A

PROJECT REPORT

ON

WORLD CHARTER OF LOCAL SELF GOVERNEMNT

NATIONAL UNIVERSITY OF STUDY AND RESEARCH IN LAW,

RANCHI

SUBMITTED TO: SUBMITTED BY:

Dr. K. Syamala Amarjeet Ranjan
Assistant Professor LLM (Ist Semester)
Local Self Government & Federal Governance 2017-2018

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 Table of Contents

SL. CONTENTS PAGE NO.

NO.
1. INTRODUCTION 03
2. PRINCIPLES OF ORGANIZING LOCAL SELF 04-06
GOVERNMENT SYSTEM
3. WORLD CHARTER OF LOCAL SELF 07-10
GOVERNMENT
4. WORLDWIDE DECLARATION OF LOCAL 11-12
SELF GOVERNMENT
5. THE EUROPEAN CHARTER OF LOCAL SELF 12-13
GOVERNMENT
6. CONSULTATION PROCESS 14-15
7. CONCLUSION 16

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 INTRODUCTION

"All Local affairs, of common interest, shall be administered and controlled by true practical
institutions of Local Self Government"

- John Smith

Local self-government deals with needs of every citizen, helps to solve her or his day-today
problems because its goal is to be as closer as possible to people. On the other hand, it is
important that local self-government can be considered as a form of self-organization of citizens
that fosters forming civil society. In such a way, local self-government allows people to be
involved in the process of creating good living conditions in their districts. It also forms sense of
responsibility for solving local problems and prompts people to be active. Local self-government
serves as a mechanism to control activities of governmental bodies by people. Local self-
government can also be treated as institution that decreases social tensions, eliminate conflicts
between different groups of stakeholders and facilitates social-economic development of certain
districts and sustainable development of the whole country. It can be expected that in the case of
forming effective local self-government, the processes of creating civil society and social
oriented economy will accelerate.

"Local Self-Government denotes the right and the duty of local authorities to regulate and
manage public affairs under their own responsibility and in the interest of the local population.
This right shall be exercised by individuals and representative bodies freely elected on a
periodical basis by equal, universal suffrage and their chief executives shall be so elected or
shall be appointed with the participation of the elected body."1

Realizing importance of local self-government for solving social economic problems of

communities, legislation of almost all developed countries provide conditions for local self
government, which has been stated by the European Charter on Local Self-Government, as well
as by the constitutions of Germany, Austria, land laws in Switzerland and certain laws in Great
Britain and USA. According to the world practice, there are various types and forms of local
self-government, which have been historically established as a result of both objective and

1
International Union of Local Authorities (IULA) Declaration 1993

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subjective factors. Local self-government forms and methods are evolving toward the
establishment and development of the civil society. In this regard, self-government models
established in these countries are better adjusted to the local traditions, culture, mentality, the
level of economic development and other conditions.

PRINCIPLES OF ORGANIZING LOCAL SELF-GOVERNMENT SYSTEM

Local self-government based on the following principles:

Independence of local self-government within its authority. It is the main principle that
characterizes that nature of local self-government. Within its authority local self government
bodies have the rights to manage municipal property by their own, to form, adopt and execute
local budgets, set local taxes and user charges. According to this principle, state bodies and
officials are not allowed to interfere in day-to-day activities of local self-government bodies.

Separation between local self-government and local government bodies. This principle
guarantees independence to local self-government bodies from public administration system. In
accordance with the Charter on local self-government local self-government bodies should have
wide autonomy regarding fields of activity, have full freedom of actions for implementing their
initiatives. That is why local self-government bodies are not included in the system of public
administration. It is important that these bodies should de independent not only in organizational
but also in legal aspect. As legal entities local selfgovernment bodies have the right to make any
legal transactions.

The principle of democracy wide participation of population in the decision-making process

of regional scale. The principle is based upon the mechanism of public involvement into current
activities carried out by municipalities, determining areas of power and responsibility over public
organizations established within the territory of the region. According to this principle, local self-
government is carried out by citizens directly or through elected bodies. The Constitution of RK
states direct forms of expression of people wills are local referendums, direct elections, general
meetings of citizens. In case of introducing local self-government, constitutional rights of
citizens to participate in managing state will be realized.

