Territorial Reviews: Ukraine (2013, forthcoming)

Territorial Reviews: Switzerland (2011)

 Regions in Switzerland are performing well in many respects. They have high levels of GDP per capita and low unemployment rates, and some regions show impressive growth rates. In addition, Swiss regions have not been confronted with the challenges faced by many similar regions in the OECD, such as limited access to services and population decline due to ageing or emigration. Regional labour productivity growth still requires further policy attention.

In order to improve regional economic performance, Switzerland introduced the New Regional Policy (NRP) in 2008, following the 2002 OECD Territorial Review of Switzerland. The NRP reflects a clear shift of focus from infrastructure and financial assistance towards economic support for the creation of value added to the regional economy. The current review provides recommendations on how the impact of the NRP can be increased through extended territorial coverage, inter-cantonal co-operation, and co-ordination of sectoral policies. This review also takes a close look at regional innovation policies, arguing that a division of roles should be achieved, with the federal level funding research and technology transfer on a country-wide basis, and cantons providing innovation support according to functional areas.

Territorial Reviews: Sweden (2010)

This review of regional policy in Sweden finds that Sweden has recently renewed focus on promoting development opportunities in all regions and has introduced a gradual regionalisation process with a strong bottom-up approach. Yet challenges remain, particularly concerning knowledge diffusion and urban-rural linkages. Further efforts to achieve critical mass and improve co‑ordination can help better address local needs. This Review explores the potential for enhanced innovation and entrepreneurship in both urban and rural areas and provides recommendations to strengthen Sweden’s regional development strategies through improved governance mechanisms, both regionally and across levels of government.

Territorial Reviews: Chile (2009)

Chile has achieved strong economic growth during the last 20 years. Nevertheless, its economy depends on a few resource-based sectors located in a small number of regions. The performance of Chilean regions varies significantly and regional disparities in GDP per capita are very high compared to those in OECD countries. Chilean regions have thus far so not fully utilised their assets and reached their potential for growth. This report recommends moving towards a territorial approach to development in Chile in order to better adapt public management to the different opportunities and needs of the diverse territories of the country. Chilean regions would particularly benefit from context-specific policies to boost productivity, such as those targeting innovation and entrepreneurship, and to improve education and training.

Territorial Reviews: Poland (2008)

Although Poland has managed to maintain high growth levels since the mid-1990s, with the second-best performance in the OECD in 2006-07, territorial disparities are persistent and rising, especially between large urban areas and rural ones. Like many OECD countries, Poland must seek to achieve an appropriate balance between support for poles of growth and the development of lagging regions, particularly its eastern peripheral regions, which are among the poorest in the European Union. This report explores the various challenges and opportunities for Polish regional development policy, and provides recommendations to best design and implement the policy mix, looking in particular at governance challenges.

Territorial Reviews: Portugal (2008)

In order to curb rising unemployment and to upgrade low value-added activities, the competitive edge lost in low-cost labour must be earned back through education and innovation. Regional policy stands as a key tool to achieve this shift in a relatively small yet diverse country with moderate economic growth and limited public spending capacity. This report analyses how a paradigm shift in regional policy, building on the knowledge of both public and private stakeholders in specific regions (ranging from dynamic urban areas on the coast to lagging inland areas), could help Portugal fully exploit its potential for sustainable development.

Territorial Reviews: Norway (2008)

Few other countries feature the combination of very low population densities and difficult topography that hinders communication, in addition to a variety of contrasting climates. But the “Nordic welfare model” strives, with a good degree of success, to offer equal living conditions to all citizens by providing proper access to quality public services across the country. This comes, however, at great cost. This publication asks whether such a model can be sustainable in the long run, when population ageing and the reduction of petroleum reserves will reduce the leeway that the rapidly growing economy offers.  It examines whether competitiveness and innovation could be further developed, given the high share of resource-based and traditional activities and whether urban policy could be better integrated into regional policy so as to better harness the energy of regional growth engines in different areas of the country, including the northern most parts. Lastly, it looks at whether impending regional reform could facilitate the necessary adaptations by transferring more power to regional councils.

