Since the 1990s, many countries have initiated decentralization processes and local development programs as an important part of national development strategies. The implementation has been challenging in many aspects. Communities have suffered from slow economic growth, which has manifested as a dearth of business and employment opportunities and low income taxes.
For empowering pro-poor development, decentralization efforts must be combined with local economic development:
- The capability of local players in administration and in business is often constrained. Local administrations must be empowered to plan, develop, and implement communal services. Capacity-building is also important for local companies suffering from a lack of skilled employees and management experience.
- Interaction among local players is often ineffective. Local administrations must be enabled to involve citizens and businesses in both political and administrative processes. Improved vertical and horizontal linkages of local businesses can create economies of scale, and increase competitiveness.
- Access to financial resources is often insufficient or unavailable. With increased local tax revenues, administrations can better cope with insufficient national fiscal transfers. Local financial institutions can improve access to finance for private enterprises.
joyn-coop supports its client base with conceptual and project-related advice to…
…create framework conditions for local development:
To improve local economic environments, we offer research-based and multi-stakeholder assessments of local market hindrances. We seek to identify and promote relevant horizontal and vertical linkages such as clusters or value chains in participatory processes. We pay particular attention to the voices of smaller economic stakeholders as well as local ownership.
To promote the decentralization processes, we advise on the conceptual design of political, administrative, and fiscal elements. For example, how to improve a fiscal transfer system or how to develop national structures for capacity-building and investing within communities.
…provide capacity-building of local players:
To enable businesses, we support the potential of local enterprises to develop within their local market environments. We advise capacity development of micro-, small, and medium enterprises (MSMEs) via the implementation of business development services (BDS). We also consult on target-group oriented financing schemes.
To strengthen local administrations, we engage in projects that improve procedures and practices for local-level resource mobilization, public expenditure management, procurement, and project execution. We also assist in improving the accountability and transparency of local governments to prevent corruption to involve citizens in communal tasks. To this end, we also support the initiation of participatory processes to involve citizens in communal tasks.