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 Interdependence of local, public and state interests. Local issues should be considered taking
into account strategies of developing the state and the society. Problems that solved by local self-
government are specific because they are connected with local conditions. However, these
problems are parts of common ones that are faced by the whole society that is why they should
be solved in the frame of state policy. This principle is carried out through coordination of
activities of local self-government and public administration bodies. Local self-government
bodies having legal independence organizes their activities in the frame of authorities given them
by public administration.

The principle of openness. One of the main principles of civil society that can be realized in
conditions of local self-government. Introduction of this principle provides transparency in work
of local bodies. Public control and informing citizens about activity of local self-government
bodies allow people to influence the process of decision-making concerning all issues that relate
to their interests, rights and freedoms. Public control of local self-government bodies is carried
out through reports of elected bodies and their representatives, provision of materials to
stakeholders and in other forms as it is stated by legislation about local self-government.

The principle of matching material and financial resources to authorities of local self
government. It is obvious that without this principle it is impossible to ensure independence,
efficiency and existence of local self-government. This principle can be realized through the
rights to manage municipal properties, form and execute own budgets and to establish local taxes
and user charges. The state must guarantee observance of balance between minimal level of local
budgets, delivery of required resources, compensation of losses.

The principle of subsidiary liability - a procedure of power allocation and re-allocation among
different management levels. This principle provides for sustainable consequence in the process
of exerting powers and authorities, as well as the procedure of allocating these bodies liability
before the population. Under this principle, delegation of powers to Public Policy Research
Center 8 a higher level can be accomplished only when it is impossible to exercise them at a
lower level. This principle justifies a need of efficient allocation of administrative functions
among various management levels, the basic criterion of its efficiency being a maximum
possible satisfaction of the population demand, and a clear-cut allocation of liability areas among
the authorities. In accordance with the principle of subsidiary liability, powers should be

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allocated among the authorities to basically reduce the distance between the government and the
population. It needs to understand that it is important not only to divide power between different
management levels but also to define conditions required to implement it.

The principle of complimentary nature creating the conditions of even power allocation
among the bodies of the vertical administration system. In accordance with this principle, powers
are allocated in the administrative system based both on top-down and bottom-up model. This
precludes a possibility of illegal administrative centers, which promote the destruction of the
society.

The principle of department structure a combination of functional and territorial functions

within local self-government bodies.

The principle of decentralization transferring a number of functions of administering specific

territories directly to those territories. As a result of the decentralization process, the state ensures
the required integrity by expanding the rights and responsibilities of the territories. The
decentralization mechanism requires an availability of transparent borders in the competence and
powers of state government and municipal bodies. Decentralization presupposes a delegation of
state powers to a local level, with a granted allocation of the resources required to implement
them.

The procedure of implementing decentralization mechanism comprises the following items:

1. Creating the list of state powers for each municipal unit.

2. Determining the amount of financial funds and resources allocated for the implementation
thereof.

3. Formulating the delegation of the state powers exerted in compliance with the existing law.

4. Determining the quality and effectiveness of power delegation mechanism. Local self-
government comprises separation of the public interest area from the government competence,
and establishment of a management system within the national legal framework by electing
independent administrative authorities, which would act within the territorial interest
frameworks.

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The following can be defined as the basic principles of local self-government:

1. Appointment of local government bodies by election.

2. Availability of communal property

3. Contractual agreement of relations between the local authorities and the population

4. Meeting territorial needs at the expense of own revenue sources

5. Specialization of local self-government in the social area

6. Competitive system of appointment to the municipal staff positions

7. Accounting and reporting to the population of the territory

8. Independence in the decision-making process

9. Legal protectability

The main idea of local self-government is self-organization of citizens in order to implement

independently their own initiatives and common objectives taking the whole responsibility.

WORLD CHARTER OF LOCAL SELF GOVERNMENT

At the second United Nations Conference on Human Settlements (HABITAT II) held in Istanbul
in June 1996, national governments committed themselves to the objective of decentralising
authority and resources2. They also recognised local authorities as the closest partners of central
governments, and as essential in the implementation of Agenda 21 and the Habitat Agenda3.

