentralisation, political insti-tutions/participation, public administration and financial management, state building, rule of law, freedom of expres-sion and media, human rights

SIDa Framework contract, GenDer equaLItyClient: SidaDates: 2015-2017 with exten-sion up to 2019Lead Partner: SKL International

Focus areas: Women’s political participation, women’s eco-nomic empowerment, sexual and reproductive health and rights, education, women’s security

SIDa heLp DeSk In Democracy anD pubLIc aDmInIStratIon In aFrIca Client: SidaDates: 2014-2016 Lead Partner: SKL InternationalFocus areas: Public administra-tion, local democracy, political institutions/participation, rule of law

framework contracts: providing high quality advice around the worldSKL International has a number of Framework Contracts through which it provides strategic advice, research and analysis to international donors around the world.

SKL International has expanded its advisory support to Sida with the award of two new Sida Framework Contracts in democratic governance and human rights, and gender equality.

Through these contracts, SKL International and its partners will provide Sida with short-term consulting and advisory services

in areas such as local democracy, political participation, gender mainstreaming and a human rights based approach.

“These framework contracts are a strategic opportunity for SKL International,” said Ms Suzanne Krook, Project Development Manager at SKL International. “We can inform the development of new results strategies, operational plans and new initiatives in our areas of expertise.”

The framework contracts are also an opportunity for SKL International to

expand its collaboration with other Swedish organisations. SKL International leads consortiums with new partners Kvinna till Kvinna, Emerga and Global Reporting, as well as existing partners Overseas Development Institute (ODI), Public Administration International (PAI).

“At SKL International we have a core com-petence in areas such as local democracy, decentralisation, political participation and public administration,” said Mr Håkan Gustafsson, Managing Director of SKL International. “Our partners complement and add specific expertise in other areas such as non-discrimination, rule of law, human rights systems, and freedom of speech”.

Together the framework contracts target two of the three strategic priorities for Swedish development cooperation. Gender equality has long been one of the pillars of Sweden’s aid policy. In 2013 gender equality was the principal or significant objective for 85 percent of Sida’s total portfolio and 15 percent of this support targeted specific gender equality efforts.

“We believe that gender equality is one of the most important areas where we

can make a difference in our work,” said Håkan Gustafsson. “We have achieved good results in this area through our projects in countries such as India, Turkey and Serbia. We look forward to bringing this experience and expertise to bear through the framework contract.”

Likewise democracy and human rights comprised a third of Sida’s spending, equivalent to 5.4 billion Swedish kronor. Swedish development cooperation is guided by a human rights based approach, where the rights and needs of individuals are in focus.

“At SKL International we have supported human rights from a range of perspec-tives,” said Suzanne Krook. “For example, we help improve the accountability and transparency of governments to their citizens and increase citizens’ participa-tion in decisions that affect them. We also promote the needs and rights of women, children and minority groups, which affects the way that policies and public services are formulated and delivered.”

The framework contracts will both run from early 2015 until January 2017, with the potential to extend for a further two years.

SKL International expands its advisory support to Sida


Kenya faces huge backlogs in critical infrastructure, in turn hampering pro-ductivity of business and service deliv-ery. This eventually impacts on the qual-

ity of life for Kenya’s residents. The counties are gradually adapting to their new circumstances but are still overwhelmed by the challenges and need help to adapt their structures for future growth. The Council of Governors is the body that can best monitor the general situation in Kenya and will be instrumental in guiding the counties on the right track.

The Kenyan elections in December 2007 were contentious on many levels. The Kriegler Commission that assessed the elections concluded that it was impossible to declare a rightful winner. The discontent amongst Kenyan citizens was widespread, leading to riots and more than a thousand casualties. With the assistance of then-UN Secretary General, Mr Kofi Annan, a new coalition gov-ernment was formed in early 2008. However,

allegations of fraud, corruption and political involvement in the post-election violence put heavy pressure on the government both from the population and from the outside world. The tense political situation led to the development of a new Kenyan Constitution, with the intention of reducing the presiden-tial power and enhancing the power of the people. The new Constitution was approved in August 2010 marking a historical step and a break from colonial times. As envisaged, the new Constitution enhanced the role of parlia-ment and citizens, increased independence of the judiciary and included a progressive Bill of Rights.

