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This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries.
OECD 2010
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FOREWORD 3
Foreword
cross the OECD, the globalisation of trade and economic activity increasingly tests the ability of regional economies to adapt and exploit or maintain their competitive edge. On the one hand, there is a tendency for performance gaps to widen between and within regions, and the cost of maintaining cohesion is increasing. On the other hand, rapid technological change, the extension of markets and the greater use of knowledge offer new opportunities for local and regional development. This requires further investment in the business environment, reorganisation of labour and production, and upgrading skills and environmental improvements. All of these trends are leading public authorities to reconsider their strategies. The role of policies aimed at improving the competitiveness of regions by promoting the valorisation and use of endogenous resources has been strengthened. Along these lines, the vertical distribution of power between the different tiers of government and the decentralisation of resources and competencies need to be reassessed in order to better respond to the diverse opportunities and demands of the different regions and improve policy efficiency. Public authorities need to weigh current challenges, evaluate the strategies pursued in recent years and define new options. Comparing regional policies across OECD member countries suggests future directions and best practices for policy makers. However, such information has often been limited. This report is a handy reference to regional policies and offers some tools for cross-country analysis based on sound comparable information. It is the first systematic comparative analysis of OECD member countries regional policies. The report covers key issues, such as problem recognition, objectives of regional policy, legal/institutional frameworks, urban/rural frameworks, budget structures, and governance mechanisms between national and sub-national governments as well as across sectors. The comparative analysis uses a common conceptual framework, which allows countries to share their experiences. The analysis suggests an important role for regional policies in shaping sustainable endogenous development, notably the need for well-developed governance mechanisms capable of better responding to the diverse opportunities and demands of different regions in order to improve policy efficiency. This report was presented and discussed at the OECD Territorial Development Policy Committee (TDPC). This committee was created in 1999, responding to the need of studying and spreading innovative territorial development strategies, as well as governance practices, in a more systematic way. It is a unique forum for international exchange and debate on regional policy. The TDPC has developed a number of activities, including a series of Territorial Reviews and analytical reports on different regional policy issues.
4 ACKNOWLEDGEMENTS
Acknowledgements
his report was produced by the Regional Development Policy Division of the Directorate of Public Governance and Territorial Development (GOV/RDP) of the OECD. The report was co-ordinated and drafted by Ms. Kazuko Ishigaki of the OECD Secretariat under the supervision of Mr. Joaquim Oliveira Martins, Head of the Regional Development Policy Division. The OECD is grateful to delegates of the Territorial Development Policy Committee who provided valuable information and feedback on the country profiles. This compilation of policies across OECD member countries also builds on accumulated knowledge from the OECD Territorial Reviews. Many valuable comments were received from the OECD Secretariat. Special thanks are given to Ms. Claire Charbit, Ms. Karen Maguire, Ms. Dorothe Allain-Dupr, Ms. Soo-Jin Kim, Ms. Claire Nauwelaers, Mr. Olaf Merk and Ms. Maria Varinia Michalun. Ms. Erin Byrne supervised the publication process. Ms. Jennifer Allain edited the publication.
TABLE OF CONTENTS 5
Table of Contents
Chapter 1. Regional Development Policy Trends in OECD Member Countries ...... 9 Introduction ............................................................................................................. 10 1.1. Problem recognition and objectives of regional development policy .............. 11 1.2. Legal and institutional frameworks .................................................................. 16 1.3. Governance....................................................................................................... 23 Conclusions and areas for future research: toward the development of policy indicators ...................................................................................................... 41 Bibliography ............................................................................................................ 45 Annex 1.A1. Original Data .............................................................................................. 47 Chapter 2. Country Profiles ......................................................................................... 59 Australia .................................................................................................................. 61 Austria ..................................................................................................................... 67 Belgium ................................................................................................................... 73 Canada ..................................................................................................................... 81 Chile ........................................................................................................................ 91 Czech Republic ....................................................................................................... 97 Denmark ................................................................................................................ 105 Finland................................................................................................................... 111 France .................................................................................................................... 121 Germany ................................................................................................................ 133 Greece ................................................................................................................... 141 Hungary ................................................................................................................. 147 Iceland ................................................................................................................... 157 Ireland ................................................................................................................... 161 Italy ....................................................................................................................... 167 Japan...................................................................................................................... 175 Korea ..................................................................................................................... 181 Luxembourg .......................................................................................................... 189 Mexico................................................................................................................... 197 Netherlands ........................................................................................................... 205 New Zealand ......................................................................................................... 213 Norway .................................................................................................................. 219 Poland.................................................................................................................... 229 Portugal ................................................................................................................. 239 Slovak Republic .................................................................................................... 247 Slovenia ................................................................................................................. 253 Spain...................................................................................................................... 261
