Good governance rarely trends on social media or dominates the news, but it is the quiet engine of progress at the local level. Behind every new school, health facility, digital service or green energy project is a system built on fair rules, citizens’ participation in decision making, strong institutions, and transparent public finance. When governance fails, the costs are real: lost resources, stalled reforms, and public mistrust. 

That’s why UNDP and Switzerland are working together in Europe and Central Asia to promote good governance, tackle and strengthen local institutions. By supporting decentralization and empowering both national and municipal authorities, the aim is to help them make decisions that truly reflect the needs of their communities, boost local participation, and turn global goals into local action - all while using limited resources more effectively. These efforts may not always be visible, but they are laying the foundation for something bigger: trust in institutions, stronger local development, a more resilient economy and better outcomes for all. 

Investing in local governance brings high yields

Investing in local governance is a powerful catalyst for sustainable development because it ensures that policies, services, and resources are tailored to the real needs of communities. 

Local governments are closest to citizens, making them best positioned to deliver responsive public services (healthcare, education, infrastructure) and address grassroots challenges like poverty or inequality. They are also key players to scrutinize public spending and reduce corruption. Investing in strengthening local governance has a proven multiplier effect—every dollar spent strengthens local democracy, stability, and equitable growth where it matters most: in people’s daily lives.

In Albania, UNDP and Switzerland are driving forward decentralization by promoting more efficient, transparent, and accountable local governance. The focus has been on strengthening municipal planning, budgeting, and service delivery, ensuring that local governments are better equipped to meet citizens’ needs. From waste management and water supply to social care, municipalities are now more capable and responsive, supported by the introduction of digital tools that improve efficiency and transparency The impact of the decentralization reform was clear: Transparency of the local municipal decisions, better public services and increased trust among fellow citizens. 

Local governance’s biggest dividends: Trust and stability

Ultimately, strong local governance ensures that development is equitable, participatory, and tailored to community needs, leading to long-term stability and growth.

In Bosnia and Herzegovina (BiH), UNDP and Switzerland enhanced municipal capacities in environmental sustainability, economic development, and public service delivery to best match their fellow citizens’ priorities. Municipalities took direct action  to improve quality of life and boost the local economies by actively supporting entrepreneurship and creating jobs creation to reduce inequality. In North Macedonia, with Swiss support UNDP teamed up with local authorities to strengthen the role of municipal councilors, helping them better balance the power of mayors. At the same time, community forums were introduced into local statutes, giving people a chance to have their say in setting local priorities and shaping decisions that affect their everyday lives.

UNDP is helping local governments work better with communities by supporting development plans, improving services, and encouraging citizen engagement. These efforts are building trust, advancing local democracy and making local governance more responsive to people’s needs. Good governance is also about making the most of available resources

When roads crumble, medicines run out, or young people seek opportunities abroad for a better future, corruption or mismanagement of public fundings are often part of the story. Transparent and accountable public finance is key to making the most of scarce resources. When financial systems are clear and well-managed, they ensure that resources reach those who need them, resist vested interests, and build citizen trust. 

In Kosovo*, UNDP and Switzerland are advancing anti-corruption efforts with a strong focus on recovering stolen assets and strengthening institutional integrity. By supporting legislative reforms, improving transparency in political financing and public officials’ asset declarations, and introducing tools to track illicit wealth, the initiative is helping to build a more accountable and transparent governance system. Digital platforms, like the online asset declaration system and asset recovery database, which are now key components of Kosovo’s anti-corruption infrastructure.

Increased capacities of the Anti-Corruption Agency resulted in 89 convictions, while the kallxo.com platform for reporting corruption resulted in over 50 arrests and indictments against senior public officials. Kosovo now having its own in-house expertise on investigating financial crime, the regular use of specially designed anti-corruption e-tools, and strong inter-agency cooperation – has the means for an effective anti-corruption system.

In North Macedonia, a fiscal transparency dashboard, available on the Ministry of Finance website, now lets citizens track how public money is spent. More than 50 out of 80 municipalities regularly update their budget data, making local spending more open and accessible than ever before.

To sustain progress, the message is clear: effective, accountable, and inclusive governance at all levels is essential. It is a precondition for trust, inclusive growth, and eventually best return on investment to spearhead sustainable development.

At UNDP, we remain committed to strengthening municipal efficiency, and empowering institutions and communities to deliver for all.

• References to Kosovo in this story shall be understood to be in the context of United Nations Security Council resolution 1244 (1999)
• Check our UNDP/Switzerland Partnership for a snapshot of 🇨🇭 Switzerland’s global cooperation priorities, delivered in partnership with UNDP.