The Welsh Government and local authorities are aware of the territorial disparities they face and are committed to addressing them. Successfully achieving large-scale territorial objectives, such as minimising disparities or increasing well-being, is linked to the good governance of regional development and public investment policies. It leads to more effective use of public investment funds and creates growth possibilities. To support more effective public investment, the Welsh Government and local authorities could refine their approach and take stronger action in three areas: i) effective policy design and co‑ordination, ii) sound and appropriate fiscal and investment frameworks, and iii) building capacity for policy implementation and learning by and at all levels of government.
The Welsh Government requested this OECD report as input into its policy actions for regional development and public investment. The report examines productivity and well-being performance across Wales, Welsh fiscal and public investment frameworks, and Welsh governance structures supporting regional development and investment decisions. The insights and recommendations in this report may be particularly timely in light of Brexit’s potential impact on multi-level governance systems and regional investment financing in Wales, as well as the impact of the COVID-19 pandemic on the Welsh economy, service delivery capacity and fiscal health.