Presentation by Lamia Kamal-Chaoui, Creating the enabling environment to unlock Inclusive and quality infrastructure investment in Regions and Cities

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CREATING THE ENABLING ENVIRONMENT TO
UNLOCK INCLUSIVE AND QUALITY INFRASTRUCTURE
INVESTMENT IN REGIONS AND CITIES
6 September 2022
OECD Centre for Entrepreneurship, SMEs, Cities and Regions
High-level workshop on funding and financing for quality
infrastructure investment in regions and cities
Ms. Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs, Regions and Cities (CFE), OECD

2. Infrastructure investment needs are significant but vary across places – and
especially between rural and urban areas
OECD (forthcoming) Addressing
territorial disparities in access to
infrastructure.
Calculations based on Weiss et al
(2020) Global maps of travel time
to healthcare facilities and
Speedtest® by Ookla® Global
Fixed and Mobile Network
Performance Maps (Ookla of
Speedtest Intelligence® data for
2020Q4 provided by Ookla and
accessed 2021-01-27). Ookla
trademarks used under license
and reprinted with permission.2
Rural areas have longer
travel times and slower
internet speeds
longer travel times &
slower internet speed
200
300
t.
average
(p.p.)
Cities Towns and semi-dense areas Ru
longer travel times &
slower internet speed
200
300
verage
(p.p.)
Cities Towns and semi-dense areas Rural areas %
longer travel times &
slower internet speed
200
300
erage
(p.p.)
Cities Towns and semi-dense areas Rural areas % population 20 40 60
-100
0
100
200
300
-40 0 40
Fixed broadband speed - Dev. from nat. average (p.p.)
Travel
time
to
healthcare
-
Dev.
from
nat.
average
(p.p.)
Cities Towns and semi-dense areas Rural areas % population 20 40 60
longer travel times &
slower internet speed
300
(p.p.)
Cities Towns and semi-dense areas Rural areas % population 20 4
‘Twin divide’ in physical and digital access to healthcare in rural areas for G20 and OECD countries
Fixed broadband speed
(deviation from national average, p.p.)
Travel time to healthcare facility
(deviation from national average, p.p.)
Urban areas have shorter
travel times and higher
internet speeds

3. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
OECD countries
G20 countries
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Subnational
government
investment
(%
of
total
public
investment)
Subnational government investment as % of GDP
Subnational governments account for almost 60% of public investment in OECD and G20 countries (40% globally)
Subnational governments support inclusive infrastructure investment
Source: Based on the OECD-UCLG World observatory on subnational government finance and investment (2019)
Country value

4. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Boosting subnational investment will require better access to finance for
subnational governments
INSTITUTIONAL
CAPACITY
Build capacity so that these
governments have the skills
to access finance and use it
responsibly
COORDINATION AND
COOPERATION
Create mechanisms to
support investment at the
right scale, in the right place
and in line with local
priorities
FISCAL AND
REGULATORY
FRAMEWORKS
Strike the right balance
between enabling access to
finance and managing risks
(e.g., indebtedness)
FINANCIAL MARKETS
Deepen markets for
subnational government
debt and support the use of
green finance
Elements of enabling environment to improve access to finance

5. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
New sources of revenues will be critical to improve access to finance and
unlock infrastructure investment for subnational governments
UNLOCKING REVENUES
To support quality
infrastructure investments,
repay financing, and maintain
and operate infrastructure
Harnessing grant and subsidy programmes
Identifying local tax revenue opportunities
Adopting user charges and fees
Capturing increases in land value
Leveraging income from existing assets
Potential funding sources for subnational governments

6. 
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Subnational.Infra@oecd.org