Since Habitat II, UNCHS (Habitat) has further developed its already close working relationship
with the international associations of cities and local authorities in the framework of a
Memorandum of Understanding with WACLAC setting out mutual commitments to
collaboration in a number of key policy areas related to the implementation of the Habitat
Agenda. The preparation of the World Charter of Local Self-Government is one of these joint
undertakings. UNCHS (Habitat) and WACLAC are united in believing that the underpinning of

2
(Habitat Agenda, para 45(c)
3
(Istanbul Declaration, para 12)
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the recent and decentralisation and democratisation trends in many countries, by the
constitutional anchoring of local self-government on the basis of internationally recognised
principles, can make a contribution of crucial importance to the effective and sustainable
implementation of the Habitat Agenda.

Local government representatives were very involved in the 1996 Istanbul conference and played
an active role in drafting the Istanbul Declaration and Habitat Agenda, the outcome documents
of the conference. The draft World Charter on Local Self-Government is an initiative started by
IULA and developed in partnership with the UN Centre on Human Settlements. The draft is
heavily based on the European Charter. It takes the form of a series of commitments that
governments would be able to select from in ratifying the Charter.

The World Assembly of Cities and Local Authorities called upon the international community to
take steps "to draw up, in partnership with the representative associations of local authorities, a
worldwide charter of local self government setting out, for the guidance of all national
governments and international agencies, the basic principles which should underlie any
democratic local government system". It urged that the basis of this charter should reside in the
principles of subsidiaries and proximity, whereby decisions should be taken at the level closest to
the citizens (municipality or town) and that only those tasks which the local level cannot
effectively carried out alone should be referred to higher levels.

The debates at the World Assembly had focused a good deal. upon the constitutional position of
local authorities and their relationship with central governments in the discharge of their
functions. In this context, the positive experience of the European Charter of Local Self
Government, adopted by the Council of Europe in 1985 as a Europenn convention and now
signed and notified by a large majority of the council of Europe's member states, was strongly
highlighted. The need for the development of national laws and regulations that clearly specify
the role and responsibilities of local authorities vis-a-vis national governments and provide for
effective decentralization and local democracy, taking into account the principles of autonomy,
subsidiary and proximity, were also highlighted. In this context it was suggested that the
experience gained in the implementation of the European charter of local self-government could
be used as a basis for developing a global charter that would set out the key principles underlying
a sound constitutional or legal framework for a democratic local government system.

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The preparation of a world charter of local self-government figures among the aims specified in
the constitution of the World Associations of Cities and Local Authorities Coordination (W
ACLAC). The structure set up by the ten international local government associations which had
convened the World Assembly in response to the call made by that Assembly for an ongoing co-
ordination to serve as the interlocutor and institutional partner of the UN and its specialized
agencies WACLAC envisaged that such a charter would most effectively be drawn up in
partnership with national governments through the United Nations machinery, with a view to the
final text being promulgated as an official United Nation's convention.

World Charter of Local Self Government is perhaps a mark of the universality and conciseness
of the European charter's provisions that there have been no moves since its adoption to alter the
text, and that the charter has been signed and ratified by a significant number of countries
including Eastern European transition countries which were not members of the council of
Europe at the time of its drafting and so had no involvement in that process. The existence of the
charter, even in the absence of formal enforcement capability, may be taken to an extent as a
degree of moral pressure upon all European governments and it is certain that any major breach
would receive extensive public attention in the CLRAE, and hence in the parliamentary assembly
and the committee of Ministers of the Council of Europe. While the initial drafting of the charter
was regarded by some as a somewhat theoretical exercise of limited practical relevance to the
day-to-day conduct of central or local government relations, recent history has proved the
position to be otherwise. Few European mayors, and probably few European governments,
would now question the value of having this internationally defined standard on the statute book
as a constitutional safeguard of local self-government.

