2015.09.08

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Regional development in Lithuania

10-11 September 2015

Oslo

Neringa Valantinė, Viktorija Šniolienė

Regional development department under the Ministry of Interior

� Project “Study visits for cooperation and knowledge exchange with the best practices in the field of active and effective regional “

Main topics of presentation

1. Regional policy in Lithuania

2. Structure of national regional policy implementation

3. Regional development department under the Ministry of Interior

4. Regional development plans

5. Programs of integrated territorial development

6. Primary / initial evaluation of project ideas

7. Situation in the department in gender equality fieldAbbreviations:

RDD – Regional development department under the Ministry of Interior,

RDC, - regional development council

RDP – regional development plan

MoI – Ministry of Interior

IS – informational system

Goals and tasks of National regional policy and main functions of institutions

participating in formation and implementation of national regional policy are participating in formation and implementation of national regional policy are

established the Law of Regional Development.

National regional policy of Lithuania is targeted activity of state institutions and

other entities. This activity is directed to influence region’s social economic

development, reduce social economic inequalities, disparities and to foster

sustainable development.

And all these activities are aimed to ensure a high quality life for all residents of

country – long term national regional policy goal.

National regional policy is implemented in the regions and in targeted

territories.

EU regional policy seeks to reduce structural disparities between EU regions,

foster balanced development throughout the EU and promote real equal

opportunities for all. EU regional policy is based on the concepts of solidarity and

economic and social cohesion. Lithuania in the context of EU regional policy is

one NUTS II region.

These regional policies are combined as much as possible for seeking synergy and

most effective results.

Implementation of national regional policy is mainly financed by EU structural

funds. Other sources of financing are: state, municipal budget, other sources.

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Current Regional policy implementation institutional structure is the following.Government – responsible for making strategic decisions: approves priorities of national regional policy, Government – responsible for making strategic decisions: approves priorities of national regional policy, composes National Regional Development Council, creates the regions, approves criteria for problematic territories, approves the list of problematic territories; strategies and inter-institutional programmes in field of regional development, and approves criteria of the regional importance projects recognition.Ministry of Interior – is forming national regional policy and is responsible for organization, coordination and control of national regional policy implementation. Ministry develops documents where priorities of National regional policy are established, approves programmes of targeted territories, heads National Regional Development Council, prepares draft inter-institutional programmes, evaluates strategic documents impact for national regional policy priorities, sets principles and/or criteria for target territories selection, and defines procedures of development of target territories programmes etc.National Regional Development Council – is consultative body, consisting of representatives of ministries, chairs of regional development councils, social and economic partners. All main decisions before approval within the Government must be discussed within National Regional Development Council.Regional Development Department under the Ministry of Interior – responsible for implementation of national regional policy in counties, prepares regional development plans, submits offers to regional development councils regarding regional development plan implementation and changes, monitors implementation of various regional development programs, coordinates activities of municipalities and social economic partners implementing Regional Development Council decisions, develop regional importance projects and coordinate their implementation and performs functions of secretariat of regional development councils, etc.Regional Development Councils are making strategic decisions on regional level: approves regional development plans, list of projects to be financed from structural funds, submits proposals regarding problematic, targeted territories for Government and Ministry of Interior, sets criteria for target territories selection and selects target territories, according to criteria for recognition of the regional importance projects approves region’s social, economic development or infrastructure projects as regional importance projects, submit proposals regarding regional development, represents the region in regional cooperation bodies, cooperates with other regions and etc. Regional development councils consist of mayors and members of municipal councils of the region as well as one representative of appointed by the Government. Councils of Municipalities and Administrations of Municipalities – submit proposals for regional development councils regarding regional development, offer criteria for target territories selection, prepare and implement target territories development programs, implement region’s social, economic and infrastructure development projects.

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On the regional level we have just political institutions. Regional development council consists of the mayors of county’s municipalities, of delegated members council consists of the mayors of county’s municipalities, of delegated members of municipal councils, and of person appointed by Government. Regional development council is not a legal entity and there is no administration of councils, no budget for councils’ activities.Till the end of June of 2010 there were Counties Governor's Administrations operating. Counties Governor’s Administrations were responsible for implementation of state policy in counties, education, culture, health care, social care, territory and land planning, land use and protection and also responsible for regional development and implementation of regional policy in counties. Regional development Counties Councils also were was operating and the governors were the members of these councils. When reform was implemented and Counties Governor's Administrations were liquidated / abolished, functions carried out by administration were transferred to national level (ministries) or to municipalities. After the liquidation of counties administrations regional development is implemented at regional level by regional development councils (not as legal entity, operates on voluntary bases / community based activities) and by regional policy and regional development departments of the ministry of Interior.As regional development function was transferred to the ministry of Interior. Therefore Regional development department was established in the beginning of 2011.

