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Supporting local economic development

Local governance is aimed at supporting local economic dynamics in order to concretely fight poverty at the territorial level and to contribute to sustainable macro-economic development. The Ministry of Foreign and European Affairs supports territorial economic development strategies built on complementary urban and rural economies and heightened exchange between cities and their hinterlands. This approach, built on a strategic vision of the territory, implies coordination between local decision-makers beyond the traditional administrative issues. Such strategies are developed from internal potential, including that emanating from the informal sector, which mobilises the majority of the population in certain countries. They are built on shared diagnosis between the local players, making it necessary to have a good understanding of the local economy.

Local governance improves the framework for mobilising and making full use of local resources, as well as investing them back into the economy and local public services. For the virtuous circle of tax policy must make it possible for the public action at the State and local levels to provide leverage in favour of development. The Ministry of Foreign and European Affairs, for instance, provides it support in tax-policy elaboration and capacity-building to the relevant administrations. It works in favour of better management of public finance, contributing to anchor transparency and trust in the public authorities, both pre-requisites to taxpayer consent. This support is part of the principles of France’s strategic governance policy, for tax policy makes it possible to guarantee shared civic responsibility in all of the players involved in the long-term development process.

One of the challenges in local economic development is mobilising private initiatives and resources in favour of development. In order to attract enterprises in a globalised economy where territories are forced to compete with one another, the local authorities should give priority to investments in local infrastructures, road systems and communication, in partnership with the State and international cooperation players. The Ministry of Foreign and European Affairs supports this process, in particular by contributing to the institution of a business framework in which businesses can thrive: corporate law, support for local manufacturing systems and SMEs.

Updated on: 15.10.09



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