OECD work on Public Governance and Territorial Development

OECD WORK ON PUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENT

2014

Governments are there to establish sound economic, social and political frameworks for citizens and business. After years of policies driven by the crisis, governments need to restore trust and demonstrate their capabilities as stewards of the public interest. It is a huge task to repair the social contract. The policy-making processes must become more open, inclusive and fair, and the delivery of public services must be efficient and innovative.

www.oecd.org/gov

@OECDgov

OECD Public Governance and Territorial Development Directorate

Our mission is to be the leading international source of policy solutions, data, expertise and good practice for governments and other stakeholders seeking to strengthen public policymaking in the face of unprecedented economic, social and fiscal pressures.

We strive to:

• Highlight the crucial role of public sector economics and governance for economic and social well-being.

• Promote the strategic capacity of government.

• Review the role of the state and its choice of policy instruments.

• Improve the efficiency and transparency of public service design and delivery, focusing in particular on innovation, trust and citizen engagement.

• Foster balanced, inclusive growth that maximizes the potential of cities and regions as drivers of national performance.

The Organisation for Economic Co-operation and Development (OECD) is an international body that promotes policies to improve the economic and social well-being of people around the world. It is made up of 34 member countries, a secretariat in Paris, and a committee, drawn from experts from government and other fields, for each work area covered by the organisation.

The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. We collaborate with governments to understand what drives economic, social and environmental change. We measure productivity and global flows of trade and investment.

What is the OECD?

Given the governance failures that contributed to the financial crisis and against a background of increasing unemployment and widening inequalities, governments need to rebuild trust in public institutions. Restoring trust in the ability of government to regulate markets, manage public finances, deliver the services that citizens expect and ensure access to opportunity for citizens in all parts of the national territory is a key element of a return to sustainable and inclusive growth.

The Public Governance and Territorial Development Directorate works with governments to help them improve the quality of government. It helps national and local administrations to design and implement evidence-based and innovative policies that will strengthen public governance, enable them to respond effectively to economic and social challenges, and deliver on commitments to citizens.

The current economic and fiscal crisis makes it urgent that these broad aims are applied to a host of specific problems.

These include:

• Helping return member states to fiscal health.• Improving the quality of regulation.• Improving health outcomes for an ageing

population at a time when public budgets are under pressure.

• Enabling states to meet infrastructure needs at a time when money for capital spending is short.

Governments will for the foreseeable future have to do more and better with less. The Directorate’s role is to help them accomplish this. It

’s a

ll a

bou

t tr

ust

www.oecd.org/gov/trust-in-government.htm

OverviewWe support policy makers in both OECD member and non-member countries by providing a forum for policy dialogue and for the creation of common standards and principles. We provide policy reviews and practical recommendations targeted to the reform priorities of specific governments. Through published reports, we provide comparative international data and analysis to support innovation and reform. Our partners include government officials acting as peer reviewers of each other’s work, as well as experts from the private sector, civil society organisations and trade unions.

The work programme is decided and monitored by three committees made up of senior government officials from every OECD member country: the Public Governance, Regulatory Policy and Territorial Development Policy Committees.

These Committees also draw on networks of specialised practitioners in the following areas :

• Senior Budget Officials • Public Management and Employment• Public Sector Integrity• E-Government • Senior Officials from Centres of Government• Global Network of Schools of Government• High-level Risk Forum• Economic Regulators• Territorial Policy in Rural Areas• Territorial Policy in Urban Areas• Territorial Indicators

Networks

PublicationsWe publish our findings in key “flagship” publications such as Government at a Glance, Restoring Public Finances, Regions at a Glance and the Regional Outlook; in national and regional reviews on topics such as public governance, regulatory reform, integrity, human resources management, e-government, budgeting and regional policy; and in cross-cutting thematic reports.

Wh

at is

th

e O

ECD

?Rebuilding trust in government

How can we measure trust in government?How can we strengthen the relationship between citizens and government?How can public institutions become more “trustworthy?

The crisis strained the relationship between government and citizens, and this in turn reduces the ability of governments to act. Only around 40% of citizens in the OECD say they trust their government. Dissatisfaction with the performance of public actors and institutions has led to global street protests and huge-volume social media campaigns. These movements have questioned the notion of the state as the careful and competent steward of the public interest, heightened by serious concerns about fairness in fiscal consolidation and the sacrifices involved in structural adjustment for growth.

