Regions and cities need more and better-quality jobs. The twin green and digital transitions, along with demographic change, are transforming the way we work and redefining local economies and communities. Seizing new opportunities and responding to these changes demands innovative solutions, support for small businesses, and investment in communities, alongside efforts to upskill the workforce to better match job demands. The OECD provides expertise in developing and implementing policies and local initiatives aimed at creating more and better jobs leading to tangible results for local economic development.

Multi-level governance refers to the system that supports policy and decision-making among national, regional, and local governments. When these levels of government work well together, policies are more likely to succeed, fostering development in all places. The OECD actively supports effective decentralisation and regionalisation reforms, as well as the strategic planning, implementation and performance measurement of regional policies at all levels of government.

Quality regional development policy is essential for inclusive economic outcomes, well-being, environmental sustainability, and resilience. Regions, cities and rural areas play a crucial role in responding to megatrends including climate change, digitalisation, demographic shifts, and globalisation, which have very different effects within OECD countries. At the same time, regions within OECD countries vary widely in their social and economic structure, performance, and well-being. This diversity calls for a place-based approach to regional development, tailored to the needs and assets of each area.

A thriving rural community relies on factors such as quality services, accessible education and healthcare, environmental amenities, business opportunities, and strong social trust. The OECD analyzes and adapts policies, working closely with member countries, to address diverse rural challenges, to strengthen economies and support inhabitants while guiding governments in implementing effective rural development policies.

Subnational governments are key policy actors, accounting for about 40% of total public expenditure and 55% of total public investment on average in OECD countries. Subnational governments are also key public employers, representing more than 60% of public staff expenditure on average in the OECD.

We work to improve quality of life and achieve more inclusive societies in cities of all sizes, while addressing a range of issues – from managing urban expansion and encouraging innovation to driving the digital, climate and demographic transitions.