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Better understanding multi-level governance frameworks and the scale of subnational government fiscal space can help countries cope with the different crisis and shocks, including the COVID-19 pandemic and Russia's aggression against Ukraine, but also address megatrends and persistent and long-standing spatial disparities. Increasing the knowledge on multi-level governance and subnational finance is also key to implement and monitor the Sustainable Development Goals.
After two previous editions in 2016 and 2019, the OECD-UCLG World Observatory on Subnational Government Finance and Investment (SNG-WOFI) has become the largest international knowledge repository on subnational government structure and finance ever produced. It provides reliable and comparable information on multi-level governance frameworks, decentralisation and territorial reforms, subnational government responsibilities, fiscal decentralisation, and covers dozens of indicators on subnational expenditure, investment, revenue and debt.
The 2022 synthesis report presents internationally comparable data and analysis for 135 countries and provides insights into ways to strengthen the resilience of subnational public finance. It also offers a specific focus on the impact of the pandemic on subnational governments, the territorial dimension of recovery plans, property taxation systems, innovative subnational budgeting practices, subnational public-private partnerships, and a special chapter dedicated to 31 Least Developed Countries.
In recent years, Georgia has undergone important economic, social and political transformations. Given the significant emigration of the Georgian population and the recognition of the contributions of the diaspora, Georgian authorities are seeking to better understand this pool of talent residing abroad, which has great potential to contribute to the economic and social development of Georgia. This review provides the first comprehensive portrait of Georgian emigrants in OECD countries. By profiling Georgian emigrants, this review aims to strengthen knowledge about this community and thus help to consolidate the relevance of the policies deployed by Georgia towards its emigrants.
In recent years, Ghana has undergone major economic, social and political transformations. Given the significant emigration of the Ghanaian population and the recognition of the contributions of the diaspora, Ghanaian authorities are seeking to better understand this pool of talent residing abroad, which has great potential to contribute to the economic and social development of Ghana. This review provides the first comprehensive portrait of the Ghanaian diaspora in OECD countries. By profiling Ghanaian emigrants, this review aims to strengthen knowledge about this community and thus help to consolidate the relevance of the policies deployed by Ghana towards its emigrants.
In recent years, Indonesia has undergone major economic, social and political transformations. Given the significant emigration of the Indonesian population and the recognition of the contributions of the diaspora, Indonesian authorities are seeking to better understand this pool of talent residing abroad, which has great potential to contribute to the economic and social development of Indonesia. This review provides the first comprehensive portrait of the Indonesian diaspora in OECD countries. By profiling Indonesian emigrants, this review aims to strengthen knowledge about this community and thus help to consolidate the relevance of the policies deployed by Indonesia towards its emigrants.
New economic thinking and acting through a systemic approach could outline policy alternatives to tackle the global-scale systemic challenges of financial, economic, social and environmental emergencies, and help steer our recovery out of the current crisis. A systemic recovery requires an economic approach that balances several factors – markets and states, efficiency and resilience, growth and sustainability, national and global stability, short-term emergency measures and long-term structural change. To achieve this, we need to think beyond our policy silos, comprehend our interconnections, and build resilience into our systems.
Brandenburg’s economy is undergoing structural change, which opens exciting new prospects for highly skilled workers. The state has intensified efforts to diversify the economy towards cleaner and more knowledge-intensive industries, including the development of advanced manufacturing, spill-over effects from the start-up scene in Berlin, fostering entrepreneurial activities at its own higher education institutions, promoting innovative places for working and living, and phasing out of coal production in favour of next-generation technologies. As the engine of skills development and research, the higher education system will play an important role in helping the state unleash these opportunities. The German State of Brandenburg has therefore entrusted the Organisation for Economic Co-operation and Development – in close collaboration with and supported by the European Commission’s Directorate-General for Structural Reform Support – with the development of recommendations on how to enhance the visibility of its institutions’ programme offer, align this offer with the skills and innovation demand, and make it more attractive to prospective students from the state and beyond.
With an electricity system defined by high shares of hydropower, large capacity for interconnection with its neighbours and low carbon intensity, Switzerland is well positioned to attain its objective of net zero carbon emissions by 2050. However, the exact pathway remains the subject of discussion. First, what should the shares of nuclear energy and variable renewable energies such as solar PV and wind be in the energy mix? Second, what degree of electricity trade should Switzerland have with its European neighbours?