Trust is now recognised as a key determinant of policy effectiveness, reduced uncertainty and low transaction costs. In the current context, marked by unpredictability and tense relations among economic actors, the importance of trust in economic and social outcomes has undoubtedly increased. Citizens and businesses are less likely to support ambitious reform-minded policies in situations of low trust; similarly compliance with regulation and tax obligations can also be affected.

OECD has wide experience with analysing aspects of public trust through its work on strategic policymaking at the centre of government, risk management, public sector integrity, regulatory policy and open government.

Citizens

look to

governments

to lead

the w

ay. Withou

t strong

leadership, supported by effective policies, tru

st is easily eroded. G

ood governance means pu

tting the needs of people at the centre of policy-m

aking.

www.oecd.org/gov/trust-in-government.htm

-40

-30

-20

-10

0

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20

30

40

50

60

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100

-40

-30

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60

70

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90

100

% in 2012 (right axis) Percentage point change 2007-2012 (left axis)Percentage points %

Confidence in national government in 2012 and its change since 2007 Arranged in descending order according to percentage point change between 2007 and 2012

Trust in political parties is much lower than trust in government in Europe over time (2005-13)

Satisfaction with public services is higher than trust in government (2012)

0%

10%

20%

30%

40%

50%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Trust in political parties Trust in national government

40%

51%

72%66%

71%

0

20

40

60

80

100National government

Judicial system

Local policeEducation system

Health care

OECD

Maximum

Minimum

Source: Gallup World Poll

Source: Eurobarometer (database), OECD calculations

Source: Gallup World Poll

Sound public budgets and finances

How can countries strengthen fiscal governance, combat deficits, and tackle debt sustainability issues?How can countries address rising health care costs while trying to meet their fiscal objectives?How can governments harness private expertise and financing to deliver public infrastructure services more cost effectively?

Through its network of Senior Budget Officials (SBO), GOV supports countries in sound and sustainable fiscal management through objective analysis of policies and data. The OECD promotes greater budget transparency on the part of governments, as the best way to retain crucial public support and international confidence. The OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions (PBO) contributes to transparency efforts and promotes better budget oversight.

A joint venture of the SBO and the OECD’s Health Committee, the OECD Joint Network on Fiscal Sustainability of Health Systems looks at how to rein in costs while delivering improvements in access, service quality, and capacity for innovation.

If used right, PPPs can be a cost efficient way to deliver public services and meet infrastructure demands. The 2012 Principles for Public Governance of PPPs provide road tested guidance on how to ensure that a PPP represents social returns and is the most cost efficient mode of delivery (value for money), is affordable for users and the public budget, and that any fiscal risks stemming from PPPs are managed prudently and transparently.

High expectations on the part of citizens and lim

ited fiscal space are forcing governm

ents to devise ever more inventive approaches to m

anaging public

funds and m

aintaining quality service delivery.

www.oecd.org/gov/budgeting

General government fiscal balance as a percentage of GDP (2001, 2009 and 2011)

General government debt as a percentage of GDP (2001, 2009 and 2011)

Distribution of general government revenues across levels of government (2001 and 2011)

-20

-15

-10

-5

0

5

10

15

Irela

nd

Uni

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Stat

es

Gree

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Spai

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Icel

and

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ak R

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ralia

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Aust

ria

Denm

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and

Turk

ey

Germ

any

Chile

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Hung

ary

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rica

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aine

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a

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ian

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ratio

n

Indo

nesia

% 2011 2009 2001

0

40

80

120

160

200

240

Japa

n

Italy

Cana

da

Uni

ted

King

dom

Irela

nd

Uni

ted

Stat

es

Gree

ce

Belg

ium

Fran

ce

Port

ugal

Germ

any

Hung

ary

Isra

el

Aust

ria

OEC

D

Spai

n

Net

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and

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aine

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nesia

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ratio

n

% 2011 2009 2001

0

20

40

60

80

100

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

2001

2011

GBR NZL NOR MEX IRL ISR ISL GRC PRT EST DNK CZE HUN LUX TUR AUS KOR NLD SWE BEL USA SVN POL ITA SVK AUT FIN CAN FRA CHE ESP DEU JPN OECD

Central government State government Local government Social security%%

Source: Government at a Glance, OECD, 2013

Source: Government at a Glance, OECD, 2013

Source: OECD National Accounts Statistics (database)

Dat

a on

gov

ern

men

t b

ud

gets

Public sector innovation

How can governments keep improving their services in the face of budget cuts?How can they use data to improve their performance?Can the public sector increase its agility and flexibility through e and m-government?