Territorial Reviews: Luxembourg (2007)

In the short span of just a few decades, Luxembourg has moved from a steel-based economy to one more broadly based on financial services.  But being nestled between three other countries, each with their own infrastructure and development issues presents challenges.  This review examines the economic trends and disparities within the region, including under-exploited assets.  It makes recommendations regarding planning, the urban-rural balance, housing and land policy, transport, and R&D and education.

Territorial Reviews: France (2006)

This detailed policy review examines recent developments in regional policy in France and in particular, challenges regarding competiveness policies and multilevel governance. It includes interesting statistics related to regions and makes a series of recommendations for French authorities.

Territorial Reviews: The Mesoamerican Region: Southeastern Mexico and Central America (2006)

Mesoamerica is a region characterised by high poverty levels, large urban-rural disparities, and a large informal economy, but also having a strategic location, rich natural and cultural resources, and light manufacturing. This pioneering study of the OECD examines how Mesoamerica could better exploit its economic potential. It shows how the region could improve its competitiveness and social cohesion and strengthen governance through a comprehensive development agenda. 

Territorial Reviews: Japan (2005)

Low growth, population ageing and depopulation, and new trade relationships with the East Asia region have made it increasingly necessary for Japan to reform its economic and institutional systems. A key element of this reform concerns Japan's policies for regional development.

This report reviews progress with different aspects of this reform, such as reform of territorial planning, regional economic policy, urban policy, rural development and administrative and fiscal decentralisation. It highlights the challenge facing the Japanese government as it combines new approaches to policy-making at the central level with mechanisms that assign a greater voice to regional and local actors.

Territorial Reviews: Finland (2005)

This book reviews Finland's success in achieving balanced development over the past decade and assesses the challenges that it faces in maintaining this success.  Given intense competition in both ICT and more traditional product markets, as well as rapid ageing of the population, it looks at how Finland might maintain and enhance the competitiveness of the regions that are the nation's economic drivers and how the country can promote innovation and entrepreneurship in intermediate cities particularly vulnerable to low cost competition.  It also examines how Finland might facilitate growth in those regions that have potential for development, but so far have been less successful in exploiting their comparative advantages.

Territorial Reviews: Czech Republic (2004)

One of the major challenges facing the Czech Republic is to preserve the role of the Capital city Region of Prague and its surroundings as growth engines for the national economy, while ensuring adequate development in other regions. This report examines the performance and potential of the various Czech regions, examines strategies and policies for fostering better regional peformance, and looks at the institutions involved and makes recommendations for their improvement.

Territorial Reviews: Mexico (2003)

This review of Mexico evaluates emerging territorial development strategies as well as  relevant changes in governance, such as new horizontal and vertical co-ordination mechanisms, being introduced in conjunction with improved federal arrangements.  The review focuses on three policy objectives that are considered as having greatest priority in confronting and redressing Mexico’s stark regional disparities: alleviating poverty, fostering competitiveness and enhancing connectivity.  The review is for academia, policy makers and economists, NGOs and independent think tanks

Territorial Reviews: Canada (2002)

OECD's Territorial Review of Canada. It finds that Canada is composed of three macroregions: a southern ribbon with all the important metropolitan areas, a zone of rural and non-metropolitan adjacent regions and a sub-continent of remote northern territories. Disparities between these macroregions persist and may even be growing. Opportunities for growth are  lost because of these imbalances and also because specific regional advantages are not fully tapped. In many regions, weak local governance is hindering the emergence of local grass-roots projects, diffusion of R&D results to SMEs is slow and dialogue between higher education institutions and firms is poor. This report underlines the need for federal agencies and sectoral departments to continuously assess the consistency of their policies with regard to the three macroregions in order to enhance territorial cohesion and better tailor programmes to local conditions. More federal involvement in metropolitan issues notably through negotiated planning could help to institutionalise and strengthen urban policies. This report also emphasises the significant overhauling of rural policies that took place recently. It underlines that in certain areas such as amenities a strategic approach is still to be defined. Resolving governance issues is a priority in the north.

Territorial Reviews: Switzerland (2002)

The review points to the need to redesign regional policy. The ongoing reform of fiscal federalism, supposed to foster subnational autonomy and to reduce disparities more effectively, is an important step towards balanced regional development. The review emphasises the need to extend regional policy to the entire country, and to link it more strongly to spatial planning, in order to ensure that all regions benefit from the advantages of liberalisation and globalisation.

