By OECD Organisation for Economic Co-operation and Development
Do a little areas develop swifter than others, and in ways in which don't continually comply with financial conception? this can be a relevant factor in todays financial system, while coverage makers are trying to find how one can stimulate new and sustainable development. OECD paintings means that there is not any one-size-fits-all solution to local progress coverage. quite, areas develop in very diversified methods and the easy focus of assets in a spot isn't adequate for long term development. This record attracts on OECD research of neighborhood info (including the place progress occurs, country-by-country), coverage stories and case experiences. It argues that it really is how investments are made, neighborhood resources used and synergies exploited that may make the adaptation. Public funding should still prioritise longer-term affects on productiveness development and mix measures in an built-in approach. this implies an incredible function for nearby guidelines in shaping progress and fiscal restoration regulations, but additionally demanding situations coverage makers to enforce coverage reforms.Table of content material :AcronymsIntroductionSummary of Key coverage MessagesChapter 1. knowing and Explaining local GrowthChapter 2. A more beneficial method of selling Sustainable local GrowthChapter three. coverage Implementation and GovernanceChapter four. the place progress occurs: styles of local development -;Country ;Country- Australia; - Austria; - Belgium- Canada- Czech Republic - Denmark - Finland; - France- Germany- Greece- Hungary- eire - Italy Japan- Korea; - Mexico - The Netherlands - Norway - Poland - Portugal- Slovak Republic- Spain - Sweden- Switzerland - Turkey - uk - usa
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Sample text
Pavitt and Patel, 1991). In response to these poor results, regional policy continues to evolve from top-down, subsidy-based interventions designed to reduce regional disparities into a much broader “family” of policies designed to improve regional competitiveness. These can be characterised as follows: • a development strategy covering a wide range of direct and indirect factors affecting the performance of local firms; • a greater focus on endogenous assets rather than exogenous investments and transfers; • an emphasis on opportunity rather than disadvantage; REGIONS MATTER: ECONOMIC RECOVERY, INNOVATION AND SUSTAINABLE GROWTH © OECD 2009 2.
2. The equity-efficiency trade-off Equity approaches aim to reduce financial disparities between people and places (where subnational authorities are responsible for basic public services). Efficiency approaches aim to foster growth in places that may already be relatively wealthy. They are based on the increasing acknowledgment of agglomeration effects. In practice, equity and efficiency policies can be complementary: • “Increasing returns to adoption” (positive externalities associated with a growing number of users) is a characteristic of knowledge economics.
Dynamic perspective”: investment in already wealthy regions with favourable growth potential can lead to extra wealth which can then be redistributed. Similarly, efficiency in public spending (either by limiting the cost of public policy for the same results, or by improving its outcomes) could increase resources available for the equity objective. Source: OECD Territorial Reviews. This new thinking in regional policy concerns not only the most developed countries, but developing countries as well.