European Union initiative "Mayors for economic growth"
On July 26,2018, by the decision of the Council of Elders of Yerevan, the Municipality of Yerevan joined the “Mayors for Economic Growth” initiative of the European Union.
“Mayors for Economic Growth” (M4EG) is a new initiative of the European Union implemented since January 2017 in the region of the Eastern Partnership. The common goal of the initiative is to assist in development of the potential of local self-governance bodies in Eastern Partnership countries in economic growth stimulation and employment increase on local level.
Objectives of the initiative
• Encourage and support local authorities to design and implement local economic development plans (LEDPs);
• Strengthen the capacity of local authorities to implement LEDPs in line with the principle of good governance and sound financial management;
• Encourage the creation of local partnerships and networks based on public-private dialogue in order to implement actions to promote growth, development and jobs;
• Share know-how and best practices to motivate local stakeholders, demonstrate new approaches at work, and sustain local pro-development policies and actions.
Approaches of the initiative
The M4EG initiative is based on the following conclusions:
• Throughout the world the private sector is the driving force of economic growth and development.
• Every region, city or settlement has certain competitive advantages which can be used to stimulate their growth, development and employment increase.
• The state-private sector dialogue, cooperation and interaction with representatives of civil society are the key to the realization of local economic potential.
• Local administrations have unique possibilities for initiating and implementing the measures aimed at providing “bottom-up” development.
• To achieve significant results these measures are to cover the following “thematic blocks” of issues serving the ground for private sector growth on local level, particularly:
o Legal and institutional basis
o Financing access
o Land resources and infrastructure
o Skilled human resources, inclusiveness
o External positioning and marketing
•Inner motivation, readiness for economic growth management and existence of appropriate competence of local self-governance bodies are distinguishing features of the areas with successful economic development. Consequently, the participation in M4EG initiative is absolutely voluntary and reflect two fundamental preconditions for private sector development on local level:
o Transparent, free from corruption, business development stimulating administration.
o Intersectoral cooperation and interaction on local level
After joining the M4EG initiative, having signed the participation application by the city/’municipality, the Secretariat of the initiative starts cooperating with the new member so as to assist it :
• Understand its own potential for improvement of existing economic situation;
• To get necessary knowledge and skills to increase the potential to ensure changes for the better;
• To work out its own “adapted” solutions promoting realization of positive changes in practice;
• To undertake targeted measures for economic growth stimulation and estimation of the results achieved;
• To present its successful experience and show its favourable area for potential donors and investors both within and outside the region.