REGIONAL DEVELOPMENT POLICIES IN OECD COUNTRIES OECD 2010
6 TABLE OF CONTENTS Sweden .................................................................................................................. 269 Switzerland ............................................................................................................ 279 Turkey ................................................................................................................... 287 United Kingdom .................................................................................................... 293 United States ......................................................................................................... 303 Annex A. Profiles of EU Policy .................................................................................... 309 Regional Policy of the European Union ................................................................ 310 Regional problems................................................................................................. 310 General objectives of regional policy.................................................................... 310 Legal/institutional frameworks of regional policy ................................................ 311 Main implementation tools.................................................................................... 312 Budget structure .................................................................................................... 313 Governance structures ........................................................................................... 315 Bibliography .......................................................................................................... 316 Annex B. Comparative Analysis of Cross-border Co-operation in OECD Member Countries ...................................................................................... 317 Europe: rules and incentives for cross-border co-operation .................................. 318 North America: a focus on economic integration ................................................. 327 Categorising cross-border co-operation ................................................................ 332 Comparing European and North American cross-border co-operation ................. 333 Lessons from existing cross-border co-operation ................................................. 336 Bibliography .......................................................................................................... 341 Annex C. Urban-rural Linkages: In View of Controlling Urban Sprawl ..................... 343 Introduction ........................................................................................................... 344 Managing urban growth: rate and geographic scale .............................................. 345 Financing urban growth in an efficient and equitable way ................................... 367 Basic tools for land management .......................................................................... 373 Conclusions ........................................................................................................... 377 Bibliography .......................................................................................................... 382
Tables
Table 1.1. Paradigm shift of regional policy ....................................................... 13 Table 1.2. Urban policy framework ..................................................................... 17 Table 1.3. Rural policy framework ...................................................................... 18 Table 1.4. Recent establishment and strengthening of decentralised regions...... 32 Table 1.5. Functions of decentralised regions ..................................................... 35 Table 1.6. Deconcentrated regional authorities ................................................... 37 Table 1.7. Inter-municipal co-operation .............................................................. 38 Table 1.8. Future directions (under discussion) ................................................... 41 Table 1.A1.1. Problem recognition ......................................................................... 48 Table 1.A1.2. Objectives of regional development policy ...................................... 50 Table 1.A1.3. Indicators of fiscal decentralisation .................................................. 53 Table 1.A1.4. Horizontal governance mechanisms ................................................. 55 Table 1.A1.5. Horizontal governance details ....................................................... 55 Table 1.A1.6. Vertical governance.......................................................................... 56
TABLE OF CONTENTS 7
Table 1.A1.7. Vertical governance details ........................................................... 57 Table 2.1. Australia.............................................................................................. 61 Table 2.2. Austria ................................................................................................ 67 Table 2.3. Belgium .............................................................................................. 73 Table 2.4. Canada ................................................................................................ 81 Table 2.5. Chile.................................................................................................... 91 Table 2.6. Czech Republic ................................................................................... 97 Table 2.7. Denmark ........................................................................................... 105 Table 2.8. Finland .............................................................................................. 111 Table 2.9. France ............................................................................................... 121 Table 2.10. Germany ........................................................................................... 133 Table 2.11. Greece ............................................................................................... 141 Table 2.12. Hungary ............................................................................................ 147 Table 2.13. Iceland .............................................................................................. 157 Table 2.14. Ireland ............................................................................................... 161 Table 2.15. Italy ................................................................................................... 167 Table 2.16. Japan ................................................................................................. 175 Table 2.17. Korea ................................................................................................ 181 Table 2.18. Luxembourg...................................................................................... 189 Table 2.19. Mexico .............................................................................................. 