Power to the countiesA key feature in the new Constitution is the devolution of power from central government to the county government level. There are 47 semi-autonomous county governments in Kenya. The counties currently have mandate

coUnciL of governors at the core of

By pauL dixeLius

KENYAN CHANGE PROCESS In the new Kenyan Constitution all services that affect the daily lives of Kenyans have become the responsibility of 47 counties, each with an average population of almost 1 million people. While the new Constitution is viewed as progressive and brings hope for something new, in reality the challenges could not be greater.

Photo: ©iStock.com/miroslav

OPERATIONAL REVIEW

and responsibility for virtually all services that affect Kenyan citizens. This includes schools, clinics and hospitals, which in most countries are central government responsibilities. But county government responsibilities also encompass tradi-tional local government services such as urban planning and development, parks and roads, sanitation and waste management.

The elections in March 2013 marked the official launch of decentralisation, as 47 new county governors and county assemblies were elected and began the challenging work of setting up new institutions. The common organ for the governors is the Council of Governors (CoG) - a non–partisan organisation established in accordance with the Intergovernmental Relations Act. As such it is a formal part of Kenya’s government structure. Since the new constitution was approved a key task for the CoG has been to lobby for the actual transfer of mandates from central to county level and to ensure matching financial transfers. As a result, almost all functions were formally transferred to the counties between February and August 2013. This was a deviation from the original plan

of gradual transfer of functions during a three-year period.

An overwhelming taskThis quick and wide-scale transfer of functions and responsibilities has been a huge challenge for counties. Not only in terms of setting up new administra-tions for service delivery areas but also to make sure that all services on which citizens are dependent are actually delivered on the ground. And that they have enough funds. The reality is that the vast majority of urban residents in Kenya have inadequate access to basic ser-vices, and opportunities for communities to influence the quality and delivery of services have not been realised. Despite strong lobby efforts from county level, the agreed financial transfers from national government have been slow and irregular. This contributes further to deficient service delivery on the ground. Financial allocations mainly go to recur-rent expenditure, with limited amounts spent on development projects.

Similar transfers of power that have occurred elsewhere around the world show that there is a risk this tendency becomes cemented. The Dayton agree-ment in Bosnia and Hercegovina increased the mandates and power of cantons at the expense of the municipalities and the country has since experienced less public influence and deteriorated service delivery. To overcome this risk there is a need to establish adequate forums for dialogue with the local councillors on the

one hand and the general public on the other. Transparency and accountability are even more important when the centre of power is geographically far away from the inhabitants.

Institutional co-operation between SALAR and CoGThe CoG can play a crucial role in this endeavour, for example in helping coun-ties to establish forums and principles that ensure public participation in decision making processes. The Kenya SymbioCity programme, for which The Swedish Association of Local Authorities and Regions and SKL International are jointly responsible with the CoG, can become an important cornerstone in this work. The SymbioCity programme will entail institutional co-operation between CoG and SALAR with emphasis on the theme of sustainable urban development. The SymbioCity Approach brings Swedish expertise on how to work holistically with urban develop-ment and practical experiences of the long-term benefits of including people from all walks of life in the process. Both horizontal and vertical cooperation are key features in the SymbioCity Approach. These will also be central themes in CoG’s and SALAR’s joint ambition to sup-port counties to become the new and improved generation of service delivery institutions in Kenya.

In December 2012, SKL International held a SymbioCity workshop in Nairobi, which was hosted by the Swedish Embassy. A variety of Kenyan representa-tives from central and local level, private sector and civil society were challenged to build a sus-tainable city in two days with the help of the SymbioCity Approach. The response was overwhelming-ly positive and marked the start of a broad Swedish effort to intro-duce the SymbioCity Approach as a concept to support sustainable urban development in Kenya. Together with central Kenyan urban development stakehold-ers, the “Kenya SymbioCity Programme” proposal was devel-oped during 2014 where SALAR and CoG are both the institutional and key implementing partners. The programme is intended to strengthen CoG in its function to support counties in urban development and will entail com-prehensive project interventions in seven counties around Kenya.

