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Multi-level governance

Multi-level governance (MLG) refers to the dispersion of authority across subnational, national, supranational, and international jurisdictions, where policymaking authority is shared among public and non-state actors through non-hierarchical, networked interactions rather than centralized state control.^[1] The concept, developed by political scientists Liesbet Hooghe and Gary Marks in the early 1990s to analyze European Union integration, challenges traditional hierarchical models of sovereignty by emphasizing vertical coordination between levels of government and horizontal collaboration among diverse stakeholders.^[2] It posits that authority—the competence to make binding decisions affecting specified populations or issues—is fragmented to address complex, interdependent policy challenges, such as environmental regulation or economic cohesion, where no single level holds exclusive competence.^[3] Hooghe and Marks distinguish two ideal types of MLG: Type I, resembling federal systems with general-purpose jurisdictions of limited scope (e.g., states within a federation), and Type II, involving flexible, task-specific entities that overlap and specialize without fixed memberships, enabling adaptive responses to localized needs.^[4] This framework has been applied empirically to EU structural funds, where regional actors bypass national governments to access supranational resources, fostering direct subnational engagement in policy implementation.^[5] Proponents highlight MLG's role in enhancing policy effectiveness through dispersed expertise and accountability, as evidenced in studies of cohesion policy where multi-jurisdictional partnerships improved regional development outcomes compared to top-down approaches.^[6] However, empirical assessments reveal mixed results, with coordination failures, information asymmetries, and risks of interest-group capture undermining efficiency, particularly in Type II arrangements lacking clear hierarchies.^[7] Critics argue that while MLG describes observed authority shifts, it often overstates diffusion at the expense of persistent central state dominance, as seen in EU cases where national governments retain veto powers, questioning its causal explanatory power beyond descriptive heuristics.^[8] Despite these debates, MLG remains influential in analyzing global challenges like climate governance, where authority fragmentation across scales complicates unified action but necessitates cross-level bargaining.^[9]

Core Concepts and Theoretical Foundations

Definition and Origins

Multi-level governance (MLG) denotes a system of continuous negotiation among nested governments at several territorial tiers—supranational, national, regional, and local—arising from institutional creation and decisional reallocation that elevates some state functions to supranational levels while devolving others to subnational ones.^[10] This approach highlights interdependent policy-making without a fixed hierarchy, involving vertical dispersion of authority across government layers and horizontal coordination among diverse actors such as public agencies, private entities, and civil society groups.^[11] Unlike traditional intergovernmentalism, which prioritizes sovereign states as primary actors, MLG underscores shared competencies and mutual reliance in addressing complex policy challenges.^[10] The term originated in the early 1990s amid European integration, specifically coined by Gary Marks in his 1993 article analyzing the European Community's structural policy reforms.^[10] These reforms, enacted in 1988, established a partnership mechanism mandating subnational involvement in fund allocation, which fragmented centralized control and prompted Marks to describe the emerging dynamics as multi-level.^[11] This conceptualization aligned with the 1992 Maastricht Treaty's subsidiarity principle, which aimed to allocate responsibilities to the lowest effective governance level, further eroding exclusive national authority.^[11] Liesbet Hooghe and Gary Marks advanced the framework in the late 1990s and early 2000s, notably in their 2001 book Multi-Level Governance and European Integration, where they differentiated Type I MLG—characterized by non-overlapping, general-purpose jurisdictions akin to federal systems—and Type II MLG—featuring flexible, task-specific entities that overlap and operate at varying scales.^[11] This typology emphasized MLG's adaptability to functional needs over rigid territorial boundaries, drawing empirical support from EU cohesion policy implementation data showing subnational actors influencing supranational decisions.^[10]

Vertical and Horizontal Dimensions

The vertical dimension of multi-level governance describes the allocation and exercise of authority across hierarchically arranged levels of government, including supranational, national, regional, and local tiers.^[5] This involves negotiated power-sharing and interdependence, where decision-making authority disperses upward to entities like the European Union and downward to subnational governments, rather than residing solely in centralized state structures.^[12] For instance, in the European context, vertical interactions manifest in the subsidiarity principle, formalized in the 1992 Maastricht Treaty, which mandates that decisions be taken at the lowest effective level to enhance efficiency and legitimacy.^[13] The horizontal dimension, by contrast, focuses on interactions and coordination among actors operating at equivalent levels, extending beyond traditional public institutions to include non-governmental entities such as private firms, NGOs, and expert networks.^[14] This networked approach facilitates cross-jurisdictional collaboration, as seen in regional policy forums where subnational governments pool resources without vertical oversight, or in transnational partnerships addressing issues like climate adaptation.^[15] Horizontal mechanisms often emerge in response to functional spillovers, where policy challenges—such as cross-border infrastructure—require lateral alignment to avoid duplication or gaps.^[16] The interplay between vertical and horizontal dimensions forms the core of multi-level governance, enabling adaptive policymaking through iterative bargaining among diverse actors.^[12] Political scientists Liesbet Hooghe and Gary Marks, in their 2003 analysis, distinguished Type I (confined to nested jurisdictions) from Type II (flexible, intersecting memberships), underscoring how horizontal flexibility complements vertical dispersion to match governance scales to policy externalities.^[17] Empirical studies, such as those on EU cohesion policy implementation, demonstrate that this dual structure reduces central-state dominance but can introduce coordination costs, as evidenced by varying implementation efficacy across member states from 2007-2013.^[10]

