Monica Brezzi - OECD Regional Development Policy Division

OECD Regions at a GlanceII Seminario Internacional en Desarrollo Economico Territorial

ILPES/CEPAL Santiago 19-21 October

Agenda

1. What to measure

2. How to measure

3. Looking forward

Measuring regional development

H How to improve our evidence base

Some stylized facts on regional development from OECD Regions at a Glance 2009

A web tool to explore regional information, share insights and increase awareness

Regional policy in OECD countriesA place-based policy to foster competitiveness and well-being for all regions, implemented through cooperation among different levels of government;

Regional development is multidimensional.

Comparative (within and across countries) statistical information on around 2,000 regions in OECD countries. Large and small regions; Rural and urban regions.

The OECD regional indicators range from demographic characteristics to economic output, from industrial concentration to labour market performance, from innovation activities to education levels, from health status to environmental conditions

OECD metrodatabase provides statistics on 90 large metropolitan areas in the OECD countries and shows how these regions have changed over the past decade.

The Territorial Development Policy Committee (TDPC) and its Working Parties is a unique forum where analysits and policy-makers discuss tools and policy for regional development

Nations and regions are struggling to remain competitive and adapt in the context of globalization.The impact of globalization is far greater on regions than nationsThe regional dimension at the core of a sustainable development model: competitiveness, well-being and sustainabilityRegional resilience to external shocks varies greatly (mix of structural factors, institutions, policy and sustainability over time)

Some stylized facts from the “OECD Regions at a Glance 2009”

Regions at a glance 2009Section I: Regions as the actors of national growth

Section II: Making the best of regional assets

Section III: Key drivers of regional growth

Section IV: Competing on the basis of regional well-being

Section V : Regional focus on innovation

Concentration of resources (population, elderly population, GDP) within countries and regional contribution to economic growth and employment

Regional disparities as a result of unused regional assets (labour productivity, employment, female employment, unemployment and young unemployment, regional specialization)

Marked variation in regional growth as a result of concentration of resources and a region’s ability to mobilize its assets. What accounts for GDP change?

Regional disparities in the access and quality of education, health, environmental services affects social cohesion but also the capacity of a region to increase its competitiveness

To better explore the role of innovation in regional policy. Regional indicators on R&D inv and personnel, patenting and co-patenting activities, employment and labour force skills

Initial level and growth of GDP per capita in OECD regions (TL2), 1996-2007

Regional differences in economic competitiveness within countries in the past years have been at least twice as much among countries

Gini index of regional GDP per capita Range in regional productivity ( as a % of national productivity), 2007

Or more precisely, regional differences in sustainable development within and across countries remain large

Age-adjusted mortality rate (2006)

Citizens of certain US counties have an average life expectancy equal to that of an American of 30 years ago

Suggesting strong geographic concentration of resources within countries

Per cent of national GDP increase contributed by the top 10% of regions, 1995-2007

40% of the increase in total GDP between 1995 and 2007 was driven by 10% of regions

Not only economic resources: population, labour etc.

Per cent of national population living in the top 10% of regions, 2008

Distribution of population in predominantly urban, intermediate and predominantly rural regions

Negative net inter-regional flows rural

Negative net inter-regional flows metropolitan areas

Different patterns of labour mobility across regions

0

20000

40000

60000

80000

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

Initial per capita GDP in PPP

Average annual growth rates 1995-2005Predominantly Rural Predominantly Urban

III IVIII

II I

Komárom-Esztergom

Border

South-West Dublin

Sterea Ellada

Miasto Warszawa

InnerLondon - West

Paris

Oslo

Hauts-de-Seine Bruxelles

Luxembourg

Different patterns of growth for different types of regions

13

Regional characteristics by degree of persistence in out-migration (total regions =1)

Regional output differences are in large part due to disparities in productivity

Profile fragile regions: loss of pop and low productivity

Between 1999-2006 almost half of employment was created in 10% of OECD regions...

64%62%61%

59%59%

58%57%

52%52%

50%50%

47%46%

45%40%39%39%

36%34%

33%29%

28%27%

24%22%

16%16%

0% 20% 40% 60% 80% 100%

GreeceUnited States

SwedenIceland

Canada (NOG)Hungary

KoreaCzech Republic

SwitzerlandDenmark

FinlandOECD (26) average

Australia (NOG)Spain

NorwayItaly

New ZealandFrance

United KingdomMexico (TL2)

GermanyAustria

PortugalNetherlands

BelgiumSlovak Republic

Ireland

...and in 2006 in 15% of OECD regions less than 40% of working age women are employed

Way out: which local factors could be better mobilized?

