Table Of ContentReshaping Decentralised Development
Co‑operation
The Key Role of CiTies anD Regions foR The 2030 agenDa Reshaping Decentralised
Over the last decades, and in line with the adoption of the Sustainable Development Goals (SDGs) in 2015,
Development Co‑operation
cities and regions have played an important part in helping to implement global agendas at local level
through their Decentralised Development Cooperation (DDC) activities. This report analyses the evolution
of financial flows, emerging trends and innovative paradigms related to the development co-operation of
The Key Role of CiTies anD Regions
local and regional governments, including but not limited to official development assistance extended by
sub-national governments. It promotes a territorial approach to development co-operation and provides foR The 2030 agenDa
policy recommendations to maximise the effectiveness, benefits and outcomes of DDC at all levels, while
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acknowledging the diversity of approaches, definitions and concepts across OECD DAC countries active in e
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isbn 978‑92‑64‑30290‑7
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Reshaping Decentralised
Development
Co‑operation
THE KEY ROLE OF CITIES AND REGIONS
FOR THE 2030 AGENDA
This work is published under the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of OECD member countries.
This document, as well as any data and any map included herein, are without prejudice
to the status of or sovereignty over any territory, to the delimitation of international
frontiers and boundaries and to the name of any territory, city or area.
Please cite this publication as:
OECD (2018), Reshaping Decentralised Development Co-operation: The Key Role of Cities and Regions for the
2030 Agenda, OECD Publishing, Paris.
http://dx.doi.org/10.1787/9789264302914-en
ISBN 978-92-64-30290-7 (print)
ISBN 978-92-64-30291-4 (PDF)
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use
of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli
settlements in the West Bank under the terms of international law.
Photo credits: Cover © Martin Haake
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PREFACE │ 3
Preface
We are delighted to introduce the joint study conducted by the OECD and the European
Commission: Reshaping Decentralised Development Co-operation: The Key Role of
Cities and Regions for the 2030 Agenda. The results of this study provide an assessment
of the major trends in decentralised development co-operation practices, finance and
governance. They are also an important step forward in understanding current practices as
well as new opportunities raised by the implementation at local and regional government
levels of global agendas such as the Sustainable Development Goals, the Addis Ababa
Action Agenda, the Paris Agreement and the New Urban Agenda from Habitat III.
Cities and regions are becoming more engaged in international co-operation activities and
are therefore increasingly recognised as key development actors. They also possess a
unique set of competencies that can complement the actions of traditional national
donors. This study is therefore both timely and relevant in understanding how cities and
regions support their partners in developing countries in order to achieve global
sustainable development agendas. It also provided a platform to take stock of the
diversity of definitions and practises within EU and OECD Member countries, and to put
forth recommendations to increase the effectiveness, efficiency and impact of
decentralised development co-operation.
For the European Commission, this general overview on the state of play of decentralised
development co-operation is critical in drawing valuable lessons and in aiding future
engagement in the field. The findings of the study are also important in helping to adapt
decentralised development co-operation to the challenges and goals of the 2030 Agenda
and the European Consensus on Development. Last but not least, this work offers an
important opportunity for the Commission to discuss and promote its values with partners
from both the North and the South.
For the OECD, this study highlights the unique role of local and regional authorities in
development co-operation, including Official Development Assistance flows and
underlines the need for better reporting of decentralised development co-operation
activities from provider countries. Moreover, this evidence-based assessment of the
strengths, weaknesses, challenges and opportunities of decentralised development co-
operation also created an active dialogue between the OECD Regional Development
Policy Committee (RDPC), which works extensively on cities, regions, territorial
statistics and multi-level governance, and the OECD Development Assistance Committee
(DAC), which gathers the traditional provider community and promotes development
effectiveness.
We are confident that this study will contribute to raising the profile and potential of
decentralised development co-operation, and set incentives for better data collection,
information and knowledge sharing. It was developed through a unique consultation
process and dialogue with more than 100 stakeholders from cities, regions, national
governments, international organisations and civil society. We invite stakeholders as well
RESHAPING DECENTRALISED DEVELOPMENT CO-OPERATION © OECD 2018
4 │ PREFACE
as governments at all levels to consider the proposed recommendations as a vehicle to
strengthening the effectiveness of decentralised development co-operation.
Neven Mimica Angel Gurria
European Commissioner for
International Cooperation OECD Secretary General
and Development
RESHAPING DECENTRALISED DEVELOPMENT CO-OPERATION © OECD 2018
FOREWORD │ 5
Foreword
The adoption of the Sustainable Development Goals (SDGs) in 2015 by the United
Nations provided an important opportunity to rethink how better development co-
operation policies can deliver better lives for citizens. In particular, cities and regions
from OECD countries, through their international development cooperation activities –
namely decentralised development cooperation (DDC) – play an important role in
localising the 2030 Development Agenda by supporting knowledge and good practices
sharing with their peers. Their increasing role in this field has been strengthened by the
Communications from the European Commission on Local authorities: actors for
development (2008); The roots of democracy and sustainable development (2012); and on
Empowering local authorities in partner countries for enhanced governance and more
effective development outcomes (2013).
This study and the underlying multi-stakeholder policy dialogue seek to contribute to the
effectiveness of decentralised development co-operation by taking stock of what has
worked or not, and providing guidance on the ways forward. It expands on the 2005
OECD report Aid Extended by Local and Regional Governments and assesses key trends
and innovative mechanisms in how cities and regions design, implement and assess their
development cooperation activities with partner countries.
