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A STRATEGIC APPROACH TO COHESION: The Development Planning of EU Member States Professor John Bachtler European Policies

Second National Development Conference Athens, 9 December 2005. A STRATEGIC APPROACH TO COHESION: The Development Planning of EU Member States Professor John Bachtler European Policies Research Centre University of Strathclyde, Glasgow, Scotland john.bachtler@strath.ac.uk.

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A STRATEGIC APPROACH TO COHESION: The Development Planning of EU Member States Professor John Bachtler European Policies

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  1. Second National Development ConferenceAthens, 9 December 2005 A STRATEGIC APPROACH TO COHESION: The Development Planning of EU Member StatesProfessor John Bachtler European Policies Research Centre University of Strathclyde, Glasgow, Scotland john.bachtler@strath.ac.uk

  2. European Policies Research Centre • specialises in comparative research on public policy throughout Europe • focus on monitoring and analysis of regional development policies at European and national levels • policy advice and exchange of experience through two networks: • IQ-Net (Improving the Quality of Programme Management) – regional and national Structural Fund programme management authorities from 12 Member States www.eprc.strath.ac.uk/iqnet/ • EoRPA (European Regional Policy Research Network) - national government departments responsible for regional policy – 10 countries

  3. IQ-Net partners – national and regional programme management authorities • Austria • Lower Austria • Styria • Italy • Lombardy • Tuscany • IPI/Min. of Prod. Activities • Belgium • Min of Flemish Community • Hungary • National Office for • Territorial Development • Denmark • North Jutland/Nat Agency • Poland • Marshall Office of • Slaskie Voivodeship • Finland • Western Finland Alliance • Ministry of the Interior • Spain • País Vasco • France • DATAR/CNASEA • Sweden • Norra Norrland • Norra • Germany • North-Rhine Westphalia • Saxony Anhalt • United Kingdom • North-East England • Office of Deputy Prime • Minister • Wales (WEFO) • Western Scotland (SEP) • Greece • Min of Economy & Finance

  4. A Strategic Approach to Cohesion • Strategic approach of EU Cohesion policy • Key factors influencing strategies • Current status of the NSRFs • Approaches to strategy development • NSRF – scope and focus • NSRF – objectives and development paths • NSRF – types of strategies • Key questions

  5. National Strategic Reference Frameworks: Strategic approach Strategic approach is shaped by: • the amount of funding available • the agreed strategic objectives in the Community Strategic Guidelines • the content of the Regulations, notably with respect to eligible expenditure • previous programme experience • national circumstances

  6. National Strategic Reference Frameworks: Key factors • Organising the strategy development process • Establishing the scope of consultation • Making policy choices • The equity-efficiency dilemma • The importance accorded to Lisbon/Gothenburg • Balancing political and institutional priorities • Coordination with national policies

  7. State-of-play of the NSRFs: Stages • A small number of countries have already reached the final stage of NSRF preparation • Many others are still working on their first draft versions • Some are still involved with the formative stages of strategy development Formative Stages First Draft Final Drafts Denmark, Germany, Sweden France, Greece, Hungary, Finland, Italy, UK Austria, Poland, Malta, Latvia, Spain, Netherlands

  8. Approaches to Strategy Development: Regional input National Strategic Reference Framework National Strategic Reference Framework National Strategic Reference Framework Top-down Bottom-up Mixed Regional input Regional input Regional input

  9. Approaches to Strategy Development:Development Planning in Greece • Greece among the EU countries having made advanced progress: • long-term process of preparatory planning • extensive reflection and analysis (studies of challenges and development perspectives) • consultation with national, regional and local partners (planning groups, circulars, Development Conferences) • first draft of future strategy - identification of seven strategic development axes

  10. National Strategic Reference Frameworks: Content • Scope • Objectives • Development paths • Types of strategy

  11. NSRFs – Scope and Strategic Focus • Mostly broad and general • Either deliberately (e.g. Germany, UK and France) • Or as a result of the need to accommodate various views/interests (e.g. Italy) • Focused • Austria and Denmark (Lisbon) • Finland (focussed on specific needs of regions)

  12. NSRFs – Overarching Goals • Lisbon, i.e. increased competitiveness through knowledge economy – all countries • Growth and productivity – Greece, Germany, Hungary, Sweden, UK • Employment – Denmark, Greece, Poland, Sweden, and qualification of human resources – Austria • Territorial attractiveness and/or overcoming of spatial challenges - Austria, France, Nordic countries

  13. NSRFs – Development Paths • Contextual interventions (services of general economic interest/collective services, institutional and market reforms) – Hungary, Italy and, Finland & Sweden • Innovation, R&D, Competitiveness – all countries • Growth pole/competitiveness pole strategy – Austria, France, Hungary, Italy, Poland • Other key themes: • sustainable development/gender mainstreaming (Austria) • territorial cooperation (Austria, Sweden) • balanced regional structure (Finland) • attractiveness of urban/rural areas (Germany) • development of peripheries and special-type regions (Hungary, • France)