Territorial Reviews: Hungary (2001)

OECD's territorial review of Hungary. It finds that ater a period of decline Hungary has returned on a satisfactory growth track. However, benefit and cost have not been evenly distributed during the transition. This report points to the persisting disparities between the West and the East, the capital and the periphery and urban and rural areas. It analyses numerous spatial, economic and social issues including transportation priorities, clustering of regional capacities, cross-border co-operation, the links between foreign investment and endogenous activities and social policies decentralisation. The review emphasizes the need to better articulate the territorial policy framework with those of the EU and proposes recommendations in order to streamline the institutional system and reinforce the subnational levels.

Territorial Reviews: Korea (2001)

Deep societal changes against the backdrop of rapid economic growth have characterised Korea in the Post-War period. Most notably, the tripling of its population has induced significant territorial transformations. Despite the effort to promote balanced regional growth, Korea is still characterised by substantial geographical polarisation. An economically dominant Capital region lodges more than 45 per cent of the country’s population, producing nearly half of its GDP. Over the past decade, policy makers have developed a comprehensive spatial perspective, they have put in place policies tackling the use of land, infrastructure and problems in lagging regions, and they have significantly restructured territorial governance. However, further action may help fully exploit the on-going efforts. Cross-sectoral co-ordination is weak and better correspondence between the overall spatial vision and financial support to individual public projects seems appropriate. Territorial governance remains centrally oriented with the result that limited local autonomy may hinder regional innovation directed to sustainable economic growth. The focus on large firms may fail in exploiting the considerable contribution of SMEs to regional development. The Territorial Review on Korea is integrated in a wider programme of National and Regional Territorial Reviews undertaken by the OECD Territorial Development Policy Committee. The overall aim of the Territorial Reviews is to provide practical policy advice to governments.

Territorial Reviews: Italy (2001)

Italy’s economic development has been characterised by marked regional disparities, most notably between the Centre-North and the South. Today, Italy demonstrates one of the widest geographical dualisms among OECD Member countries. In the Southern regions, the unemployment rate is still four times higher than in the Centre-North despite recent signs of dynamism. The infrastructure endowment of the South remains far below the national average and organised crime still constitutes a heavy deterrent both for investment and endogenous development.

The country has recently started relevant and promising transformations of its territorial governance aimed at creating those framework conditions that could favour local economic development in depressed areas. New instruments have been developed for the Mezzogiorno (Southern Italy) which involve all actors and all tiers of government, in the strategic phases of design, implementation and evaluation of territorial policies. The review describes these policy innovations and discusses the major challenges that the country must tackle in order to reach a more balanced territorial development and lay the foundations of a new convergence process.

Territorial Reviews: Krasnoyarsk, Russia (forthcoming)

Territorial Reviews: Småland-Blekinge, Sweden

The OECD territorial review of Småland-Blekinge presents an overview of recent trends, regional policies and governance arrangements of this region that is made up of four counties in South-East Sweden: Jönköping,  Kronoberg, Kalmar and Blekinge. The challenges include the need to facilitate a shift from the region’s historic specialisation in medium-low and low technology manufacturing towards more knowledge-intensive activities. This will require addressing the supply of human capital, improving connectivity and enhancing the attractiveness of the region. A regionalisation reform is now under discussion in Sweden with potential implications for Småland-Blekinge. Whatever the future administrative structure of Småland-Blekinge, the effectiveness of regional development policies and public service delivery will be directly related to strengthened interaction and co-ordination arrangements among the numerous actors and administrative units involved.

Territorial Reviews: Chihuaha, Mexico (2012)

Located at the border with the US, Chihuahua has benefited from FDI and NAFTA. Chihuahua has been one of the richest regions in Mexico and one of the most dynamic in the OECD. However, the region’s FDI-trade link with the USA has also led to some vulnerability to external shocks. The two crises affecting the USA in the past decade affected Chihuahua more than any other state. Despite recent progress in the quality of education, other structural challenges such as lower productivity growth, high inactivity rates and dwindling employment rates have been factors in Chihuahua’s sluggish growth. Chihuahua not only displays large intra-regional and gender inequalities, but also the largest inter-ethnic inequality levels in the country. Chihuahua can gain from a territorial approach to policymaking that integrates sectoral policies, fostering value-added in rural activities, better linking SME-development and FDI-attraction policies, as well as between innovation capacities and applications. The region could also strengthen their recent inclusive governance arrangement with civil society and the private sector.  Growth and development can only be possible if the current challenges in insecurity, water shortage and public finance are addressed.

