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Welsh Government has partnered with the OECD (Organisation for Economic Co-operation and Development) in a new two-year project to analyse Welsh multi-level governance systems to support its regionalisation agenda.

It will help inform the implementation of the ‘Economic Action Plan’ as part of ‘Prosperity for All’, and support the development of the replacement regional investment approach to replace EU Structural Funds post-Brexit.

Why is Welsh Government engaging with the OECD?

The OECD has a world-leading reputation for providing robust, evidence-based challenge to the status quo. Its work will provide a catalyst change, opening up new avenues of activity and develop creative partnerships.

The OECD is a world-leading authority on regional economic development. Welsh Government wants to utilise its expertise to support the development of a regional economic development policy in Wales and a framework for future regional investment to replace European Structural and Investment (ESI) funds.

The project will involve a selection of high-level international experts and peer-reviewers, and public officials from other OECD countries, who will use their expertise and policy experience to enrich the analysis. This will help ensure the project is grounded not just in theory but also by examples of best practice.

The OECD’s input will help ensure Wales has in place policy, governance and delivery mechanisms which embed international best practice and can deliver a more prosperous and equal Wales in line with Wales’ legislative landscape.

Purpose of the project

The project will support the Welsh Government in its regionalisation efforts by enhancing institutional capacity for delivering regional objectives, ensuring effective public investment across levels of government. It will identify mechanisms that can strengthen fiscal and financial capacity through fiscal decentralisation, tax policy, public-private partnerships and land-value capture.

The project involves strands of activities focused on diagnosing the strengthens and challenges of the Welsh multi-level governance system, developing a toolkit for action, and facilitating interaction with domestic stakeholders and international peers that centres on comparable benchmarks and experience exchange, as well as monitoring of progress.


The project has 3 main outputs:

  • An analysis of the Welsh multi-level governance system, including institutions and frameworks in order to help build institutional capacity for regional governance and more effective public investment. This will take the form of a study of approximately 100-150 pages on multi-level governance structures and practices in Wales that includes coordination mechanisms and public investment practices, including a case study.
  • Development of a toolkit for action to support the fiscal and financial capacity for regional development and infrastructure investment, including enhanced and streamlined monitoring and evaluation mechanisms for regional development policy and investment effectiveness. This would be applicable to all levels of government in Wales.
  • A 2-seminar series with relevant stakeholders to discuss the main recommendations emanating from the case study and implementation of the operational toolkit.


The OECD will conduct a series of study missions to meet key actors involved, including policy-makers, academics and researchers, representatives of the business community, financial institutions, NGOs, etc.

The OECD will also hold two seminars, the first by the end of Q3 this year to input into the analytical and case studies, the second by the end of Q1 next year to test preliminary recommendations.

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