SEE Cities

Innovative Solutions for Sustainable Cities


Modernizing Local Public Expenditure Management

May 15-17 2012
Second City-to-City Municipal Finance Dialogue took place in Mavrovo, Macedonia May 15-17, 2012.
This peer to peer learning workshop was dedicated to local public expenditure management. The workshop was attended by 60 participants representing local government associations from Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, and Serbia; NALAS, partner cities/municipalities and local experts; as well as delegates from Ministries of Finance. 
Following the first workshop on local government revenues, this one focused on selected aspects of expenditure management. The workshop sessions were organized as a series of presentations together with panel discussions. This provided a good opportunity for sharing information on Central, Eastern European and global cases in expenditure management, together with experiences from the participating countries. Sessions and panel discussions were complemented with the visit to Gostivar Municipality where the group was hosted by Mayor Mr. Rufi Osmani and Head of the Finance Department Mrs. Shiret Elezi. 
Beyond the exchange of information on local expenditure management this workshop discussed the initial findings of the two knowledge products of the C2C Dialogue process: the Municipal finances Self-Assessment (MFSA) and the Municipal Finance Review (MFR).
The presentations by international and regional experts provided examples from other countries and global trends. The panelists presented their national legal-institutional conditions and specific issues in their own municipalities.

Innovative Solutions for Sustainable Cities

Worldwide, local governments face an increasing demand from the growing urban population to provide basic infrastructure and services, promote more inclusive growth, adapt to climate change, and mitigate risks from disasters. Although development pathways differ because of regional and local variations, one consistent pattern has emerged: economic prosperity most often occurs in cities.

Cities can reduce poverty and expand individual and national prosperity. The bulk of economic activities take place in cities; urban centers attract business, trade and other service industries, and offer dense labor markets with the ability to move products over smaller distances, shortening the supply chain. However, cities in South-East Europe (SEE) do not yet harvest their full potential to contribute to economic prosperity and deliver better quality of life for their citizens. They face a number of challenges such as climate change, natural disasters, increasing global competition and financial instability. At the same time, cities have room for improvement: they can use their own resources more efficiently and also possess a huge potential for energy efficiency.

In order to address these challenges the World Bank and Government of Austria have partnered to launch the Urban Partnership Program (UPP) aimed to strengthen the capacity of local governments in South-East Europe, to promote city to city exchange and peer learning within and beyond Europe and to equip local elected officials, city administrators and technical staff with practical tools for decision-making, to effectively manage urban development for inclusive and sustainable growth. While global in scope, this Program is targeted at South-East Europe, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia. 

The Program is structured into three product lines to reflect the demand: E-learning & Knowledge products: Global curriculum through World Bank Open Learning Campus and Regional/local Partners: NALAS (E-Academy), LGAs; Connectivity through City to City Dialogues on Municipal Finance, Urban Planning & Land Management; and Sustainability through In depth city engagement, including self-assessment tools (Municipal Finance Self-Assessment and Urban Audit) and participatory methodologies (Integrity Building and Social Sustainability & Citizen Engagement). 

Where We Work in South-East Europe (Phase I)




"The MFSA tool is very useful and can help LGs assess their financial performance and look for additional financing. On the other hand, it is a huge responsibility to translate the budget into strategies that will drive LG's development",
Reisa Duraj, Head of Finance and Treasure Relations Sector of the Shkoder Municipality, Albania

"This capacity building program will enhance knowledge and skills of local governments, particularly of medium and large cities."

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