Policies for local development: An evaluation of Italy's “Patti Territoriali”

In Italy, Patti Territoriali (Territorial Pacts, TPs) are one of the most important government sponsored programs aimed at fostering growth in disadvantaged areas. A TP is an agreement between local governments and representatives of civil society (mainly entrepreneurs and trade unions) of a number of neighboring municipalities, which is subsequently endorsed by the central government. The agreement consists of a fully-fledged development plan, which includes a series of private and public investments for which public funding is provided. This paper evaluates the effectiveness of TPs by comparing the economic performance – in terms of employment and number of plants – of the municipalities taking part in a TP with a sample of municipalities not involved in the policy. The results suggest that the program has been largely ineffective in stimulating growth.

Research Highlights
► Local development.
► Public policies.
► Program Evaluation.