Historical Evolution

Emergence in European Context (1990s)

The concept of multi-level governance (MLG) was first articulated by political scientist Gary Marks in 1993 to analyze the European Community's (EC) structural policy reforms, describing a system of continuous negotiation among nested governments at subnational, national, and supranational tiers rather than centralized state control.^[18] This framework emerged amid the EC's 1988 structural fund reforms, which mandated partnerships between the Commission, member states, and regional authorities for cohesion policy implementation, dispersing authority vertically across levels and horizontally among non-state actors.^[19] Marks argued that these changes reflected a departure from traditional intergovernmentalism, as subnational entities gained direct access to EC funding and influence over policy design, evidenced by the doubling of structural fund allocations to 14 billion ECU annually by 1993.^[18] The 1992 Maastricht Treaty accelerated this shift by formalizing the subsidiarity principle in Article 3b, requiring decisions at the lowest effective governance level and empowering regional involvement through the newly established Committee of the Regions in 1994.^[11] This treaty's provisions for economic and monetary union and enhanced qualified majority voting further blurred lines between national and supranational authority, prompting scholars like Marks and Liesbet Hooghe to conceptualize MLG as a response to the EC's evolving polity, where authority was "shared" rather than hierarchically delegated.^[20] Empirical studies of the period, such as those on German Länder and Italian regions lobbying in Brussels, illustrated how subnational actors bypassed central governments, forming transnational networks that influenced EC directives on regional development.^[21] By the mid-1990s, MLG gained traction in academic discourse as a lens for understanding EU enlargement and policy coordination challenges, contrasting with neofunctionalist or liberal intergovernmentalist theories by emphasizing dispersed, non-majoritarian decision-making.^[10] Hooghe and Marks' subsequent works refined the concept, distinguishing Type I MLG (territorially fixed jurisdictions) from emerging Type II forms (flexible, task-specific entities), rooted in 1990s observations of EU committees and expert networks handling structural adjustments.^[22] These developments were not without critique; some viewed MLG as overemphasizing diffusion at the expense of member state veto powers retained under treaty rules, yet data from cohesion fund negotiations showed regions securing 20-30% of project approvals independently by 1996.^[23] Overall, the 1990s marked MLG's crystallization as an analytical tool for the EU's hybrid governance, driven by empirical shifts in authority post-Single European Act and Maastricht.^[24]

Expansion to Global and Federal Applications

Following the initial formulation of multi-level governance (MLG) in the European context during the 1990s, scholars in the early 2000s began extending the framework to federal systems, where authority is dispersed across national, subnational, and sometimes supranational levels through both constitutional and networked mechanisms.^[25] This expansion highlighted parallels with traditional federalism, such as divided sovereignty in jurisdictions like Canada and the United States, but emphasized MLG's focus on dynamic, non-hierarchical interactions beyond rigid constitutional divisions.^[3] Key works, including Hooghe and Marks' 2003 analysis, differentiated Type I MLG—resembling federal structures with general-purpose, territorially fixed jurisdictions—from Type II's task-specific, flexible entities, applying this typology to federations like Germany and Australia.^[11] In Canada, MLG has been applied to explain provincial involvement in areas traditionally reserved for federal authority, such as health policy and international trade under frameworks like NAFTA (established 1994), where provinces negotiate directly with subnational actors in the US and Mexico.^[25] Similarly, in the United States, states engage in multi-level policy-making on environmental regulations and innovation, often bypassing federal uniformity through interstate compacts or partnerships with international bodies, as documented in studies from the early 2010s.^[3] These applications, analyzed in compilations like Banting and Corbett's 2002 volume on federal states including Australia, Belgium, Canada, Germany, and the US, underscore MLG's utility in capturing policy innovation amid interdependence, though critics note it risks overlooking constitutional constraints inherent to federalism.^[25] Parallel to federal extensions, MLG theory expanded to global applications by the mid-2000s, framing international governance as dispersion of authority beyond nation-states to supranational organizations, non-state actors, and subnational entities in arenas like trade and finance.^[11] For instance, in regional trade blocs such as Mercosur and ASEAN, subnational governments participate alongside national and international levels, mirroring EU dynamics but adapted to looser institutional structures.^[11] Global policy domains, including partnerships with the United Nations and World Bank, illustrate this through transnational networks; empirical tracking via the Regional Authority Index across 81 countries from 1950 to 2010 reveals a steady upward trend in authority devolution, accelerating post-1990s globalization.^[3] Works like the 2005 volume on governing financial globalization apply MLG to explain how local and international actors coordinate amid economic interdependence, though applications remain contested in non-Western contexts like Africa, where implementation challenges persist due to capacity gaps.^[11]

