OECD: regional policy and risk management

oecd“As we face up to the worst recession for decades, the OECD is working to help governments soften the impact of this crisis for those who will be worst hit and to lay the foundations of a stronger global economy for the generations to come.

Our strategic response to the crisis covers two main areas. We emphasise the need to align regulations and incentives in the financial sector to ensure tighter oversight and risk management. And we urge governments to review and upgrade their national policies and improve international coordination in order to restore the conditions for economic growth.”

In that by Angel Gurría, OECD Secretary-General plead for a a new role for regional policy: local responses for a global crisis. Gurría: “An effective regional policy promotes the best use of local knowledge, for the alignment of objectives, and this is essential to ensure the consistency of policy interventions. This is especially true for public investment. Regional policy can help focus this investment in a way that helps lagging regions reveal their comparative advantage and make the best of their resources.

It can also help us boost the capacity of our fiscal stimulus packages to address structural challenges like migration and climate change. It can help us set in motion a “green recovery”. In many countries, the responsibility for policy areas related to the environment lies with sub-national authorities. These authorities are responsible for land use, building codes, public transport, or water management, to mention only a few.

Mayors and regional officials have been showing leadership by encouraging public transportation, implementing climate change action plans, and curbing air pollution to make cities more “liveable”, “walkable”, and “breathable”. They can go further in promoting cutting-edge “green” building technologies and clean-tech research and development (R&D).”

The pleading is for a strong cooperation of the different government layers to approach the crisis. PRIMO is convinced that solid risk management approaches, whereby all types of stakeholders are interlinked is critical for succes. A true regional approach is getting everyone at the table, take collective decisions and organise sharp control for the implementation.

That infrastructure is very weak. New risks will emerge, because stakeholders will cross the line of their competences, to say it straight forward. So risk management as a mutual gain approach can and will proof itself. It is now that politicians, managers, scientists, companies and banks should develop a new way of cooperation. It is a challenge. The holistic approach in reducing the uncertaintees and tracing the chances is, we believe, the way forward.