New system modelling of different energy policy choices with the Nuclear Energy Agency’s POSY model shows that all considered scenarios are technically feasible. However, relying on variable renewables alone or decoupling Switzerland from neighbouring countries could increase total system costs by up to 250%. Instead, continuing to operate Switzerland’s newest nuclear power plants alongside existing hydropower resources, while maintaining interconnection capacity at current levels, emerges as the most cost-effective option to achieve net zero emissions in 2050. Ample data and technical documentation of a least-cost mixed integer (MILP) modelling with hourly resolution are also provided in order to allow replication, extension and discussion of this study’s findings
Achieving Net Zero Heavy Industry Sectors in G7 Members is a new report by the International Energy Agency that focuses on the implementation of policies aimed at drastically lowering CO2 emissions from heavy industries in the G7 and beyond. This work, requested by Germany’s 2022 G7 Presidency, builds on analysis from the IEA’s Net Zero by 2050: A Roadmap for the Global Energy Sector. It follows Achieving Net Zero Electricity Sectors in G7 Members, produced as an input to the UK’s G7 Presidency in 2021.This report focuses on two key areas for achieving net zero heavy industry sectors in G7 members, both of which are priority areas for Germany’s 2022 G7 Presidency. The first is a toolbox of policies and financing mechanisms to initiate and sustain the industry sector transition. The second is a series of common and practicable definitions of what constitutes near zero emission steel and cement production, a key step to establishing future policy mechanisms, irrespective of the exact mitigation pathway or the specific technologies chosen. The report is designed to inform policy makers, material producers and consumers, investors, leading sectoral initiatives and the research community in the lead up to the G7 Climate and Energy Ministerial in May 2022, and beyond.
The study is part of the OECD work stream Preparing Regions for Demographic Change, a megatrend that affects several important dimensions of public policy. The following three of them are particular relevant for Korea’s regions and rural places: (i) workforce dimension, (ii) social dimension and (iii) governance dimension. The report consists of three chapters. The first chapter depicts and benchmarks demographic trends in Korea regions against other regions from OECD countries. The second chapter examines a range of policies that can address socio-economic challenges related to demographic trends across the OECD and describes Korea’s current policy approach to manage demographic decline and ageing in regions and rural places. The third chapter identifies recommendations for Korea that can help respond to current economic and demographic trends, and ensure social cohesion. It suggests Korea should aim to develop a clear national rural development strategy, tailor labour policies to rural areas, support rural entrepreneurship, rural SME and the social economy, promote rural innovation and foster local governments’ and communities’ capacity to respond to demographic challenges.
This policy paper sheds light on the type of investments that can maximise social returns and help bridge territorial gaps in access to services. It starts by explaining why it is challenging to balance proximity and cost-efficiency in service provision while maintaining quality across territories, highlighting the key role of subnational governments in providing education and health services. It then assesses the extent of territorial inequalities in access to basic education and health care services in G20 countries based on a comprehensive review of the evidence available. Finally, the report reflects on future needs based on demographic projections and offers two main implications for the future of infrastructure investment: 1) the need to tailor strategic and flexible investments to different demographic realities; and 2) the need to support quality infrastructure investment by subnational governments.
The number of corporations announcing clean electricity pledges has increased substantially in recent years, with many companies setting specific goals to meet some or all of their electricity demand with clean supply. These goals can support new capacity in clean generation, helping to boost overall shares in power systems. Increasingly, clean electricity goals can be specified in different ways; this can have implications for the clean technologies procured, the amount and location of procurement, and the resulting emissions reduction. In some regions, corporates have a range of options to choose from when purchasing clean electricity; in other regions, legal and regulatory barriers still constrain engagement in corporate procurement.
This report examines the options available and the ways in which they contribute to decarbonisation and, ultimately, net zero electricity goals. Using the IEA’s regional power system models for India and Indonesia, the report applies quantitative analysis to examine the implications of different procurement strategies for emissions reduction, procurement costs and technology deployment. A key finding is that when companies set more granular goals – such as matching their electricity demand hourly (rather than annually as has been the dominant practice) – it can stimulate deployment of the wider portfolio of flexible technologies needed for net zero transitions in the power sector.
The report aims to guide corporates in choosing impactful ways to procure clean electricity. It also highlights the roles of policy makers, regulators, system operators and network owners and operators in increasing the availability and impact of corporate procurement options. The final chapter offers targeted recommendations for different stakeholder groups.
Today’s global energy crisis underscores the urgency and magnitude of the task of transforming Africa’s energy sector, as well as the benefits of an accelerated shift to more affordable and cleaner sources of energy.The Africa Energy Outlook 2022 is a new special report from the International Energy Agency’s World Energy Outlook series. It explores pathways for Africa’s energy system to evolve toward achieving all African development goals, including universal access to modern and affordable energy services by 2030 and nationally determined contributions.The report analyses infrastructure expansion needs, investment requirements, financing options and energy policy priorities. It also explores a shifting fuel mix that supports resilient development, opportunities for new exports, and just transition issues – including energy access, affordability and employment.
Africa’s Development Dynamics uses lessons from Central, East, North, Southern and West Africa to develop policy recommendations and share good practices. Drawing on the most recent statistics, the analysis of development dynamics aims to assist African leaders in reaching the targets of the African Union’s Agenda 2063 at all levels: continental, regional, national and local.
The 2022 edition explores how developing regional value chains can help African countries rebound from the socio-economic shocks of the COVID-19 pandemic and accelerate productive transformation. It targets policy areas where private and public actors can support regional value chains when operationalising the African Continental Free Trade Area (AfCFTA). African firms can harness digital innovations to reduce production costs, and governments can design policies for skills development, public procurement and foreign investment to strengthen industrial linkages. Two continental chapters examine related African initiatives and global trends. Five chapters tailor policy recommendations to specific value chains in each region.
