Glossary

A multi-level governance (MLG) system refers to the frameworks through which policymaking, decision-making, and public service delivery powers are distributed across different levels of the public sector, including central (national), regional, and local governments. The term "decentralisation" implies a specific direction in multi-level governance reforms (i.e., reducing dependence on centralised institutions), whereas "multi-level governance" is viewed as a more neutral concept that focuses on the capacity of subnational governance institutions to "spend better", improve coordination, and achieve a vertical distribution of powers and responsibilities within the public sector, while also identifying pathways for territorial competitiveness and effective public service delivery. Multi-level governance analysis acknowledges that the powers of subnational governance institutions are largely based on their institutional frameworks. However, it also highlights that subnational authorities and central governments are interdependent rather than isolated actors. Some observers also associate the term multi-level governance with supranational levels of governance, such as the European Union or transnational organizations involved in international or global governance.