Local self-government outlines the right and the ability of local authorities, within the limits of the law, to regulate and manage a substantial share of public affairs. In a local democracy this right is 
conferred to councils or assemblies composed of members freely elected by secret ballot and directly accountable to their own local constituency. This adheres to the principle of subsidiarity, which ensures that problems are addressed by those institutions and civil society groups that are most competent and closest to citizens.

In 2007, the Government of the Republic of Macedonia adopted the first Strategy for Cooperation of the Government with the Civil Society and the Action Plan 2007-2011. There, the Government emphasized the importance of the civil society in general, thereby setting the ground for its cooperation with CSOs and took a systematic approach in strengthening the basic conditions for a faster and more efficient development of this sector. The Strategy refers to the cooperation with associations and foundations, as part of the wider civil society sector, with the aim of ensuring inclusive 
process and engagement of the civil society in policy making processes. In the period following the adoption of the Strategy, a number of activities were undertaken, each with the aim of implementing the goals and measures and strengthening the sector. Following the example of that Strategy, a number of other strategies and documents were adopted, through which institutions on both a national and local level expressed their commitments to develop certain areas important for the work of the civil society and to include CSOs in inter-sectorial initiatives.

The main goal of the study is to inspect the mechanisms for cross-sectoral cooperation and dialogic mechanisms at the local level and on that basis to make a series of recommendations for further development of the methodology and transparent system of financial and non-financial support for CSOs, at the local level. Effective, functional and sustainable mechanisms for cooperation are a key precondition for creating an enabling environment for active participation of civil society and civic activism at the local level. These principles, of course, include basic principles: respect for human rights and fundamental freedoms, the rule of law, respect for basic democratic principles, political engagement, clear procedures, and open space for dialogue and encouragement of conditions for an energetic, pluralistic and sustainable civil society.

Kosovo's local self-government reform became a prominent issue in early October 2002, with the publication of the Seven Planning Points for Mitrovica by the then Special Representative of the Secretary-General of the United Nations (UN), Michael Steiner. Steiner's plan was to decentralize local government in exchange for Kosovo Serb participation in the October 2002 local elections. Although the offer to the Serbian community was a dubious success in this regard, decentralization remained on the agenda, with the Secretary-General's Special Representative calling for a broader process involving all Kosovo municipalities.

The spectacular advance of local and regional democracy was the main innovation of 20th century democracy. The recognition of local democracy by the Council of Europe member states led to the elaboration of the European Charter of Local Self-Government – the first internationally binding treaty that guarantees the rights of communities and their elected authorities. This text, which affirms the role of communities as the first level for practising democracy, has become the benchmark international treaty in this area.

Local government in Europe has seen significant changes over the past two decades. In spite of the several differences between the European countries in terms of local autonomy, local government has become a key element in their political systems mainly for two reasons. Firstly, local government organisations are in charge of the delivery of some services such as education, welfare and urban planning. Secondly, the principles and practice of democracy are learnt, developed and reinforced most effectively in the context of local politics, where participation is relatively easy and the rewards more immediate.

This document addresses the main issues of what is local democracy, how local self-government emphasizes the right and ability of local authorities, as well as the basic principles of local self-government. In this document you will also find answers about local development and how local democracy can be promoted in public.

The project entitled "Good governance of municipal democracy and civic participation at the local government level" contains activities aiming at initiating social change at the local level in the Republic of Macedonia, also aiming at consistent practice of democratic values ​​and uninterrupted participation of citizens in local decision making. By examining the situation in 8 selected municipalities in the Republic of Macedonia in terms of: their management of public finances, fiscal transparency, control and audit of public spending, the undertaken reform activities and initiatives by citizens in the last 3 years, we will get information about the species and the quantum of activities undertaken at the local level at the initiative of the citizens.

Local Government and Public Service Reform Initiative (LGI), as one of the programs of the Open Society Institute (OSI), is an international development and grant-giving organization dedicated to the support of good governance in the countries of Central and Eastern Europe (CEE) and the Newly Independent States (NIS). LGI seeks to fulfill its mission through the initiation of research and support of development and operational activities in the fields of decentralization, public policy formation and the reform of public administration.

Локалната самоуправа е темел на модерната демократија. Не случајно се вели дека нема демократски политички систем без развиена локална самоуправа и локална демократија, оти демократијата извира од локусот во кој граѓаните живеат, работат, комуницираат, ги задоволуваат основните лични и колективни интереси и потреби, директно или преку локалните органи, како најблиски до нив.