“The SymbioCity programme will entail

institutional co-operation between CoG and SALAR

with emphasis on the theme of sustainable urban

development.”

Photo: ©iStock.com/DavorLovincic


Peace process heralds a new era for local democracy in Colombia

After more than five decades of armed conflict in Colombia and several failed attempts to find a political solution to the

conflict, a peace agreement between the Government and the FARC (Fuerzas Armadas Revolucionarias de Colombia) guerrillas seems more feasible today than in many years. The peace process presents great opportunities for change and a window of opportunity for strengthening the capacity and role of local governments in Colombia. Local governments are seen as key players in the implementation of an agreement and for building trust and inclusive insti-tutions at the local level to guarantee all citizens equal rights and equal access to public services.

Challenges for DecentralisationDecades of fiscal, political, and constitu-tional reform to decentralise government in Colombia have attempted to bring government closer to the people and made local governments responsible for critical services such as health and education. But the performance of the devolved system has been uneven due to the great disparities between local governments of different sizes and in dif-ferent regions. The majority of Colombia’s

municipalities are very small and many of the municipalities in the rural areas are the ones most affected by the conflict. These municipalities have often a low capacity both in terms of human and financial resources and suffer from inadequate administrative capacity, poor planning processes, uneven capacity to support local economic development, and lack of citizen trust and public participation. The great number of internally displaced peo-ple and the reintegration of combatants into society represents major challenges for municipalities and governments at all levels.

Barriers to DemocracyPolitical exclusion, violence, clientelism and corruption are some of the factors that have contributed to distrust in the public system among the Colombian population over the years and created barriers to public participation especially for poor and marginalised groups. The Constitution in 1991 strived to change this by promoting participatory democracy and assigning new functions to depart-ments and local governments in matters relating to consultation, decision-making, implementation, control and financing. Forums and mechanisms for citizen voice and participation were also established.

However, many challenges for public par-ticipation remained. The history of non-consultation had created a gap between decision-makers and citizens that still to this day prevents citizens and civil society organisations to fulfill their role in the field. In addition, public participation is also limited by local governments’ limited autonomy of resources, lack of capacity and know-how and cumbersome regula-tions. The ongoing peace negotiations address some of these issues such as means for public participation in decision making processes and social control of the territorial entities of the Colombian state, but much more needs to happen before public participation becomes the norm.

Fiscal Decentralisation In terms of fiscal decentralisation, Colombia is considered one of the most decentralised countries in Latin America. But despite this and the notable eco-nomic growth rates in the past decade, income inequality and regional disparities remain wide. The current system for intergovernmental financing lacks strong re-distributional features to assure equal access to public services throughout the country. In total, the result is very different conditions for different localities. Local governments that are small, remote and/or in conflictive zones have special prob-lems to finance local services of the same accessibility and quality as other structur-ally more advantaged administrations. The dependency of national transfers also limits many local governments’ discretion over spending and service delivery as well as opportunities for citizen engagement and accountability measures in local planning and budgeting processes.


The Colombian Government, through the National Department for Planning (DNP), has expressed an interest for support based on Swedish experiences and expertise in the fields of public par-ticipation, intergovern-mental financing and benchmarking. Experts from SKL International made two visits to Colombia during 2014 in order to explore how Swedish support could improve local democ-racy and build capacity in these areas.

FINANCIAL REVIEW

ANNUAL ACCOUNTS of

SKL International AB 556414-4201

The board of directors and the managing director hereby present the annual accounts for the financial year

2014-01-01 - 2014-12-31 the annuaL accountS IncLuDe: paGe

Auditor’s report 1

The administration report 2

Income statement 4

Balance sheet 5

Additional information (notes) 6

AFFILIATED TO THE SWEDISH ASSOCIATION OF LOCAL AUTHORITIES AND REGIONS


AUdITOR’S REpORT

To the annual meeting of the shareholders of SKL International AB Corporate identity number 556414-4201

Report on the annual accounts We have audited the annual accounts of SKL International AB for the financial year 2014-01-01 – 2014-12-31.