Across the OECD, the public sector faces a dilemma: how to meet increasingly diverse demands with shrinking resources. Finding better ways to do more with less is one answer. The Observatory of Public Sector Innovation collects, analyses and shares innovative practices from across the public sector, via an online interactive database.

Policy makers are seeking evidence of their performance relative to other countries, and Government at a Glance provides this, with indicators on an increasing range of subjects as diverse as e-government, human resources and freedom of information. Indicators show, for example, which countries have the largest public sectors, which government workers take the least sick leave, and which member states have the highest and lowest teachers’ salaries.

E- and m-government are crucial tools for improving the efficiency of government and its responsiveness to its citizen clients. Mobile Technologies for Responsive Governments and Connected Societies looks at how mobile internet devices can sustain public sector innovation and transform public service delivery.

The pu

blic sector represents one third to one half of the GD

P of many

countries - so identifying, isolating and dissem

inating innovation carries hu

ge potential to improve econom

ic performance.

www.oecd.org/gov/public-innovation

Firms using the Internet to interact with public authorities by type of activity (2011)

0

10

20

30

40

50

60

70

80

90

100

Enterprises using the Internet for interaction with public authorities (derived indicator) Enterprises using Internet to treat an administrative procedure completely electronically

Citizens using the Internet to interact with public authorities by type of activity (2012)

0

10

20

30

40

50

60

70

80

90

100Internet use: interaction with public authorities (last 12 months) Internet use: sending filled forms (last 12 months)

Citizens using the Internet to interact with public authorities by age group (2012)

0

10

20

30

40

50

60

70

80

90

100

25 to 34 years old 16 to 24 years old 65 to 74 years old

Source: OECD, ICT Database; and Eurostat, Information Society Statistics (database)



Does good government make people feel measurably better about their lives?

How can the private sector use government data to create value?

Citizens in OECD countries are calling on governments to be more open about the way they design and deliver policies, and expect their views to be taken into account when policies are designed. The OECD Guiding Principles for Open and Inclusive Policy Making are based on the conviction that open government produces happier outcomes. The eight principles include clarity, commitment and time: public consultation and active participation should be undertaken as early as possible. This will allow a greater range of policy solutions to emerge, boosting the chances of successful implementation.

Countries are moving forward with the implementation of open government policies and these efforts have resulted in an international movement, the Open Government Partnership, in which 19 OECD Member countries have commitments. The MENA-OECD Open Government Project assists the Governments of Morocco, Tunisia, Jordan and Libya in reviewing and assessing their institutions, policies and practices supporting the implementation of Open Government principles at central and local level. The project also coordinates mechanisms across levels of government and with national civil society. The project contributes to improving both Open Government policies and practices and to meeting the OGP eligibility criteria and prepare and implement the required country action plans through ad-hoc support and capacity building.

The m

ore citizens participate in their own governance, the better

governance is. Governm

ent works best w

hen it is of the people, by the people and for the people.

www.oecd.org/gov/public-innovation/opengovernmentdata.htm

Open government

9 782

4 385

3 7833 317

2 3231 948

1 338944 849 694 568 540 486 347 185 119

359

2 000

4 000

6 000

8 000

10 000

188 921

Number of datasets in centralised one-stop shop open government data portal (2013)

Asset disclosure: Level of disclosure of private interests and public availability of information (2012)

Percentage of individuals who have taken part in an online consultation or voting

0

5

10

15

20

25

30

35

Shar

e of

citi

zens

0

10

20

30

40

50

60

70

80

90

100

HIG

H L

EVEL

MED

IUM

LLEV

ELLO

WLE

VEL

Source: 2013 OECD Survey on Open Data Government

Source: 2012 OECD Survey on Managing Conflict of Interest

Source: Eurostat, Information Society Statistics (database)

Clean Government

How can citizens’ trust in government be restored?

How can political finance be reformed so that a country’s leaders can be elected fairly?

How can public procurement be made to build projects that improve people’s lives, rather than white elephants?

