Governing regional development policy : the use of performance indicators

198 Pages·2009·1.216 MB·English

by  OECD

Governing Regional Development Policy
THE USE OF PERFORMANCE INDICATORS
Governing Regional
The governance of regional development policy is distinctive. It engages multiple actors,
across many sectors and at different levels of government – each with varying levels
Development Policy
of information and capabilities. Effective governance requires a flexible mechanism for
meeting information needs and promoting performance.
This report looks at one tool for doing so – the use of indicator systems. It examines THE USE OF PERFORMANCE
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ISBN 978-92-64-05628-2 -:HSTCQE=UZ[W]W:
42 2009 04 1 P
www.oecd.org/publishing

Governing Regional
Development Policy
THE USE OF PERFORMANCE INDICATORS
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work
together to address the economic, social and environmental challenges of globalisation.
The OECD is also at the forefront of efforts to understand and to help governments
respond to new developments and concerns, such as corporate governance, the
information economy and the challenges of an ageing population. The Organisation
provides a setting where governments can compare policy experiences, seek answers to
common problems, identify good practice and work to co-ordinate domestic and
international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the
Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand,
Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey,
the United Kingdom and the United States. The Commission of the European
Communities takes part in the work of the OECD.
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This work is published on the responsibility of the Secretary-General of
the OECD. The opinions expressed and arguments employed herein do not
necessarily reflect the official views of the Organisation or of the governments
of its member countries.
Also available in French under the title:
Conduire les politiques de développement régional
LES INDICATEURS DE PERFORMANCE
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FOREWORD
Foreword
I
n all OECD countries that have been the subject of investigation, regional development
policy is a shared responsibility among levels of government and engages a variety of both
public and private actors. As a result, the information needed to design and implement
effective policies and programmes is unevenly scattered. In this context, promoting
performance can be difficult. A tool is needed that can facilitate the information
sharing, dialogue, and learning that are crucial for successful policy design and
implementation. Well-designed indicator systems offer policy makers and practitioners
just such a tool for generating and distributing information, encouraging collaboration
between levels of government, and orienting stakeholders toward results.
This report synthesises findings about the use of indicator systems to monitor
and manage regional policy. To do so it draws on multiple sources of information,
including four in-depth case studies of the European Union, Italy, the UnitedKingdom
(England), and the United States. These cases reveal both common themes and unique
experiences when using performance indicator systems to monitor regional development
policies and programmes. Importantly, the report examines both the benefits and “costs”
of indicator systems. It aims to provide a comprehensive view that sheds light on both
the value of indicator systems as well as challenges likely to be encountered when
designing and using them.
This report contributes to the body of research on the governance of regional
development policy elaborated by the OECD Territorial Development Policy Committee
and the OECD Directorate of Public Governance and Territorial Development. Recent
work on governance includes Linking Regions and Central Governments: Contracts for
Regional Development and Building Competitive Regions: Strategies and Governance.
GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009 3
ACKNOWLEDGEMENTS
Acknowledgements
T
his report was elaborated within the Directorate for Public Governance
and Territorial Development by the Regional Competitiveness and Governance
Division. The OECD Secretariat is particularly grateful to the Korea Institute of
Public Finance for its support of research that was a critical input to this
report. Special thanks are extended to Mr.JunghunKim. The OECD is also
grateful to the US Economic Development Administration, Advantage West
Midlands RDA, the UK Department of Communities and Local Government,
the UK Department for Business, Enterprise and Regulatory Reform, the
Italian Ministry of Economic Development Department of Development and
Cohesion Policies, the European Commission Directorate General for Regional
Policy Evaluation Unit, and the Centre for Industrial Studies (CSIL). Finally, sincere
thanks to the experts who contributed their ideas and time –particularly
Mr.MassimoFlorio (CSIL), participants at the expert meetings which provided
input for this report, and the experts interviewed for each of the case studies.
The report was produced by Ms.LeeMizell of the OECD Secretariat under the
direction of Ms.ClaireCharbit. It incorporates work drafted by Ms.Mizell and
Ms.JuliePellegrin, consultant (CSIL), with editing assistance provided by
Ms.LindaAdamson, consultant. Valuable comments were offered by OECD staff
members Mr.RobertoVillarreal, Ms.MonicaBrezzi, and Ms.ZsuzsannaLonti, as
well as delegates of the Territorial Development Policy Committee. Ms.ErinByrne
helped prepare the document for publication.
4 GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009
TABLE OF CONTENTS
Table of Contents
Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Part I
System Design, Use and Good Practices
Chapter 1. The Value of Indicator Systems for Managing Regional
Development Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Why indicator systems? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