Responsibilities of the Board of Directors and the Managing Director for the annual accounts

The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of these annual accounts in accordance with the Annual Accounts Act and for such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing and gen-erally accepted auditing standards in Sweden. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstate-ment.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluat-ing the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the Managing Director, as well as evaluating the overall presentation of the annual accounts.

We believe that the audit evidence we have obtained is suffi-cient and appropriate to provide a basis for our audit opinions.

OpinionsIn our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of SKL International AB as of 31 December 2014 and of its financial performance for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts.

We therefore recommend that the annual meeting of shareholders adopt the income statement and balance.

Report on other legal and regulatory requirements

In addition to our audit of the annual accounts, we have also audited the proposed appropriations of the company’s profit or loss and the administration of the Board of Directors and the Managing Director of SKL International AB for the financial year 2014-01-01 – 2014-12-31.

Responsibilities of the Board of Directors and the Managing DirectorThe Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss, and the Board of Directors and the Managing Director are responsible for administration under the Companies Act.

Auditor’s responsibilityOur responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the company’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden.

As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss, we examined the Board of Directors’ reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act.

As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors or the Managing Director is liable to the company. We also examined whether any member of the Board of Directors or the Managing Director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

OpinionsWe recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Stockholm 11/2 2015Deloitte AB

Elisabeth Werneman Authorized public accountant

FINANCIAL REVIEW

AdmINISTRATION REpORT Operations

SKL International AB designs, plans and implements development projects in developing countries and countries in transition. Funding for projects is provided by external donors, with Sida being the main contributor. Other financiers are international organisa-tions such as the UN and the EU as well as bilateral aid donors such as Danish DANIDA and German GIZ.

SKL International's projects centre on local democracy and local governance. Its main areas of expertise are: decentralisation; local democracy and governance; EU integration; local and regional development; municipal management and service delivery; thematic local partnerships; and support to Local Goverment Associations. SKL International also works in sustainable urban development, most notably through the so-called SymbioCity Approach.

The projects are carried out by employees as project managers/consultants together with experts and elected representatives from SALAR. SKL International also engages staff from SALAR´s members (310 municipalities, counties and regions of Sweden) as well other local and international experts.

Year on year comparison (KSEK) 2014 2013 2012 2011 2010 Net sales 31 335 37 526 30 446 23 885 26 464 Operating profit 50 1 445 2 384 260 846 Profit/ loss after financial items 143 1 364 2 422 198 813 Total assets 12 978 16 453 14 784 9 171 10 350 Equity ratio (%) (1) 58,23 48,52 51,26 63,86 58,12 Return on equity (%) (2) 1,31 13,57 19,41 2,34 9,93 Return on assets (%) (3) 1,01 8,78 20,35 2,12 7,57 Average number of employees 14 14 12 14 11

(1) Adjusted equity/total assets. Adjusted equity means equity + untaxed reserves with deduction of deferred tax liability.

(2) Net profit/loss for the year/average adjusted equity.

(3) Profit/loss after financial items + interest expenses/average total assets.

Ownership

The parent company of which SKL International is a subsidiary is SKL Företag AB, corporate identity number 556117-7535, which is a wholly owned subsidiary of SALAR. SALAR and SKL Företag AB have their domicile in Stockholm.

Significant events during the fiscal year

SKL International AB's activities have a geographical spread clearly influenced by the Swedish Government's development priorities. The activities of the company are project-based and in 2014 assignments were implemented in countries such as Turkey, Serbia, Iraq, Albania, Ukraine, Jordan, Kyrgyzstan and Tunisia. Towards the end of the year SKL International agreed with Sida on a new project in Kenya. The project will use the SymbioCity Approach; a participatory approach to sustainable urban development that was developed in Sweden and is now implemented around the world by SKL International.

During the year, a new two-year framework agreement was signed with SALAR with the option for a two-year extension. Sida also procured SKL International to manage a help desk function that provides research and advice on democracy and public administra-tion in Africa. SKL International is also part of a consortium that has a framework agreement with the EU for consulting services to EU delegations around the world. In 2014 SKL International carried out its first consultancy assignment under this framework contract, in Jordan.

