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Regional Development

Regional Development & Public Investment

 

Subnational governments are key public investors


Subnational governments - states, regions, municipalities - play a pivotal role in public investment, including for infrastructure, as they invest in areas that are critical for growth and well-being. In the OECD, subnational governments are responsible for 57% of total public investment. When well-managed, public investment can support growth. A territorial approach to public  investment, supported by effective multi-level governance, helps countries maximise their return on investment for regional development.

 OECD Recommendation on Effective Public Investment across Levels of Government

Online Toolkit | Monitoring report | Implementation brochure

Rethinking Regional Development Policy-Making

 

Topics & Publications


Infrastructure in Regions and Cities 

 

Subnational governments are in charge of key infrastructure areas that have been strongly affected or mobilised by the COVID-19 crisis, including health care, social services, education, public transport, roads, social housing, utility networks, and digital infrastructure. As part of post-pandemic rebuilding, we support policy-makers to better design and implement sustainable and resilient infrastructure investment in regions and cities. 

Our work on the governance and finance of subnational infrastructure investment is part of the OECD's activities on infrastructure, and supports the G20 initiatve on sustainable infrastructure implementation. 

   

Multi-level Governance and Public Investment

When well-managed, public investment can support growth. A territorial and multi-level governance approach to investment allows countries to maximise return on investment for regional development. In 22014, the OECD Council adopted the Recommendation on Effective  Public Investment across Levels of Government, which has been adhered by 39 countries. The OECD closely monitors how countries are implementing the Recommendation. The OECD also carries out country/region study in this field.
   

Governance of Regional Development Policy

 
What can governments do to enhance economic development in regions and cities ? Regional and local government finance has been udner increasing pressure, it is paramount to enhance the effectiveness of regional policy governance instruments to add value to public spending and investment. The OECD analysis draws lessons from theory and practices of different countries to support policy-makers in ensuring public spending and investments contribute to regional development as effectively as possible.

 

Related topics


 

Subnational public finance   
COVID-19 & Recovery in regions and cities  

 

 

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