What benefits do they produce? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Monitoring versus evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Chapter 2. Designing Indicator Systems that Work: Key Attributes. . . . 31
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Types of indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Selection of indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Use of incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Target setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Use of performance information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Chapter 3. Factors that Hinder or Facilitate the Use
of Indicator Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Factors that can hinder the development and use
of indicator systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Mechanisms for facilitating system effectiveness . . . . . . . . . . . . . . . . 68
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009 5
TABLE OF CONTENTS
Chapter 4. Overall Benefits and Lessons Identified . . . . . . . . . . . . . . . . . . 77
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Benefits for regional development policy. . . . . . . . . . . . . . . . . . . . . . . . 78
Lessons identified. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Conclusions and areas for future research. . . . . . . . . . . . . . . . . . . . . . . 82
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Part II
Case Studies: Indicator Systems in Context
Chapter 5. The European Union Structural Funds . . . . . . . . . . . . . . . . . . . 89
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Background: EU regional policies and performance measurement . . 90
The performance reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
The way forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Annex 5.A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Chapter 6. The National Performance Reserve in Italy . . . . . . . . . . . . . . . 119
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Background: regional development policy in Italy . . . . . . . . . . . . . . . . 120
The Italian national performance reserve . . . . . . . . . . . . . . . . . . . . . . . 122
Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
2007-13: A new indicator system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Chapter 7. The English Regional Development Agencies . . . . . . . . . . . . . 143
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
England’s regional development agencies. . . . . . . . . . . . . . . . . . . . . . . 144
Indicator systems for measuring and monitoring RDA performance. . . 145
Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Chapter 8. US Economic Development Administration. . . . . . . . . . . . . . . 165
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
The Economic Development Administration. . . . . . . . . . . . . . . . . . . . . 166
Indicator systems for measuring and monitoring EDA performance. . . 169
6 GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009
TABLE OF CONTENTS
Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Annex A. Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Annex B. Indicators for Regional and Local Economic Development. . . . . . 189
List of Boxes
2.1. The use of the Balanced Scorecard in Austria . . . . . . . . . . . . . . . . 39
2.2. Indicators and incentives – Regional development policy
in Italy, 2000-06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.3. Indicators and incentives – Local Public Service Agreements
in the United Kingdom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.1. Measuring the performance of government programmes:
The Canadian experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.2. The HUD Community Planning and Development
Outcome Performance Measurement System . . . . . . . . . . . . . . . . 71
5.1. Terms associated with EU Regional Policy . . . . . . . . . . . . . . . . . . . 92
5.2. The application of the performance reserve in Austria . . . . . . . . 103
5.3. The application of the EU performance reserve in France . . . . . . . . 103
5.4. The application of the EU performance reserve in Italy . . . . . . . . 105
List of Tables
5.1. Indicative list of indicators for the allocation of the EU
performance reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
5.2. Mechanisms used by EU member states to assess the EU
performance reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
5.A1.1. Performance reserve indicators adopted by Italy and France. . . 117
6.1. Indicators and targets for regions under the Italian national
performance reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.2. Distribution of the national performance reserve . . . . . . . . . . . . 127
6.3. Objectives, indicators, and targets in the new performance
reserve for2007-13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.1. Twelve PSA targets to which the RDAs contributed. . . . . . . . . . . 149
7.2. Output targets for RDAs under the three-tier system
and the 2005 Tasking Framework . . . . . . . . . . . . . . . . . . . . . . . . . . 150
7.3. Regional outcome indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
8.1. EDA GPRA performance goals, measures, and targets, FY2006. 171
8.2. EDA Balanced Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
8.3. Administrative burden of EDA’s GPRA reporting requirements. 179
B.1. Indicators for local economic development. . . . . . . . . . . . . . . . . . 189
B.2. Core indicators for regional development policy . . . . . . . . . . . . . 192
GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009 7
TABLE OF CONTENTS
List of Figures
2.1. Linking indicators and programme objectives. . . . . . . . . . . . . . . . 35
6.1. National performance reserve indicators achieved
by regions as of September2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
8 GOVERNING REGIONAL DEVELOPMENT POLICY – ISBN 978-92-64-05628-2 – © OECD 2009