The universal nature of most of the principles in the European charter was recognized by the
International Union of Local Authorities (IULA) in 1985 in the adoption ::!t its World Congress
in Rio de Janeiro of a World Wide Declaration on the Principles of Local Self-Government, the
drafting of which had drawn heavily upon the European Precedent. In 1993, IULA' s Toronto
Congress reaffirmed the text of the worldwide declaration with an updated preamble highlighting
its relevance to the marked decentralization and democratization trends in many party of the
world. At the IULA world congress in Mauritius in April 1997, the experience to date with the
European charter and the World wide Declaration was presented at a crowded plenary session

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intended to focus attention upon the first steps towards the world charter called for in Istanbul.
The final declaration of that congress included a call to international organizations and agencies
and national governments to work together with local governments and their national, regional
and international associations and networks to develop and promulgate through the United
Nations, a world charter of local self government and to pursue its progressive implementation
in all continents through a world decade of local government (2000-2009). Prior to that, the
European Section of IULA, the "Council of European Municipalities and Regions" in its
conference at Thessaloniki in May 1996 just before to the World Assembly of cites and the
Habitat II conference in Istanbul, requested the international community to take decisive steps
towards a "World Charter of Local Self Government" and thereby help establish an effective
framework for the implementation of those tasks in international plans of action which must be
dealt with at the sub-national level. The formulation of a world charter which is appropriate to
the diverse circumstances and levels of development of all United Nation member states is
inevitably a more complex undertaking than the formulation of a regional charter. Local Self-
government needs to be seen in the global context as a vital component of the development
process and of the commitment to decentralization policies made by the member states in the
Habitat Agenda. However, there is some risk that this cause may not be aided by the elaboration
of principles, which cannot in practice be applied in situations of extreme shortage of resources
and infrastructure. On the other hand, the ready adoption of the European charter by many
countries in transition which had played no part in its drafting and the acceptance by IULA and
some other international associations of a worldwide declaration embody largely similar
provisions, suggest that certain universal principles of local democracy can be validly defined
and promulgated at the international level.

THE AGENDA OF HABITAT: The Habitat Agenda is a broad ranging document that focuses
on sustainable urban development. With over half the world population living in urban areas and
huge increases in the numbers of urban poor, well-managed, inclusive cities are essential to
sustainable development. The Habitat Agenda aims to make the worlds cities safer, healthier and
more equitable and its key commitments are based around shelter, poverty eradication,
environmental management, economic development, governance and international cooperation.
The Habitat Agenda is firmly based on partnership and outlines local government as our closest
partners in implementation. It identifies 20 key commitments one of which is effective

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decentralisation and the strengthening of local authorities. It focuses on the two key themes of
Shelter for all and Sustainable human settlements. National governments are producing
country reports which identify how they have implemented the Habitat Agenda.

UN COMMISSION ON HUMAN SETTLEMENTS AND THE PREPARATORY

COMMITTEE FOR ISTANBUL : The local government input to Habitat is coordinated by the
World Associations of Cities and Local Authorities Coordination (WACLAC), and the
presidency is currently held by Metropolis with the secretariat based in Barcelona. The local
government delegation included representatives from Canada, Senegal and the UK as well as the
International Union of Local Authorities (IULA). WACLAC is preparing a local government
declaration for Istanbul and will coordinate various side events in New York.

WORLDWIDE DECLARATION OF LOCAL SELF-GOVERNRNENT

Local government is an integral part of the national structure. It is the level of government
closest to the citizen and therefore in the best position both to involve the citizens in the making
of decisions concerning their living conditions and to make use of their knowledge and
capabilities in the promotion of development. It recalls the principle recognized in Article 21 of
the universal declaration of human rights that the will of the people is the basis of the authority
of the government. It is at the local level that the conditions can best be provided for the creation
of harmonious community to which citizens feel that they belong and for which they feel
responsible. The declaration emphasizes that strengthening local government strengthens the
entire nation by ensuring more effective and democratic public policies. Decentralized decision-
making reduces congestion at the centre and improves and speeds up government action, as it
gives vitality to new institutions and increases the likelihood that services and amenities, once
established will be maintained and expanded.

The council of Europe in 1985 had drafted the European Charter of Local Self Government, this
has been ratified by thirty countries of the council. The preamble of the Charter provides that the
existence of local authorities endowed the democratically constituted decision making bodies
and possessing a wide degree of autonomy with reference to the distributed responsibilities, the
ways and the means by which these responsibilities are exercised and the resources required for
their fulfillment.

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The European Charter has served as a movement for the development of the World Charter for
Local self government (UNCHS & WACLAC 1998). But before this UNCHS and WACLAC the
international community had called upon the World Charter of Local Self Government. And
furtherthis proposal was put forward to the HABITAT II Conference. Therefore a memorandum
was initiated and it was signed in New York City in July 1997 between the UNCHS and
WACLAC, which commited with both the parties to a World Charter of Local Self government.
In 2004 at its founding conference the UCLG decalared that the adoption of the World Charter
for Local Self Government is the key objectives of the united cities and Local Government
building on the work of its founding organizations and their partnership with UN-Habitat.

