Our partners dialogue with EU Delegations in Ethiopia and Paraguay
PLATFORMA’s 4th Geographic Dialogue Cluster meeting discussed progress, challenges, and strategies in EU decentralised development cooperation and the needs of multilevel dialogue on 4 June. The virtual gathering offered a dynamic space for exchanging insights with representatives of EU Delegations in Ethiopia and Paraguay, and a special focus on the upcoming EU Delegations’ study main findings.
Decentralised cooperation: insights and lessons
Dr. Ivana Skazlic, Research Analyst at CEMR/PLATFORMA made a presentation on an ongoing study examining the role of EU Delegations in fostering decentralised cooperation. Drawing from survey data across 40 EU Delegations, the preliminary insights indicated that most operate in favourable contexts for decentralisation. The study, expected to be finalised by May 2026, will provide a comprehensive set of case studies and practical recommendations, derived from interviews with selected EU Delegations.
The presentation emphasised the need for targeted budget lines and focal points for local governments within the EU’s external cooperation framework—an issue that resonated throughout the meeting. This study is conducted under CEMR Mindcraft project (Bridging and Mapping Knowledge Gaps in Decentralised Cooperation), funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Ethiopia in focus: property tax and local governance reform
VNG International presented its long-term work in partnership with local stakeholders in Ethiopia. The presenters highlighted the transformation of the Ethiopian Cities Association (ECA), which expanded its membership from 56 to 106 cities and achieved a substantial boost in financial sustainability, from 3.9 million to 28 million Ethiopian birr.
They also shared a successful property tax reform pilot in Yergalim (Ethiopia). The project integrated data collection, land registration, and citizen engagement to increase revenues from under 1 million to over 6 million birrs by 2024. The model legislation, co-developed with the World Bank and the Dutch Ministry of Foreign Affairs, laid the groundwork for nationwide reform—despite limited EU funding continuation.
Challenges in public financial management (PFM) were also addressed, particularly the issue of disrupted fiscal transfers from the central government. Yet, project leaders managed to secure sustainability by transitioning support to local agencies and aligning with national programs.
Supporting local authorities in fragile contexts
Fragile context was also addressed. Participants outlined the compounded challenges faced by local authorities during crises such as COVID-19 and political instability. Nevertheless, there was proved resilient through capacity building, study exchanges, and strengthened networks.
The EU Delegation in Paraguay shared experiences from Colombia’s northern border region, where local governments play a crucial role in community resilience. Conversely, in Paraguay, the representative noted the near absence of decentralisation, restrictive civic space laws, and recent setbacks in gender programming. She advocated for working closely with local authorities as a strategic entry point to support NGOs and civil society.
The discussions explored broader structural issues, including the need for clear EU strategies to empower local authorities within fragile environments. They raised the potential of the EU’s Global Gateway initiative, though its practical impact in certain regions, such as Paraguay, remains uncertain.