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The department is a public entity that has economic and financial independence.

The department is a budgetary institution financed from the state budget of the The department is a budgetary institution financed from the state budget of the

Republic of Lithuania and other funds.

Department reports, is accountable for the Ministry of Interior.

Regional development department under the Ministry of Interior of the Republic

of Lithuania is responsible for the implementation of the national regional policy

in ten counties of the Republic of Lithuania. Department is comprised of ten

divisions in each county and has main office in Vilnius – capital of Lithuania.

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1. Prepare regional development plans, programmes and projects and submit them to the regional development councils for consideration and approval;them to the regional development councils for consideration and approval;2. Do monitoring of regional development plan implementation.3. Collects information and analyzes regions’ social, economic and demographic situation changes and prepare proposals for regional development councils concerning regional development plans, regional development programmes, problematic and target areas, regarding principles of target territories selection and selection of target territories ;4. Evaluates project ideas and summarizes the proposals considering regional and local initiatives of regional social and economic development projects; 5. Implements secretariat’s functions of regional development council’s. We organize meetings of Regional Development Councils, collect and keep all the documents, help regional development councils to carry out other functions6. Coordinates the fulfilment of the Regional Development Councils decisions related to the implementation of regional policy in the regions;7. Develop regional importance projects and coordinate their implementation.8. Publicizes disseminates information about the region's development plan, implementation of plans for state institutions, municipalities and the public.

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Regional development plans are prepared to approve region’s development

vision, strategy and foresee specific objectives, tasks and measures for strategy vision, strategy and foresee specific objectives, tasks and measures for strategy

implementation.

The structure of regional development plans is more or less typical:

Introduction – context of plan development;

Key data of region’s social and economic situation analysis – main factors

influencing region’s development, problems and tendencies. Information has to

be base on statistical data analysis, results of surveys;

Region’s strategy – vision, not more that 4 development priorities, objectives,

tasks.

Measures plan – measures, responsible executives, financing sources.

And plan monitoring – evaluation criteria, effect, result and product indicators,

described sources of data necessary for calculation of indicators, method of

calculation of indicators, timetable of achievement of criteria, deviations (there

have to be indicated indicators’ deviation limits to asses indicator’s achievement

level – there are possible 4 different assessments “very good”, “good”,

“satisfactory”, “poor”), publicity plan.

Plan has to be started to prepare not later than one year left till the beginning of

the new programming period. Regional development plan is medium term

duration strategic planning document – it is prepared for 7 years period.

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The process of regional development plan preparation has to be open, to involve

all interested stakeholders.all interested stakeholders.

Plan has to be prepared in consultation with state institutions, municipalities,

social-economic partners. Different regions have different practice but for

example in Kaunas County there is plan development working group,

representing all stakeholders.

Public consultations have to be performed – there are organised meetings with

stakeholders, or separate parts of plan or plan is publicised in RDD website to

provide comments and proposals.

Regional development plan has to be aligned with national and municipal

strategic documents, national and municipal territorial planning documents, EU

structural funds programming documents.

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RDP is approved by Regional development Council – firstly council approves

strategy and then whole plan.strategy and then whole plan.

RDD has to report Ministry of Interior about RDP implementation situation.

During programming period plan has to be revised, changed if:

There are changes in planned to implement projects and measures – changes in

project duration, financial sources, results, it is planned not to implement certain

measures due to changed situation,

certain measure has been not started to implement within the year from planned

beginning of implementation of the measure,

there is no possibility to get information necessary for evaluation of measure

implementation,

there are defined new important internal and / or external factors,

new objectives and tasks need to be included in to the plan,

if implementation of 10 percent of objectives and tasks are evaluated as “poor”

and if implementation of 30 percent of objectives and tasks are evaluated as

“very good”. If we have 10 percent of objectives and tasks are evaluated as

“poor” this means that the objectives and tasks maybe were too optimistic and

needs to be revised. If we have 30 percent of objectives and tasks evaluated as

“very good” this means that the objectives and tasks maybe were too pessimistic

and needs to be revised.

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Main challenges in RDP development stage:

Uncertainties – the new RDD for new programming period has to be started to Uncertainties – the new RDD for new programming period has to be started to

prepare not later than one year left till the beginning of the new programming

period. For example, RDP for 2014-2020 year programming period had to be

started to prepare at the beginning of 2013. And RDP has to be aligned with EU

structural funds programming documents but at the beginning of 2013 it was

quite hard to have detailed information about 2014-2020 programming period.

