REGIONAL DEVELOPMENT STRATEGIES IN OECD COUNTRIES Trends and Tools Maria-Varinia Michalun OECD Seminar: Supporting Decentralisation and Deconcentration in Ukraine Kyiv, Ukraine 26 January 2017
REGIONAL DEVELOPMENT STRATEGIES IN OECD COUNTRIES Trends and Tools
Maria-Varinia Michalun
OECD Seminar:
Supporting Decentralisation and Deconcentration in Ukraine
Kyiv, Ukraine
26 January 2017
Introduction
• What’s happening in OECD regions?
• Regional development objectives
• Trends in regional development
• Governance tools
• Conclusions
2
What’s happening in OECD regions?: Growth and Disparities
• Growth is concentrated in a few leading regions
0
10
20
30
40
50
60
70
80
90
%
Regional concentration of GDP growth among top 20% regions with
highest GDP growth rates (2000-2013)
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What’s happening in OECD regions?: Growth and Disparities
• Growth is not always strongest in urban regions
GDP annual growth rate by type of TL3 regions, 2000-13
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-10
12
34
56
LUX
NZL
GR
C
PR
T
ITA
DN
K
JPN
FRA
HU
N
CH
E
SWE
DEU
NO
R
NLDBEL
SVN
GB
R
FIN
ESP
AU
T
IRL
CZEES
T
PO
L
SVK
KO
R
% Urban Intermediate Rural
4
What’s happening in OECD regions?: Growth and Disparities
• No general pattern to changes in inequalities
Gini index of
inequality of GDP
per capita across
TL3 regions, 2000
and 2013
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0.0 0.1 0.2 0.3 0.4 0.5
CHLMEXSVKIRL
TURHUNKORESTPOLGBRCANAUSCHE
OECD31ITA
DNKAUTUSANZLFRACZEDEUNORPRTSVNESPFINJPNBEL
SWENLDGRC
IDNCOLRUSBRACHNLVALTUZAF
2013 2000
%
5
What’s happening in OECD regions?: Well-being dimensions
• Well-being is not uniform across regions
Disparities in well-being dimensions among TL2 regions in all OECD countries, 2003 and 2014. Theil index
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0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Health
Life satisfaction
Community
Civic engagement
Education
Access to services
Housing
GDP per capita
Environment
Jobs
Income
Safety
%
2014 2003
6
Regional development in OECD countries: Country objectives
• Competitiveness, Growth and Inclusiveness
15
15
16
16
17
18
19
20
21
24
26
28
0 5 10 15 20 25 30
Revive distressed areas (population shocks)
Reduce intraregional disparities
Increase accessibility of peripheral areas
Address environmental and climate change issues
Build capacity for local/regional governments
Foster rural-urban linkages
Revive distressed areas (industrial shocks)
Reduce interregional disparities
Provide reasonable access to public services
Achieve balanced growth
Increase competitiveness of lagging regions
Increase competitiveness of all regions (i.e. global…
Number of countries
Regional development policy:
Countries rating objectives as high priority
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Regional development in OECD countries: Country trends
• Focus on competitiveness and productivity
drivers
– Business development
– Fostering innovation
– Promote investment rather than subsidies
• Reduce inter-regional inequalities
– Support lagging regions
8
Regional development in OECD Countries: Country trends
• Promote urban-rural linkages – Support integrated development policies between
urban and rural areas
– Recognition of complementarities
– Definition or redefinition of rural-urban systems
• Strengthen subnational governance and capacity – Support resource availability and capability
• Fiscal/financial capital, human resources, infrastructure
– Promote greater vertical and horizontal coordination
– Consider metropolitan governance arrangements where appropriate
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Regional development in OECD countries:
Governance tools
• Framework policies are common, especially in
Europe
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Regional Development in OECD Countries: Governance tools
Strategy Where are we
going?
Policy(-ies) How are we
getting there?
Programs What takes us
there?
National Strategy for Regional Development
Decentralisation Policy
Sector Decentralisation; Decentralisation
programmes/plans
11
Regional development in OECD countries: Governance tools
• Responsibility for regional, urban and rural development
policy is most often split among ministries or national
level bodies
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Regional development
Rural development
Urban development
Denmark, Iceland,
Netherlands, New Zealand,
Switzerland
Czech Republic, Estonia,
Finland, France, Ireland,
Japan, Luxembourg,
Poland , Slovak Republic
Hungary
Austria, Israel, Korea,
Mexico, Norway,
Sweden
12
Regional development in OECD countries: Governance tools
• Regional Development Agencies
– Accountable to central or regional government, or to a
public-private board
– In the OECD most are regionally managed
– Objectives range from
• Administering a range of sector programmes and building
complementarities
to
• Sector specialisation (e.g. business development and innovation)
– Funding varies
• 40% of surveyed RDAs have multi-level funding (in Europe).
13
Regional development in OECD countries:
Governance tools
14
The country has a mechanisms to ensure co-ordination
across levels of governments: RDAs, national
representatives appointed in SNGs, and contracts or
agreements
a. None of these
b. At least one of these mechanisms
c. At least one of these mechanisms involving several
sectors
3
13 16
None of these At least one ofthese
mechanisms
At least onemechanism
involving manysectors
Vertical co-ordination instruments to support regional investments
Multi-level dialogue to define investment priorities for regional development
The country conducts regular dialogue(s) between
national and sub-national levels on regional development
policy including investment priorities
a. No platform to conduct regular dialogue
b. Formal or ad hoc platforms to dialogue on regional
development and investment priorities
c. The platform for dialogue has decision-making
authority
5
18
9
No reguraldialogue
Formal or ad hocplatform for
dialogue
The platform hasdecision-making
authority
Regional development in OECD countries: Governance tools
• Deconcentration
– Trend toward delegating more powers and/or
strengthening institutional capacity
• Reforming sub-national levels
– Boundaries based on functional areas
– Number of subnational tiers and/or administrative areas
– Competence attribution
15
Regional development in OECD countries: Governance tools
• Multi-level governance reform in three dimensions
16
Institutional reorganising
powers, responsibilities and
resources
Public management:
reorganising administrative
processes
Territorial reorganising
territorial structures
Japan
New
Zealand
Italy
France
Finland
Regional development in OECD countries: Conclusions with respect to Ukraine
• Significantly “on trend” with OECD countries – Focus on competitiveness, inclusiveness and well-being
– National level strategic framework and policy cascade
– Addressing administrative boundaries and levels • Discussion regarding number of rayon
• Hospital districts
– Building sub-national capacity with decentralisation tools • Newly amalgamated communities and inter-municipal cooperation
• Fiscal decentralisation for greater resource capacity
• Supporting urban-rural linkages
• Strengthening potential of rural and possibly lagging areas
• Resulting in expected greater: – Competitiveness and well-being in communities
– Investment in service and infrastructure
17
Thank you