“Optimisation of local development governance”

So far the approach to governance optimisation on the local level has focused on the quality of the functioning of the local administration and the quality of the various public services. The main evaluation (or self-evaluation) criteria are: cost effectiveness, accessibility, effectiveness, citizen satisfaction.

However, the local authorities are facing new challenges, increasingly associated with the pursuit of a development policy. In addition – in view of the observed and expected external limitations – local development must be based on unlocking the local potentials. This requires a quick and constant improvement of the quality of public policies (i.e. their planning, implementation and monitoring), with the criteria of quality assessment being:

• with regard to the value: integrity, openness, inclusiveness, role of law;
• with regard to competence-linked determinants: good leadership, comprehensive internal coordination, innovation, decision-making based on reliable data.

What also matters is the use of appropriate practical tools – especially concerning the human resource policy, integrated IT solutions, financial policy, systematic evaluation – based on clear and stable local laws and internal regulations (ordinances, rules of procedure etc.).

So far the methods used (unfortunately, not often and not systematically) in the evaluation of local governance in government administration have been primarily:

• CAF (Common Assessment Framework), popularised in Poland by the UNDP;
• IDP (Institutional Development Programme), promoted by the World Bank;
• various ISO standards, usually endorsed by commercial entities not familiar with the specificity of local government.

An important role is to be played by internal audit, which is not developed appropriately, however, and is based on a traditional approach drawing on the criteria cited at the beginning. An example is the most structured internal audit system in Kraków, which does not take into account criteria associated with the pursuit of a development policy.

In recent years a new approach to the assessment of the quality of public governance on all levels has been proposed by the OECD. The method is called Sound Public Governance Review. So far it has been used primarily in the assessment of governance quality by central governments (a review has been carried out for Poland as well) and regional authorities. Under the Ministry of Investment and Economic Development’s Local Development Programme, financed by the Norwegian Funds and featuring the Association of Polish Cities and the OECD, it will be introduced in Poland for the local governments. The first audit is expected to take place next year, and the methodology will be made available to all local governments for the purpose of systematic self-evaluation.