Three transformations are occurring at present in OECD countries: (1) economic systems are undergoing structural adjustments, (2) the role of government with regard to the economy is being redefined, and (3) the relations among different levels of government as well as between public and private institutions are being revamped. The central question of this paper is what are the impacts of changing intergovernmental relations on planning and implementing urban economic development programmes. Appropriate initiatives necessarily involve a wide range of policies and institutions. The public efforts to confront local economic problems constitute the hub of activities of numerous governmental and quasigovernmental institutions.
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