Rethinking Regional Development Policy-making

image of Rethinking Regional Development Policy-making

This report takes stock of discussions held between academics and country practitioners during a series of seminars organised in 2017 by the OECD and the European Commission that focused on opportunities to improve the design and delivery of regional development policies. What can governments do to enhance economic development in regions and cities ? What lessons can be drawn from theory and practice to ensure public spending and investments contribute to regional development as effectively as possible ? At a time of increasing pressure on public finances it is paramount to enhance the effectiveness of regional policy governance instruments to add value to public spending and investment.

Bringing together frontier economic theory and country practices regarding performance frameworks, financial instruments, policy conditionalities, contractual arrangements and behavioural insights in regional policy, this report identifies cross-cutting lessons to help policy-makers manage common trade-offs when designing public expenditure and investment programmes for the development of regions and cities.



Behavioural insights and organisational behaviour in regional development policies

This chapter explores how behavioural insights can be used to improve the effectiveness and efficiency of regional development policies, programmes, and practices. Behavioural insights are applied by governments to gain better evidence on how human beings actually behave, with the aim to make public policies work better. A number of underlying factors have behavioural drivers challenge the effectiveness of regional policies, including the time horizon, political dynamics, and rent seeking, among others. After exploring new frontier thinking on how to apply behavioural science to organisational behaviour, this chapter offers lessons to consider when applying behavioural insights in regional development policy. These may help to improve strategy and decision making, management, and implementation of policies and programmes.


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