In some countries, citizens’ confidence in government has been battered by the crisis. In others, a belief that corruption is common has eroded trust. Without the trust of citizens and confidence of markets, governments will be unable to make the structural reforms required to tackle the continuing fiscal crisis. OECD work on Integrity in the public sector addresses these problems. It looks at how to improve the transparency and integrity of decision-making, and sets out global standards for budget transparency and safeguarding integrity in the public sector.

Past scandals have made citizens particularly concerned about political financing. OECD countries are strengthening the control of private funding in response to new risks, such as third-party financing, which offers new ways for contributors to distribute their donations and circumvent existing regulations. However, these measures are not in themselves enough to create a fully open political finance system. OECD is working to explore how countries can go further.

Public procurement has the power to boost economic growth, but also - if badly handled - to waste billions of dollars through the massive misallocation of resources. The OECD formulates Principles for Enhancing Integrity in Public Procurement, drawing from the lessons learned in country reviews. These include transparency, good management and purpose - making sure public funds are used in public procurement for the object originally intended.

Only 22%

of OEC

D cou

ntries demand the fu

ll disclosure of the identity of all donors

to political parties and candidates.

www.oecd.org/gov/ethics/procurement

0

5

10

15

20

25

30

35

40

45

50Accessing tender documents and specifications eTendering in own country%

Percentage of enterprises using electronic procurement systems (2012)

0

10

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30

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50

60

70

80

90

100

HIGH

LEVE

LM

EDIU

MLL

EVEL

LOW

LEVE

L

Asset disclosure: Level of disclosure of private interests and public availability of information

0

5

10

15

20

25

30

35

Shar

e of

citi

zens

Percentage of individuals who have taken part in an online consultation or voting

Source: Eurostat

Source: OECD Survey on Managing Conflict of Interest

Source: Eurostat, Information Society Statistics (database)

Regulation

Can good regulation prevent another financial and economic crisis?

Can we make regulation so good that it boosts economic growth?

How can ‘choice architecture’ improve people’s decisions without taking away their freedom?

Poor regulation is seen as one of the main causes of the credit crunch, and therefore of the continuing financial crisis. OECD Work on regulatory Policy addresses problems in regulatory systems, including the weakness of regulatory bodies, the misalignment of incentives and the lack of adequate enforcement and compliance. High-quality regulation creates certainty and promotes the rule of law, but also has important economic effects such as levelling the playing field for businesses. It has created a list of principles for good regulation - calling, for example, for consultation and impact assessments in the early stages of the policy process.

At the same time, –reducing “red tape” and excessive regulation is also important. The OECD has studied the successful administrative simplification programmes of The Netherlands and Portugal, and continues to monitor this theme actively.

There is an acute need to understand the links between good regulatory quality and sustainable growth. The GOV has organised a series of roundtables on the theme of Regulatory Reform for Growth, including the role of various actors of change across government and their unexplored potential for furthering growth, and taking stock of pro-growth regulatory measures in times of crisis.

One of the most exciting new areas in regulation is the use of behavioural economics. If done well, this can improve outcomes without using traditional command and control mechanisms, by allowing citizens and business to retain choices but gently nudging them in a particular direction. The key phrase is “choice architecture”: a structure that changes behaviour without diminishing choice.

Good regu

lation can boost investment, u

nlock productivity, prom

ote social inclusion,

and increase competitiveness. B

ad regulation can bring a cou

ntry to its knees.

www.oecd.org/gov/regulatory-policy

0 5 10 15 20 25 30

Reports published on the level of compliance by government departmentswith the requirements of RIA

Required to release RIA documents for consultation

Views expressed in the consultation processes of subordinate regulationsincluded in RIA

Views expressed in the consultation processes of primary laws included in RIA

Number of OECD countries

2005

2008

34

Transparency of central government RIA (2005 and 2008)

0 5 10 15 20 25 30

There is a policy in place on risk-based enforcement

Written guidance on compliance and/or enforcement issues is available toregulators

There are specific policies in place on developing compliance-friendly regulation

RIA requires regulators to explicitly consider compliance and enforcement issueswhen preparing new regulation

Regulatory policies explicitly require that securing compliance and enforcement beanticipated when developing new regulation

Number of OECD countries

2005

2008

34

Regulatory compliance and enforcement issues at the central government level (2005 and 2008)

Requirement for RIA at the central government level: quantification of costs and benefits (1998, 2005 and 2008)

0

5

10

15

20

25

30

Requirement toquantifythe costs

Requirement toquantify

the benefits



the benefits



the benefits

Num

ber o

f OEC

D co

untr

ies

Only formajorregulations

Always

34

1998 2005 2008

Source: OECD Regulatory Management Systems’ Indicators Survey 2005 and 2008/09

Source: OECD Regulatory Management Systems’ Indicators Survey 1998, 2005, and 2008/09

Source: OECD Regulatory Management Systems’ Indicators Survey 2005 and 2008

Cities

How can national policies help “get cities right” for job-rich growth?