In terms of its employees, no major changes were made which reflect this year's development in terms of consolidation and repro-cessing efforts for new projects. The accounting assistant post was changed and replaced. Efforts was intensified regarding business development that began in 2013. In Tunisia, as well as in Ukraine, local consultants were recruited on a longer-term basis but with limited commitment in terms of time. With a number of new projects coming on board in late 2014, the company faces a need for recruitment.


New Accounting principles

From 1 January 2014, the company applies BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).

The comparative year 2013 has been restated in accordance with K3. Restatement of prior years has not been made. The company previous applied Annual Accounts Act (Årsredovisningslagen) and The Swedish Accounting Standards Board's general recommendations for smaller companies (Bokföringsnämndens allmänna råd för mindre företag).

Significant events after fiscal year

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. During 2014 the company started to prepare for this work by analysing, for example, Sida's new result strategies and the opportu-nities for new projects in different geographies. SKL International's strategy will direct and guide decision making in critical areas such as business development, organisational growth, types of new projects and financers, partners and regional areas of focus.

In the last quarter of 2014, two strategic projects were contracted and initiated (Ukraine and Kenya). These projects, together with a number of specific requests from organisations such as Sida and Cities Alliance, contribute to a positive market outlook for both the short and medium term.

Proposal for the appropriation of profits

The following profits are available for appropriation at the annual general meeting

Profit brought forward from previous years 5 767 441

Profit/ loss for the year 102 226

5 869 667

The board and managing director proposes that

dividends be paid to the shareholders 51 113

the following be carried forward 5 818 554

5 869 667

Proposal resolution on dividend

The Board proposes a dividend of SEK 51 113, corresponding to 5.11 per share.

The Board proposes that the dividend payment shall be made immediately after the annual meeting.

The Board consider that the proposed dividend is justifiable in view of the demands that the nature, scope and risks on the size of equity and the company's consolidation needs, liquidity and financial position.

The opinion should be seen against the background of the information contained in the Annual Report.

The management plan no significant changes in existing operations such as significant investments, divestments or settlement.

Regarding the company's result and financial position, please consult the income statement and balance sheet for additional information. All amounts are in thousands of Swedish kronor unless otherwise stated.

FINANCIAL REVIEW

INCOmE STATEmENT Note 2014-01-01 2013-01-01 2014-12-31 2013-12-31

Operating income, etc.

Net sales 1, 2 31 335 37 526

Other operating income 3 378 167

31 713 37 693

Operating expenses

Other external costs 5 -17 128 -21 944

Personnel costs 6 -11 029 -10 058

Depreciation and write-downs -91 -128

Other operating expenses 4, 5 -3 415 -4 118

-31 663 -36 248

Operating profit 50 1 445

Result from financial investments

Other interest income and similar profit/loss items 7 4 11

Other interest income from group companies 7 122 13

Interest expense and similar profit/loss items 8 -32 -98

Interest expense for group companies 8 -1 -7

93 -81

Profit/ loss after financial items 143 1 364

Tax on profit for current year 9 -41 -308

NET PROFIT/ LOSS FOR THE YEAR 102 1 056


Fixed assets

Tangible assets

Equipment, tools, fixtures and fittings 10 147 238

Total fixed assets 147 238Current assets

Current receivables

Accounts receivable-trade 901 270

Receivables from group companies 7 327 8 790

Other receivables 273 111

Accrued not invoiced income 11 4 168 6 873

Prepaid expenses and accrued income 162 171

12 831 16 215

Total current assets 12 831 16 215

TOTAL ASSETS 12 978 16 453

Equity 12

Restricted equity Share capital (10 000 shares) 13 1 000 1 000 Statutory reserve 200 200

1 200 1 200

Non-restricted equity Profit brought forward 5 768 5 239Profit/loss for the year 102 1 056

5 870 6 295

Total equity 7 070 7 495

Untaxed reserves 14 625 625

Current liabilities Accounts payable - trade 1 675 3 625Income tax liability 196 565Other liabilities 1 088 1 321Accrued expenses and deferred income 15 2 324 2 822

5 283 8 333

TOTAL EQUITY AND LIABILITIES 12 978 16 453

MEMORANDUM ITEMS

Pledged assets None None

Contingent liabilities None None

EQUITY AND LIABILITIES

ASSETS

BALANCE SHEET Note 2014-01-01 2013-01-01 2014-12-31 2013-12-31

FINANCIAL REVIEW

AddITIONAL INfORmATION

General information

SKL International AB designs, plans and implements development projects in developing countries and countries in transition. Funding for projects is provided by external donors, with Sida being the main contributor. Other financiers are international organizations such as the UN and the EU but also national national development assistance organisations such as Danish DANIDA and German GIZ.