Territorial Reviews: Yucatan, Mexico (2007)

The Mexican state of Yucatán, with its strategically important location near the United States, Central America and the Caribbean, is one of the most dynamic regions in the OECD. Yucatán is also a land of contrasts. It is a lagging but growing region, offering a high quality of life and vast natural resources, yet suffering from problems of sustainability. Its tourism attractions are located in rural areas that do not benefit from them. It has both state and Peninsula medical services, but its health services coverage is uneven. Yucatan is a centre for higher education in the Peninsula, yet its graduates do not find jobs. It has a number of marginalised communities in fragmented administrative bodies, and although the Peninsular states share a common cultural heritage and attractiveness, their institutions do not co-operate.

Clearly, Yucatán is not taking full advantage of its many resources, and in fact, challenges in the region threaten to undermine local assets. Among these is the need to upgrade activities to higher value-added innovation and design processes, and to foster primary activities to reach international markets. While the state government has proposed programmes to spur formalisation of the informal economy, measures such as better regulation, cutting red tape and providing employment opportunities and access to formal credit could have a greater impact. The lack of a shared, coherent long-term vision is a fundamental challenge to improving regional competitiveness and social cohesion in Yucatán. The OECD’s recommendations can only be part of a larger strategy to develop a collective vision of the state’s future

Territorial Reviews, Champagne-Ardenne, France (2002)

The Champagne-Ardenne region in the north-east of France enjoys comparative advantages in a number of sectors, including mechanics, metalworking, packaging and agriculture, and of course champagne. Although it still ranks fifth among French regions in terms of GDP/capita, Champagne-Ardenne lost ground during the recession of the early 1990s. A recovery is now under way, but uncertainties about the future remain.

This report analyses the strategy conducted by the Regional Council to strengthen the catching-up process and diversify the regional economy. It insists on the need to focus on two prime engines of growth: entrepreneurship and foreign direct investment. Moreover, increasing the competitiveness of the region calls for special efforts to help Champagne-Ardenne move towards more knowledge-based economic activities, to stimulate research and to encourage SMEs to network and innovate. While a better balance between agricultural policies and rural policies needs to be found, the region also has an important role to play in fighting urban decay - Champagne-Ardenne is one of the regions in France with the largest proportions of total population living in sensitive urban zones. The report also suggests that the potential for urban development could be enhanced by encouraging co-operation among cities and fostering the establishment of urban networks.

The Territorial Review of Champagne-Ardenne is part of a wider programme of National and Regional Territorial Reviews undertaken by the OECD Territorial Development Policy Committee. The overall aim of the Territorial Review series is to provide practical policy advice to governments. Territorial Reviews focus on three types of regions (urban, intermediate and rural), with a view to contributing to a wider understanding of the challenges faced by these regions and the available options for practical solutions.

OECD Territorial Reviews, Comarcas Centrales Valencianas, Spain (2001)

The future of the region in an era of globalisation is uncertain. At a time when producer services are becoming critical to the success of goods producing industries, will the small settlements that characterise the Valencian Central Districts be able to maintain their competitive position? And should they find new forms of partnership in order to increase their capacity to make investments? The aim of this Territorial Review is to provide practical policy advice on how the area can respond to new challenges by enhancing potential opportunities.

Territorial Reviews, Bergamo, Italy (2001)

The province of Bergamo, located in Lombardy, is one of the most successful regions in Italy. The economy is highly competitive, diversified and export-oriented, productivity is above the national average, and unemployment is almost non-existent. The diversity of the region and its abundant cultural and environmental assets are likely to turn the province into an outstanding tourist destination.

The future success of the province is not certain, though. Bergamo still faces important challenges, like improving its education sector or building transport infrastructures that respond to the needs of the population and of the business sector . This Review provides advice and guidelines on how new policies may be put into practice.

