Publications & Documents

Subnational governments face a range of fiscal risks, defined as events whose realisation leads to significant deviations of revenue and/or expenditure from budgeted amounts. Fiscal risks reflect unforeseen macroeconomic developments, as well as structural shifts in the economy, including digitalisation and climate change. Sound management of these risks requires a comprehensive framework involving their identification, analysis, mitigation, sharing or transfer, and prudent accommodation. Within this framework, subnational governments need to strengthen their capacity to manage their own risks, but national governments also have a role to play. This includes mitigating risks created by national policies, minimising moral hazard in supporting subnational governments affected by exogenous shocks, and using their legislative powers to avert excessive subnational risk-taking. Effective intergovernmental cooperation is key to the sound management of subnational fiscal risks. The paper discusses how different levels of government can work together in applying this framework to the main types of risks. It also provides some examples of good international practices in the management of risks.

With interest rates at their highest levels in two decades, subnational governments (SNGs) are grappling with growing debt sustainability concerns. This paper investigates SNGs’ financing vulnerabilities by examining their debt levels and sensitivity to interest rate fluctuations. It provides an in-depth analysis of SNG debt portfolios, with a particular focus on marketable debt or bonds. While most SNG bonds have fixed rates and long maturities, some jurisdictions are significantly exposed to interest rate and foreign currency risks. Simulations reveal that interest expenses could rise substantially for some SNGs. Yet, worryingly, the variation in borrowing costs among SNGs within countries is often limited, suggesting potential weaknesses in market discipline. To navigate these challenges, the paper briefly explores how well-crafted fiscal rules, tax autonomy, and insolvency frameworks can help mitigate risks. It also highlights the need for further assessment of bank loans, as systematic information remains scarce. The paper provides insights for policymakers seeking to address risks and inform future reforms of SNG bond markets, reinforcing market discipline and bolstering fiscal resilience.

Le guide de politique publique sur les cadres légaux pour l'économie sociale et solidaire vise à soutenir les pays, les régions et les villes qui souhaitent utiliser les cadres légaux comme un levier approprié pour développer des écosystèmes favorables à l'économie sociale et solidaire (ESS). S'appuyant sur des données, des informations et des exemples de bonnes pratiques provenant de plus de 33 pays, ce guide international fournit des conseils étape par étape, ainsi que des 'facteurs de réussite' et des 'écueils à éviter' pour aider les décideurs politiques à i) évaluer pourquoi et quand des cadres légaux pour l'ESS sont nécessaires ; ii) sélectionner des options légales et impliquer les parties prenantes ; iii) évaluer la performance des lois, et, iv) favoriser l'apprentissage international par les pairs sur ce sujet. Le guide s'appuie également sur les enseignements du document sur les cadres légaux pour l'économie sociale et solidaire, élaboré dans le cadre de l'action mondiale de l'OCDE 'Promouvoir les écosystèmes de l'économie sociale et solidaire', financée par l'instrument de partenariat étranger de l'Union européenne, et de l'étude 'Designing Legal Frameworks for Social Enterprises : Practical Guidance for Policy Makers'.

On the road to the 10th anniversary of the OECD Principles on Water Governance, the Handbook of What Works aims to further drive their implementation at sub-national level (e.g. municipal, regional and basin) through a compilation and analysis of evolving water governance practices. Building on a compendium of 52 water governance practices, the Handbook illustrates how cities, regions and basins in both OECD member and non-member countries have designed and implemented effective, efficient and inclusive water governance systems. It identifies common pitfalls to be avoided when designing and implementing water policies across levels of government, draws lessons from both successful and challenging implementations of each Principle and highlights the potential for replication of these practices to other contexts.

Alors que les entités de l'économie sociale et solidaire (ESS) sont de plus en plus sollicitées pour démontrer leur contribution positive à la société, la mesure de l'impact social peut les aider à comprendre la valeur nette supplémentaire générée par leurs activités, dans le cadre de leur mission et au-delà. La politique publique joue un rôle important dans la création d'un environnement propice à l'adoption de la mesure de l'impact social par les acteurs de l'ESS. S'appuyant sur un exercice de cartographie et des exemples de bonnes pratiques provenant de 33 pays, ce guide international explique comment les décideurs politiques peuvent soutenir la mesure de l'impact social pour l'économie sociale et solidaire en (i) améliorant le cadre politique, en (ii) fournissant des orientations, en (iii) construisant des preuves et en (iv) renforçant les capacités. S'appuyant sur la publication précédente, Social Impact Measurement for the Social and Solidarity Economy, parue en 2021, ce guide est publié dans le cadre de l'action mondiale de l'OCDE « Promouvoir les écosystèmes de l'économie sociale et solidaire », financée par l'instrument de partenariat étranger de l'Union européenne.

Rural regions across the OECD depend on a wide range of economic engines for growth, as well as the quality of place to attract and retain people. Social innovation seeks new answers to social and environmental problems, using new solutions that improve the quality of life for individuals and communities. Social innovation can be a tool to create vibrancy in rural areas by filling public service gaps, experimenting with new business models, and creating a stronger sense of community. However, not all rural areas are equally equipped to engage in social innovation. This paper provides guidance for policy makers and proposes an approach alongside a dashboard of indicators for measuring readiness and capacity to engage with social innovation in rural areas.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth and development in Emerging Asia – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam, as well as China and India. It comprises three parts: a regional economic monitor, a thematic chapter addressing a major issue facing the region, and a series of country notes. The 2024 edition discusses the region’s macroeconomic challenges such as external headwinds, impacts of El Niño and elevated levels of private debt. The thematic chapter focuses on strategies to cope with more frequent disasters. Emerging Asia is among the world’s most disaster-prone regions, and the threat of disasters, such as floods, storms, earthquakes and droughts, is increasing. The report explores how countries can reduce disaster risks and improve resilience by developing a comprehensive approach involving policy measures such as improving governance and institutional capacity, ensuring adequate budgets and broadening financing options, strengthening disaster-related education, improving land planning, investing in disaster-resilient infrastructure and disaster-related technology, improving health responses, and facilitating the role of the private sector.

Since joining the EU in 2013, Croatia’s macroeconomic performance has improved significantly. At the same time, large demographic and socio-economic disparities across Croatian regions persist. These trends provide the backdrop against which Croatia has reformed its legislative and strategic planning framework for regional development. Such reforms culminated in the adoption of the National Development Strategy 2030, which includes balanced regional development among its main long-term objectives. They have also led to the creation of regional development agencies, and the design of development plans at the county and local levels. This report assesses the extent to which Croatia’s multi-level governance system is supporting its regional development objectives. In particular, it provides an overview of the country’s regional development performance on several demographic, economic and well-being indicators. From there, it considers how the regional development reforms adopted since 2014 affect the ability of national and subnational governments to design, implement, fund, monitor and evaluate place-based regional development plans. Finally, this report provides practical recommendations to help national and subnational policy makers develop and implement strategic frameworks to meet their territorial development objectives and deliver tangible results to communities across the country.