The parent company of which SKL International is a subsidiary is SKL Företag AB, corporate identity number 556117-7535, which is a wholly owned subsidiary of SALAR. SALAR and SKL Företag AB have their domicile in Stockholm.

Accounting principles

The company applies the Swedish Annual Accounts Act and BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).

This is the first year the company applies K3 and the date of the transition to K3 is 1st January 2013. The company earlier applied the Annual Accounts Act (Årsredovisningslagen) and The Swedish Accounting Standards Board’s general recommendations for smaller companies (Bokföringsnämndens allmänna råd för mindre företag). The comparative year 2013 has been restated in accordance with K3. Restatement of prior years has not been made. In the transition to K3, chapter 35 has been applied which requires applying K3 retroactively. This means that comparative figures for 2013 have been restated in accordance with K3. The transition to K3 has not had any effect on the Company’s result and financial position.

Revenue

Revenues are reported at actual value received or receivable. Revenues are reported net after deducting VAT, discounts and exchange differences for sales made in foreign currencies.

The company’s revenues consists primarily of fees and expenses from the sales of consulting services.

Sales of services

Income and expenses for completed service and contractual assignments are reported as income and costs, respectively, in proportion to the degree of completion on the balance date (percentage of completion). The percentage of completion of an assignment is determined by comparing expenses incurred, on the balance date, with the estimated total expenditure. When the outcome of the service assignment or contractual assignment cannot be estimated with any degree of certainty, the income is reported only to the extent that it corresponds to the accrued assignment costs that are likely to be reimbursed by the client. An anticipated loss on an assignment is reported promptly as a cost.

Lease agreements

Financial leasing occurs when the financial risks and benefits associated with ownership have essentially been transferred to the lessee; if this is not the case, then it is an operating lease. All of the company’s lease agreements are reported according to the rules for operating leases. For an operating lease, the leasing fee is reported as a cost linearly over the duration, from the point at which utilization begins, which may differ from the actual lease fee paid during the year.

Foreign currency

The company’s reporting currency is the Swedish krona (SEK).

At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the closing rates existing at that date. Exchange rate differences arising from operating receivables or liabilities are recognized in operating income, while differences attributable to financial assets or liabilities are recognized in finance costs. Exchange rate differences on available-for-sale equity instruments and on cash flow hedges are recognized in other comprehensive income.

Government grant

A government grant is not recognized until there is reasonable assurance that the entity will comply with the conditions attaching to it, and that the grant will be received. Receipt of a grant does not of itself provide conclusive evidence that the conditions attaching to the grant have been or will be fulfilled.

Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate.

Remuneration to employees

Remuneration to employee in the form of salaries, bonuses, paid holidays, paid sick leave, etc. and pensions are recognized in the vesting period. Pensions and other post-employment benefits are classified as benefit-determined and fee-determined pension plans. The company has only fee-determined pension plans. There are no other long-term remuneration to employees.Pension plans to which the company pays fixed contributions to a separate legal entity and where the company has no legal or informal obligation to pay additional fees, are fee-determined pension plans. Pension plans other than fee-determined pension plans are benefit-determined plans. Obligations regarding contributions to fee-determined plans are reported as a cost in the income statement when they occur.


Group contribution

Received and paid group contributions are reported as appropriations in the income statement.

Income taxes

Incomes taxes comprise current and deferred tax. Current tax are recognized in net income. The taxable profit differs from the result reported in income statement when it is adjusted for non-taxable income and non-deductible expenses and revenues and expenses taxable or deductible in other periods. Current tax is determined using tax rates and tax legislation that have been enacted or substantively enacted at the end of the reporting period.

