Assessing regional attractiveness requires considering global engagement beyond economic factors alone. Connectedness, visitor appeal, natural environment, resident well-being, land-use and housing are all relevant factors, which can help enhance regional attractiveness to the international target groups of investors, talent, and visitors. Boosting attractiveness also requires effective co-ordination across levels of government, across policy fields, and with private stakeholders.
Regional development
Quality regional development policy is essential for inclusive economic outcomes, well-being, environmental sustainability, and resilience. Regions, cities and rural areas play a crucial role in responding to megatrends including climate change, digitalisation, demographic shifts, and globalisation, which have very different effects within OECD countries. At the same time, regions within OECD countries vary widely in their social and economic structure, performance, and well-being. This diversity calls for a place-based approach to regional development, tailored to the needs and assets of each area.
Key messages
Place-based policies – meaning policies that are tailored to the specificities of each region – have seen a renewed interest, not only to address long-term structural transformations that require tailored interventions but also in building resilience in regions and consequently in countries. This intensifying political focus calls for a greater understanding of the rationale for place-based policies, and how to effectively design and implement them to address current macroeconomic, social, demographic, and environmental agendas.
Depopulation and ageing lead to a mismatch between infrastructure, service provision and the built environment on the one hand, and the needs of the local population on the other. Governments and local communities must adapt to the declining demand for certain services such as education and the increased demand for others, such as health and long-term care. Governments also need to develop efficient land-use and spatial development plans while aiming at maximising the well-being of local resident people.
Industrial transition in regions requires an integrated and collaborative approach, embracing innovation, skills development, and government facilitation and experimentation. However, industrial transition is not linear and comes with a myriad of socio-economic challenges, including high unemployment, population decline, shorter life expectancy and low levels of tertiary education. Our work on Regions in Industrial Transition looks at how regions drive successful industrial transitions, mitigate the risks, and foster economic diversification, growth and wellbeing in society.
Context
Regional GDP per capita: Top 20% vs. Bottom 20% of small regions
The OECD Regional Outlook 2023 highlights large regional income inequalities in OECD countries. On average, the top 20% of small (TL3) regions in terms of GDP per capita, record twice the levels observed in the 20% bottom regions.
