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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Luxembourg is a unitary country with a population of almost 570 000. Luxembourg is the richest country in the OECD, with a GDP per capita of around USD 102 100, almost 2.5 times the OECD average. However, the statistics are inflated by the fact that much of the GDP is provided by cross-border commuters who contribute to the economy but do not live in the country. Luxembourg’s subnational governments are responsible for 11.5% of public expenditures, ranking the country the 5th most centralised in the OECD with regards to public spending. This is also due to the fact that there are only 2 administrative levels in Luxembourg: the national and the municipal level. Luxembourg has the highest level of public spending per capita (USD 41 581) and public investment per capita (USD 3 500).

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