More often, however, VNRs make occasional references to the need to support sectoral policies with the involvement of local governments: risk prevention policies in Bangladesh, service provision quality at the local level in Malaysia, improvement in access to basic services in Benin, just to mention a few. In some developed countries, VNRs also refer to specific programmes and policies that have a direct impact on local governments, for instance by relating to SDG 11 on sustainable cities and communities. Many countries mention also the need to improve training and diffuse guidelines and technical assistance programmes in order to raise awareness on the SDGs and support local planning – e.g., Argentina, Egypt, Indonesia, Kenya, the Republic of Korea, Mexico, Montenegro and Peru. From a sub-national perspective – besides the awareness-raising activities already mentioned in previous sections and the efforts to include SDGs in local planning – only few local governments report new initiatives designed within the framework of the SDGs. On the other hand, many LRGs (for example in Belgium, Denmark, Germany, Kenya, the Republic of Korea, the Netherlands and Sweden) refer to existing or older programmes that nonetheless have accelerated progress and results in the field of climate change, the improvement of public services and their quality, education, health, integrated urban planning, poverty reduction and social inclusion, economic development, and environmental protection, as well as the improvement of citizen participation in local decision-making. In terms of capacity building, LRGs and LRG associations have been pivotal in many countries to improve and strengthen institutional capacities, promote knowledge exchange and peer-to-peer learning, and other contextually tailored, ‘demand-driven’ initiatives. Many of these actions relate directly to the SDGs, and some have been described in previous sections (see, for instance, Section 5.1.2 above).
6.2 HOW COULD THE LOCALIZING PROCESS BE EFFECTIVELY FINANCED? According to the recommendations of paragraph 34 of the Addis Ababa Action Agenda (AAAA), a set of ambitious initiatives should be put in place to support the localization of the SDGs. During the 3rd UN Conference on Financing for Development in July 2015, which led to the adoption of the AAAA, national governments confirmed their commitment to strengthen the capacities of sub-national governments and help them fund investments in service provision, infrastructure, inclusive and sustainable urbanization and regional territorial development.81 Some countries have made progress in this regard. As mentioned above, for instance, Benin is improving its National Municipal Funds (Fonds d’appui au Développement des Communes) to support projects linked to the SDGs. In its VNR, India introduces a “paradigm shift” in the relationship between national and sub-national governments through the increase of the share of tax devolved to states (spiking from 32% to 42%). Indonesia has proposed a Special Allocation Fund (DAK) for the provision of general basic services and poverty alleviation programmes, giving priority to basic services and infrastructures in specific locations and engaging local governments in the achievement of national priorities. Kenya has increased transfers from the national budget to county administrations.82 Madagascar has set the goal to increase local expenditure up to 15% of total national budget by 2019 (it was 10% in 2010) as a way to support localization in its territory. Montenegro committed to mobilize additional local revenues for sustainable development, also by diverting international assistance to local governments and involving regional development
81 UN Outcome document of the 3rd International Conference on Financing for Development: Addis Ababa Action Agenda, A/CONF.227/L.1, paragraph 34: “We [National Governments] will strive to support local governments in their efforts to mobilize revenues as appropriate (…). We will work to strengthen debt management, and where appropriate to establish or strengthen municipal bond markets, to help subnational authorities to finance necessary investments. We will also promote lending from financial institutions and development banks, along with risk mitigation mechanisms, such as the Multilateral Investment Guarantee Agency, while managing currency risk”.
58
82 The report of the Council of Governors of Kenya to UCLG reports that “Tremendous progress has been made in strengthening capacity of County governments in financial and human capacity and responsibilities over the last 4 years.”