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Linking Regions and Central Governments

Contracts for Regional Development

image of Linking Regions and Central Governments

A trend toward decentralisation has meant that sub-national governments increasingly find themselves responsible for providing a host of public goods and services. Rarely, however, can they "go it alone". Co-ordination among levels of government is imperative. This book offers a unique analytic framework for assessing multi-level governance arrangements, which is subsequently applied to five case studies of regional development policy: Canada, France, Germany, Italy, and Spain. The book reveals the importance of contractual arrangements for customised management of interdependencies, for clarifying responsibilities among actors, for dialogue, and for learning.

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A Contractual Approach to Multi-level Governance

This chapter develops an analytic framework for understanding how the economic theory of contracts applies to multi-level governance and what these theories suggest with respect to the selection of a contractual approach. It begins with an overview of the relevant theories, presents an analytic typology of contracts, and assesses the most effective contract design for different co-ordination contexts. The analytic framework developed in this chapter is applied to each of the case studies in subsequent chapters.

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