Acknowledging the large diversity of concepts, definitions, and implementation
mechanisms across countries, the report argues that the decentralised development
cooperation landscape has become more complex and granular, more bottom-up and
multi-stakeholder, and more successful in combining both Official Development
Assistance (ODA) and other in-kind activities to build capacity and share practices.
Decentralised development cooperation is increasingly driven by a territorial network
model based on demand from peer regions and cities. Building on the key principles of
reciprocity, ownership, empowerment and co-development, the projects tend to be more
inclusive, while engaging more systematically civil society organisations (CSOs),
universities and research centres, the private sector, and associations of local and regional
government.
The report suggests some policy recommendations to increase the effectiveness,
efficiency and impact of decentralised development cooperation, in a shared
responsibility across levels of government and stakeholders. Such recommendations
relate to reporting, coordination, monitoring and evaluation with a view to supporting
better multi-level governance of development cooperation policies in OECD and partner
countries.
RESHAPING DECENTRALISED DEVELOPMENT CO-OPERATION © OECD 2018
ACKNOWLEDGEMENTS │ 7
Acknowledgements
This report is the outcome of the 15-month policy dialogue with 100+ stakeholders at all
levels from public, private and non-profit sectors. It was carried out by the OECD Centre
for Entrepreneurship, SMEs, Regions and Cities (CFE) led by Lamia Kamal-Chaoui,
Director, as part of the 2017-18 Programme of Work of the Regional Development Policy
Committee (RDPC), in co-operation with the OECD Development Co-operation
Directorate (DCD) led by Jorge Moreira da Silva, Director.
This project was developed by the OECD with the financial support of the European
Commission. The Secretariat is grateful to the Directorate-General for International
Cooperation and Development, Unit of Cities, Local Authorities, Digitalisation,
Infrastructures, for its excellent co-operation throughout the implementation phase, in
particular to Paolo Ciccarelli, Head of Unit, Anna Lixi, Head of Sector Local Authorities,
Barbara Cauli, Michel Laloge and Daphne Barbotte.
The project and underlying policy dialogue were managed by Aziza Akhmouch, Acting
Head of the Cities, Urban Policies and Sustainable Development Division, CFE, with
Stefano Marta, Policy Analyst, CFE. The report was drafted by a joint team including
Aziza Akhmouch, Stefano Marta, Antonio Cañamas and Natalia Altman from CFE as
well as Rachel Morris, Cecilia Piemonte and Cushla Thompson from DCD. Thanks are
also conveyed to Susan Steensen, Olivier Cattaneo, Kerri Elgar, Alejandro Guerrero-
Ruiz, Piera Tortora, Emilio Chiofalo from DCD and Karen Maguire from CFE for their
comments on earlier drafts and survey design. Special thanks are also conveyed to
Gemma Pinyol Puig for her extensive desk research and literature review support
throughout the project.
The OECD is grateful to the case study promoters for their active engagement and
relentless support to collect data, carry out field-trips and interviews, and discuss interim
results with stakeholders, including: Jorg Vereecke, Katrien de Pauw, Spanoghe Sander
and Calcoen Simon (Flanders, Belgium), Maria Dina Tozzi, Flavia Donati and Monica
Renna (Tuscany Region, Italy), Noemi de la Fuente, Edurne Bengoetxea and Paul Ortega
(Basque Country, Spain), as well as Christophe Le Jallé, Adeline Mateus, and Beatrice
Tourlonnias (PS-eau –Water Solidarity Programme, France).
The OECD is also grateful to the respondents of the four OECD Special Surveys carried
out in 2017, as well as to stakeholders listed in Annex C of this report who provided
valuable comments on successive drafts, participated in the policy workshops or
webinars, and/or mobilised their networks to share experience and knowledge. Special
thanks are herein conveyed to the Committee of Regions, United Cities and Local
Governments (UCLG), Eurocities, the Network of Regional Governments for Sustainable
Development and CEMR-Platforma for facilitating the data collection, discussion and
dissemination of interim results with their respective members throughout the process.
Several workshops and webinars were organised during the project to kick-off the work
(31 March 2017), to discuss preliminary findings (9 June and 1 December 2017) and to
RESHAPING DECENTRALISED DEVELOPMENT CO-OPERATION © OECD 2018
8 │ ACKNOWLEDGEMENTS
build consensus on suggested policy recommendations (13 April 2018). Earlier versions
of the draft were presented at the 5th Assises of Decentralised Co-operation organised by
the Committee of Regions and DG DEVCO (Brussels, 10-11 July 2017), and in several
events or conferences held in Valencia (1-2 November 2017), Tuscany (7 December
2017) and Brussels (11 April 2018). The report was discussed at the OECD Regional
Development Policy Committee (RDPC) on 19 May 2017 (GOV/RDPC(2017)5) and 8
December 2017 (CFE/RDPC(2017)12), and at the Development Assistance Committee
(DAC) meetings of 28 February 2017 (DCD/DAC/STAT/RD(2017)5) and 1 February
2018 (COM/CFE/RDPC/DCD/DAC(2018)1). Chapter 5 of the report (case study on
water) was also discussed at the 10th meeting of the OECD Water Governance Initiative
(Vienna, 20-21 November 2017). The report was approved by the RDPC on 8 June 2018
(CFE/RDPC(2017)12/REV1). The final report was edited by Caitlin Connelly, formatted
by Eleonore Morena, and Cicely Dupont-Nivore prepared the manuscript for publication.
RESHAPING DECENTRALISED DEVELOPMENT CO-OPERATION © OECD 2018