Tangible fixed assets

Tangible fixed assets are reported at acquisition value diminished through depreciation. Costs for improving the performance of assets, beyond their original level, increase the reported value of the assets. Expenses for repairs and maintenance are reported as costs in the period that they occur. Tangible fixed assets are systematically depreciated over the estimated useful life of each asset. When the assets’ depreciable amounts are set, the residual values are consequently observed. A linear method of depreciation is used for all types of fixed assets.

The following depreciation periods are applied:Equipment, fixtures and fittings 5 years

Accelerated depreciation, permitted for tax purposes, in addition to planned depreciation is reported as an appropriation in the income statement and as an untaxed reserve in the balance sheet.

Write-downsThe reported values of the company’s assets are determined on the balance date to see whether any write-down is needed. If such a need is indicated, the recoverable value of the asset is calculated as the higher of the useful value and the net realisable value. The asset is written down if the recoverable value is less than the reported value. A write-down is reversed if a change has occurred in the calculations used to determine the realisable value. A reversal is made only to the extent that the asset’s book value does not exceed the book value that would have been reported, with deductions for depreciation, if no write-down had been made.

Related Party Disclosures

Transactions between the company and its related parties took place on market terms.

Key sources of estimation uncertainty

No estimates have been made that may have a significant effect on the amounts recognized in the financial statement. No assumptions about the future and other key sources of estimation uncertainty at the closing day have been made that involve a significant risk of material adjustment to the recognized assets and liabilities within the next financial year.

FINANCIAL REVIEW

n Ot e 1

n e t s a L e s

Net sales per line of business are allocated as follows:

2014 2013

Development assistance fee 22 111 27 305Development assistance costs charged 9 224 10 221

Total 31 335 37 526

Net sales per geographical market are allocated as follows:

2014 2013

Africa excl. North 640 2 606Asia 990 9 209Europe 15 585 15 538Global 2 813 3 954MENA 11 307 6 219

Total 31 335 37 526

Net sales per customer are allocated as follows:

2014 2013

Sida (by SALAR) 27 226 30 362Sida 629 5 356EU 1 246 115UN Habitat/UNDP/UNITAR 912 839Other 1 322 854

Total 31 335 37 526

n Ot e 2

Sales and purchases within the group

2014 2013

Sales 87,0% 81,0%Purchases 8,0% 7,0%

n Ot e 3

Other operating income

2014 2013

Government grants 355 157Isurance reimbursement 23 6Other reimbursement 0 4

Total 378 167

NOTES TO THE fINANCIAL STATEmENTS


n Ot e 4

Leasing Agreements - Operating lease - lessee

2014 2013

Lease payments 96 80Future minimum leasing fees, expected maturity: Within 1 year 89 80Between 2 and 5 years 145 0Later than 5 year 0 0

234 80

n Ot e 5

Remuneration to auditors

2014 2013

Deloitte AB Audits 45 45Audit-related services 351 238All other services 94 3EY Audit-related services 0 136

490 422

Audits relates to the statutory audit - examination, in accordance with the Companies Act, of the company’s accountancy and annual report and the management by the board of directors and the managing director of the company. Audit-related services relates to audit of finacial information regarding projects. Other services relates to consultations regarding tenders.

n Ot e 6

Employees security charges 2014 2013

Average number of employees Average number of employees is based on paid attendance hours in relation to average working hours. Average number of employees 14,00 14,00of whom women 8,00 7,00

Salaries, remunerations etc. The board and managing director Salaries and remunerations 973 995Pension costs 333 210

1 306 1 205Other employees Salaries and remunerations 6 612 5 750Pension costs 758 858

7 370 6 608

FINANCIAL REVIEW

Social security charges 2 036 1 965

Total 10 712 9 778Salaries and remunerations 7 585 6 745Pension costs 1 091 1 068Social security charges 2 036 1 965

Total 10 712 9 778

Gender distribution of the board and management

Number of boardmembers 4 5of whom women 1 1

Number of members of management including managing director 1 1of whom women 0 0

No compensation in addition to salary is paid to the managing director. The Board has received fees as determined amount decided by the Annual General Meeting. Managing director's period of notice is 6 months. Upon termination by the company, the company has also to pay severance pay of 12 monthly salaries. In the event of immediate termination of the managing director's contract no severance benefits are to be provided.

