Presentation UCLG ASPAC OECD Maria Varinia Michalun
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The OECD participated in the international web forum organised held by Wellington City Council, Local Government New Zealand (LGNZ) and United Cities and Local Government Asia Pacific (UCLG-ASPAC). This is the OECD presentation: Territorial Impact of COVID-19: Managing the Crisis across Levels of Government.
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Presentation UCLG ASPAC OECD Maria Varinia Michalun
- 1. TERRITORIAL IMPACT OF COVID-19: MANAGING THE CRISIS ACROSS LEVELS OF GOVERNMENT Maria-Varinia Michalun, Senior Project Manager and Policy Analyst Section on Economic Analysis and Multi-level Governance CFE/OECD UCLG ASPAC Web Forum / 24 August 2020
- 2. © OECD | Economic Fiscal Health/Social 2 Territorial impact in three dimensions • Exposure to global value chains • Sector specialisation (e.g. tourism) • Increased expenditures • Reduced revenues • More vulnerable regions • (e.g. deprived urban areas) • Certain vulnerable populations
- 3. © OECD | 3 Regional disparities in access to health services Number of hospital beds per 1 000 inhabitants, large regions, 2018 (or latest year available) Source: OECD regional database Factors Supporting Crisis Management: Access to health services
- 4. © OECD | 4 Factors Supporting Crisis Management: Teleworking Van Western Slovakia Vest Islas Baleares Kozep-Dunantul Northwest Mississippi Basilicata Jadranska Hrvatska Alentejo Burgenland Chemnitz Sterea Ellada Northern and Western Lietuvos regionas West-Vlaanderen Hedmark og Oppland Pohjois-Suomi Basse-Normandie Nordjylland Ostschweiz Norra Mellansverige North East Istanbul Bratislava Bucuresti-Ilfov Comunidad de Madrid Budapest Prague District of Columbia Lazio Kontinentalna Hrvatska Lisboa Wien Hamburg Attica Eastern and Midland Sostines regionas Brabant Wallon Osloog Akershus Helsinki-Uusimaa Ile de France Hovedstaden Zurich Stockholm London 10% 20% 30% 40% 50% 60% 70% TUR SVK ROU ESP HUN CZE USA ITA HRV OECD25 PRT LVA AUT DEU GRC IRL EST LTU BEL NOR FIN FRA DNK ISL NLD CHE SWE GBR LUX Minimum National Average Maximum The possibility to work remotely differs between and within countries Share of jobs that can potentially be performed remotely (%), 2018, NUTS-1 or NUTS-2 (TL2) regions Source: OECD, 2020, https://read.oecd-ilibrary.org/view/?ref=134_134296-u9iq2m67ag&title=Capacity-for-remote-working-can-affect-lockdown-costs-differently-across-places
- 5. © OECD | Categories of policy measures Territorial impact of COVID-19: Managing the Crisis Across Levels of Government Reinforcing vertical coordination and supporting cross-jurisdiction cooperation Managing exit strategies from containment: testing and social distancing Strengthening data collection and digital governance regionally and locally Managing the impact on local finance Supporting vulnerable populations by all levels of government Supporting SMEs and the self-employed Promoting public investment as part of crisis exit and recovery
- 6. © OECD | 6 It is not the degree of centralisation or decentralisation that matters for successful response measures. Meet asymmetry with asymmetry: focus on places most strongly hit Centralisation/Decentralisation a means to achieving objectives, not an end state A coordinated response by all levels of government can minimise crisis- management failures. Activating existing or setting new coordination mechanisms Making the most of cooperation across jurisdictions (countries, regions, local authorities) Building strong partnerships Territorial impact of COVID-19: Managing the Crisis Across Levels of Government Coordinated action among levels of government and across regions
- 7. © OECD | Vertical coordination mechanisms • Activate multi-level coordinating bodies Clarify roles and responsibilities • Establish coherent guidelines • Work with national associations of regions and/or municipalities 7 Cross-jurisdiction coordination • In procurement and protective equipment purchases • In containment measures and exit strategies • In medical care/hospital transfer Territorial impact of COVID-19: Managing the Crisis Across Levels of Government Coordinated action among levels of government and across regions
- 8. © OECD | 8 More than 1/3 of OECD countries have adopted some measures Limit the risks of scissor effects Limit the risk of pro-cyclical policies Territorial impact of COVID-19: Managing the Crisis Across Levels of Government Supporting local finance
- 9. © OECD | 9 Vertical coordination mechanisms Examples of actions Territorial impact of COVID-19: Managing the Crisis Across Levels of Government In Canada, the government is providing CAD 500 million to provinces and territories for critical health care system needs, preparedness and mitigation efforts In Finland, the Government announced that it will ensure that there will be no funding gaps for local governments. One of the first measures is an increase in the municipal share of corporate income tax revenue. In Japan and Korea, supplementary budgets and additional support measures (e.g. for SMEs) were adopted for local governments, particularly those hardest hit by COVID-19. In Spain, the Royal Decree-Law 8/2020 of March 17 on extraordinary urgent measures to face the economic and social impact of COVID-19 includes a measure to support local finance. Supporting local finance
- 10. © OECD | 10 • Flexible systems where there is room to act “on the ground” • Effective national-level leadership. • Territorially adapted responses to manage a territorially differentiated problem/crisis • Strong crisis-management partnerships are fundamental – no level of government can meet the demands alone Territorial impact of COVID-19: Managing the Crisis Across Levels of Government Looking ahead: effective governance arrangements • Strike a balance between centralised and decentralised approaches • Good coordination mechanisms can avoid crisis- management failures • Communicate clearly, transparently, rapidly, and accurately, regularly • Generate trust: listen to and mobilise public, private, third sector actors and citizens. • Investment is a crisis management tool • Integrate large-scale objectives, such as climate, inclusiveness, connectivity, digitalisation, in recovery plans • Build resilience measures into recovery plans and affected policy areas (e.g. regional development, social policy, health policy….)
- 11. Thank you For more information www.oecd.org/coronavirus mariavarinia.michalun@oecd.org Link to the paper: oe.cd/il/2X6