How can cities more effectively tackle climate change and achieve greener growth?

How can better governance of urban areas improve residents’ well-being?

Cities of all sizes are critical to economic progress. Across the globe, cities are motors of growth and innovation. Overall, they are characterised by higher levels of productivity and income and, across the OECD, productivity and wages increase with city size. While in some countries the largest cities make the biggest contribution to aggregate growth, the contribution of small and medium-sized cities is very significant. Large cities have enormous potential for job creation, innovation and green growth, as do dynamic medium-sized cities. Cities are the hubs and gateways in global networks, such as trade or transport.

However, while productivity, wages and the availability of many important amenities generally increase with city size, so do pollution, housing prices, congestion, inequality and crime. These negative effects of “agglomeration” can reduce trust and well-being. They can be substantially mitigated by national and city level policies that ensure access to jobs and employment, equal opportunities in education, decent housing, adequate healthcare, efficient transport and safe neighbourhoods.

What policies can help cities and metropolitan areas become more competitive, sustainable and inclusive over the long term? The OECD conducts in-depth analyses of national-level policies related to urban development, as well as reviews of cities and their greater metropolitan areas, to evaluate current policies and propose strategies for boosting economic growth, improving environmental performance and fostering social inclusion. Thematic research on cities covers a wide range of topics: climate change and green growth; water and cities; demographic change; metropolitan governance; rural-urban linkages; and more.

The OECD Metro Database and Metro eXplorer provide comparable international data for urban and metropolitan areas relating to GDP, CO2 emissions, sprawl, innovation and more. This unique database helps compare “apples to apples” across the OECD through measurement approach that defines cities in terms of the density of settlement and activity rather than as administrative units.

The OECD Roundtable of Mayors and Ministers is the pre-eminent international forum for policy dialogue on urban issues between local and national leaders.

The Organisation for Economic Co-operation and

By 2050 as m

uch as tw

o-thirds of the world’s popu

lation may be living in

cities.

www.oecd.org/regional/regional-policy/urbandevelopment.htm

http://measuringurban.oecd.org/#

38% 40%

47% 48% 49% 50% 51% 52% 53% 55% 55% 55% 55% 56% 56% 58% 59%64% 65% 65% 68% 69% 69%

73% 73% 74% 74%78%

81% 83%87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Over two-thirds of people in the OECD live in cities of all sizes

Thessalonica

Valparaíso

Porto

Brno

Geneva

Las Palmas

Eindhoven

Helsinki

Stockholm

Brussels

Raleigh

Lublin

Graz

Nagasaki

Portsmouth

Ottawa-Gatineau

Freiburg im Breisgau

Toulon

Cheongju

Palermo

Saltillo

Tallinn

Athens

Copenhagen

Santiago

Ljubljana

Lisbon

Prague

Zurich

Bilbao

Dublin

Rotterdam

Helsinki

Malmö

Bratislava

Ghent

Baton Rouge

Katowice

Budapest

Oslo

Linz

Himeji

Leeds

Edmonton

Aachen

Rouen

Ulsan

Venice

Tampico

-100 -50 0 50 100 150 200 250 300 350 400 450

Estonia (#1)Greece (#2)

Denmark (#1)Chile (#3)

Slovenia (#1)Portugal (#2)

Czech Republic (#3)Switzerland (#3)

Spain (#8)Ireland (#1)

Netherlands (#5)Finland (#1)

Sweden (#3)Slovak Republic (#1)

Belgium (#4)United States (#70)

Poland (#8)Hungary (#1)Norway (#1)Austria (#3)Japan (#36)

United Kingdom (#15)Canada (#9)

Germany (#24)France (#15)Korea (#10)

Italy (#11)Mexico (#33)

Largest metropolitan value Lowest metropolitan value

%100 = countryCountry ( # of cities)

