Multi-level Governance

Public Investment & Infrastructure


Supporting effective public investment across levels of government

Subnational governments - states, regions and municipalities - play a key role in public investment, particularly in infrastructure, as they invest in areas that are critical for economic development and well-being. On average, subnational governments across the OECD account for nearly 60% of total public investment. 

When well-managed, public investment is a catalyst for the growth and development of regions and local governments. A place-based approach to investment with effective multi-level governance systems can allow countries to maximise investment returns and support regional development.


The OECD Recommendation on Effective Public Investment Across Levels of Government provides practical guidance for countries and conducts country and region-specific studies that offer actionable recommendations tailored to their unique contexts. 


Online Toolkit  |  Monitoring report  |  Implementation brochure


Funding and financing subnational infrastructure investment

Subnational governments provide much of the basic infrastructure essential for economic development and well-being in regions and cities. They bear the responsibility for essential sectors, such as education, transport, housing, social services and utility infrastructure. To provide high-quality, resilient and inclusive infrastructure, subnational governments require access to adequate funding and financing for investment and maintenance purposes. 

 OECD Work for the G20 Infrastructure Working Group 


Financing Cities of Tomorrow: G20/OECD Report for the G20 Infrastructure Working Group under the Indian Presidency 


G20-OECD Policy Toolkit to Mobilise Funding and Financing for Inclusive and Quality Infrastructure Investment in Regions and Cities


Unlocking Infrastructure Investment: Innovative Funding and Financing in Regions and Cities 

By 2050, the global population living in cities is projected to reach 5 billion, growing from 3.5 billion in 2015. Massive investment in infrastructure will be needed to accommodate this growth and to adapt infrastructure to climate change and benefit from the digital transition. This report explores ways to meet this challenge and provides 17 short case studies from 12 countries that demonstrate innovative practices for creating the Cities of Tomorrow.



Over the coming years, significant infrastructure investment will be required to sustain economic growth and improve well-being in many regions and cities. The G20-OECD Policy Toolkit, developed with input from the Asian Development Bank, outlines key elements of creating an enabling environment for subnational infrastructure investment. It details common and innovative funding sources, financing instruments and investment approaches and is supported by 23 case studies.

Report  |  Workshop


Subnational governments have a critical role to deliver, operate and maintain infrastructure, and to invest to help drive the recovery from COVID-19. The report presents a framework to differentiate funding and financing instruments, including by type of instrument, and outlines essential framework conditions that are needed to support subnational governments. The report also provides examples from various countries.




Making the Most of Public Investment to Address Regional Inequalities, Megatrends and Future Shocks - EN | FR

Subnational Public-Private Partnerships: Meeting Infrastructure Challenges

Making the Most of Public Investment in the Eastern Slovak Republic 


Making the Most of Public Investment in Colombia







Related works




More information

OECD Infrastructure Platform


OECD Infrastructure Toolkit


Regional & Local Finance


Multi-level Governance



Related Documents