Indicators of development evaluation. On one had there have to be selected

indicators reflecting / illustrating results and impact of measures and tasks

implemented to the region’s development. It depends of statistical data

availability. On the other hand we have 10 counties and 10 different RDP. Thus

RDPs are very different and it is difficult or even impossible to compare them to

each other, compare regions development.

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Seeking to ensure possibility to compare Lithuania’s region’s development, RDD have implemented project “Installation of RDD’s under the MoI processes’ management implemented project “Installation of RDD’s under the MoI processes’ management informational system”. RDD employees have to collect, process and analyze large amounts of data that are used in RDPs’ and other regional development programs’ implementation monitoring. These data have to be collected from different databases, and have to be collected manually, thus employees spend a lot of time for data collection and processing.Because of this reason there was an idea to create united RDD’s processes management informational system. Before the creation of IS there were analysed all RDD activities related to monitoring of RDP and other strategic programmes, evaluated needs of legal, employees, collected and evaluated possible indicators, organizational, technical possibilities to receive data for calculation of indicators, there was offered list of “best” indicators. Best indicators are most suitable to reflect region’s development changes in main sectors, to reflect impact, most conveniently obtained. And finally there was created informational system. There are RDP’s priorities, objectives, tasks and measures and all indicators incorporated into IS from one side. From the other side, there is possibility to import statistical data necessary for indicators’ calculation. Data import is centralised, all data necessary for all ten counties can be imported jointly. And the best thing is, that there is automatic formation of RDP’s monitoring reports, including all statistical data necessary. The one more thing is not realised in this system finally yet, but in the future RDD’s IS will be connected / related to EU structural funds management system, which will provide all the information about projects being implemented and funded by EU, their values and results. There is possibility to export various data tables and graphs. Main regional development indicators’ statistical data are provided in RDD’s website.

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National regional policy is implemented in accordance with the two main

principles:principles:

Subsidiarity

Subsidiarity means that nothing should be done at higher level that can be done

as well or better at lower level. So when we deal with investments for regional

development, when regional development is planned, this must be done at

regional level, regional institutions have to participate, and regional partners

must be involved. And the aim is to direct investments so that they would suit to

local needs and opportunities best way.

It ensures that decisions are taken as closely as possible to the citizen.

Concentration.

Because resources are limited, they have to be concentrated in smaller quantity

target areas to have greater effect.

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In 2007-2013 programming period there were implemented two type NRP activities:Direct activities – vertical – were funds were concentratedDirect activities – vertical – were funds were concentratedHorizontal activities.Vertical measures illustrate how concentration principle is implemented and what’s the effect of concentration activities.For vertical activities implementation – Government approved program on reduction of social and economic disparities. Main objective – to reach that all counties (regions) unemployment rate would not be higher than 135 percent of country’s average, monthly income of inhabitants would not be less than 75 percent of country’s average, in 2013. Vertical measures – 2007-2013 years programming period there were evaluated all municipalities of Lithuania and from all of them there were selected problematic territories and growth centres. There were selected 14 problematic territories covering whole municipalities in Lithuania. Problematic territories where selected according to some statistical indicators. Registered unemployment rate and the rate of social benefits recipients ration with population. In problematic territories investments were directed to improve living environment: constructed roads, streets, squares, parks, water bodies, reconstruction of public infrastructure, implemented measures of employment promotion, home renovation. There were 7 growth centres / cities distinguished. Regional centres where selected as average size cities, having economic potential and infrastructure, having conditions to grow and to foster growth of surrounding areas. In regional growth centres investments were also directed to improve living environment, to improve investment attractiveness of these centres.There were also implemented targeted projects in rural areas – directed to diversification of rural economy, development of public spaces and social infrastructure.Horizontal measures – also there were projects implemented into other territories not only in problematic territories and in growth centre cities.

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Ministry of the Interior is summarising results of 2007-2013 programming period.

And it was evaluated that EU support invested into mentioned urban And it was evaluated that EU support invested into mentioned urban

infrastructure led to 1.8 percent growth of GDP and 1.5 percent decrease of

unemployment level.

In regional centres and problematic territories where support was more

concentrated the impact was much bigger – about 15-20 percent (comparing

with other cities).

There was used HERMIN model to evaluate EU structural support impact for local

and urban development. Assessment was carried out by BGI consulting in 2014.

This illustrated that more concentrated investments ensure bigger impact on

economic growth and reduction of social and economic disparities.