n Ot e 7

Interest income etc. 2014 2013

Interest income, group companies 4 11Exchange gains 122 13

126 24

n Ot e 8

Interest expense etc. 2014 2013

Interest expense 4 0Interest expense, group companies 1 7Exchange losses 29 97Other 0 1

34 105

n Ot e 9

Tax on profit for current year

2014 2013

Current tax -41 -308

-41 -308 Reconcilation effective tax

Profit/ loss before tax 143 1 364Tax, 22% -31 -300Tax effect on: Non-deductible expenses -8 -7Standard income on tax allocation reserve -2 -1

-41 -308


n Ot e 1 0

Equipment, tools, fixtures and fittings

2014 2013

Acquisition value brought forward 625 607Purchases 0 59Sales/disposals -89 -41

Accumulated acquisition values carried forward 536 625Depreciation brought forward -386 -298Sales/disposals 87 41Depreciation for the year -91 -128Accumulated depreciation carried forward -390 -386

Residual value according to plan carried forward 147 238

n Ot e 1 1

Accrued not invoiced income

2014-12-31 2013-12-31

Accrued fees 3 046 4 874Accrued overhead cost fee 1 122 1 999

Total 4 168 6 873

n Ot e 1 2

Equity Share- capital

Restricted equity

Non-restricted

equity

Profit for current

year

Amounts comparative year's opening balance according to adopted balance sheet 1 000 200 4 588 1 304

Adjustments regarding transition to BFNAR 2012:1 (K3)

Adjusted amounts comparative year's opening balance 1 000 200 4 588 1 304

Appropriation of profits as resolved by the annual general meeting 1 304 -1 304

Dividends -652

Net profit/loss for the year 1 056

Adjusted amounts comparative year's opening balance 1 000 200 5 240 1 056

Adjustments regarding transition to BFNAR 2012:1 (K3)

Appropriation of profits as resolved by the annual general meeting 1 056 -1 056

Dividends -528

Net profit/loss for the year 102

Amounts closing balance 1 000 200 5 768 102

FINANCIAL REVIEW

n Ot e 1 3

Share capital

Amount Value per share

Amount/value opening balance 10 000 100Amount/value closing balance 10 000 100

n Ot e 1 4

Untaxed reserves

2014-12-31 2013-12-31

Tax allocation reserve, tax 2013 625 625

Total 625 625

n Ot e 1 5

Accrued expenses and deferred income

2014-12-31 2013-12-31

Accrued salary 340 356Accrued vacation pay 679 535Accrued social security charges 525 488Accrued project expenses 468 1 106Other accrued expenses 312 337

Total 2 324 2 822

Key Partner Municipalities in 2014

Cover photo:

Carl-henrik trapp, elite Studio Gothenburg

DeSiGn:

Sam Bainbridge, Design infestation, www.infestation.co.za

serBia

Gävle Zrenjanin,

Žitište, sečanj

MalMö Belgrade,

new Belgrade, savski Venac

växjö niš, Varvarin, Kula

KalMar Osmangazi,

Giresun, Ordu

HuddinGe Tarsus, Manisa,

Çorum, Şişli

uMeå Bornova, Karsıyaka,

Zeytinburnu, Büyükçekmece

linKöpinG Erzincan, Malatya, Burdur, Karaman

turkey

KarlstadNilüfer, Gaziantep,

Mulğa, Antakya

This year, 8 Swedish, 9 Serbian and 19 Turkish municipalities have partnered in two of our most important commitments.

SKL International is one of Sweden’s

leading organisations in local governance,

decentralisation and local democracy.

Ms Zainab Obaid, Ms Huda Mahmood and Ms Dhuha Ridha (right to left) from Iraq during a visit to Svartedalsskolan in Gothenburg. The three elected representatives from Diwaniyah (national and local parliament) participated in a learning journey to Sweden within the Governance in Social Care project in June 2014. Mr Kim Hermansson (far left), coordinator at the school shares his experiences from working with children with special needs.

skl international - annual results 2014

Documents