Practical Applications

Multi-level Governance in the European Union

Multi-level governance in the European Union manifests as the dispersion of policy-making authority across supranational, national, regional, and local tiers, enabling direct participation of subnational actors in EU-level decisions. This framework emerged prominently in the 1990s, as scholars Liesbet Hooghe and Gary Marks analyzed how European integration shifted competencies from central states to both EU institutions and regional governments, particularly in structural funds administration.^[21]^[26] The 1992 Maastricht Treaty formalized elements of this through the subsidiarity principle, which mandates decisions at the lowest effective level, and the establishment of the Committee of the Regions to represent local and regional authorities in EU consultations.^[23] A core application occurs in Cohesion Policy, which from 1989 onward has distributed over €350 billion in the 2014-2020 period to reduce regional disparities, requiring multi-level partnerships for program design, implementation, and monitoring via management committees involving EU, national, and subnational representatives.^[27]^[28] In practice, this has empowered regions like those in Spain and Italy to negotiate directly with the European Commission on fund allocation, bypassing exclusive national channels, as evidenced in the programming cycles where subnational entities shaped over 80% of operational programs.^[19] Similar dynamics appear in environmental policy, where directives on water management under the 2000 Water Framework Directive engage local authorities in transboundary river basin committees, fostering horizontal coordination across borders.^[29] Empirical assessments of these structures reveal varied effectiveness; for instance, a 2014 European Parliament study on 2007-2013 Cohesion Policy found that multi-level partnerships enhanced regional ownership but often faced delays due to mismatched administrative capacities, with implementation rates averaging 60-70% in less-developed regions.^[28] In tobacco control, shared sovereignty via MLG has coordinated national and EU measures, yet studies indicate uneven enforcement tied to subnational variations in compliance.^[30] Overall, while MLG has integrated over 1,000 regional committees into EU networks by 2020, its success hinges on voluntary negotiation rather than hierarchical mandates, contrasting with state-centric models.^[31]^[32]

Applications in Federal States and Decentralized Systems

In federal states, multi-level governance manifests through the dispersion of authority across central, state, and local jurisdictions, enabling coordinated policy implementation while accommodating regional variations. This approach contrasts with rigid hierarchical federalism by emphasizing bargaining and shared decision-making among levels, as seen in environmental regulation where national standards are enforced via subnational adaptations. For example, in the United States, the Coastal Zone Management Act of 1972 allows states to develop coastal management programs approved by federal authorities, fostering partnerships that integrate local knowledge with national objectives, with over 30 states participating by 1980.^[33] Similarly, disaster response under the Stafford Act of 1988 requires federal declarations but relies on state and local execution, as demonstrated in Hurricane Katrina recovery efforts from 2005, where intergovernmental aid exceeded $120 billion.^[34] Canada exemplifies multi-level governance in decentralized federalism, particularly in education and health policy, where provinces hold constitutional primacy but federal transfers shape outcomes. The Canada Health Transfer program, initiated in 2004 and reformed in 2017, allocates over CAD 40 billion annually to provinces for universal healthcare, requiring adherence to national principles like accessibility while allowing provincial administration, thus balancing equity with autonomy.^[35] In Germany, cooperative federalism under Article 91a of the Basic Law (1949) mandates joint tasks in areas like agriculture and regional development, involving Länder participation in federal legislation via the Bundesrat, with fiscal equalization mechanisms redistributing approximately €12 billion yearly to ensure subnational viability.^[36] These structures highlight causal efficiencies in addressing spillovers, such as economic disparities, through vertical fiscal flows rather than unilateral central mandates.^[1] In decentralized systems like Spain and Italy, multi-level governance emerges from quasi-federal devolution, granting regions extensive self-rule in welfare and infrastructure while necessitating central coordination to mitigate fragmentation. Spain's 1978 Constitution established 17 autonomous communities responsible for health and education spending, which accounted for 40% of public expenditure by 2010, coordinated via sectoral conferences during the 2008-2014 fiscal crisis to impose austerity without full regional consent.^[37] Italy's 2001 constitutional reforms devolved powers to 20 regions, amplifying regional health budgets to 80% of national totals by 2019, yet exposing coordination gaps, as evidenced by disparate COVID-19 responses in 2020 where northern regions like Lombardy imposed lockdowns independently of central directives.^[38] Such applications underscore MLG's role in managing asymmetric decentralization, where empirical data from OECD assessments show improved service delivery in tailored policies but persistent risks of uneven implementation due to varying subnational capacities.^[39]

