This report aims to identify ways in which contracts between a central government and sub-national levels of government can be efficiently used to manage relationships among them, in particular with respect to regional development policies.

This chapter develops an analytic framework for understanding how the economic theory of contracts applies to multi-level governance and what these theories suggest with respect to the selection of a contractual approach. It begins with an overview of the relevant theories, presents an analytic typology of contracts, and assesses the most effective contract design for different co-ordination contexts. The analytic framework developed in this chapter is applied to each of the case studies in subsequent chapters.

This chapter applies the analytic framework presented in Chapter 1 to the use of Contrats de Plan Etat-Région (CPER) as the primary mechanism for regional planning in France. It begins with an overview of the organisation of French government and the recent history with regard to decentralisation. It then provides an in-depth look at the overarching co-ordination context and the CPER as a contractual mechanism, before turning to an analysis of the CPER in practice.

This chapter examines the use of Accordo di Programma Quadro (APQ), a multi-faceted instrument for regional policy in Italy. After providing an overview of the decentralisation context in Italy, the chapter describes the policies, institutions, and instruments associated with regional development policy. It offers a detailed summary of the APQ and the co-ordination context in which it operates, followed by an assessment of this mechanism using the analytic framework provided in Chapter 1. The chapter concludes with a series of policy recommendations for enhancing the APQ. 

This chapter provides an overview of regional policy and the use of contracts among levels of government in Germany. While contracting is not common in Germany, attention is given to the use of “joint tasks” and competitive tenders, specifically for the InnoRegio programme. The case study incorporates an overview of German federalism and a discussion of the contracting mechanisms (as applied prior to the 2006 constitutional reform). The chapter concludes with policy advice derived from the analysis.

This chapter applies the analytic framework presented in Chapter 1 to the use of the Convenio de Colaboración in Spain. The chapter begins with an overview of the decentralisation context, followed by a description of the contracting mechanism. Three detailed case studies demonstrate how the Convenio de Colaboración is applied in practice: the economic development of coal mining counties, the economic development of Teruel, and the control and management of the Synchrotron light laboratory. The chapter concludes with lessons learned from the Spanish case.

This chapter examines the use of inter-governmental agreements as contracting mechanisms for Canadian regional development policy. It begins with a review of the decentralisation context, followed by a brief summary of Canadian regional development policy. The chapter then turns to three case studies, each of which describes a different inter-governmental agreement: The Vancouver Urban Development Agreement, The Canada-Manitoba Economic Partnership Agreement, and The Canada-Nova Scotia Gas Tax Transfer Agreement. The analytic framework presented in Chapter 1 is used to assess the “fit” between the co-ordination contexts and contractual arrangements that characterise each of these three agreements.