Written by: Max Nathan, Professor of Economic Geography, The Bartlett Centre for Advanced Spatial Analysis
Good monitoring and policy evaluation is important to effective place-based policymaking, especially now. But robust evaluation evidence is hard to generate. It is also surprisingly hard to incorporate into policymaking infrastructures.
This paper considers why this is, and suggests ways forward. First, it discusses why we care about monitoring and evaluating place-based policies. It then outlines the main questions for their evaluators. The analysis highlights the problem of incomplete evaluation evidence, especially in impact evaluations (which start with the question 'what's the effect of policy X on outcome Y?'). The paper then reviews how to build an impact evaluation strategy for place-based programmes.
Focus turns to the core design issue – establishing a counterfactual – then methods and data. EU Cohesion Policies and broadband support programmes are used as case studies to discuss what we know about the effectiveness of these interventions. The paper then sets out challenges to generating and using evidence. These tasks combine practical challenges (things that are hard to know) and cultural/institutional challenges (things we don't want to know). Finally, it discusses what we can do to tackle these challenges, drawing on UK experience from the 'What Works' movement over the last 10 years.
The paper was presented at an OECD workshop on cutting-edge approaches to monitoring and evaluating place-based policies in July 2023.
About the publication
Place-Based Policies for the Future
Across the OECD and the EU, inequalities within countries remain large and, in many countries, they continue to grow, weighing down on resilience, competitiveness and well-being. Recent shocks, including the COVID‑19 pandemic, the energy and cost of living crises and shifts in global value chains, have highlighted the risks and vulnerabilities of existing socio-economic models. They have also increased understanding of the need and urgency to address other long-standing risks and transitions – including from climate change, technology and demography – and their strong asymmetric impacts within countries.
Place-based policies can target local needs and mobilise local assets by better recognising the unique characteristics of each place. By ensuring strategies and investments are more effectively targeted, these policies can foster enhanced competitiveness, sustainability and inclusiveness, and ultimately the resilience of economies to leverage opportunities of transitions and to manage shocks.
Developed through a collaboration between the OECD and the European Commission, the report provides a synthesis of current knowledge on place-based policies. It draws on insights from a series of high-level expert workshops held in 2023, reflecting the latest academic research and policy discussions on the topic. The report emphasises the need for well-coordinated and multi-dimensional policy action that engages all levels of government, as well as broader stakeholders. It calls for more forward-looking policies that promote sustainable and resilient development. It highlights the importance of robust and evidence‑based policymaking, supported by effective monitoring and evaluation.