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17 th session of the Territorial Development Policy Committee Symposium

Setting standards for local public goods provision: challenges for regional development The Italian case

Rome, 20 June 2007 Monica Brezzi – Francesca Utili Department for Development Policies Ministry of Economic Development

Essential services in regional development policy

Regional development policy = long-term policy of public investments in infrastructure and training of human resources.

Not only infrastructure but also services

Outcomes observable in a shorter time span

Increase the public support on the policy long term objectives

Engage citizens

Regional disparities Centre- North South: 8 regions; Population 21 millions (36%) Per capita GDP (current euros)

30.000

25.000

24.819

20.000

Centre-North 28.434

15.000

10.000

13.963

5.000

-

2000 South GPD per capita in the South is at 58% of Centre-North 16.360

2001 2002 2003 2004 Female activity rate 2005

70 60 50 40 30

Centre-North South

20

2000 2001 2002 2003 2004 2005 2006

…also in the availability of essential services

35 30 25 20 15

16,8 25,5 15,5 31,8

10 5

4,2

0 Centre-North South early school leavers (2006) Centre-North South child care coverage (2004)

8,7

Centre-North South Recycled urban waste(2005)

Current regional policy strategy

Italy’s seven years program of regional development policy – 100 billion euros aimed at 8 Southern regions includes:

Explicit targets on the provision and quality of essential services

Incentive scheme – financial rewards for Southern regions

Complex combination of political and administrative responsibilities

Description of the scheme

11 indicators on provision and quality of

-Education -Child and elderly care -Water service -Waste management

Targets are set at minimum standard Financial incentive 3 billion euros assigned to eight Southern Regions quantified targets are met in 2013 if A share of the resources is assigned in basis of the 2009 on the improvements from the current situation Resources not assigned in 2013 to Regions that don’t achieve the targets can be assigned to other better performing Regions

Early school leavers (%)

30,0 25,0 20,0 15,0

Target agreed at European level for year 2010 (Lisbon strategy) = max 10%

10,0 5,0 0,0 2004 Not only provision, but also quality of service Centre-North South 2006

Percentage of students (aged 15) with poor competency in mathematics, 2003

50 45 40 35 30 % 25 20 15 10 5 0

OECD countries, year 2003 = 21,4%

19,3 47,5

Centre-North South

Setting targets for policy objectives

 

Difficult to translate them in verifiable measures Many variables and actors affect results

Criteria to select indicators and to apply

binding

targets:

visibility

     

easy to interpret relevant for stakeholders involving citizens measurable chain of responsibilities to attain the objective selected in cooperation with regional decision-makers

Child care provision (% of population 0-3 years covered) - 2004

30 25 20 15

Italy = 12%

10 0 5 Targets ambitious but achievable

Centre-North South

Why do we need an incentive mechanism?

lack of local administrations’ accountabilityadjustment of preferences to lower expectations

Incentive mechanism for Southern regions:

successful previous experience

provides visibility

reshapes the agenda for public action

strengthens commitment and cooperation in a multilevel governance framework

gains the participation political support and favor civic

Services Statistical indicator Central administration Local administration

Early school leavers

Education

Students with poor competency in reading Students with poor competency in mathematics Percentage of municipalities with child care

Child and elderly care

Children in child care Share of old people beneficiary of home assistance

Urban waste management

Amount of urban waste landfilled Percentage of recycled urban waste Percentage of composted waste Percentage of water distributed

Water sector

Population served by waste water treatment plants Ministry of Public education Ministry of welfare; Department for family's policies Ministry of Health Municipalities Municipalities; local public health agencies Ministry of environment Local Water agencies; Municipalities Local Water agencies

Strengthening the delivery of results/1

Accountability requires a clear identification of responsibilities After a careful and lengthy process commitments specific at all levels are identified Local incentives can be also implemented Actions required included in regional plans Objectives must become part of the political agenda , at local, regional and central level Political commitment is stated in agreement signed by Regional governments and Ministers formal

Strengthening the delivery of results/2

Tension between local community’s vision administration’s vision and Central long process to among different stakeholders: while completing the information in a “technical” way, it is also building consensus convey information spread on the necessary changes Strong engagement of citizens transparency of the mechanism (rules and indicators are public); information on progress always available during implementation.

Feedback on policy actions.

Municipal recycled waste (% over total urban waste) -2005

Target 40%.

Too ambitious? …other experiences show strong improvements in a short period …European and National targets …explicit even more challenging targets in regional waste plans and national Budget Law 2.500

Quantity of municipal waste composted (thousand of tons)

2.000

1.500

1.000

Centre-North

Address explicitly the objective of reduce municipal waste land filled and increase the recovery, according to Regional plans 500

South

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 450

Quantity of municipal waste landfilled (kg per person) South

400 350 300 250

Centre-North

200 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012