1. Improve regional competitiveness through the supply and utilization of the labour force

2. Increase access to education and improve human capital and skills in the knowledge based economy

…

Almost one fourth of the OECD labour force in 2006 had received only basic education

New regions are faster specializing in high-tech manufacturing and knowledge intensive services

Percent of labour force with only basic education (2006)Specialization index in high-tech manufacturing (HTM) for

the fastest specializing regions (2008)

Number of partner regions for co-patenting in green technologies and ICT

3. Strengthen regional cooperation to produce and adopt innovation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

LuxembourgChina

HungaryCzech RepublicSlovak Republic

BelgiumSwitzerland

TurkeyMexicoPolandGreeceAustriaIndia

GermanyKorea

PortugalFrance

United StatesItaly

SloveniaNorwayFinland

DenmarkUnited Kingdom

AustraliaCanadaIreland

NetherlandsSweden

SpainJapan

New ZealandChile

Estonia

Within Region Within Country Foreign Regions

Co-patents within region, within country and with foreign countries(2007)

Different propensity to cooperate within and outside national borders and increasing number of partners

Agenda

1. What to measure

2. How to measure

Measuring regional development

Some stylized facts on regional development from OECD Regions at a Glance 2009

A web tool to explore regional information, share insights and increase awareness

Statistics eXplorer ‐ author toolAnalyse ‐ Gain insight – Storytelling

Collaborate

Statistics PublisherPublish – Insight ‐ Knowledge

OECD explorer: a web tool to analyze regional information, collaborate in producing more info,

disseminate insights http://stats.oecd.org/OECDregionalstatistics

Agenda

1. What to measure

2. How to measure

3. Looking forward

Measuring regional development

Some stylized facts on regional development from OECD Regions at a Glance 2009

A web tool to explore regional information, share insights and increase awareness

How to improve our evidence base

1. Better measures of economic agglomerations and links between urban and rural regions

Future work:•Refined typology of rural areas to be extended to non OECD countries•Improved definition of large metropolitan areas and indicators of economic, social and envirnomentalperformance of metro regions• functional links among rural, urban and periurbanareas: labour mobility, use of land, infrastructure to connect

Rationale: Better understand of rural and urban areas and how these definitions should be adapted to non OECD countries. In particular on the links between rural and urban regions

2. Access to quality services and infrastructure

Rationale: Regional income disparities within countries show that redistribution among places is not at work efficiently and transfers to less-developed regions are not sustainable over time as they can harm the development of local competitive edge. The existence of sacks of social exclusion is linked to the unavailability/ or poor accessibility and quality of public goods and services

Future work: •Regional disposable income;•Monetary poverty and housing conditions; •Infrastructure for transport and ICT;•Health and education services

3. Institutional arrangements and policy indicators: the missing information?

Future work: •expenditure and public investment in regions;•Institutional mapping of responsibilities for regional development•indicators on the governance of water policy; •Urban policies for green growth;

Rationale: To include in the OECD regional database measures of governance of regional development and policy indicators

Link between measurement agenda and regional and national policy delivery

“Mind the Gaps” : a Tool for Diagnosis in producing indicators for policy

Administrative gap Information may be produced at a non relevant detail. For example availability and access to some services (child care, education, health, leisure time etc.) maybe more relevant with different boundaries

Information gap Local context and the system of values matter when defining indicators and targets (i.e. policy objectives). Need to take into account a regional and local perspective

Objective gap Possible incoherence between national or supra-national objectives and local needs/necessary actions. This calls for engaging citizens since the beginning of a policy design

Policy gap Sectoral fragmentation across Ministries will affect the design and use of indicators

Capacity gap Insufficient capacity of different actors to use effective indicators to define, monitor and evaluate policies.

Funding gap Unstable or insufficient revenues undermining effective implementation of responsibilities at sub-national level or for crossing policies. Producing information is costly

Accountability gap Need to strengthen accountability, building consensus for change and verify public action

Source: Adapted from C. Charbit (OECD 2010)

Monica.brezzi@oecd.org

www.oecd.org/gov/ regional

THANK YOU FOR YOUR ATTENTION