Subnational governments are key public investors

Subnational governments - states, regions, municipalities - play a pivotal role in public investment, including for infrastructure, as they invest in areas that are critical for growth and well-being. In the OECD, subnational governments are responsible for 57% of total public investment. When well-managed, public investment can support growth. A territorial approach to public  investment, supported by effective multi-level governance, helps countries maximise their return on investment for regional development.

 OECD Recommendation on Effective Public Investment across Levels of Government

Online Toolkit | Monitoring report | Implementation brochure

Topics

Sustainable Infrastruture in Regions and Cities

Subnational governments are in charge of key infrastructure areas that have been strongly affected or mobilised by the COVID-19 crisis, including health care, social services, education, public transport, roads, social housing, utility networks, and digital infrastructure. As part of post-pandemic rebuilding, we support policy-makers to better design and implement sustainable and resilient infrastructure investment in regions and cities. 

Our work on the governance and finance of subnational infrastructure investment is part of the OECD's activities on infrastructure, and supports the G20 initiatve on sustainable infrastructure implementation. 

• OECD Compendium of Policy Good Practices for Quality Infrastructure Investment (See Subnational governance of infrastructure in cities and regions)
• OECD Recommendation on the Governance of Infrastructure (See Co-ordinate infrastructure policy across levels of government)
• Delivering Sustainable Infrastructure in Regions and Cities Post-COVID-19 (Forthcoming)
• Implementation Handbook for Quality Infrastructure Investment (Forthcoming)
• Innovative Financing for Subnational Infrastructure Investment (Forthcoming)

Strengthening Governance of EU Funds under Cohesion Policy

The OECD has developed an analytical framework with five dimensions – people management, organisational management, strategic planning, beneficiary and stakeholder support, and framework conditions – to analyse the challenges and capacity gaps confronting EU Managing Authorities in the administration and management of EU funds under Cohesion Policy. This report recommends concrete actions for actors in the Cohesion Policy governance system to build and reinforce their administrative and investment management capacity. The findings can also benefit non-EU public actors in managing public investment. 

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Access the Self-assessment Instrument (Forthcoming)

Subnational Public-Private Partnerships: Meeting Infrastructure Challenges

This report examines the challenges of using Public-Private Partnerships (PPPs) at the subnational level and ways to address them. It focuses on three case studies: subnational PPPs in France, local Private Finance Initiative (PFI) projects in the United Kingdom, and PPPs in Virginia, United States.

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Countries Studies: Public Investment for Regional Development

The OECD support countries and regions to enhance the governance of public investment for regional development.

• The Future of Regional Development and Public Investment in Wales, United Kingdom
• Making the Most of Public Investment in Colombia
• Making the Most of Public Investment in the Eastern Slovak Republic