Oecd Multi-level Governance Studies: Making Decentralisation Work a Handbook for Policy-makers

Foreword
Acknowledgements
Executive summary
	What are the current trends in decentralisation?
	Making the most of decentralisation's benefits
	Anticipating and minimising the risks
	Ten guidelines for effective decentralisation conducive to regional development
Chapter 1.  Key findings
	What is decentralisation?
	Current trends in decentralisation
	Making the most of decentralisation's benefits
	Anticipating and minimising the risks
	Ten guidelines for effective decentralisation conducive to regional development
		Guideline 1: Clarify the responsibilities assigned to different government levels
		Guideline 2: Ensure that all responsibilities are sufficiently funded
		Guideline 3: Strengthen subnational fiscal autonomy to enhance accountability
		Guideline 4: Support subnational capacity building
		Guideline 5: Build adequate co-ordination mechanisms across levels of government
		Guideline 6: Support cross-jurisdictional co-operation
		Guideline 7: Strengthen innovative and experimental governance, and promote citizens’ engagement
		Guideline 8: Allow and make the most of asymmetric decentralisation arrangements
		Guideline 9: Consistently improve transparency, enhance data collection and strengthen performance monitoring
		Guideline 10: Strengthen national regional development policies and equalisation systems and reduce territorial disparities
	Reference
Chapter 2.  Understanding decentralisation systems
	A multi-dimensional concept with different motivations
		What is decentralisation? (and what it is not)
			Decentralisation and devolution
			Decentralisation and federalisation
			Decentralisation and localism
			Decentralisation and delegation
			Decentralisation and deconcentration
			So, what is decentralisation?
		A multidimensional process
		Motivations for decentralisation
			Decentralisation is primarily a political choice
			Economic motivations are also important drivers of decentralisation
			Mega-trends and decentralisation
		Different paths to decentralisation
			Big bang vs. incremental approaches
			Top down or bottom up approaches
			Decentralisation often goes hand in hand with other reforms
	Measuring decentralisation is a challenge
		Subnational fiscal autonomy
		The need to go beyond fiscal indicators to measure decentralisation
	Highly diversified decentralisation systems in the OECD and around the world
		Subnational governments in the OECD
		Diversity in subnational government spending responsibilities
		Diversity in subnational public investment
		A diversity of financing models
		Subnational governments around the world
	Assignment of responsibilities: Great variation at the regional level, less variation at the local level
	Notes
	References
Chapter 3.  Current trends in decentralisation
	Increased subnational spending and revenues in OECD countries
		An increase in subnational spending
		An increase in revenue decentralisation
		A modest increase in subnational spending power from 1995 to 2014
		Enhanced local autonomy as measured by the LAI
	Upscaling governance: The rising role of regions and metropolitan areas
		Municipal consolidation and co-operation
		Metropolitan governance
		Rising role of regions
		Responsibilities assigned to regions
			Policy and governance implications of increasing regional authority
	Growing asymmetric decentralisation
		What is asymmetric decentralisation?
		An increasing trend in asymmetric decentralisation
		Asymmetric arrangements are increasing in metropolitan areas
			Asymmetric arrangements are increasing especially in unitary countries
		Examples of asymmetric decentralisation
			Political asymmetric decentralisation
			Administrative asymmetric decentralisation
			Fiscal asymmetric decentralisation
		Policy implications
	Shared responsibilities, mutual dependence and a renewed role for central governments
		Most responsibilities are being shared between the central and subnational governments
		Decentralisation implies a renewed role for central governments
			Ensuring balanced development in all parts of the national territory
	Notes
	References
Chapter 4.  Decentralisation: Its benefits and challenges
	Opportunities and benefits
		Economic benefits
			Decentralisation may facilitate tailoring services to local needs
			Decentralisation may improve the efficiency of public service delivery
			Decentralisation may enhance economic growth
			Decentralisation may contribute to lower regional disparities
			Decentralisation can be a lever for regional development
		Political benefits
			Decentralisation may strengthen citizen participation in government
			Decentralisation may improve political stability
		Administrative benefits
			Decentralisation may constrain rent-seeking and corruption
			Decentralisation enables experimenting and policy innovation
	Risks and challenges
		Economic challenges
			Lack of resources and underfunded mandates
			Risks of partial decentralisation: Lack of fiscal autonomy
			Benefit spillovers and inadequate scale
			Decentralisation may increase disparities between subnational governments
		Decentralisation may risk uncoordinated public investment
			Finding the right balance between own-source revenues and transfers
		Political risks
			Local or central elite takeovers and corruption may compromise decentralisation benefits
		Administrative challenges
			Unclear assignment of responsibilities
			Unclear allocation of roles between subnational governments and deconcentrated central state administrations
			Coordination of service delivery is a challenge especially in the case of redistributive services
			Lack of subnational government capacity may limit benefits received from decentralisation
		Conclusion
	Notes
	References
Chapter 5.  Making decentralisation work: A handbook for policy-makers
	Guideline 1: Clarify the responsibilities assigned to different government levels
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Quasi-federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 2: Ensure that all responsibilities are sufficiently funded
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 3: Strengthen subnational fiscal autonomy to enhance accountability
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 4: Support subnational capacity building
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are the examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 5: Build adequate co-ordination mechanisms among levels of government
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid?
		What are the recommendations?
	Guideline 6: Support cross-jurisdictional co-operation
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 7: Strengthen innovative and experimental governance, and promote citizen engagement
		Definition
		What are the key trends/data?
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 8: Allow for and make the most of asymmetric decentralisation arrangements
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Quasi-federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 9: Consistently improve transparency, enhance data collection and strengthen performance monitoring
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations?
	Guideline 10: Strengthen national regional development policies and equalisation systems
		Definition
		What are the key trends/data?
		Rationale and benefits
		What are examples of good practices?
			Federal countries
			Unitary countries
		What are the pitfalls to avoid/risks?
		What are the recommendations
	Notes
	References
Annex A. Subnational government organisation and finance: Sources and methodology
Annex B. Methodology of the Regional Authority Index
Annex C. Subnational governments in the OECD
Annex D. Decentralisation and recentralisation processes in selected OECD countries