175. There has been a multiplication of non-state actors in development _ those of the civil society _ who are playing an increasingly important role in development. The State has overall responsibility for policy formulation in the economic, social and environmental spheres, including the correction of market failures, the provision of public goods, the creation of a favourable enabling environment for the private sector as well as a favourable legal and regulatory framework. It should also encourage effective participation by the private sector and major groups in activities which complement and reinforce national objectives.

176. Participation is an essential component of successful and lasting development. It contributes to equity by involving people living in poverty and other groups in planning and implementation. Participatory decision-making, together with the rule of law, democracy, and transparent and accountable governance and administration in all sectors of society is an important requirement for the effectiveness of development policies.

177. Full participation in society should be achieved through the promotion and protection by Governments of all human rights and fundamental freedoms, including the right to development, bearing in mind the interdependent and mutually reinforcing relationship between democracy and respect for human rights. Governments should make public institutions more responsive to people's needs. Therefore, full respect for all human rights and fundamental freedoms, in accordance with the conclusions of the Vienna Declaration and Programme of Action should be promoted.

178. There is a large potential benefit to be derived from increased participation. In order for it to be realized, Governments should establish institutional and legal frameworks and decentralized processes, that allow their people greater involvement in the decisions that affect their lives. This requires that Governments give adequate support to the administration of justice as well as to public administration which should be responsive to the requirements of their people.

179. Governments are encouraged, where appropriate, to decentralize their public institutions and services to a level that, compatible with their overall responsibilities, priorities and objectives, responds properly to local needs and facilitates local participation. To ensure effective decentralization and strengthening of local authorities and their association/networks, Governments, at the appropriate levels, should review and revise, as necessary, legislation to increase local autonomy and participation in decision-

making, implementation, and resource mobilization and use, especially with respect to human, technical and financial resources and local enterprise development, within the overall framework of a national economic, social and environmental strategy. Governments, when they consider it appropriate, could work on decentralization programmes with the support of donors and international institutions.

180. The key to participatory development means fulfilling the potential of people by enlarging their capabilities, and this necessarily implies empowerment of people, enabling them to participate actively in their own development. In order to fulfil their potential, people, especially those who are vulnerable and disadvantaged, must participate actively in establishing and maintaining independent organizations representing their interests, within each country's constitutional framework. Political empowerment is an integral aspect of participatory development.

181. A vigorous civil society is indispensable for popular participation at all levels and an essential component of any successful development strategy. Community organizations, business and workers' organizations, NGOs and self-help groups must be actively involved. Governments should view them as important actors and partners in development. Greater accountability and transparency in such organizations' activities would be helpful in this regard. In countries where the participation of civil society is weak, it should be a major purpose of public policy to strengthen it.

182. Broadening and strengthening the participation of developing countries in the international economic decision-making process is also necessary.