Institutional Strengthening Fund

Icono localización

Morón - Argentina

Region
Latin America and the Caribbean
Range of Demographic Size
100,000 to 499,999 inhabitants (large intermediate)

8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including, among other things, through a focus on high-value added and labour-intensive sectors.

8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.

8.a Increase Aid for Trade support for developing countries, in particular, least developed countries, including in through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries.

8.b By 2020, develop and operationalize a global strategy for the employment of youths and implement the Global Jobs Pact of the International Labour Organization.

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.

9.3 Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.

9.a Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States.

9.b Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.

9.c Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.

10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

10.5 Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations.

10.a Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements.

10.b Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes.

10.c By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.

A - Full integration of population dynamics into sustainable development with equality and respect for human rights.

C - Ageing, social protection and socioeconomic challenges

American Convention on Human Rights

Universal Declaration of Human Rights (UDHR).

International Covenant on Civil and Political Rights (ICCPR).

International Covenant on Economic, Social and Cultural Rights (ICESCR).

Additional Protocol to the American Convention on Human Rights in economic, social and cultural rights (San Salvador Protocol).

Summary

The Institutional Strengthening Fund is a local public policy aimed at helping different civil-society institutions in Morón carry out infrastructure works and pay their taxes and utilities, so as to strengthen and encourage them in their charitable activities. The assistance focuses on community clubs, development organizations, civil not-for-profit associations, and other grassroots entities. This policy also provides for fostering and protecting small and medium-sized companies, as well as supporting local shops within the municipality.

Funds derive from a surtax charged on the Security and Hygiene Inspection Tax payable by financial institutions (credit entities, banks, betting establishments, gambling houses and casinos, and other related activities).

The Institutional Strengthening Fund, created by Morón’s Municipal Legislature, not only has a financial purpose, but it also provides accounting, technical and legal assistance to the beneficiary entities.

Implementation Date:

Start: 06 / 23 / 2016

End: End: Currently in force

Local economic development - Cooperative movement Local economic development - Employment
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The Municipality of Morón lacked any programs benefiting entities or organizations working on social inclusion and non-discrimination issues. The lack of financial resources to improve the facilities and offer better services was an obstacle in the daily activities of these not-for-profit entities engaged in key social work. This policy was drafted as a tool for these institutions to have resources to reduce the impact of the then-current crisis and any other difficult situation they might face in the future. Even though the Fund’s purpose, in principle, was to assist in the survival of such institutions, it later became a local public policy. Current expectations involve positioning this policy as a strengthening and promotion tool. Besides encouraging the activities of social development organizations and entities, this policy offers better spaces for the city’s young and adult population, as well as the development of activities related to the local community.
The main objective of this public policy is to strengthen, from an institutional standpoint, different organizations and associations operating within the municipality –community clubs, development organizations, seniors centers, public libraries and other not-for-profit civil associations. The Fund’s purpose is to support and encourage infrastructure works, as well as help these entities pay taxes and utility bills. A secondary objective of this initiative is to allocate a certain percentage of the Fund to promote and protect small and medium-sized companies and local shops.
The Institutional Strengthening Fund operates under the city of Morón’s Secretariat of Government. The local government is responsible for collecting and redistributing the Security and Hygiene Inspection Tax. The initiative is also supported by the Institutional Strengthening Unit, in charge of administering the monetary amounts and supporting the different organizations.
The Fund is implemented through different initiatives and activities, coordinated by the Directorate of Citizenship and Seniors Participation and the Sports Office, both agencies under the Municipality of Morón’s Under-Secretariat of Management, together with the different civil-society organizations that participate in this initiative. One example of these activities is the Inclusive Scholarship Program, which allows over 300 young people to participate in the activities organized by local institutions.
Municipal Ordinance No. 17494/2016 issued by Morón’s Municipal Legislature: It provides for the creation of the Institutional Strengthening Fund, sets forth its basis, and specifies the resource-collection and management methods.
Private sector
Society in general
Social/citizen participation
Financial/legal/technical assistence
Systems of production, survey, systematization and monitoring of information (data)
Institutional strengthening
Creation of entity/plan/programme
Based on the ordinance that provides for the creation of the Institutional Strengthening Fund, the Municipal Legislature of Morón has also established a surtax to be charged on the Security and Hygiene Inspection Tax already set forth in the Tax Ordinance currently in force, applicable to the following activities: a. banks and financial entities; b. credit and credit-for-consumption entities; and c. horse-racing betting establishments, gambling houses and casinos. The Municipality allocates the amounts so collected to different organizations and entities “carrying out social activities with a charitable nature”, in order to strengthen them from an institutional standpoint. Interventions consist in providing monetary amounts to carry out infrastructure works and pay for current expenses. In order to be able to receive the Fund’s available assistance, the beneficiary entities must have been legally formed and registered, as well as provide invoices and/or any other documents evidencing that the money thus received has been used for the stated purposes. The amounts allocated by the Fund are also tariff-frozen, which helps reduce the gap between high inflation rates and the costs the entities must face in their daily operations. The Municipality of Morón mainly offers two types of grants: • quarterly grant: a fixed amount allocated to the entity so as to help it pay for current expenses; and • works, equipment and/or sports competition travel grant: an amount allocated at the institution’s request by means of a formal global project, which is analyzed and approved by the respective work team.
The innovative aspect of this policy is the creation of a specific local fund aimed at a sector that is highly important for the population’s social and cultural development. Another innovation relies on the professional team set up to manage and execute the policy, which is also accountable for it.
The Institutional Strengthening Fund has no partners or contributors, except for the Municipality of Morón’s civil society.
Social participation is crucial for the development of this policy. In fact, the beneficiary institutions must use the allocated Fund amounts to increase and develop their infrastructure, which is evidenced by providing the respective invoices. As the Fund is implemented and the beneficiary institutions grow, the wellbeing of the general society using and participating in them also increases. The Institutional Strengthening Unit must hold regular meetings during the implementation stage, as well as set up evaluation boards at the end of each six-monthly period in order to account for the budgetary uses and the resulting social and cultural benefits.
The fact that the Fund has been created through a Municipal Ordinance provides a solid regulatory support to this policy. With regard to financial resources, the surtax charged on the Security and Hygiene Inspection Tax –as regulated in section 21 of the Tax Ordinance currently in force– provides the Fund with a budgetary strength. Additionally, human and technical resources are also paid out of the resources provided by the Fund.
The Fund is supported by the Institutional Strengthening Unit, consisting of a team of workers and professionals that constantly monitor and control how the funds are used by requesting the institutions to provide all invoices and supporting documentation regarding the use of the funds, among other actions.
Local goverment
Through the Fund, over 170 social institutions have been able to carry out infrastructure works and pay for their current operating expenses. The total amount allocated during the first quarter of 2019 was AR$66,350,610 –which represents a historical figure. Up to 2019, almost 200 quarterly grants were allocated to beneficiaries such as community clubs, civil associations, development organizations, seniors centers, libraries and other not-for-profit entities. Also, more than AR$35,000,000 have been allocated to future infrastructure projects, with the resulting benefits for the community deriving from the growth of these entities. Some of the most relevant works carried out to date are the following: the construction of a gym for El Porvenir institution (AR$800,000); the construction of washrooms and lockers for Fondo de Belgrano institution (AR$800,000); and the construction of new classrooms for Estrellitas Trabajando para la Niñez institution (AR$700,000). Additionally, many centers for retired people and pensioners received air conditioning equipment, such as Luis de Salvo, Haedo Sur, Santa Rosa and Carmelo Selma centers. Since January 2020, the amounts allocated to the different organizations have been increased: AR$45,000 for community clubs and development organizations; and AR$33,000 for seniors centers and community libraries. The management and allocation of these grants, besides building closer relationships between the institutions and the Municipality, has resulted in many of such institutions being currently registered on the municipal records, thus being formally recognized by the local government –a fundamental aspect for their development.
This local public policy does not have any specific mechanism to produce information and make it public. News are communicated through the Municipality of Morón’s institutional channels and media. With regard to direct communication, regular visits are made by municipal staff to each social institution in the city, resulting in a constant outreach and a smooth communication.
The Municipality of Morón’s website provides for free access to public information, allowing all citizens to make individual requests of information, as long as the requested data does not fall into any of the exceptions set forth in Municipal Ordinance on Public Information Access No. 7187/2005.


Instrumentos

8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including, among other things, through a focus on high-value added and labour-intensive sectors.

8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.

8.a Increase Aid for Trade support for developing countries, in particular, least developed countries, including in through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries.

8.b By 2020, develop and operationalize a global strategy for the employment of youths and implement the Global Jobs Pact of the International Labour Organization.

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.

9.3 Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.

9.a Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States.

9.b Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.

9.c Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.

10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

10.5 Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations.

10.a Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements.

10.b Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes.

10.c By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.

A - Full integration of population dynamics into sustainable development with equality and respect for human rights.
C - Ageing, social protection and socioeconomic challenges
American Convention on Human Rights
Universal Declaration of Human Rights (UDHR).
International Covenant on Civil and Political Rights (ICCPR).
International Covenant on Economic, Social and Cultural Rights (ICESCR).
Additional Protocol to the American Convention on Human Rights in economic, social and cultural rights (San Salvador Protocol).

Location

Region
Latin America and the Caribbean
Range of Demographic Size
100,000 to 499,999 inhabitants (large intermediate)

Contact details

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