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Presentation of the OECD Territorial Review of the Netherlands, The Hague, Netherlands, April 2014
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Transcript of Presentation of the OECD Territorial Review of the Netherlands, The Hague, Netherlands, April 2014
The Hague, Netherlands 24nd April, 2014
National Territorial Review of the Netherlands
Enrique Garcilazo, David Bartolini, Isabelle Chatry
OECD Governance and Territorial Development
Above average standards of living… GDP per capita is 6th highest in the OECD
Labour productivity is higher than the OECD average
High levels of education and skills
During the past decade, the Dutch small open economy has performed well…
Challenges remain in the recovery Double dip Doubling of unemployment
• Top sector policy • Role of cities/regions • Subnational reforms
1. Chapter 1:
• Regional Development Trends in the Netherlands
2. Chapter 2 :
• Exploiting Policy Complementarities for Regional
Development the Netherlands
3. Chapter 3:
• Multi-level Governance Challenges in the
Netherlands
Outline
The Netherlands has a rich urban structure that could benefit more from agglomeration and regional Development…
Labour productivity growth and GDP per capita growth in the five largest FUAs is significantly lower than nationally and the OECD
Population in contrast , surpassed the national growth rate and was close to the OECD average rate of population growth.
There is a rich polycentric urban structure across the country…
Strengthening agglomeration benefits
• Creation a national urban policy framework
• Improving connectivity between functional urban areas Borrowed agglomeration effects
Connecting entire network
• Building regional development strategies upon functional urban areas
• Implementing effective and efficient governance mechanisms for the functional urban areas
Improving the policy framework for regional development
• There is currently:
– no national framework for regional policy and
– no explicit national urban policy framework
• Policies at the national level:
– Spatial and Infrastructure policy at the national level (SVIR)
– In terms of innovation, there has been an important change in recent years with the adoption of Top Sector Policy
• Policies at sub-national level:
– EU polices
– Provincial activities for the promotion of regional development
• Implementation a more structured and institutionalised network of stakeholders
– Horizontal and vertical coordination
– Regional ambassadors, provincial representatives, private sector
• Further involvement of provinces in the national policy strategy for infrastructure and spatial planning SVIR
• Aligning incentives from the top-sector policy to the EU smart specialisation agenda and regional cluster policy
– Exploiting policy complementarities
Improving the policy framework for regional development
There is a need to better integrate the various sectoral polices to ensure the potential complementarity gains are realised and avoid counter-productive outcomes
Getting subnational reforms right…
• A reform is needed to simplify, clarify and rebalance and decentralise further the Dutch institutional system along the idea of better governance
• The decentralisation reform reinforces the provincial role in regional development and the municipal role in social and welfare planning
• Municipalities will have to perform more task and better with less resources
• The decentralisation reform is complemented by a territorial reform aimed at reducing fragmentation
Finding the right scale for further strengthening decentralization
• In the context of decentralisation, the government should: – Take into account a medium and long time horizon for its
implementation – Provide assistance and training to municipalities in coping with
the new decentralised function – Ensure the active involvement of citizens of other local
stakeholders
• Decentralisation reform should include a broad fiscal reform. – More income and spending autonomy to subnational
governments including a tax and grant reforms
• …but the central government has a strong presence locally
• Revenue and spending autonomy is very limited
Main features of the Dutch decentralised system: a mixed nature between autonomy… and dependence
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NetherlandsUnited Kingdom
TurkeyIreland
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LuxembourgPolandKorea
PortugalAustraliaDenmark
NorwayIsrael
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FinlandItaly
Slovak RepublicCzech Republic
FranceUnited States
CanadaAustria
New ZealandSwitzerland
GermanySweden
SpainIceland
Taxes Transfers User fees Property income Other
GreeceTurkey
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EstoniaCzech Republic
Mexico FranceKorea
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OECD33United States
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Sub-national government tax revenue as a % of GDP
Subnational government expenditure and tax revenue as a % of GDP 2012 Categories of subnational government revenue, 2012
Source: OECD Regions at a Glance (2013) Source: OECD elaboration from OECD national accounts
• Rescaling provinces and municipalities through mergers or co-operation would improve their performance in a more decentralised context
• The strategic role of the provinces should be enhanced further to increase regional performance
Expenditure of the states/regional governments
in selected OECD countries, 2012
Getting subnational reforms right…
Thank you