Africa’s Development Dynamics feeds into a policy debate between governments, citizens, entrepreneurs and researchers. It proposes a new collaboration between countries and regions, focusing on mutual learning and the preservation of common goods. This report results from a partnership between the African Union Commission and the OECD Development Centre.
This report provides a new perspective on Africa’s urban economies that is unique in its breadth and level of detail. Based on data from more than 4 million individuals and firms in 2 600 cities across 34 countries, it presents compelling evidence that urbanisation contributes to better economic outcomes and higher living standards. It shows that across most socio-economic dimensions, cities significantly outperform the countries in which they are located. In Africa, urbanisation accounts for approximately 30% of the growth in per capita gross domestic product (GDP) over the past 20 years. Importantly, the gains from urbanisation on economic performance and quality of life extend beyond city boundaries, also benefiting rural areas. The report also shows that transnational clusters of cities are emerging along coasts as well as inland, offering new opportunities for economic development. Based on these findings, the report sets forth policy priorities at national and local levels that are essential to realise the potential of urbanisation. Among these, it argues that the role of cities should be fully anchored in national development planning. Moreover, local governments need greater fiscal and administrative capacity to become key actors in economic development.
The report Aggregate Trends of Climate Finance Provided and Mobilised by Developed Countries in 2013-2020 adds figures for 2020 to the previously published 2013-2019 time series, providing an aggregate-level assessment against the initial target year of the USD 100 billion goal. It also includes an overview of climate finance provided and mobilised by climate theme, sector, financial instrument and regions for 2016-2020. A second complementary report provides further insights from disaggregated data analysis, as well as considerations on issues relating to enabling environments, impacts and effectiveness of climate finance.
This annual report monitors and evaluates agricultural policies in 54 countries, including the 38 OECD countries, the five non-OECD EU Member States, and 11 emerging economies. It finds that the continued rise in agricultural support has been slower than sector growth in recent years, but has been driven to record highs mainly by temporary factors. The share of general services to the sector (including innovation and infrastructure) in total support provided to the sector has decreased to 13%. This year’s report focuses on the potential for agriculture and agricultural policies to contribute to climate change mitigation. It argues that short-term agricultural policy responses to global crises must simultaneously address current challenges and support reforms to combat climate change and distortions in international markets.
This report analyses the evolution of Aid for Trade flows in a context marked by crises of unprecedented magnitude, with significant impacts on trade and investment. Under the theme “Empowering Connected, Sustainable Trade”, it shows that Aid for Trade was an important tool in the fight against the COVID-19 pandemic, and can help address emerging challenges, such as the environmental and digital transitions while ensuring that no one is left behind. Recent data indicate that a shift is under way to put sustainability, including green transition and women’s empowerment, at the heart of Aid for Trade, and point to its potential to support an inclusive and sustainable recovery.
Green budgeting is emerging at subnational levels as an important tool for regions and cities to use to align their expenditure and revenues with their green objectives, and enhance the transparency and accountability of their climate and environmental action. It is also a tool that subnational governments can use to prioritise low-carbon investments and identify funding gaps, as well as to mobilise additional sources of both private and public climate finance. In order for subnational governments to make full use of green budgeting however, more methodological, technical, and financial support is needed. This report presents a first stocktake of subnational green budgeting practices in OECD and EU countries as well as a set of guidelines for subnational governments to use in developing and launching a green budgeting practice. It is accompanied by two green budgeting case studies – one with the Region of Brittany (France) and one with the City of Venice (Italy) – and a self-assessment tool. The self-assessment tool allows regions and cities to measure their capacity to launch a green budgeting practice or strengthen an existing one, and is available on the OECD Subnational Government Climate Finance Hub as a downloadable Excel file.
Indonesia is the world’s fourth-most populous country and is set to become the world’s fourth-largest economy by mid-century. The choices that Indonesia makes now and in the decades to come will have a significant bearing on the world’s energy markets and on international efforts to reach collective climate goals.
Indonesia, a member of the IEA family since 2015, has committed to reach net zero emissions by 2060 or before – an ambitious task given the country’s growth objectives and status as a globally important consumer and producer of coal. However, with a transition to net zero offering extensive and varied economic opportunities, Indonesia is beginning to put in place the policies and frameworks that can help reach this target while moving towards advanced economy status.
To assist in this critical task, the IEA – at the request of the Government of Indonesia and to coincide with Indonesia’s Presidency of the G20 – has developed a comprehensive roadmap to net zero by 2060 for the country, which charts a path for the country’s energy transition over the coming decades. The analysis in the Energy Sector Roadmap to Net Zero Emissions in Indonesia spans key areas such as people‑centred transitions, the phasing down of coal use, investment and financing needs, and critical minerals. It also sets out a high-ambition pathway in which Indonesia reaches net zero by 2050. The project has been conducted in close collaboration with the Ministry of Energy and Mineral Resources of the Republic of Indonesia.