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This report provides a comprehensive analysis of the Israeli system of local government finance, with a focus on the role of the Israeli property tax, known as the Arnona. Local governments are financed through a combination of revenue, primarily from central government grants and from the Arnona, which is levied on residential and non-residential land and buildings but is based on their physical size rather than their value. The first chapter provides a description of the Israeli system of local government finance and compares it to local government finance in OECD countries. Using standard criteria for the evaluation of taxes, the second chapter assess the strengths and shortcoming of the Arnona and the intergovernmental grant system. Attention is paid to fiscal disparities among municipalities and to the ability of the current system to provide all Israelis with adequate and equitable access to economic and social services and infrastructure. The final chapter presents a set of 13 policy recommendations divided between proposals for improving the existing Arnona system and a longer-run blueprint for a more substantial reform of the system of local government finance in Israel based on the establishment of a value-based system of local property taxation.

Global warming is likely to reach 1.5°C as early as in 2030, with current climate action falling short of meeting the Paris Agreement goals and a mounting risk of tipping beyond the ability of human societies to adapt. Building on broader OECD work on climate, this report proposes a new OECD territorial climate indicator framework and demonstrates that the potential to mitigate greenhouse gas emissions, adapt to climate impacts and address vulnerabilities varies across different territories. The report also presents a policy framework of 9 recommended actions to help decision makers unleash more effective climate action and resilience, both by integrating a territorial approach into national and subnational climate policies and by mainstreaming climate objectives into urban, rural and regional policies. The report summarises the analysis into a checklist for national and local governments to implement a territorial approach to climate and resilience policies, as well as a compendium of 36 best practices from cities, regions and countries from all around the world.

In the face of megatrends such as globalisation, climate and demographic change, digitalisation and urbanisation, many cities and regions are grappling with critical challenges to preserve social inclusion, foster economic growth and transition to the low carbon economy. The 17 Sustainable Development Goals (SDGs) set the global agenda for the coming decade to end poverty, protect the planet and ensure prosperity for all. A Territorial Approach to the Sustainable Development Goals argues that cities and regions play a critical role in this paradigm shift and need to embrace the full potential of the SDGs as a policy tool to improve people’s lives. The report estimates that at least 105 of the 169 SDG targets will not be reached without proper engagement of sub-national governments. It analyses how cities and regions are increasingly using the SDGs to design and implement their strategies, policies and plans; promote synergies across sectoral domains; and engage stakeholders in policy making. The report proposes an OECD localised indicator framework that measures the distance towards the SDGs for more than 600 regions and 600 cities in OECD and partner countries. The report concludes with a Checklist for Public Action to help policy makers implement a territorial approach to the SDGs.

Current population trends and the COVID-19 pandemic reinforce the need for efficient public service provision while guaranteeing good access to all. Population decline and ageing in rural regions affect the provision of services through lower economies of scale and scope, professional shortages and longer distances. Reliable estimates of the costs and access arising from demographic and geographical differences can help adapt the provision of services to different territorial realities. This report provides internationally comparable fine-grained present and future estimates of the cost and physical access to education (primary and secondary) and health services (cardiology, maternity and obstetrics) in European countries. The report finds that demographic change in the next decades will likely further strain the trade-off between costs and access, especially in remote rural areas. Adapting to changes in demand following lower fertility rates and ageing implies that services will need to become more widely available, while others will have to concentrate more. This report aims to support evidence-based policy decisions to ensure service provision allows for both cost efficiency and a sufficient level of access in all territories.

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.

Food insecurity and malnutrition are major international concerns, especially in rural areas. At the global scale, they have received considerable attention and investment, but the results achieved so far have been mixed. Some countries have made progress at the national level, but still have many citizens who are food insecure, often concentrated in specific geographic areas. Food insecurity and poverty are highly interlinked and have a strong territorial dimension. To provide effective long-term solutions, policy responses must therefore be tailored to the specific challenges of each territory, taking into account a multidimensional response that includes food availability, access, utilisation and stability. This report highlights five case studies and the OECD New Rural Paradigm, presenting an effective framework for addressing food insecurity and malnutrition.

