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OECD - Making Decentralisation Work

OECD (2019)  Making Decentralisation Work. A Handbook for Policy-Makers. Paris: OECD Multi-level Governance Studies.

The 2019 OECD report Making Decentralisation Work: a Handbook for Policy-Makers focuses on current trends in the decentralisation policies of OECD countries and beyond, and on the ways to make decentralisation work. It argues that the question should not be whether decentralisation is good or bad in itself, but that decentralisation outcomes – in terms of democracy, efficiency, accountability, regional and local development – depend greatly on the way decentralisation is designed and implemented.

The report argues that decentralisation should not be considered a panacea for any type of problem a country may face, nor should it be seen as an objective in and of itself. Rather it is a means to achieve certain
goals. Empirical research and a number of country examples show that decentralisation can be conducive to public sector efficiency, democratisation and political stability. There are also examples of failures with
decentralisation, when the reforms were not properly designed and implemented, and when the multi-faceted dimension of the concept was not well understood.

Making the most of decentralisation for regional development is particularly crucial in the current context of a “geography of discontent” and growing divides between places that feel left behind by globalisation
and technological change and those that may benefit from the opportunities offered by megatrends. Dysfunctional decentralisation systems are part of the story behind the crisis of democracies: it is thus
critical to find ways to make decentralisation systems more effective.

The report identifies ten guidelines for decentralisation to work and be conducive to regional development. Beyond the guidelines, the report proposes concrete tools for policy-makers, including detailed sets of
recommendations, checklists, pitfalls to avoid and examples of good practices, both in unitary and federal countries.

OECD “Making Decentralisation Work. A Handbook for Policy-Makers”