Role in International and Crisis Contexts

In international contexts, multi-level governance facilitates the dispersion of authority beyond state-centric intergovernmentalism, enabling supranational bodies to exercise independent decision-making authority. For instance, the International Criminal Court (ICC), established in 2002, operates with delegated powers to issue binding judgments on war crimes, transcending unanimous state consent. Similarly, the World Trade Organization's Dispute Settlement Body renders enforceable rulings on trade disputes, which member states can only override through unanimous agreement, illustrating functional differentiation across global and national levels.^[9] This framework extends to global challenges like climate change, where authority is shared among international agreements, national policies, and subnational implementations. The 2015 Paris Agreement under the UNFCCC incorporates non-state actors, including cities and regions, which commit to Nationally Determined Contributions while pursuing local adaptation measures; by 2023, over 13,000 subnational governments had joined voluntary initiatives like the Global Covenant of Mayors for Climate and Energy. Effective multi-level governance in this domain requires vertical integration of policies from global targets to local actions, as emphasized in UN assessments, though coordination gaps persist due to varying subnational capacities.^[40]^[41] During crises, multi-level governance supports adaptive responses by distributing responsibilities across scales, but its efficacy hinges on regional authorities possessing sufficient authority, capacity, and legitimacy. In the European Union's handling of the COVID-19 pandemic starting in early 2020, supranational mechanisms like the joint procurement of over 4.6 billion vaccine doses by mid-2022 complemented national and regional lockdowns, yet empirical analyses of cases such as the Netherlands reveal that centralized dominance often undermined regional input, leading to inconsistent implementation. Studies across 31 European countries indicate that decentralized structures enhanced legitimacy in public health measures only when lower levels were empowered, while over-centralization risked accountability deficits.^[42]^[43] In humanitarian and conflict-affected settings, multi-level governance promotes resilience by integrating local governments and civil society into response mechanisms, countering top-down failures. UNDP guidance from 2025 highlights that crises like armed conflicts or disasters necessitate inclusive systems where subnational actors lead immediate relief, as seen in Colombia's territorial management of internally displaced persons since 2011, involving departmental and municipal levels in protection planning. This approach fosters competition and cooperation among state and non-state entities, though it demands safeguards against fragmentation in fragile contexts.^[44]^[45]

Claimed Benefits

Economic Interdependence and Efficiency

Multi-level governance is posited to enhance economic efficiency by enabling subsidiarity, whereby policy decisions are allocated to the most appropriate jurisdictional level, minimizing mismatches between public goods provision and local preferences. This decentralization allows subnational entities to tailor fiscal and regulatory measures to regional economic conditions, fostering competition among jurisdictions akin to Tiebout sorting, which incentivizes efficient resource allocation and innovation. For instance, greater subnational fiscal autonomy correlates with improved spending efficiency, as local governments with own-revenue sources are better positioned to align expenditures with voter demands, reducing waste from centralized one-size-fits-all approaches.^[46]^[47] Economic interdependence is strengthened through vertical and horizontal coordination mechanisms that address cross-jurisdictional spillovers, such as trade flows or infrastructure projects spanning multiple levels. In practice, reforms like France's 2015 regional mergers, reducing regions from 22 to 13, aimed to achieve socio-economic homogeneity and economies of scale, enhancing GDP alignment and international competitiveness by streamlining economic development policies. Similarly, Italy's Law 42/2009 increased subnational tax revenues from 25% in 1997 to 41% of total revenues, clarifying spending obligations and promoting growth-oriented policies through reduced grant dependency. Empirical analyses indicate that revenue decentralization supports higher growth rates, with OECD data linking it to reduced territorial disparities in GDP per capita.^[46]^[46]^[47] Proponents argue these dynamics yield broader efficiency gains, including cost savings from inter-municipal cooperation; for example, Spain's inter-municipal waste management arrangements achieved 20-22% reductions in small municipalities. Less fragmented metropolitan governance correlates with 6% higher urban productivity, as it mitigates spatial segregation and facilitates agglomeration economies. However, such benefits hinge on effective implementation, with evidence from Denmark's 2007 municipal mergers demonstrating improved service reallocation and scale efficiencies in non-labor-intensive functions like water management.^[46]^[47]^[46]