UNCHS (Habitat) and WACLAC are united in believing that the underpinning of the recent and
very welcome decentralisation and democratization trends in many countries, by the
constitutional anchoring of local self government on the basis of internationally recognized
principle, can make a contribution of crucial importance to the effective and sustainable
implementation of the Habitat Agenda.

THE EUROPEAN CHARTER OF LOCAL SELF-GOVERNMENT

The first initiative for any form of international recognition of the principles of local autonomy
was taken at the first General Assembly of the council of European Municipalities in Versailles
in 1953 (European charter of Local Self Government). The "European Charter of Municipal
Liberties" adopted on that occasion reflected its proponents commitment for rebuilding post-war
Europe on the basis of strong local institutions enjoying a high degree of democratic autonomy.
It took, however, until the late 1970s for this call to be answered, with the preparation by the
standing Conference of Local and Regional Authorities of Europe (CLRAE). the official
representative institution for the local and regional levels of government within the council of
Europe, as a draft European Charter of Local Self-Government. This text was formulated
following the detailed study by a representative committee with the assistance of a group of
experts on constitutional law, on the legal basis of a European convention, and was adopted by
the CLRAE in 1981. Then it was referred to the committee of ministers of the council of Europe
for Action. Approval of the principle of such a convention was secured from the fifth conference
of European Ministers responsible for Local Government in 1982, and the text proposed by the
CLRAE was then referred to a committee of senior officials of the member states for detailed

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scrutiny. The end result of this scrutiny was the present text of -the European charter, which was
drawn up in its final form as a European convention and opened for signature in 1985. Article -3
of this final convention on European Charter of Local Self- Government clearly elaborates the
concept of local self government. According to this article, the local self-government denotes the
right and abilities of local authorities within the limits of law, to regulate and manage a
substantial share of public affair under their own responsibility and in the interest of local
population (European charter of Local Self Government). This charter entered into force on is'
September 1988 upon its notification by four countries.

After that it was signed by 16 countries, and to the till date a further 18 signatures have been
added. The charters have now been notified by 30 European countries, and it has been used as a
major guideline by several of the countries of central and Eastern Europe. They have been
admitted to the membership of the Council of European Charter in recent years and have
incorporated the charter in their constitutions and their basic local government legislation. The
principles of local self government are seen as an essential component of the council of Europe's
fundamental principles of democracy, human rights and the rule of law. The signature of the
European charter of Local Self Government, along with the European convention on Human
Rights is, henceforth, a pre-requisite for accession by new member states. The European charter
commits the parties to apply basic rules guaranteeing the political, administrative and financial
independence of local authorities. It is thus a demonstration, at European level, of the political
will to give substance at all levels of territorial administration to the fundamental principles of
democracy upheld by the council of Europe since its foundation in 1949.

Indeed it embodies the conviction that the degree of self government enjoyed by local authorities
may be regarded as a touchstone of genuine democracy. It specifies the need for a constitutional
or legal foundation for local self government which defines the concept and establishes
principles governing the nature and scope of local authority's powers. Further, it provides for due
procedures to be followed regarding boundary changes, for autonomy in relation to local
authorities. administrative structures and access to competent staff and for proper conditions for
the holding of elective office. Further provisions aim at securing a clear legal framework for
necessary supervision of the acts of local authorities and at ensuring that they have adequate
access to resources to match the tasks assigned to them, on terms which do not impair their basic

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autonomy. Finally, the charter covers the rights of local authorities to co-operate with others
including internationally, and to form associations and provide for the right of recourse to
judicial remedy for the protection of local autonomy.

CONSULTATION PROCESS

UNCHS and WACLAC now propose to embark upon an extensive consultation process
concerning these proposals for a World Charter, the ultimate aim of which is to build a wide
degree of consensus around a refined version of the text, revised as necessary in the light of the
consultations, which would be presented to the 18th session of the United Nations Commission
on Human Settlements in 2001 for adoption and referral to the Economic and Social Council.
Subject to its approval at these levels, it is envisaged that the World Charter could then be
promulgated at the General Assembly Special Session (Istanbul+5) as one of a number of
specific instruments designed to facilitate and codify the implementation of the Habitat Agenda.

