Post on 26-Aug-2020
Decentralisation trends in OECD countries: a comparative perspective for Ukraine
Dorothée Allain-Dupré Senior Project Manager Regional Development Policy Division OECD
shortened
5
SNGs are key economic and policy actors across the OECD
40%
63% 59%
32%
20%
Greece
New Zealand
Chile
Estonia Greece
Canada
Canada
Canada
Canada Canada
31%
60% 55%
24%
4% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Expenditure Staffexpenditure*
Investment Tax revenue Debt***
OECD Minimum Maximum Ukraine% of general government - 2014
*: No data for Chile and Australia **: Debt OECD definition ie including, in addition to "financial debt", insurance reserves and other accounts payable. No data for Mexico, Chile and New Zealand
Degrees of decentralisation varies largely
in OECD countries
AUS
AUT
BEL
CAN
CHL
CZE
DNK
EST
FIN
FRA
DEU
GRC
HUN
ISL
IRL
ISR
ITA
JPN
KOR
LUX
MEX
NDL
NZL
NOR POL
PRT
SVK
SVN
ESP SWE
CHE
TUR
GBR
USA
OECD34
EU28
OECD25
OECD9
0%
10%
20%
30%
40%
50%
60%
70%
80%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Su
bn
ati
on
al
ex
pe
nd
itu
re
as
a s
ha
re
of
tota
l p
ub
lic
ex
pe
nd
itu
re
(%
)
Subnational expenditure as a share of GDP (%)
Subnational government expenditure as a percentage of GDP and total public expenditure (2014)
…. And around the world: 25% of total public spending i.e. 9% of GDP
AUT
BEL
BGR
HRV
CYP
CZE
DNK
EST
FIN
FRA
DEU
GRC
HUN
ISL
IRL
ITA LVA
LTU
LUX
MLT
NLD
NOR
POL
PRT
ROU
SVN SVK
ESP SWE
CHE
GBR
ARG
BRA
CHL
COL
CRI DOM
ECU SLV
GRM
HND
JAM
MEX
PRY
PER
ISR
JOR
PSE TUR ALB
ARM
AZE
GEO
KAZ
KGZ
MDA
MNE
RUS
SRB
UKR
AGO BEN
BFA
CPV
COG
GHA
GIN
KEN
MWI
MLI
MUS
MAR
NGA
UGA
SEN
ZAF
TZA
TCD
TUN
ZWE
AUS
KHM
CHN
IND
IDN
JPN
KOR
MYS
MNG
NZL
PHL THA
VNM
CAN
USA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0% 5% 10% 15% 20% 25% 30% 35% 40%
SNG
exp
en
dit
ure
as
% o
f p
ub
lic e
xpe
nd
itu
re
SNG expenditure as % of GDP
OECD average
Global average
9%
24%
40%
17%
Wealthier countries tend to be more decentralised…
TCD GIN COG KHM MLT GRM DOM JAM AZE BEN MWI BFA CRI CYP TUN SEN MUS MLI JOR ARM PRY SLV ZWE MYS CHL HND UGA PSE KEN GRC MAR TZA THA IRL TUR ALB CPV
ECU NZL NGA KGZ GEO ISR MNE SVK PRT IDN
HUN GHA SRB BGR LTU PER ROU KAZ MNG MDA SVN EST CZE LVA GBR FRA PHL HRV MEX COL POL ISL KOR NLD IND ITA UKR NOR
JPN AUS AUT
USA VNM CHE DEU CHN
ESP ZAF BRA BEL
FIN RUS SWE
CAN
DNK
ARG
R² = 0.3555
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
SNG
exp
en
dit
ure
as
a %
of
GD
P
GDP per capital (USD PPP)
Some policy areas are more decentralised than others: education, social protection, health, public transport, housing
21.8%
20.3%
13.8%
12.5%
9.4%
8.8%
5.7%
5.4% 2.4%
% of total SNG expenditure
Defence, security andpublic order
Environmentalprotection
Recreation, culture andreligion
Housing andcommunity amenities
Health
Social protection
Economic affairs &transport
General public services
Education
Breakdown of SNG expenditure by economic function
2.6%
1.9%
1.9%
1.5%
1.5%
0.6% 0.5% 0.4% 0.3%
% of GDP
Defence, security andpublic order
Environmental protection
Recreation, culture andreligion
Housing and communityamenities
Economic affairs &transport
Health
General public services
Social protection
Education
10
What are the sources of SNG revenues? Tax revenues account for 44% of SNG revenue in the OECD
Spending is more decentralised than revenues: the risks of fiscal imbalances