Security and Policy Coordination

Proponents of multi-level governance (MLG) assert that it enhances policy coordination by fostering alignment between supranational, national, regional, and local levels, thereby reducing silos and improving implementation efficiency in interconnected policy domains. According to the Organisation for Economic Co-operation and Development (OECD), effective collaboration across these levels increases the likelihood of policy success, as it leverages diverse expertise and resources to address complex, cross-jurisdictional challenges such as economic development and sustainability.^[48] In the European Union (EU), this is exemplified in the coordination of Sustainable Urban Mobility Plans (SUMPs), where multi-level partnerships align regulatory frameworks with local needs; for instance, Greater Manchester's SUMP, developed post-2014, integrates 10 districts through a centralized transport authority to optimize spatial planning and resource allocation.^[13] In security contexts, MLG is claimed to enable resource pooling and flexible responses to threats that transcend single jurisdictions, such as civil defence and transport safety, while preserving state autonomy in execution. The EU Committee of the Regions' 2009 White Paper on Multi-level Governance emphasizes coordinated action across EU institutions, member states, and subnational authorities as essential for integrated security strategies, including experimentation at local levels to refine civil defence measures.^[49] Specific applications include urban mobility initiatives that incorporate security elements; Budapest's Balázs Mór Plan, part of its SUMP, enhances traffic safety and transport security through multi-level integration, reducing vulnerabilities in public transit systems.^[13] Advocates argue this structure mitigates coordination dilemmas in dispersed authority systems, allowing supranational frameworks to guide but not supplant national and local adaptations, as observed in EU approaches to complex threats like pandemics where multi-level preparation pools intelligence and capabilities.^[50]

Criticisms and Challenges

Erosion of National Sovereignty

Multi-level governance erodes national sovereignty by diffusing authoritative decision-making across supranational, national, and subnational tiers, thereby diminishing the central state's monopoly on policy formulation and execution. In the European Union, this manifests through the unidirectional expansion of EU policy scope and depth since the 1957 Treaty of Rome, with competencies in trade and competition shifting predominantly to the supranational level by 2010, leaving national governments with reduced leverage over domestic interest mediation.^[51] The European Central Bank's exclusive control over monetary policy for the 20 eurozone members exemplifies this, as it precludes national adjustments to interest rates or currency issuance in response to localized economic shocks, constraining fiscal sovereignty as stipulated in the Treaty on the Functioning of the European Union (Article 3). Legal mechanisms reinforce this erosion, particularly the supremacy of EU law over national legislation, codified by the European Court of Justice in Flaminio Costa v ENEL (Case 6/64, 1964), which requires national courts to prioritize EU norms in conflicts, effectively subordinating sovereign parliamentary acts. Subsequent treaties, such as Maastricht (1992) establishing the Economic and Monetary Union and Lisbon (2007) expanding qualified majority voting, further pool sovereignty by enabling EU decisions without national unanimity in shared competencies like internal market regulations, compelling states to implement policies potentially at odds with domestic priorities.^[52] Qualified majority voting in the Council, applied to over 80% of legislative acts by 2020, overrides individual vetoes, as seen in environmental and trade directives where larger coalitions impose outcomes on dissenting members. Subnational decentralization compounds the effect, with 21 of 27 EU states introducing regional governments by 2007, fragmenting national authority; for example, the UK's Scotland Act 1998 devolved powers such that revocation requires regional consent, limiting Westminster's unilateral control.^[51] The 2016 UK EU referendum, resulting in 51.9% support for Brexit to reclaim sovereignty over laws, borders, and trade, underscores public recognition of these losses, with UK Parliament analyses confirming EU membership entailed obligatory compliance diminishing parliamentary supremacy.^[53] Critics from Eurosceptic perspectives argue this pooled arrangement fosters unaccountable supranationalism, as unelected bodies like the Commission initiate policies binding member states, challenging the Westphalian state's foundational autonomy without commensurate democratic offsets.^[52]^[51]

