Presentation delivered during the 13th Annual Meeting of the OECD Network on Fiscal Relations Across Levels of Government, 23-24 November 2017, Paris, France.

1. Fiscal Network
Work Programme
Discussion
Sean M. Dougherty
Senior Advisor
13th Annual Meeting of the Network
on Fiscal Relations
24 November 2017

2. Review of Work Programme, 2017-18 (I)
1. Assignments of responsibilities across levels of
government
– A synthesis of lessons from Economic Surveys
– A review of experiences from Territorial Reviews (synergy with
RDPC)*
2. Fiscal decentralisation and inclusive growth
– An expert meeting examining Fiscal Decentralisation and Inclusive
Growth, and a forthcoming book in the Fiscal Federalism Studies
series with KIPF (VC-funded)*
– Chapters on growth and inequality prepared for the book (synergy
with EPC/WP1)
3. Insolvency frameworks at the sub-national level
– Review of sub-national insolvency frameworks (staff-on-loan from
Germany)*
2

3. Review of Work Programme, 2017-18 (II)
4. Benchmarking of the performance of sub-national
public services
– A Pilot study examining selected approaches to benchmarking*
– Design of a questionnaire to examine health sector performance
(synergy with SBO)
5. Land use and local fiscal policy (joint work with
RDPC funded by CPF)
6. Work on the local government cost of migration
policies (synergy with ELS)
7. Update of the Fiscal Decentralisation database
and Tax Autonomy indicators*
8. The first meeting of the Roundtable of the Fiscal
Network in Asia (VC-funded)*
3

4. Continuing Work Programme in 2018
Boosting the performance of sub-national public
services – building on benchmarking pilot
– Performance systems are one tool for central governments to
improve the efficiency and effectiveness of and access to sub-
national services.
• Extension of the pilot study to include systematic
evaluation of benchmarking systems.
• In-depth study of health sector issues, based on a joint SBO
Health Network questionnaire and hospital micro-data
(synergy with HN; possible fellow with H2020 grant).
• First phase of a study of education sector issues, based on
a questionnaire and PISA data (synergy with EPC/WP1
work program, over 2018-19).
4

5. Proposed Work Programme for 2019-20 (I)
Extend sub-national public sector performance /
productivity studies (see above)
– Design of performance systems requires collaboration across
levels of governments to construct relevant metrics and boost the
incentives of sub-national service providers.
• This theme would examine fiscal mechanisms across levels
of government to boost productivity, and performance
systems for add’l sub-national public sectors, such as public
investment, procurement and/or community services (e.g.,
justice/security), and extend work on education from 2018.
• Likely synergies: SBO Networks and PGC work on Public
Sector Productivity (PSP); ECO-STI work on PSP through
the GFP; CFE work on Toolkit and governance indicators
on effective public investment across levels of government.
5

6. Proposed Work Programme for 2019-20 (II)
Mega-trends #1: Technology, digitalisation and fiscal
decentralisation issues
– Such shifts affect the way that public services are delivered and
regulated, sub-national governments’ relationships with central
governments, co-ordination across levels of government, and also
pose challenges for raising revenues through taxation at all levels.
• This theme would examine the policy response,
institutional and regulatory implications across levels of
government resulting from technological change, as related
to fiscal decentralisation and public finance.
• Likely synergies: OECD horizontal initiative on
digitalisation (esp. CTP and STI); RDPC work on the
impact of digital technologies on multi-level governance
arrangements.
6

7. Proposed Work Programme for 2019-20 (III)
Mega-trends #2: Labour markets, demographics and
fiscal decentralisation issues
– Globalisation, technological progress and demographic change
are having a profound impact on OECD labour markets, both in
the quantity and quality of jobs that are available, as well as
government responses, notably at the sub-national level.
• This theme would examine how fiscal frameworks can
support demographic changes and guide the policy co-
ordination to promote resilience and fiscal sustainability.
Also dealing with regions in decline and concentration of
ageing populations (e.g., pension funds and elderly care).
• Likely synergies: RDPC/CFE work on regional mobility,
local policies/training, and regional productivity and
inclusiveness; CTP work on labour taxation; the 2018
Copenhagen Workshop. *KIPF VC on aging and SNGs.* 7

8. Proposed Work Programme for 2019-20 (IV)
Inter-governmental policy co-ordination and
environmental risks
– Showing how national frameworks and legislation can give
additional financial and political leeway to local governments to
pursue low-carbon choices.
• This theme would examine – in light of political economy
developments – the role that the alignment of policies
between central and sub-national governments will play,
and could play, in addressing environmental risks through
improved co-ordination or second-best solutions to policy
challenges.
• Likely synergies: CTP work on carbon pricing; RDPC/CFE
work on multi-level governance of climate investment and
subnational green financing; related EPOC/ENV work on
environmental policy co-ordination challenges. 8

9. Proposed Work Programme for 2019-20 (V)
Addressing sub-national accounting and financial
comparability challenges
– Sub-national regions and local governments in a number of
countries face challenges in compiling data that can be easily
compared and monitored by higher levels of government.
• This theme would examine how fiscal frameworks and
accounting rule consistency can support better monitoring,
and underpin financial sustainability at all levels.
• Likely synergies: SBO work on accounting practices; ELS
work on pensions; CFE-UCLG’s new Observatory on Sub-
national Government Finance and Investment.
=> Other thematic areas?
9

10. Continuing Work Programme for 2019-20
Fiscal Federalism @ 15 Years (VC-funded, by KIPF)
– anniversary edition of Fiscal Federalism prepared in 2019,
summarising key OECD lessons and best practices in the main
areas of fiscal relations that the network has covered, on essential
policies, for publication in 2020. Likely synergy with RDPC/CFE’s
multi-level governance handbook preparations in 2018
Regional Networks
– The new Roundtable on Fiscal Network in Asia will be repeated,
and synergies explored (VC-funded)
– Partner Networks in other regions will be further developed
including with the IDB in Latin America.
– Synergies with the Observatory on Subnational Government,
Finance and Investment regional networks
Database extensions
– Extension, updating key indicators, integrating with regional
databases and expanding measures, enhancing visualisation 10

11. Mandate renewal before end-2018
11Twitter @econecho
OECD Network on Fiscal Relations
• Share experiences on all aspects of
fiscal federalism and sub-national
public finance, on both the revenue
and spending sides of the budget
• Annual Network meetings, as well
as workshops and expert seminars
• Unique policy analysis, database
and reports
•Website: http://oe.cd/fiscalnetwork