Multi-level governance and subnational finance in Asia and the Pacific
Subnational governments in Asia and the Pacific are key providers of the public services
and infrastructure required to achieve the Sustainable Development Goals. Given this
role, it is essential that policymakers and development partners understand and support
the effective functioning of multi-level governance structures and subnational government
finances across the region.
This joint OECD-ADB report provides a comprehensive overview of subnational governments
across Asia and the Pacific. It covers over 467,000 subnational governments from 26
countries, which represent 53% of the world’s population and 40% of global GDP. On
average in 2020, subnational governments in the region accounted for 29% of total
public expenditure (8.8% of GDP), 35% of total public revenue (8.5% of GDP) and 38%
of public investment (2% of GDP).
Harnessing unique data from the 3rd edition of the OECD-UCLG World Observatory on
Subnational Government Finance and Investment, the analysis highlights how decentralisation
and territorial reforms have reconfigured the structures and finances of subnational
governments in the region. It covers a range of topics including fiscal rules, financial
management capacity, priority-based budgeting, asset management and the use of public-private
partnerships.