Democratic Accountability Deficits

In multi-level governance systems, authority is dispersed across supranational, national, regional, and local levels as well as non-state actors, which obscures responsibility and impairs citizens' capacity to enforce accountability via elections.^[54] This diffusion fosters blame-shifting, as policymakers at one level can deflect failures onto others, diminishing incentives for effective performance.^[54] Empirical analyses of governance networks reveal that such arrangements prioritize functional coordination over clear hierarchical chains, leading to diluted electoral sanctions where voters cannot readily attribute policy outcomes to specific representatives.^[55] The opacity of informal networks involving public-private partnerships exacerbates these deficits, as decision processes evade public scrutiny and media oversight, with citizens unable to discern who holds ultimate authority.^[54] For instance, in the European Union's Open Method of Coordination, implemented since 2000, soft coordination among member states and EU institutions has been criticized for lacking visibility, as national parliaments exert minimal control over peer-reviewed benchmarks affecting domestic policies.^[54] Similarly, shared responsibilities in federal systems, such as overlapping competencies in U.S. environmental regulation under the Clean Air Act amendments of 1990, complicate voter assessments of state versus federal efficacy, often resulting in accountability gaps.^[55] While multi-level governance introduces alternative mechanisms like judicial review or managerial audits—evident in the proliferation of ombudsmen and courts since the 1990s—these fail to restore democratic legitimacy, as they bypass direct representation and prioritize technocratic outputs over input from elected bodies.^[54] Scholars argue this yields a paradox of enhanced technocratic accountability alongside eroded democratic control, particularly in depoliticized expert-driven forums that sideline partisan debate.^[54] In the EU's economic governance framework post-2012 Six-Pack regulations, procedural innovations have not resolved core deficits, as supranational fiscal rules impose constraints on national budgets without commensurate parliamentary input, amplifying perceptions of illegitimacy during crises like the 2010-2015 sovereign debt episode.^[56] Proposals to mitigate these issues, such as mandating transparency in network operations or tethering them to parliamentary oversight, have shown limited success; for example, EU efforts under the 2001 White Paper on Governance to involve civil society yielded insider-biased consultations rather than broad accountability.^[54] Normative critiques emphasize that multi-level governance's emphasis on consensus and expertise inherently trades democratic contestation for efficiency, with empirical studies indicating persistent low trust in supranational institutions—EU-wide averages below 40% in Eurobarometer surveys from 2010-2020—stemming from unaddressed input legitimacy shortfalls.^[55]

Coordination and Implementation Failures

In multi-level governance systems, coordination failures frequently emerge from dispersed decision-making authority, which multiplies veto points and fosters misaligned incentives among actors at supranational, national, and subnational levels, often resulting in policy stalemates rather than resolution through additional coordination mechanisms.^[57] In the European Union, these dynamics are evident in fragmented policy execution, where supranational directives encounter resistance or reinterpretation by member states prioritizing domestic concerns, leading to uneven outcomes across jurisdictions.^[58] Implementation challenges compound these issues, as decentralized structures devolve execution to lower levels with varying capacities, creating principal-agent dilemmas where monitoring and enforcement prove inefficient. For instance, the EU's single market directives exhibit a persistent transposition deficit of 0.8% as of November 2024, with an average delay of 11.9 months beyond the 12-month deadline, and sector-specific gaps such as 29% incompleteness in energy directives.^[59] Four member states—Bulgaria, Spain, Austria, and Poland—consistently exceed the 1% threshold for deficits, reflecting administrative bottlenecks in aligning national legislation with EU mandates.^[59] In cohesion policy, absorption rates underscore execution shortfalls, with REACT-EU funds—intended for crisis recovery—achieving only 62% disbursement by the end of 2023, leaving nearly 40% unspent amid delays exacerbated by subnational capacity gaps and procedural complexities in the 2021-2027 programming period.^[60] Least-developed regions, reliant on multi-level partnerships, report particularly low uptake due to fragmented governance chains that dilute accountability and inflate transaction costs.^[61] Case studies highlight causal links: the EU's carbon capture and storage (CCS) framework, formalized in 2009 directives, stalled due to coordination breakdowns, with national opt-outs and regional vetoes preventing infrastructure deployment despite supranational funding commitments, yielding negligible progress by 2016.^[62] Similarly, air quality directives reveal differential implementation, as seen in Germany's suboptimal enforcement, where federal-subnational divides enable non-compliance without effective supranational override.^[63] These patterns indicate that multi-level diffusion of authority, while promoting input legitimacy, systematically undermines output effectiveness through capacity asymmetries and incentive incompatibilities.^[64]