Territorial Reviews: Toronto, Canada (2009)

OECD's Territorial Review of Toronto, Canada.  It finds that the Toronto region is one of the chief economic powerhouses of Canada, generating almost one-fifth of national GDP and 45% of Ontario’s GDP. The region is home to 40% of Canada’s business headquarters and is a main manufacturing hub, with major automotive, biomedical and electronics companies. Toronto is also one of the most diverse metropolitan regions in the world: half of its population is foreign born and it hosted 40% of all immigrants to Canada during 2001-2006.

Nevertheless, the region’s current economic development model is under pressure and its economic performance has been mixed in recent years. From 1995 to 2005, GDP per capita and GDP growth rates were below the Canadian average while its annual economic and labour productivity growth were lower than the average for OECD metropolitan regions. During this period, population growth boosted demand in the construction, sales and retail, professional and financial services sectors. However, the recent decline in the area’s manufacturing jobs has illustrated the structural difficulties of some traditionally strong areas, such as the automotive and electronics industries.

This Review proposes a new sustainable competitiveness agenda to enhance productivity, focusing on innovation, cultural diversity and infrastructure, as well as on green policies. To implement such an agenda, the Review proposes improving the current governance framework by intensifying strategic planning at the level of the Toronto region.

Territorial Reviews, Busan, Korea (2005)

This Territorial Review of Busan, Korea examines the regions trends and capacities, assesses its regional competitiveness, and makes recommendations for policy improvements.

Territorial Reviews, Mexico City (2004)

The OECD Territorial Review of Mexico City highlights the region’s great potential for further growth, which is linked to the concentration of headquarters, educational establishments and research facilities, as well as high levels of FDI and rich cultural resources. However, it also reveals that this growth is constrained by low levels of human capital, inadequate infrastructure and widespread, acute poverty. The current governance framework, characterised by modest co-operation, also remains a sticking point for the region’s development.

Territorial Reviews, Montreal, Canada (2004)

Metropolitan areas in many OECD countries are fragmented into various territorial units, which do not correspond to the larger geography of economic and social problems. While the ensuing mismatch is not a new phenomenon, increasingly, fragmentation appears as one of the root causes of metropolitan dysfunctions, such as internal fiscal disparities, urban sprawl, and spatial polarisation, which in turn constitute an obstacle for competitiveness. This review examines the case of the metropolitan region of Montreal which has undergone one of the most radical institutional reforms in OECD countries. On the one hand, the amalgamations of municipalities led to the creation of the two new cities of Montreal and Longueuil. On the other hand, a new metropolitan body was set up to cover the whole functional and economic area — the Montreal Metropolitan Community (CMM). These institutional reforms provide a valuable opportunity to meet the challenges of Montreal's competitiveness. The new governance framework needs however to be consolidated, especially with regards to clarification of competencies and fiscal responsibilities and resources. Streamlining institutional structures and fiscal resources will not be enough. Implementing and not simply elaborating a comprehensive economic strategy for the whole metropolitan region will be the main challenge for Montreal in the following years.

Territorial Reviews, Öresund, Denmark/Sweden (2003)

Competitiveness is increasingly cited as the key objective of regional economic policy. In the same way that company executives strive to improve their market share and national governments are introducing competitiveness strategies, policy makers in urban areas are looking for ways to increase or maintain the competitive edge of their cities. This is a daunting task in any situation, but particularly so when, as in this case, the functional economic area concerned stretches across national boundaries.

The constituent regions of Öresund, comprising the island of Zealand in Denmark, home of Copenhagen, and Sweden’s Skåne region which hosts the country’s third biggest city, Malmö are both wealthy areas. It is a “learning region” and has a strong presence in some high technology sectors. As such, the key to future growth is not simply the creation of a fixed link between the two parts of the region or improved flexibility in an expanded labour market. The region must look outward and compete with other metropolitan areas to retain and augment the assets that give it, at present, a strong competitive position in the “new economy”.

