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Governing Regional Development Policy

The Use of Performance Indicators

image of Governing Regional Development Policy

This report examines both the challenges and the opportunities associated with designing and using indicator systems as a tool for the governance of regional development policy. It draws on the experiences of a number of OECD countries and provides an in-depth look at the cases of Italy, the United Kingdom (England), the United States and the European Union.  It builds on previous OECD work on the governance of  regional development policy by extending lessons about contractual relations among levels of government to performance indicator systems.  

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Factors that Hinder or Facilitate the Use of Indicator Systems

Describing the technical aspects of monitoring systems is often easier than implementation. Policy makers and planners can and do encounter a variety of challenges in the planning, implementation, and revision of indicator systems. This chapter details the variety of factors that can hinder the design and effectiveness of indicator systems as a governance tool. It also notes the various mechanisms available for mediating these difficulties. It begins by outlining the specific characteristics of regional development policy that can pose a challenge for designing and using indicator systems. It then underscores the importance of stakeholder capacities with respect to effective implementation. A number of both direct and indirect “costs” are reviewed before turning to the mechanisms available for facilitating system effectiveness.

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