The consultation process is envisaged as comprising the following elements:-

(1) early circulation of this report among the international and regional associations of cities and
local authorities in membership of WACLAC and its consideration at their respective statutory
meetings and/or congresses;

(2) the inclusion in the draft work programme for 2000-2001 of the United Nations Centre for
Human Settlements (Habitat) of joint work with the international associations of cities and local
authorities on the further development of the Charter;

(3) the organisation - in accordance with para 2 of Resolution CHS 16/12, whereby the United
Nations Commission on Human Settlements has committed itself to 'provide opportunities for
partners to engage in a dialogue among themselves and with Governments (which) may, as
appropriate, serve as an input to the deliberations of the Commission' - of a formal dialogue
during the 17th session of the Commission in May 1999 at which a local government delegation
would present the aims and projected content of the World Charter for initial debate with
national governments;

(4) the organisation during 1998 and 1999, in collaboration with selected host cities and their
national governments in Africa, Asia, Latin America, and possibly in the Arab States, of special

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regional or sub-regional consultative meetings devoted to the World Charter, involving
representatives of national governments, local authorities and other relevant actors. WACLAC
would assist with the selection of the host cities and would take all possible steps to assure
broadly-based representation of local government in each region;

(5) the inclusion of the proposal for a World Charter as an item on the agendas of the regular
consultative meetings of Ministers and high ranking officials held in each region prior to the 17th
and 18th sessions of the United Nations Commission on Human Settlements;

(6) appropriate consultations with the Global Parliamentarians on Habitat and their regional
groupings, and with the relevant Foundations and NGOs, and their due association with the
formulation process in its entirety;

(7) periodic review by the joint UNCHS/WACLAC Expert Group of the results of these
consultations, with the production (as necessary) of a first revision of the text of the draft Charter
in April 1999 in advance of the 17th session of the Commission, and of a second revision in
December 2000 with a view to its inclusion in the official working documents for referral to the
18th session of the Commission in May 2001.

UNCHS and WACLAC will henceforth prepare a joint fundraising strategy with a view to
establishing a specific budget to cover the costs of conducting the above consultation and
consensus-building process in an efficient and transparent manner and to ensure the appropriate
level of representation of all interested partners throughout the process. It is envisaged in this
connection that the international associations in membership of WACLAC will build the
development of the Charter into their forward programmes. UNCHS will dedicate some core
resources to this task in 1998-1999 in fulfilment of its commitment in the Memorandum of
Understanding with WACLAC, pending formal inclusion of the Charter in its draft 2000-2001
work programme.

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 CONCLUSION

The adoption by the United Nations General Assembly of the Habitat Agenda, including its
Global Plan of Action, in December 1996 provides the political mandate for advancing work on
a World Charter of Local Self-Government. Once adopted following an extensive consultation
process, the Charter will be designed to offer an internationally agreed template for progressive
but flexible implementation of the Member States' commitment to decentralisation as set out in
the Istanbul Declaration and in the Habitat Agenda. The underpinning of the recent
decentralisation and democratisation trends in many countries by the constitutional anchoring of
local self-government on the basis of internationally recognised principles can make a
contribution of crucial importance to the implementation of the Habitat Agenda. Providing a
clear and stable constitutional/legal basis for local government is an essential foundation for
establishing local authorities' position as partners in the system of governance of all countries.
This in turn will enable them to fulfil their true role in leadership of their communities and in the
application of local people's energy, imagination and initiative to the pursuit of the twin goals of
adequate shelter for all and sustainable human settlements development in an urbanising world.

REFERENCES:

1. Report on Draft World Charter of Local Self-Government State of discussions - CPL (8) 5
Part II; https://rm.coe.int/1680719e98

2. Towards a World Charter of Local Self-Government; https://www.gdrc.org/u-ov/charter.html

3. Habitat Debate- September 1997, Vol. 3 No. 3.

4. https://www.gdrc.org/uem/mea/local-charter/charter.html

5. The European Charter of Local Self Government- A treaty for local democracy by C.M.G.
Himsworth.

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