197 Table 2.20. Netherlands ....................................................................................... 205 Table 2.21. New Zealand ..................................................................................... 213 Table 2.22. Norway ............................................................................................. 219 Table 2.23. Poland ............................................................................................... 229 Table 2.24. Portugal............................................................................................. 239 Table 2.25. Slovak Republic ................................................................................ 247 Table 2.26. Slovenia ............................................................................................ 253 Table 2.27. Spain ................................................................................................. 261 Table 2.28. Sweden.............................................................................................. 269 Table 2.29. Switzerland ....................................................................................... 279 Table 2.30. Turkey ............................................................................................... 287 Table 2.31. United Kingdom ............................................................................... 293 Table 2.32. United States ..................................................................................... 303 Table A.1. Fund allocation by objectives ........................................................... 313 Table A.2. Maximum co-financing rates ............................................................ 315 Table B.1. Examples of cross-border regions..................................................... 319 Table B.2. Thematic categorisation of cross-border co-operation ..................... 334 Table C.1. Problem recognition and expected policy effects of urban growth management ......................................................................... 345 Table C.2. Public policies for managing urban growth and protecting open space ......................................................................................... 347 Table C.3. Property tax in selected countries ..................................................... 369 Table C.4. Collection and disclosure of land transaction price information ...... 375
Figures
Figure 1.1. Problem recognition by the central government ................................ 14 Figure 1.2. Objectives of regional development policy ........................................ 16 Figure 1.3. Decentralisation of public revenue across OECD member countries, 2008 .................................................................................... 21
REGIONAL DEVELOPMENT POLICIES IN OECD COUNTRIES OECD 2010
8 TABLE OF CONTENTS Figure 1.4. Decentralisation of public spending across OECD member countries, 2008 .................................................................................... 22 Figure 1.5. Decentralisation of public investment across OECD member countries, 2008 .................................................................................... 23 Figure 1.6. Horizontal governance mechanisms ................................................... 25 Figure 1.7. Vertical governance mechanisms ....................................................... 29 Figure A.1. Allocation of EU funding by member countries ............................... 314
Boxes
Box 1.1. Box 1.2. Box B.1. Box B.2. Box B.3. Box B.4. Box B.5. Box B.6. Box B.7. Box B.8. Box B.9. Box C.1. Box C.2. Box C.3. Box C.4. Box C.5. Box C.6. Box C.7. Box C.8. Box C.9. Box C.10. Box C.11. Box C.12. Box C.13. Five gaps that challenge multi-level governance ................................ 28 Asymmetric decentralisation in OECD member countries................. 33 INTERREG: an EU cross-border programme .................................. 320 Case study: resund ......................................................................... 321 Case study: other examples of European cross-border co-operation ...................................................................................... 323 Case study: the Baltic Sea Region (BSR) ......................................... 325 Case study: United States-Canada .................................................... 327 Case study: United States-Mexico .................................................... 331 Case of the Pan Yellow Sea Region ................................................. 335 Four critical aspects of cross-border linkages................................... 335 Roles for meta-governance ............................................................... 338 Comprehensive land-use planning in France, Germany, the Netherlands and the United Kingdom......................................... 350 Urban growth boundaries in OECD member countries .................... 353 Green belt policies in OECD member countries .............................. 356 Green heart policy in the Netherlands .............................................. 357 Finger plan in Copenhagen, Denmark .............................................. 357 Location efficient mortgages ............................................................ 359 Examples of brownfield policies in OECD member countries......... 360 Examples of congestion charges in selected countries ..................... 362 Looking back on history: fight against primary city phenomena ..... 366 Schemes to link land conversion profit to local finance in the Netherlands ................................................................................. 371 Integrating infrastructure, urban development and financing ........... 373 Communal property rights in Mexico............................................... 374 Continuing Cadastral Survey in Japan .............................................. 376
Chapter 1 summarises the trends of regional development policies in OECD member countries, beginning with problem recognition (the problems or challenges recognised by the country) and the objectives of regional development policies, followed by an overview of the legal and institutional framework including major policy tools, the urban/rural policy framework and the budget system. Finally, institutional aspects such as multi-level governance and horizontal governance are presented. The analysis suggests an important role for regional policies in shaping sustainable endogenous development, notably the need for well-developed governance mechanisms capable of better responding to the diverse opportunities and demands of different regions in order to improve policy efficiency.
Introduction
This publication aims to provide a comparative perspective of regional development policies across OECD member countries. It intends to present information in an easily comprehensible and comparable format by using the same headings for each country. The information included is mainly drawn from input from delegates of the OECD Territorial Development Policy Committee (TDPC), OECD Territorial Reviews, academic papers and websites of the ministries responsible for regional development. The publication is divided into two chapters with several annexes. Chapter 1 discusses regional development policy trends in OECD member countries. 1 Chapter 2 provides a policy index sheet and country profile of each country. Annex A briefly explains EU Cohesion Policy. Annexes B and C present thematic issues: trends of crossborder co-operation and urban-rural linkages in view of controlling urban sprawl. The OECD Secretariat drafted the country profiles based primarily on OECD Territorial Reviews. They were then circulated to the TDPC delegates accompanied by the following questions.