  14. NSRF – Types of Strategies Three broad groups of countries: • Lisbon-focused strategies • Basic development strategies • Mix of basic development and Lisbon strategies Consider each group in terms of: • EU funding • Policy context • Focus of EU programmes • Implementation issues

  15. NSRF – Types of StrategiesGroup 1: Lisbon-focused strategies Countries/regions • Austria, Denmark, Finland, France, the Netherlands, Sweden, UK • Regions of northern/central Italy; western Germany EU funding • Reduced EU Cohesion policy support • Most or all funding under Regional Competitiveness & Employment programmes Policy context • Regional disparities of limited importance (in some countries) • National regional development policies focusing on growth, competitiveness and employment • Long-established territorial dimension to economic development through regional policies, regional innovation strategies, regional/urban cluster policies, regional productivity, skills or entrepreneurship initiatives • Well-developed implementation systems – specialist intermediaries, sophisticated delivery systems

  16. NSRF – Types of StrategiesGroup 1: Lisbon-focused strategies Focus of EU programmes • NSRFs designed around foci such as innovation, use of new technology, quality of human resources, entrepreneurship, sustainable development • OP measures will address advisory/consultancy support, new financial instruments, utilisation of IT by target groups and innovative applications, regional innovation networking, specialist training, and improved delivery of education and training Implementation issues • Managing a reduced amount of funding; need to make difficult choices • Thematic focus – tensions between sectoral policy and regional policy ministries • Spatial focus – concentration on growth poles/centres or broad regions?

  17. NSRF – Types of Strategies Group 2: Basic development strategies Countries/regions • Most of the new Member States; Candidate Countries EU funding • Significantly higher EU Cohesion policy support; major transfers • Most or all funding under Convergence programmes Policy context • Most important policy challenge is convergence with other parts of the EU, need to address basic development needs • Growing regional and social disparities, especially between metropolitan regions and other areas • Historically limited role for national regional policies – relatively small-scale schemes • Weak territorial dimension to policy-making and delivery • Institutional capacity problems

  18. NSRF – Types of Strategies Group 2: Basic development strategies Focus of EU programmes • NSRFs have commitment to growth, employment and sustainable development, but main focus will be on public investment and basic conditions for business development • OPs will address mainly transport, telecoms and other physical infrastructure, human capital, environment improvement • Measures also for Lisbon but secondary to main development goals Implementation issues • Policy choices – balance between long-term investment and measures providing immediate returns; between national growth (competitiveness) and reducing disparities (cohesion) • Spatial focus – balance between focus on metropolitan regions (pre-conditionsin place) and other areas (basic needs to be addressed) • institutional framework for managing Structural and Cohesion Funds • coordination of divergent sectoral policy interests • scope for regionalisation • lack of intermediaries • absorption challenges – personnel, skills, systems etc • Managing expectations of societal groups with respect to the availability of funding

  19. NSRF – Types of Strategies Group 3: Mix of basic development and Lisbon strategies Countries/regions • Greece, Portugal, Spain and (partly) Ireland • Regions of southern Italy; eastern Germany EU funding • Reduced EU Cohesion policy support, although still sizeable transfers • Mix of Convergence, Phasing-in/out and Regional Competitiveness & Employment programmes • Policy context • Previous support has provided a good basis for support, but some regions still suffering infrastructure deficits and other basic development needs • Strong regional differentiation, especially between capital city/metropolitan areas and peripheral or underdeveloped regions • Regional policies of increasing importance • Regional-level administrative capacity to take on more economic development responsibilities

  20. NSRF – Types of Strategies Group 3: Mix of basic development and Lisbon strategies Focus of EU programmes • NSRFs have commitment to Lisbon/Gothenburg but accompanied by continued support for basic infrastructure and generic business investment and employment measures • Greater emphasis on innovation and technology transfer, targeted skills, entrepreneurship, financial engineering, environmental and energy management, secondary infrastructure (bottlenecks) and multimodal and logistics projects Implementation issues • Policy choices – need for greater selectivity; building on pre-conditions for growth and competitiveness • Better coordination between EU and domestic policy interventions, with more strategic approach to national development planning • Rationalisation of national-level OPs; fewer managing authorities at national level • Greater importance of regions (ROPs) in the design and delivery of future Structural Funds strategies and programmes • Need for investment in administrative capacity to strengthen intermediaries and implementation systems for Lisbon-type interventions, especially at regional level

  21. Key Issues and Questions • Uncertainty about the EU policy context (budget, regulations) • Focus on Lisbon/Gothenburg • Integration of national and EU strategies • Policy coordination • Institutional capacity • Thematic targeting of resources • Spatial dimension of EU funding • Learning from good practice

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