3840

4647474949495050

5454

57575860606262636566

727475

80

BratislavaAmsterdamMadridWarsawHelsinkiLjubljanaLisbonPragueStockholmBerlinViennaMilanTorontoLondonBrusselsDublin

SantiagoCopenhagenMexico CityNew YorkTallinnSeoul IncheonBudapestParisTokyoAthens

0 20 40 60 80 100

Slovak Republic (#1)Netherlands (#5)

Spain (#8)Poland (#8)Finland (#1)

Slovenia (#1)Portugal (#2)

Czech Republic (#3)Sweden (#3)

Germany (#24)Austria (#3)

Italy (#11)Canada (#9)

United Kingdom (#15)Belgium (#4)Ireland (#1)

OECD (26) (#271)Chile (#3)

Denmark (#1)Mexico (#33)

United States (#70)Estonia (#1)Korea (#10)

Hungary (#1)France (#15)Japan (#36)Greece (#2)

All metropolitan areas Largest contributor

Country ( # of cities)%

Large cities make significant contributions to GDP growth Cities are critical for reducing CO2 emissions

Source: Regions at a Glance 2013

Source: Regions at a Glance 2013 Source: Regions at a Glance 2013

Per cent of population in urban areas of 50 000 or more, 2012

Country (# of cities)

Share of national growth in gross domestic product from metropolitan areas of 500 0000 or more, 2000-2010

Range of CO2 emissions per capita for metropolitan areas of 500 000 or more, 2008

Regional development

What drives growth in different types of regions?

What serves to integrate rural and urban areas in a region?

What types of governance arrangements help regions and national governments work effectively together?

Regional development policies contribute to national performance. While a few hub regions contribute significantly to OECD growth, around two-thirds of that growth comes from the vast majority of other regions. Traditionally, policy debates have focused on trade-offs, not synergies, between efficiency, environmental sustainability and equity objectives. Today, however, there is a growing awareness of the need to pursue them in a more balanced and complementary way.

Regions are therefore the “places” where policies meet people. The flagship biennial reports Regional Outlook and Regions at a Glance illustrate the latest trends in regional performance and different aspects of policies that impact regional development. The OECD has also developed public accessible statistical databases to answer the increasing demand for data at the regional level.

In addition to reviews of national regional development policies, the OECD conducts considerable research on different types of places. Cities are important generators of wealth and employment, playing a leading role in national economies and housing over two-thirds of the OECD population. However, in some cases, rural regions are growing faster than their urban counterparts. They are also strongly linked with urban areas in a wide range of rural-urban interactions for economic activity, natural resources and other ties. Reviews of rural policy in a country, along with thematic work on modern rural development approaches such as rural-urban partnerships, is part of OECD work on regional development.

Most policies are implemented by national as well as regional and local governments. In fact, over 70% of public investment in the vital infrastructure underpinning competitiveness and well-being is undertaken by sub-national governments. The OECD has developed a set of good practice principles for national and sub-national governments to work better together. Other research considers the role of different governance arrangements to implement policies as efficiently and effectively as possible.

The world is not flat for innovation activity. Some regions are technology hotspots while others need to adopt innovations created elsewhere in their local clusters. OECD studies on regions and innovation provide guidance on how to do so.

On average, 39%

of overall employm

ent growth and 42%

of GD

P growth in

OEC

D cou

ntries in the last decade were accou

nted for by just 10%

of regions.

www.oecd.org/regional/regional-policy

http://stats.oecd.org/OECDregionalstatistics/#

Cities

0

10

20

30

40

50

60

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80

90

100

Belg

ium

Net

herla

nds

Uni

ted

King

dom

Kore

a

Germ

any

Port

ugal

Japa

n

Italy

OEC

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Spai

n

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erla

nd

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Zea

land

Gree

ce

Fran

ce

Irela

nd

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and

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ark

Hung

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Pola

nd

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Swed

en

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ak R

epub

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Nor

way

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enia

Predominantely urban Intermediate Predominantely rural

All types of regions contribute to national GDP


Some regions are more productive than others

Distribution of GDP by region type, 2010

Range in regional Gross Domestic Product per worker, 2010

868183

7378788186

75757274

65757174

8764

73717069

5873

51626765

4234

115112118

112119121125130

119119125129

125138134

143157

136146151

163164163

178185

225243

260326 493

0 50 100 150 200 250 300 350 400 450 500

Norway

Slovenia

Spain

Denmark

Austria

Finland

Belgium

Australia (TL2)