Territorial Reviews, Helsinki, Finland (2003)

The Greater Helsinki Region emerged from the 1990s as an internationally competitive economy. This review examines the factors contributing to this success and the new development challenges it has created. One critical policy question is the Finnish dependence on the telecom/mobile industry. The current strategic positioning of the Finnish ICT cluster builds on a high-return/high-risk scenario. Long-term regional competitiveness requires a more focused strategy of diversification, i.e. developing ICT activities beyond the current cluster scope. Social inclusion is another crucial issue. Persistent unemployment among the less educated population and growing income disparities are calling for the restructuring of past policies. The Greater Helsinki Region needs to find ways to promote new opportunities of social cohesion. Rapid population growth has resulted from greater economic competitiveness requiring renewed commitment to managed growth and compact development. All of these challenges create needs for greater metropolitan co-ordination that are examined in turn.

The Territorial Review of Helsinki is integrated into a wider programme of national reviews and thematic regional reviews undertaken by the OECD Territorial Development Policy Committee. The overall aim of the thematic regional review series is to provide practical policy advice to governments focusing on three themes: multi-level governance, sustainable development at local and regional levels and regional networks for competitiveness.

Territorial Reviews, Metropolitan Melbourne, Australia (2003)

OECD's comprehensive territorial review of Melbourne, Australia's second largest city, most important container port, and leading cultural and educational centre.  It finds that Melbourne is poised for a major phase in its growth, but that it faces a number of challenges.

OECD Territorial Reviews, Vienna-Bratislava, Austria/Slovak Republic (2003)

The Vienna-Bratislava region on the Austrian-Slovak border rapidly increased its competitiveness after 1989, following a 40 year separation by the Iron Curtain. As a result of the removal of many national and international barriers, trade flows and foreign direct investment have flourished, and regional growth, above national averages, has reduced internal disparities. However, new obstacles to further integration have emerged. Institutional reforms and stronger cross-border collaboration will enable the region to improve transport infrastructure, tackle restrictions on labour mobility, and better link the learning and productive systems on both sides of the border.

Territorial Reviews, Siena, Italy (2002)

OECD's territorial review of the Italian province of Siena. It finds that Siena, a predominantly rural province in central Italy, has enjoyed steady economic growth throughout the post-war period. This success has its roots in a diverse economy based on manufacturing, services, high-value-added agriculture and a dynamic tourism sector. Nonetheless, it is these last two sectors that give Siena its main competitive advantage: an outstanding concentration of high-quality environmental and cultural resources which are unique to the region.

The promotion of different sustainable development initiatives has been motivated by the need to ensure the valorisation and conservation of this major asset. This is most apparent in the effort to ensure that the region's development is not spoilt by the impact of mass tourism and an uncoordinated offer. The agrarian landscape also faces an uncertain future as the bulk of the cultivated land area remains dependent on EU subsidies, notwithstanding the market success of many agricultural producers. To respond to the challenges of sustainable development, Siena needs to fully integrate its development objectives with the most effective means to bring them about, in a co-ordinated and long-term planning exercise.

Territorial Reviews, Tzoumerka, Greece (2002)

The Tzoumerka is a mountainous area in Northwestern Greece that presents considerable development challenges with respect to economic growth, social cohesion and governance. The area is highly dependent on traditional agricultural activities that are only made viable by considerable Common Agricultural Policy (CAP) support. Unfortunately, this support will almost inevitably decline. As incentives to modernise agricultural activities and promote other business activity have been ineffective, local development policy will need to go farther. It must direct the local population away from old survival habits to investing in capabilities required of new economic projects. The policy instruments that are likely to be most effective in creating a new mindset will consist in identifying and incubating a small number of successful initiatives with strong demonstration effects. Strategies identified include processing raw agricultural products into premium foodstuffs, to appeal to contemporary demand trends, and harnessing the valuable tourism resources of the area in order to attract visitors who increasingly seek out authenticity in their tourism experiences.
The Territorial Review of Tzoumerka is integrated in a wider programme of National and Regional Territorial Reviews undertaken by the OECD Territorial Development Policy Committee. The overall aim of the Territorial Reviews is to provide practical policy advice to governments. Territorial reviews focus on three types of regions (urban, intermediate and rural). They contribute to a wider understanding of the challenges these regions face and their options for practical solutions.

Territorial Reviews, Teruel, Spain (2001)

The region is a typical, albeit extreme, example of a low density remote area with an economic base facing serious challenges and little more than its own assets to rely on for its economic development. This book focuses mainly on how the area’s substantial natural and cultural resources can make a more important contribution in a forward-looking and integrated development strategy.