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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.

We work with national, regional and local governments to achieve competitive, sustainable, inclusive and resilient cities of all sizes while improving residents’ quality of life. From addressing climate change to preparing for demographic change and embracing the digital transition, we support governments in all areas of urban policy to unleash the transformative power of cities.

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