OECD Regional Outlook 2016

Productive Regions for Inclusive Societies

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Regions and cities are where the effects of policies to promote economic growth and social inclusion are felt in day-to-day life. The OECD Regional Outlook 2016 examines the widening productivity gap across regions within countries, and the implications of these trends for the well-being of people living in different places. It discusses how structural policies, public investment and multi-level governance reforms can help boost productivity and address inclusion. Drawing on a survey of OECD countries, the Outlook  highlights country practices in regional, urban, and rural development policy that guide public investment. The Special Focus Part II on rural areas looks at different types of rural area and their productivity performance trends, and suggests that countries move towards a “Rural Policy 3.0”. The Policy Forum on Regions and Cities: Implementing Global Agendas includes chapters by many leading global organisations on how regions and cities can be instrumental in achieving the targets of agreements such as the Paris Accord and the Sustainable Development Goals.  Individual country profiles provide an overview of regional, urban and rural development policies as well as performance in terms of productivity and well-being among different regions.

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Financing subnational and local governments: The missing link in development finance

Unlocking the potential of territories at the local level is key to financing the amount of investment urgently needed to reach the Sustainable Development Goals (SDGs) and to meet the needs of the population. The series of international debates on development are paying increasing attention to city-level development financing, but local authorities are still not recognised as central to the debate. Focus should be brought first on improving the mobilisation of local endogenous resources, through expanding local taxation and relying on land-based finance and taxation of economic activities to improve local fiscal autonomy. Then, guarantee mechanisms should facilitate the process of leveraging external resources, encompassing private finance, climate finance, and borrowing, to finance long-term infrastructures.

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