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 need access to adequate funding and financing for investment and maintenance purposes.
Public investment and infrastructure
Subnational governments - states, regions, and municipalities – play a key role in public investment, particularly in key infrastructure projects essential for economic development and well-being. Across the OECD, subnational governments account for nearly 60% of total public investment on average.
When well-managed, public investment is a catalyst for the growth and development of regions and cities. A place-based approach to investment with effective multi-level governance systems enables countries to maximise investment returns and support regional development.