Africa is projected to have the fastest urban growth rate in the world: by 2050, Africa’s cities will be home to an additional 950 million people. Much of this growth is taking place in small and medium-sized towns. Africa’s urban transition offers great opportunities but it also poses significant challenges. Urban agglomerations are developing most often without the benefit of policies or investments able to meet these challenges. Urban planning and management are therefore key development issues. Understanding urbanisation, its drivers, dynamics and impacts is essential for designing targeted, inclusive and forward-looking policies at local, national and continental levels. This report, based on the Africapolis geo-spatial database (www.africapolis.org) covering 7 600 urban agglomerations in 50 African countries, provides detailed analyses of major African urbanisation dynamics placed within historical, environmental and political contexts. Covering the entire distribution of the urban network — from small towns and secondary cities to large metropolitan regions — it develops more inclusive and targeted policy options that integrate local, national and regional scales of urban development in line with African realities.

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.

Populations in OECD and emerging economies are ageing rapidly, which will have significant macroeconomic impacts, including on public expenditures and tax revenues. The rules and practices that govern fiscal relations among different levels of government, such as their responsibilities for taxation, spending and debt management, have a bearing on economic efficiency and ultimately growth. The consequences of population ageing at subnational government levels are especially intense. Many local governments are vulnerable to the ageing of their populations from a fiscal perspective. The economic and fiscal challenges of an ageing population go beyond intergovernmental boundaries, and they require complex intergovernmental policy responses. This volume brings together cross-country studies of fiscal policy, demographics and spatial productivity, as well as country studies of Brazil, Canada, China and Germany.

OECD countries are undergoing an unprecedented increase in the proportion of elderly people among their total populations. To address these issues, the OECD organised a conference in Oslo in May 2002. This report highlights how ageing will affect urban design and development in terms of housing, land use, transportation and the urban environment and points to the growing role of new technologies in member countries. The book, featuring statistical data, is for sociologists, policy researchers, journalists, librarians and economists. 

Costa Rica’s strong agricultural sector is underpinned by the country’s political stability, robust economic growth and high levels of human development.  The sector has achieved significant export success, yet raising productivity and staying competitive in world markets will require efforts to address bottlenecks in infrastructure, innovation and access to financial services.  Maximising Costa Rica’s comparative advantage in higher-value niche products will depend upon more efficient services to agriculture, including better implementation of programmes, improved co-ordination among institutions, and reduced bureaucracy. While overall protection for agriculture is relatively low compared to OECD countries, it is nonetheless highly distorting to production and trade. Managing the transition to scheduled liberalisation presents an opportunity to reform costly policies, and to implement an alternative policy package with new investments in innovation, productivity and diversification, supported by transition assistance where needed. Costa Rican agriculture’s vulnerability to extreme weather events is expected to worsen with climate change, and even while the country is among global leaders in environmental protection, sustainable development and climate change mitigation, further adaptation efforts will be necessary.

This report analyses Philippine agricultural policy. Agriculture provides 30% of total employment in the Philippines and represents 11% of its Gross Domestic Product. The Philippines has had notable recent overall economic success, yet improving agricultural performance remains challenging. Productivity growth lags behind other Southeast Asian countries, and a number of policy distortions hinder progress. With agricultural land resources also under pressure from frequent natural disasters, rising population and urbanisation, the report offers a series of recommendations to improve the sector’s performance and its ability to adapt to climate change.

This report is the 31st in the series of OECD reports that monitor and evaluate agricultural policies across countries, and the 6th report to include all 35 OECD countries, the 6 non-OECD EU Member States and a set of emerging economies: Brazil, the People’s Republic of China, Colombia, Costa Rica, Kazakhstan, the Philippines, the Russian Federation, South Africa, Ukraine and Viet Nam. This annual report is a unique source of up-to-date estimates of support to agriculture and uses a comprehensive system of measuring and classifying support to agriculture – the Producer and Consumer Support Estimates (PSEs and CSEs), the General Services Support Estimate (GSSE) and related indicators. These estimates provide insight into the increasingly complex nature of agricultural policy and serve as a basis for OECD’s agricultural policy monitoring and evaluation. Detailed data and documentation for the calculation of support are available on line www.oecd.org/agriculture/PSE.
Comprehensive country chapters and the Statistical Annex containing detailed background tables with indicators of agricultural support are available in electronic form at the publication website http://dx.doi.org/10.1787/agr_pol-2018-en.

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.