Empirical Evidence and Assessments

Case Studies of Effectiveness

In the European Union's Cohesion Policy for the 2007-2013 period, multi-level governance facilitated more targeted and effective allocation of €347 billion across 368 European Regional Development Fund, Cohesion Fund, and European Social Fund programs in 27-28 member states. Subnational actors' involvement in program preparation, monitoring, and implementation strengthened stakeholder buy-in and consensus, leading to improved project selection and regional development strategies; for example, in North East England, consultations with approximately 200 stakeholders over two to three years enhanced ownership of the regional operational program. In Silesia, Poland, workshops in 2005 with 283 stakeholders refined project typologies and program quality. Cross-border programs, such as the Austria-Czech Republic European Territorial Cooperation operational program, benefited from established trust among actors, enabling efficient coordination and communication.^[65]^[65]^[65] Urban climate action in developing countries provides another domain where multi-level governance has demonstrated effectiveness through integrated national-local coordination. In Indonesia, multi-level arrangements supported Jakarta's flood resilience efforts, resulting in upgraded drainage systems and greater community participation by 2022; the national Safeguards Registry Network (SRN), established post-2011 national action plan, registered 287 activities and verified 265 by October 2018, aiding a 29% greenhouse gas reduction pledge (41% with international support) by 2030. In Rwanda's Rubavu District, the Sebeya Catchment Management Plan (2018-2024) reduced flood risks via collaborative water resource management, incorporating citizen input and capacity-building across levels. Recife, Brazil, leveraged multi-level fiscal transfers and policy integration to enact a Green Roof Law and target 37% emissions cuts by 2025 from 2005 levels, diminishing urban flood impacts through coordinated municipal-national efforts.^[66]^[66]^[66] In federal systems like Germany's coordinated federalism, multi-level governance has enabled adaptive policy responses, as seen in alternating federal-state responsibilities during the COVID-19 pandemic, where intergovernmental coordination supported phased crisis management and localized implementation without centralized overload. Empirical assessments indicate such structures enhance policy adaptability and resource allocation efficiency compared to unitary alternatives, though outcomes depend on institutional familiarity.^[67]^[12]

Quantitative and Comparative Evaluations

Quantitative evaluations of multi-level governance (MLG) often rely on metrics like the Regional Authority Index (RAI), which quantifies regional self-rule and shared-rule authority across 81 countries from 1950 onward, enabling correlations with outcomes such as economic resilience and policy delivery. Analyses using the RAI indicate that higher regional autonomy contributes to greater regional resilience in the EU during crises, as measured by reduced volatility in employment and GDP, though this effect is moderated by national quality of government indicators.^[68] However, direct causal links to aggregate economic growth are inconsistent, with some studies finding positive associations in decentralized systems up to moderate levels of fragmentation before diminishing returns set in due to coordination costs.^[69] Comparative studies juxtaposing federal systems—characterized by pronounced MLG—with unitary ones reveal divergent performance across key domains. A panel analysis of 73 countries from 1965 to 2000 demonstrates that federal democracies outperform unitary democracies by 43% in output per worker, 13% in property rights enforcement, and 25% in political and civil rights, crediting federal constitutional protections for sustaining decentralization's benefits in democratic contexts.^[70] Conversely, empirical assessments of long-term governance effects find unitary systems yielding 7% higher GDP per capita, 15% greater trade openness, and 7% lower infant mortality rates, attributed to streamlined decision-making and reduced policy veto points that enhance uniformity and efficiency.^[71] On corruption, evidence leans toward higher prevalence in federal arrangements, with Treisman's cross-national regressions showing federal states exhibiting systematically lower corruption control scores, potentially from inter-jurisdictional competition fostering rent-seeking.^[72] In the EU, MLG's application in cohesion policy provides targeted quantitative insights from the 2007-2013 period, encompassing €347 billion across 368 European Regional Development Fund, Cohesion Fund, and European Social Fund programs in 27-28 member states. The Committee of the Regions' MLG Scoreboard, scored on a 0-6 scale across nine criteria, assigns high marks (5-6) to information dissemination and consultation mechanisms, reflecting effective stakeholder buy-in, but lower ratings (3-4) to territorial coordination and innovative financial instruments, underscoring persistent implementation gaps.^[65] Case studies of nine operational programs reveal strengths in leveraging diverse expertise for program quality—such as in Southern Finland's multi-partner projects—but weaknesses including administrative overload, with monitoring committees overburdened by unrepresentative or uninformed participants, leading to inefficiencies in project selection and reduced non-state actor impact.^[65] Individual-level economic voting analyses across European democracies further quantify MLG's accountability trade-offs, finding that economic retrospections weakly predict vote choice in countries with extensive regional authority (high RAI scores), where responsibility diffusion across levels attenuates national incumbents' electoral punishment for poor performance.^[73] These patterns persist in OECD-wide reforms data, where decentralization initiatives correlate with localized efficiency gains (e.g., 5-10% improvements in service delivery metrics in reformed regions) but aggregate fiscal fragmentation, as evidenced by elevated subnational debt variances in high-MLG states like Spain versus unitary France.^[39] Collectively, such evaluations highlight MLG's empirical advantages in adaptability and competition against drawbacks in speed and coherence, with net effects varying by institutional design and crisis context rather than inherent superiority.

