Monica Brezzi – Francesca Utili Department for Development Policies Ministry of Economic Development 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

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 Essential services in regional development policy

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

…also in the availability of essential services

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 Current regional policy strategy

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 if quantified targets are met in 2013 A share of the resources is assigned in 2009 on the basis of 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 (%) Percentage of students (aged 15) with poor competency in mathematics, 2003 Not only provision, but also quality of service

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 Setting targets for policy objectives  Difficult to translate them in verifiable measures  Many variables and actors affect results

Child care provision (% of population 0-3 years covered) Targets ambitious but achievable

Why do we need an incentive mechanism? 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 political support and favor civic participation lack of local administrations’ accountability adjustment of preferences to lower expectations

ServicesStatistical indicator Central administration Local administration Early school leavers Students with poor competency in reading Students with poor competency in mathematics Percentage of municipalities with child care Children in child care Share of old people beneficiary of home assistance Ministry of Health Municipalities; local public health agencies Amount of urban waste landfilled Percentage of recycled urban waste Percentage of composted waste Percentage of water distributed Population served by waste water treatment plants Education Ministry of Public education Counties; Schools Child and elderly care Ministry of welfare; Department for family's policies Municipalities Urban waste management Ministry of environment Local Water agencies; Municipalities Water sector Local Water agencies

Accountability requires a clear identification of responsibilities After a careful and lengthy process specific commitments at all levels are identified Local incentives can be also implemented Actions required included in regional plans Strengthening the delivery of results/1 Objectives must become part of the political agenda, at local, regional and central level Political commitment is stated in formal agreement signed by Regional governments and Ministers

Strong engagement of citizens transparency of the mechanism (rules and indicators are public); information on progress always available during implementation. Feedback on policy actions. Strengthening the delivery of results/2 Tension between local community’s vision and Central administration’s vision long process to convey information spread among different stakeholders: while completing the information in a “technical” way, it is also building consensus on the necessary changes

Quantity of municipal waste landfilled (kg per person) Municipal recycled waste (% over total urban waste) Quantity of municipal waste composted (thousand of tons) 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 Address explicitly the objective of reduce municipal waste land filled and increase the recovery, according to Regional plans