Final conference of ESPON Targeted Analysis SPIMA (Spatial dynamics and strategic planning in Metropolitan Areas) Brussels, 6 February 2018 OECD PERSPECTIVE ON METROPOLITAN AREAS Soo-Jin KIM OECD Centre for Entrepreneurship, SMEs, Regions and Cities Cities, Urban Policies and Sustainable Development Division
OUTLINE 1. Why does the OECD work on metropolitan areas? 2. Why does metropolitan governance matter? 3. Spotlight on spatial planning in selected metropolitan areas 4. Final considerations
OUTLINE 1. Why does the OECD work on metropolitan areas? 2. Why does metropolitan governance matter? 3. Spotlight on spatial planning in selected metropolitan areas 4. Final considerations
Organisation for Economic Co-operation and Development (OECD): 35 member countries In the process of accession: Key Partners:
A platform for policy dialogue between national governments for growth and well-being
working on a number of sectoral policy areas, with an increasing focus on urban issues. Directorates Economic development Statistics Science & technology Trade & agriculture Education Labour & social issues Committees (composed of central government officials) Economic Committee Statistics Committee Sc & Tech Committee Trade Committee Education Committee Labour & Social Committee Regions and cities Regional Development Policy Committee (RDPC)
Cities represent around half of the OECD area Cities account for 49% of population, 51% of employment, and 57% of GDP in the OECD area (2013). % Share of national GDP Share of national employment Share of national population 80 70 60 50 40 30 20 10 0 Country ( No. of cities) Source: OECD (2016), Regions at a Glance 2016, OECD Publishing, Paris
Urbanisation can benefit economic growth Agglomeration benefits can make larger cities more productive 120,000 0.5-1 million 1-2 mill. 2-5 mill. 5+ mill. Average labour productivity 100,000 80,000 60,000 40,000 20,000 0 Europe (OECD) United States/Canada Mexico/Chile Japan/Korea Source: OECD (2015), The Metropolitan Century: Understanding Urbanisation and Its Consequences, OECD Publishing, Paris 8
but many metropolitan areas are characterised by administrative fragmentation Number of municipalities for 100 000 inhabitants 25 20 15 10 5 0 Country (between brackets: number of metropolitan areas)
OUTLINE 1. Why does the OECD work on metropolitan areas? 2. Why does metropolitan governance matter? 3. Spotlight on spatial planning in selected metropolitan areas 4. Final considerations
Higher administrative fragmentation is associated with lower productivity Productivity falls by 6% for a doubling in the number of municipalities (for a given population size) Source: Ahrend, Farchy, Kaplanis and Lembcke (2014), What Makes Cities More Productive? Agglomeration Economies & the Role of Urban Governance: Evidence from 5 OECD Countries, Journal of Regional Science 11
Higher administrative fragmentation is associated with stronger inequalities Spatial segregation by income Administrative fragmentation 0. 0. 0. 0. Source: Brezzi, Boulant & Veneri (2016), Income Levels And Inequality in Metropolitan Areas: A Comparative Approach in OECD Countries, OECD Regional Development Working Papers, 2016/06
Metropolitan governance is widespread in OECD countries About 2/3 of OECD metropolitan areas have a metropolitan governance body. Most of them work on economic development, transport and spatial planning. Source: OECD (2015), Governing the City, OECD Publishing, Paris
Metropolitan governance is associated with lower urban sprawl Urban sprawl decreased in metropolitan areas that have a metropolitan governance body 1.4 1.2 1 0.8 0.6 Change in urban sprawl (2000-2006) Urban sprawl increased in metropolitan areas that have no metropolitan governance body 0.4 0.2 0-0.2-0.4-0.6-0.8 With Governance Body Without Governance Body Source: OECD (2015), The Metropolitan Century: Understanding Urbanisation and Its Consequences, OECD Publishing, Paris 14
Metropolitan governance is associated with higher satisfaction among citizens Citizens are more satisfied in metropolitan areas that have a metropolitan transport authority 80% 75% 70% 65% 60% 55% Share of citizens satisfied with public transport With Transport Authorities Without Transport Authorities Citizens are less satisfied in metropolitan areas that have no metropolitan transport authority Source: OECD (2015), The Metropolitan Century: Understanding Urbanisation and Its Consequences, OECD Publishing, Paris 15
OUTLINE 1. Why does the OECD work on metropolitan areas? 2. Why does metropolitan governance matter? 3. Spotlight on spatial planning in selected metropolitan areas 4. Final considerations
Prague (Czech Republic) Population growth in Prague (1919-2015) OECD recommendations: Improve integrated spatial planning by aligning sectoral and borough-level plans with the Strategic Plan (2016) Reduce the regulatory burden for developers in terms of building approvals Establish (national) fiscal incentives and/or regulatory frameworks to encourage metropolitan spatial planning
Rotterdam-The Hague (Netherlands) MRDH (Metropoolregio Rotterdam Den Haag): a new metropolitan authority encompassing 23 municipalités = 2.3 million people = more than 60% of the population of the Zuid-Holland province National Province (spatial planning) City-regions MRDH (transport & eco dev) Municipalities
OUTLINE 1. Why does the OECD work on metropolitan areas? 2. Why does metropolitan governance matter? 3. Spotlight on spatial planning in selected metropolitan areas 4. Final considerations
Key steps for effective metropolitan governance reform Identify concrete metropolitan projects to motivate collaboration Build ownership among key stakeholders Ensure reliable sources of metropolitan financing Provide incentives and compensation for compromises Implement monitoring and evaluation mechanisms
Many OECD countries have (or are in the process of setting up) a national urban policy framework Source: OECD (2016), OECD Regional Outlook 2016, OECD Publishing, Paris
THANK YOU Contact: soo-jin.kim@oecd.org