Recent Developments and Future Implications

Insights from COVID-19 and Crises

The COVID-19 pandemic, which led to over 7 million confirmed deaths globally by mid-2023 according to WHO data, exposed both strengths and vulnerabilities in multi-level governance (MLG) frameworks during acute crises. In many jurisdictions, the urgency of containment measures prompted temporary centralization of authority, as subnational entities often lacked the requisite capacity, legitimacy, or vertical coordination links to contribute effectively. For instance, in the Netherlands, regional governance involvement remained minimal, with national authorities dominating decision-making on lockdowns and testing, resulting in low overall MLG capacity.^[42] This pattern aligned with broader empirical observations where crises favored hierarchical command over dispersed authority to enable rapid resource allocation and uniform policy enforcement.^[74] Decentralized elements of MLG, however, facilitated localized adaptations that enhanced compliance and addressed gaps in central directives. In European contexts, subnational and civil society actors bridged deficiencies in statutory services, particularly for vulnerable populations, by innovating support mechanisms amid lockdowns initiated as early as March 2020 in countries like Italy and Spain.^[75] Such horizontal and vertical collaborations improved responsiveness in areas like public transport subsidies and community aid, where national policies alone proved insufficient. Yet, these arrangements also amplified disparities, as uneven regional capacities led to stigmatization of certain groups and inconsistent application of evidence-based measures, exacerbating pre-existing inequalities in healthcare access.^[75] ^[74] At the supranational level, MLG coordination faltered due to sovereignty frictions, notably in the European Union where initial national bidding wars for personal protective equipment in early 2020 undermined joint efforts. The EU's centralized vaccine procurement strategy, formalized in February 2020 and securing over 4.6 billion doses by 2023, mitigated some competition but suffered delays from regulatory harmonization and supply chain bottlenecks, with full rollout only accelerating after national pressures in late 2020.^[76] Globally, WHO-guided frameworks highlighted similar issues, including fragmented data sharing and unequal vaccine distribution, where high-income countries secured 70% of doses by mid-2021 despite comprising 16% of the population.^[77] These dynamics underscored that MLG's diffuse structure, while resilient for routine policy, risks paralysis in high-stakes crises without predefined escalation protocols for central override. Insights from the pandemic extend to other recent crises, such as the 2022 Russian invasion of Ukraine, which similarly strained MLG by necessitating swift national defense overrides of regional economic ties within the EU. In both cases, empirical assessments reveal that effective crisis MLG hinges on pre-existing institutional trust and adaptive mechanisms, rather than rigid decentralization, to balance tailored implementation with decisive action.^[74] Failures in advisory integration across levels, as seen in Germany's multi-tier scientific consultations, further illustrate how MLG can dilute policy coherence if evidence aggregation across jurisdictions introduces delays or biases.^[67] Overall, these episodes affirm MLG's utility for legitimacy in stable times but caution against over-reliance on it during existential threats, where causal chains of decision-making demand streamlined authority to minimize cascading failures.

Emerging Trends in Regional and Global Governance

A key emerging trend in multi-level governance involves the integration of digital technologies to enhance coordination across regional and supranational levels, particularly for transnational challenges like climate adaptation and service delivery. Digital platforms facilitate data sharing and predictive analytics, enabling subnational entities to align with global standards on issues such as emissions monitoring and disaster response.^[48] This shift addresses inefficiencies in traditional hierarchies, with bibliometric analyses from 2023 indicating a rising focus on digitalization within multi-level frameworks for climate governance.^[78] Climate change has driven the proliferation of networked governance structures that bypass national bottlenecks, incorporating cities, regions, and international bodies in polycentric arrangements. For instance, multi-level responses to polarized climate politics emphasize cross-sectoral collaboration to implement resilience measures, as evidenced by studies on adaptive policy-making up to 2025.^[79] At the global scale, this manifests in frameworks addressing climate-induced migration, where 56% of 46.9 million internal displacements in 2023 were disaster-related, prompting 43 national policies in 37 countries by 2025 to link environmental risks with mobility management.^[80]^[81] Regional examples include European subnational initiatives for green transitions, supported by OECD analyses of fiscal tools for sustainability.^[48] Demographic transformations, including aging populations and regional depopulation, are fostering new multi-level protocols for resource allocation and urban planning. OECD guidelines released in October 2025 outline strategies for policy coherence across levels to maintain fiscal sustainability amid these shifts, with implications for global labor mobility and regional development disparities.^[82] In Asia, complex governance systems blending centralization and devolution are adapting to these pressures, influencing supranational forums on migration and economic integration.^[83] Global migration governance increasingly relies on multi-stakeholder regimes involving state and non-state actors, including city networks that engage in de facto policy-making on sovereignty-sensitive issues. This flexible yet unstable structure, as detailed in the 2024 World Migration Report, coordinates responses to transnational flows driven by climate and economic factors, with empirical data showing heightened internal displacements tied to environmental drivers.^[84]^[29] Such trends underscore a broader scientometric pattern from 1994–2023, where multi-level mechanisms are prioritized for integrated handling of pandemics, migration, and crime across scales.^[85]

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