Regional Development

OECD Territorial Reviews: Luxembourg


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     ISBN Number:

     Publication date:
     December 2007
     Pages : 190




The Grand-Duchy of Luxembourg has, in the space of a few decades, successfully brought about a profound change in its economy, moving from a productive system based essentially on the steel industry to an economy based on the financial sector.

This restructuring, making the Grand-Duchy the leading OECD country in terms of per capita income, has involved extensive use of foreign labour in various sectors, and especially the financial sector. 39.5% of Luxembourg’s inhabitants are foreign (the highest percentage among OECD member countries), and more than 130,000 foreigners cross the border to work in Luxembourg every day.

These steadily growing flows pose some serious problems in terms of transport infrastructure, the environment, and housing, particularly since the high price of land, especially in the capital region, is also prompting some residents to become commuters.

  • How can these flows be better managed so as to ensure sustainable economic development? 
  • How can these strategic changes be made in co-operation with neighbouring countries in the context of the “Greater Region” by combining the national interests of the Grand-Duchy with the aspirations of the neighbouring regions of three other countries?
  • Can the ambitious strategies that Luxembourg has adopted - in particular by significantly developing public transportation and new housing - meet expectations without more active support from its partners?
  • Finally, can regional reform, through its direct links with territorial development, contribute to a more balanced distribution of activities?

The Territorial Review of Luxembourg is part of a broader programme of national territorial reviews undertaken by the OECD’s Territorial Development Policy Committee. The general purpose of the series is to recommend practical courses of action to national governments. The countries most recently reviewed have been Canada, the Czech Republic, Finland, France, Hungary, Italy, Japan, Korea, Mexico, Norway, and Switzerland.

How to Obtain this Publication (French only)

The English version of this publication is forthcoming. Readers can access the full version of OECD Territorial Reviews: Luxembourg in French choosing from the following options:

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