After completing audit “How is LEADER and community-led local development managed and implemented in Latvia?”, the State Audit Office calls on the Ministry of Agriculture to work more actively to promote the capacity of local action groups. “By making this audit public, we also want to induce more interest in the opportunities provided by LEADER among citizens. In practice, this means for residents to identify the representatives of their local action groups and to participate in the implementation of the local development strategy, that is, determine the needs and priorities of the territory, implement projects, evaluate the results of the activities of local action groups, thereby engaging in local development practically and purposefully,” invited Ms Inga Vilka, Council Member of the State Audit Office of Latvia.
The idea of the European Union (EU) measure LEADER or community-led local development (CLLD) is to promote the formation of local communities and their meaningful and sustainable cooperation and activity to improve living conditions in rural and coastal areas.
BRIEFLY
- In Latvia, the LEADER approach is implemented by 35 local action groups (LAGs), however, their performance is not uniform, as the provided opportunities are not available to the citizens in an equivalent amount.
- For the wider society to benefit from the LEADER approach as much as possible, the role of the Ministry of Agriculture and the participating institutions in the supervision of the LEADER approach should be greater both at the national level by creating a clear system of goals and performance indicators and by improving monitoring, evaluation and conducting a systematic analysis of the data submitted by LAGs, providing methodical support to LAGs, and creating a motivation system for LAG activities focused on added value.
- The added value of LEADER is both rural economic development and increased social capital, improved management, and better project results.
The results of the LEADER approach depend on the professionalism of LAGs
For the programming period from 2014 to 2020 (implementation of projects is still ongoing), 126 million euros was allocated from the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF) to the LEADER measure in Latvia, including 13.4 million euros for ensuring the operation of LAGs and activating citizens. The funding allocated from these funds for the new period from 2023 to 2027 is 101 million euros.
During the audit, the auditors of the State Audit Office found that the approaches applied by different LAGs were significantly different and the results achieved were also different. To involve locals as widely as possible, one of the most important tasks of any LAG is activating the residents of a territory. The differences in the activities of LAGs are significant: a few different types of informational and educational events organized by LAGs with the allocated funding ranged from 3 to almost 90 between 2016 and 2021.
Although LEADER activities have been carried out in Latvia for more than 20 years, data from a sociological survey commissioned by the State Audit Office show that only 28% of respondents outside of Riga know or have heard of this measure. “Therefore, facilitating the awareness and activity of LAGs in the involvement of citizens, while strengthening the professionalism of LAGs is significant so that the role of LEADER in the development of local communities is greater in the new programming period,” stated I. Vilka.
Examples of LEADER projects show very different types of projects and their scope. For example, according to EU funding, the amount of the smallest project was 294 euros, and the largest project was 585,000 euros. Both local and regional governments have received support for organizing and improving the infrastructure of the territory, as well as businesses and residents for the implementation of various initiatives like a drying cabinet for home production, the creation of a coffee roasting facility, the purchase of costumes for a children’s pop group, the development of a dental practice, etc. However, the possibilities of LEADER in the social inclusion of the less active and vulnerable groups and in the creation of innovations are used insufficiently.
Line ministry should provide more support to LAGs
The situation, when such an uneven performance can be observed among the 35 LAGs created in Latvia, has developed historically because the Ministry of Agriculture, as a supervisory institution, relies only on the local competence and capabilities of LAGs. However, in the opinion of the State Audit Office of Latvia, the Ministry of Agriculture should take on a greater role both supporting LAGs methodically and motivating them to act more actively in the involvement of citizens and in identifying their needs.
During the audit, the State Audit Office found both LAGs whose administration did not have funds for even one full-time employee and LAGs where funds were intended for several workplaces. In such different situations, LAGs cannot perform a comparable number of functions.
Specific achievable results and evaluation criteria should be pursued
The State Audit Office of Latvia considers that the analysis of the results achieved in the implementation of the LEADER/CLLD approach is an important task of the Ministry of Agriculture. “The question of methods for assessing the added value and effectiveness of the LEADER approach is topical throughout the European Union, and there is currently no single “recipe” or methodology. The Ministry has access to LAG strategies, reports on the performance results of LAGs, i.e., information that would allow to analyse and improve the effectiveness of the LEADER approach accordingly in Latvia, but so far, the Ministry has not carried out such an analysis,” indicated I. Vilka.
The audit found that LEADER/CLLD funding was largely allocated to projects implemented by local and regional governments
In the EAFRD activity “Local Potential Development Initiatives”, LAG funding of 55% and even up to 77% in individual LAGs was allocated to local and regional governments for public benefit projects, including those that are part of municipal functions. Under the EMFF, there was even more because 76% of the total EMFF CLLD funding was allocated to local and regional governments by the end of 2022, also taking into account the projects that have been started.
In the view of the State Audit Office, granting large amounts of funding to local and regional governments is not considered a good practice and raises the issue of the role of LEADER and LAGs when administering projects to a significant extent, whose purpose is to ensure the functions of local and regional governments.
State Audit Office recommendations #PēcRevīzijas
When issuing eight recommendations, the State Audit Office of Latvia calls upon the Ministry of Agriculture to improve methodological support for LAGs, to improve situation assessment such as data collection, analysis and their use in decision-making and justification. The deadline for implementation of the recommendations is mid-2026.
The State Audit Office of Latvia calls on LAGs to implement activities for improving public awareness and involvement to a greater extent, as well as to ensure greater transparency and openness of their activities to increase public trust.
In the new programming period, new forms of citizen involvement will also be a big challenge for LAGs. Taking into account the opportunities provided by LEADER/CLLD, the State Audit Office of Latvia invites the Ministry of Agriculture to cooperate with the Ministry of Environmental Protection and Regional Development in the use of modern engagement tools.
More information on the LEADER approach
- The LEADER approach, whose name means “targeted and coordinated actions for the development of rural economy” translated from French has been operating in the European Union for more than 30 years. In Latvia, the implementation of the approach was started in 2000, and it outlined on the scale of the whole of Latvia in 2007.
- The LEADER/CLLD approach is based on seven complementary principles, one of the most important of which is “from the bottom up”, which gives the local population the opportunity to take the initiative.
- The main tasks of a LAG are to ensure the implementation of the strategy for local development, which includes strategy development, updating, evaluation, work with project applications and activation of the local territory.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General.
100 years of AUDIT STRENGTH
On 16 August 2023, the State Audit Law turned 100 years old. With the adoption of this Law, the State Audit Office from a formal de facto institution founded on 2 December 1918 became a de jure independent, collegial supreme audit institution of the Republic of Latvia. The State Audit Office is one of the independent state institutions enshrined in the Satversme (Constitution) of Latvia. The Constitution was signed by Roberts Ivanovs as the secretary of the Constitutional Assembly, who was then confirmed as the Auditor General. He worked as the first Auditor General for 12 years. His signature confirmed the text of our Constitution alongside that of Jānis Čakste.
Additional information
Mr Ivo Valdovskis
Communications Adviser to the Auditor General
Ph.: +371 29274446 | E-mail: ivo.valdovskis@lrvk.gov.lv