About the OECD #ResilientPlaces blog series
In an era of unprecedented economic, environmental and geopolitical changes, local and regional leaders are uniquely placed to turn these changes into opportunities to improve the well-being of all citizens, strengthen resilience and boost competitiveness. Following the OECD Regional Development Policy Ministerial Committee meeting in Warsaw, Poland (19–20 May 2025), the OECD Champion Mayors, local and regional leaders, as well as stakeholders, continue to share innovative solutions to reinforce local and regional resilience in this blog series.
In 2023 subnational governments across the OECD countries spent USD 13 trillion – more than 16% of the average of OECD countries’ GDP. But to get best value from this spending it needs to be aligned with the efforts of other tiers of government and public agencies. A multilevel governance (MLG) approach seeks to achieve that.
Such a model calls for strong systems of dialogue, participation and trust – where local and regional voices are heard, and national goals reflect their needs. Without this, policies risk missing the mark. What lessons can countries learn from Poland’s experience?
Polish context of multilevel governance
With 16 regions (voivodeships), 380 counties (poviats) and nearly 2,500 communes (gminas) Poland has built a governance architecture that empowers local and regional governments while maintaining alignment across levels of government towards overall strategic priorities. This system is actively applied in managing our regional policy as well as EU Cohesion funds.
Enhancing the voice of subnational partners via consultative forums
At the core of this system is a set of co-ordination mechanisms that facilitate dialogue between national administration and subnational governments (regional and local).
The Common Commission of National Government and Territorial Government brings together national, regional and local governments to negotiate the legal and financial frameworks underpinning regional development.
Alongside this, Poland’s Executive Council for Urban Policy Implementation brings together all three tiers to discuss urban policies, and its Co-ordination Committee for Development Policy receives input from regional governments through its Subcommittee for Territorial Dimension.
Collaborations through multilevel and intermunicipal contracts
Poland develops bespoke contracts with subnational governments to ensure alignment of goals.
One form of these instruments is programming contracts, which govern the use of EU Cohesion policy funds in regions. These contracts are agreed upon between the national ministry in charge of regional development and each region’s management board. Almost 40% of overall EU funding is delegated via this tool, ensuring that the approach remains aligned with both national priorities and those of the European Commission.
Another form of contract is Poland’s territorial agreements. These agreements allow groups of local authorities to co-finance strategic investments together with either the national or regional governments.
One example is the agreement between national level and the supralocal association Dorzecze Wisłoki which unites 22 municipalities across two regions (Podkarpackie and Małopolskie) to implement sustainable investment projects at the appropriate scale.
The association acts as a centre of common public services across the territory by taking on responsibilities on investment activities from the individual communes (gminas) to improve quality of services, secure additional funding and streamline co-operation with external organisations.
Over nearly two decades, Dorzecze Wisłoki has channelled investments into the green and blue economy – supporting renewable energy, improving the energy efficiency of public and private buildings and fostering ecotourism. These initiatives have not only improved environmental sustainability but also enhanced the quality of life for local residents.
The flexibility of co-operation across various levels and beyond administrative boundaries has particularly boosted intermunicipal partnerships within Polish regions in the form of supralocal strategies incl. co-operation within functional areas and between urban and rural areas.
Stabilising subnational finances
Last year, Poland’s reform of local government finance marked a shift in the fiscal relationship between the central government and subnational governments, aiming to enhance financial stability and predictability for municipalities, counties, and voivodeships. Measures include increasing the share of local income tax revenues for local authorities as well as refining the system of estimating financial needs across sectors and better adjusted allocation of funds
for those.
These efforts aim to ensure more predictable financing for subnational governments, to better reflect the true cost of public service delivery and to more just sharing of financial burden between national, regional and local tiers.
Creating ownership in local communities
In addition, participatory budgeting has been gaining traction in Poland over last 10 years as a tool that enables local community to directly contribute to development initiatives of their closest neighbourhoods. Citizens are invited to design small-scale projects and vote on financing the best ones from earmarked funds of municipal budgets.
This strengthens ownership of local communities and promotes the democratisation of decision-making processes. Cities like Bydgoszcz, Sopot and Elbląg were early adopters. It has resulted with many changes awaited, including sport and cultural activities, green spaces, recreational areas, social initiatives convening local communities, improvements to housing estates,
and more.
Partnerships for progress
Poland’s experience has shown that effective regional development isn’t just about devolving power. It’s about structuring collaboration, financing flexibility, and genuine partnerships across all levels of government.
We hope our approach offers valuable insights for governments across the OECD seeking to build more resilient, inclusive and regionally balanced development pathways. We are delighted to share these lessons with other leaders at the OECD Ministerial meeting in Warsaw on 19-20 May 2025.
OECD support for Poland’s multi-level governance model
The OECD has provided comprehensive assessments and tools to enhance Poland’s multi-level governance framework. Key publications include Better Governance, Planning and Services in Local Self-Governments in Poland, Self-assessment Tool for Local Self-Governments in Poland, and The Role of Subnational Governments in Adult Skills Systems: Poland. These resources offer strategic insights into strengthening regional development, improving service delivery, and fostering effective coordination among various government levels
Katarzyna Pełczyńska-Nałęcz was appointed Minister of Development Funds and Regional Policy in December 2023. Previously, she served as Undersecretary of State at the Ministry of Foreign Affairs (2012-14) and as Poland’s Ambassador to the Russian Federation (2014-16). She was Director of the Forum of Ideas think tank and led the Strategies 2050 Institute from 2020 to 2023. A graduate in sociology from the University of Warsaw, she earned her Ph.D. at the Polish Academy of Sciences in 1999 with a thesis on political participation in Poland. She has extensive experience in international relations, having worked at the Centre for Eastern Studies (OSW) in Warsaw and Brussels, where she coordinated research with the French Institute of International Relations. She speaks English and Russian fluently.