Hungary

Sweden

Greece

Estonia

Ireland

Canada (TL2)

Germany

Slovak Republic

Netherlands

Italy

Czech Republic

United States (TL2)

Japan

New Zealand

Portugal

France

Poland

Korea

Switzerland

Mexico (TL2)

Chile (TL2)

United Kingdom

%

Minim

um value

Maxim

um value

8681837378788186757572746575717487

64737170695873

516267654234

115

112

118

112119

121

125

130

119

119

125

129

12513

813

414315

713

6146

15116

316

416

3178185

22524

3260

326

493

0

50

100

150

200

250

300

350

400

450

500

%

Minimum value Maximum value


Risk governance

How can governments ensure their responses to disaster are based on tried and tested principles rather than panic?

Should we consider corruption and cyber attacks as hazards on the same scale as natural disasters and pandemics?

What can we learn from crises that have hit OECD member countries?

Against a perception of increasingly frequent natural and man-made disasters, the High-Level Risk Forum was set up in 2011 to look at how to increase society’s resilience to global threats. The Forum, which brings together senior national policymakers, examines a broad range of potential hazards including natural disasters and pandemics, financial crises, terrorism and cyber attacks. It has produced practical tools to fight the global threat of corruption, which destroys local economies by reducing legitimate business revenues, fuelling conflict and worsening social conditions. The Forum works with the OECD’s Insurance and Private Pension Committee and the G20 on disaster risk management, including risk assessment and financing strategies.

OECD has set out Principles for Country Risk Management - policy recommendations that cover the full risk management cycle, starting with risk assessment and moving on to mitigation, crisis management and communication, and finally recovery. They are designed to inform and support country practices, to help develop systematic checklists in the public sector that will increase preparedness for major risks. OECD has also drawn up eight recommendations for Building Resilient Regions after a Natural Disaster, as part of a long-term programme of policy work following the 2009 earthquake that ravaged the Italian city of L’Aquila. The policy recommendations include fostering public participation in decision-making, and using lessons from a regional crisis to introduce reforms for the country as a whole.

The increased m

obility of goods, capital, people and information has created

“perfect storm” conditions for severe global shocks.

www.oecd.org/gov/risk

Public administration reform

How can countries in transition achieve democracy and a free-market economy?

What political and economic reforms are needed to build trust in governments?

How can countries benefit from international experience to design their own systems of governance?

An effective public administration helps to provide citizens with high quality public services.

The Support for Improvement in Governance and Management (SIGMA) programme works with 19 countries, largely non-OECD member states, to assist reforms that will support their aspirations for democracy and the rule of law.

SIGMA provides advice and support in five professional areas of public governance, as well as evidence-based reviews of progress to identify areas for further improvement:

• Civil service and public administration organisation and functioning• Policy making• Public finance and audit• Public procurement• Strategies for public administration reforms.

While facilitating international co-operation with countries, SIGMA encourages partner countries to take ownership of the implementation of reforms and to build their planning and monitoring capacities.G

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www.sigmaweb.org

A joint initiative of the OECD and the EU, principally financed by the EU.

Public Governance Reviews

How can public policy help achieve positive outcomes for citizens and businesses?

How can governments steer implementation of public policies efficiently and effectively?

The global financial crisis has sharpened the importance of efficient and effective public governance, as governments grapple with complex and interlocking public policies in an often tight fiscal environment. OECD Public Governance Reviews provide governments with a 360 degree perspective on their performance, and where this needs to be improved, to strengthen a country’s potential for sustainable and inclusive growth.

Launched in 2007, Public Governance Reviews have helped strengthen public governance and leadership and facilitate positive change in OECD member and non-member countries. The Reviews highlight interactions between key building blocks of good governance in the context of the countries’ priorities and reform plans. They can address specific sectors or policies and their governance framework.

Supported by peer reviewers and experts, based on partnerships with requesting countries and tailored to their needs, the Reviews involve all relevant actors within and outside governments. They offer strategic diagnostic and actionable recommendations, as well as capacity building and implementation support.

Good governance is key to achieve strategic pu

blic policy goals, and to boost su

stainable and equitable grow

th and well-being.

www.oecd.org/publicgovernancereviews.htm

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@OECDgov

Government & Nonprofit

OECD work on Public Governance and Territorial Development