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The COVID-19 pandemic has had devastating effects on lives, the economy, and the public finances worldwide, drawing attention to the need to enhance resilience to future shocks. This paper focuses on subnational governments, given their important and growing role in the provision of essential public goods and services worldwide. The paper discusses key aspects of subnational resilience, in particular the sensitivity of subnational finances to macroeconomic cycles and shocks and the availability of fiscal buffers; the main factors influencing subnational governments’ ability to provide essential services during crises; and their ability to anticipate and prepare for future shocks, especially those related to climate change. The paper also discusses policy and institutional reform options for both national and the subnational governments to strengthen subnational resilience.

Laws and regulations affect the daily lives of businesses and citizens. It is important that they are designed in a way that takes account of their social, environmental and business impacts and ensures they remain relevant in today’s fast-changing context. The second edition of the Better Regulation Practices across the European Union report analyses recent developments and current practices for improving the quality of laws and regulations across all 27 EU Member States and the European Union. Using the OECD Indicators of Regulatory Policy and Governance, the report systematically assesses the use of evidence-based tools and stakeholder participation in the design and review of both domestic and EU laws and regulations, and provides a detailed assessment of the application of the proportionality principle. The report presents good regulatory practices and highlights areas that should receive further attention and investment.

The OECD report Urban-Rural Linkages in Poland analyses the potential of urban and rural territories for development and improved well-being. Urban and rural areas have different yet often complementary assets, and their better integration is important for socio-economic and environmental performance. The report argues that local governments need to engage in partnerships where all parties are equal, as a higher form of urban-rural co-operation. Building urban-rural partnerships in Poland would help territories enhance the production of public goods; achieve economies of scale in public service provision; co-ordinate decisions where cross-boundary effects are important and increase the capacity of the partners. Yet a lack of trust and of policy integration hinder the effectiveness of partnerships. The report found that the main incentive for Polish local governments to enter into a partnership is access to EU funds. However, while Poland has developed solid experience in the management of EU funds, it would benefit from deepening the integration and complementarity among funding streams. Moreover, the report argues that strengthening metropolitan governance will underpin efforts to facilitate the formation and management of urban-rural partnerships.

Young people have demonstrated resilience to shocks and led positive change in their communities across the Middle East and North Africa (MENA) region. Young people (aged under 30) constitute more than half (55%) of the population across MENA, compared with 36% of the population across OECD countries. While challenges vary significantly across the region, youth unemployment rates are among the highest in the world, young people tend to express low trust in public institutions, and nearly four in ten live in fragile and conflicted-affected areas. The COVID-19 crisis has underscored the need to place the needs of young people at the centre of an inclusive and resilient recovery. To support this process, this report analyses current governance arrangements and practices across 10  MENA governments in three areas: 1) uniting all government stakeholders to implement a shared, integrated youth policy and deliver services to young people; 2) building administrative and institutional capacities to mainstream the perspectives of young people in policy making; and 3) encouraging the participation and representation of young people and youth stakeholders in public and political life.

The study is part of the OECD work stream Preparing Regions for Demographic Change, a megatrend that affects several important dimensions of public policy. The following three of them are particular relevant for Korea’s regions and rural places: (i) workforce dimension, (ii) social dimension and (iii) governance dimension. The report consists of three chapters. The first chapter depicts and benchmarks demographic trends in Korea regions against other regions from OECD countries. The second chapter examines a range of policies that can address socio-economic challenges related to demographic trends across the OECD and describes Korea’s current policy approach to manage demographic decline and ageing in regions and rural places. The third chapter identifies recommendations for Korea that can help respond to current economic and demographic trends, and ensure social cohesion. It suggests Korea should aim to develop a clear national rural development strategy, tailor labour policies to rural areas, support rural entrepreneurship, rural SME and the social economy, promote rural innovation and foster local governments’ and communities’ capacity to respond to demographic challenges.

Over the past decade, the United Kingdom has reduced several environmental pressures while growing its economy. Ahead of its presidency of the 2021 UN Climate Change Conference of the Parties, it has led the way by raising its national ambition. However, air pollution, deteriorating natural assets and missed biodiversity targets are all concerns. Further efforts are needed to achieve net zero greenhouse gas emissions by 2050, prepare for climate change, reverse biodiversity loss and ensure a more resource-efficient circular economy. Strengthening co‑ordination between the United Kingdom and devolved governments, as well as enhancing coherence between sectoral and environmental policies will be key. This is the third Environmental Performance Review of the United Kingdom. It evaluates progress towards green growth, with a special chapter focusing on waste, materials management and the circular economy.

The OECD Centre of Government Review of Brazil offers key recommendations on consolidating the strategic role of the country’s centre of government (CoG) in managing policy priorities and improving outcomes. The review examines the CoG’s roles, mandates, and its co-ordination capacities. It provides an assessment of Brazil’s ability to translate political commitments into measurable objectives and delves into its capacity to link strategic plans to outcomes. Focusing on the capacities of the CoG to contribute to the budget strategy and the federal budget, it considers medium- and long-term plans and how these align with the budgetary framework and how the budget can support policies in a coherent manner. The review also examines the CoG’s role in monitoring and evaluating high-priority policy performance and how this information can be used to improve outcomes. Finally, the review assesses how Brazil can consolidate and reinforce public communication, both to pursue policy objectives and to promote a more open government. 

Green budgeting is emerging at subnational levels as an important tool for regions and cities to use to align their expenditure and revenues with their green objectives, and enhance the transparency and accountability of their climate and environmental action. It is also a tool that subnational governments can use to prioritise low-carbon investments and identify funding gaps, as well as to mobilise additional sources of both private and public climate finance. In order for subnational governments to make full use of green budgeting however, more methodological, technical, and financial support is needed. This report presents a first stocktake of subnational green budgeting practices in OECD and EU countries as well as a set of guidelines for subnational governments to use in developing and launching a green budgeting practice. It is accompanied by two green budgeting case studies – one with the Region of Brittany (France) and one with the City of Venice (Italy) – and a self-assessment tool. The self-assessment tool allows regions and cities to measure their capacity to launch a green budgeting practice or strengthen an existing one, and is available on the OECD Subnational Government Climate Finance Hub as a downloadable Excel file.

Removing unnecessary barriers to competition through targeted reforms can foster productivity and economic growth. This Regulatory Reform Review of Brazil analyses sectors that create barriers to competition, such as regulations that create obstacles to the entry of firms, inhibit the entry of firms, or restrict activities in professional and network sectors. In a complementary way, the review also identifies government efforts to develop policies and tools to improve the quality of regulations, such as ex ante assessment of draft regulations, stakeholder engagement in rule making, and administrative simplification. High-quality regulations can stimulate productivity by encouraging the efficient allocation of resources and promoting innovation. In turn, these measures can reduce prices for consumers, stimulate the creation of jobs, and help improve living standards. The review identifies areas for reform to bring the country’s regulations and institutional arrangements more in line with international best practices. It demonstrates how a proportional, clear, and efficient regulatory framework can drive improvements in Brazil’s economic performance and the welfare of its citizens.

The Open Government Review of Brazil provides an evidence-based assessment of the country’s open government agenda against the ten provisions of the OECD Recommendation of the Council on Open Government. It is also the first OECD Open Government Review to integrate a civic space perspective. The review takes stock of past reform efforts, analyses the present situation and suggests key actions Brazil could take to strengthen its open government initiatives at the federal level, including in the areas of transparency and open data, citizen and stakeholder participation, social accountability and the protection of the civic space. The review provides a roadmap towards an integrated open government agenda in Brazil, including the design of Brazil's first Federal Open Government Strategy.