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Conclusion – concentration of funds was effective way of investments planning in

2007-2013 but there still had to be some lessons learned. Those lessons were:2007-2013 but there still had to be some lessons learned. Those lessons were:

Lithuanian municipalities are rather big and problematic territories covering

territory of whole municipality are not effective, funds have to be more

concentrated.

Complex development creates biggest added value for development of

territories.

Big cities also need support due to their unequal development.

The role of Regional Development Councils should be strengthened.

More active participation of municipalities in regional development is needed.

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According to results of 2007-2013 programming period there are planned more concentration activities in 2014-2020 programming period.concentration activities in 2014-2020 programming period.In 2014-2020 there were defined following challenges / problems:Larger urban centres of Lithuania in past 10 years attracted significant flows of internal migration, which led to increasing social problems (including alcohol, drug abuse and crime rates) within deprived neighbourhoods, also emigration to the foreign countries and spread of cities into suburban territories, which leads to unsustainable and costly use of urban infrastructure.Smaller cities suffer from severe depopulation (decrease of population during 2007–2011 –13.3 percent), ageing, and insufficient share of services in economic structure and low economic activity (which limits youth employment possibilities and deepens demographic challenges).Following problems identified, it is planned that interventions in the 2014-2020 period will primarily seek to increase territorial cohesion within regions, maximizing labour force potential of subregional territories (deprived territories within bigger cities and medium-small cities, facing specific challenges).One of key conditions to achieve this goal – is to utilize cross-sectoral approach for integrated investments in the urban infrastructure (addressing complex territorial rather than sectoral problems – deprived neighbourhoods / polycentricity / sustainable development / employment / quality of life issues) complemented by specific actions of environmental, cultural, economic character.

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So in this 2014-2020 programming period we’ll have much more target territories

were investment will be concentrated. For 5 biggest cities, for 23 medium size were investment will be concentrated. For 5 biggest cities, for 23 medium size

cities and for 20 transition territories there have to be prepared programs of

integrated territorial development.

5 biggest cities were developing their separate programs of integrated territorial

development – 5 different ITI programs.

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For medium sized cities and transition territories we’ll have 1 programme per

region – in total 10 programmes.region – in total 10 programmes.

These programs are prepared aiming to increase territorial cohesion within

regions, maximising labour force potential of subregional territories and to utilize

cross-sectorial approach for integrated investments in the urban development.

The structure of regional ITI program is:

Situation analysis of programme territory – main statistical data had to be

analysed specialities of regional and urban structure and problems has to be

identified,

Objectives, tasks and measures of programme territory development – there

have to be identified objectives have to solve weaknesses, exploit strengths and

opportunities and to reduce threats, also indicators of effect and result have to

provided, and analysis of alternative objectives provided; tasks have to be set out

to solve certain problem or to exploit the strength, alternative tasks’ analysis has

to be carried out. Also have to be indicated the tasks’ implementing measures

specifying the ways in which the task will be achieved – planned program results

and products, identified types of financial and other resources that will be used

for the implementation of the task.

Program actions’ plan – there have to be specified actions and projects that are

planned to implement, responsible institutions indicated.

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Integrated territorial development programmes (urban strategies) are firstly

drafted by municipalities in cooperation with national, regional authorities and drafted by municipalities in cooperation with national, regional authorities and

local institutions (including ministries, universities, territorial labour exchanges,

other public subjects), social and economic partners and local community.

RDD’s role here is to provide technical assistance for municipalities and to

coordinate joint activities of municipalities in development of 10 regional ITDPs.

What we had to do – to collect and summarize necessary information, coordinate

joint activities, organize meetings, workshops, edit different municipal

administrations developed programs, projects section, summarize the comments

and suggestions and so on.

All ministries and regional development councils have to accept, agree to these

programs and then programs will be approved by the minister of the Ministry of

Interior.

All the projects of these programs have also to be incorporated in regional

development plan of certain region.

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In 2014-2020 programming period there are distinguished 24 target measures

directed for regional development. In 2007-2013 there were 20 target measures directed for regional development. In 2007-2013 there were 20 target measures

/ interventions distinguished. These measures are implemented using regional

planning method.

Project ideas come from regions’ municipalities or institutions of municipalities.

These ideas are submitted to regional development councils.

We are making primary evaluation of Project idea. The main thing we have to

check / evaluate whether the Project idea correspond regional development

plan, Strategic plan of municipality.

Project’s idea (aim) has to match / correspond to activities and measures

planned in regional development plan. The same is with municipality strategic

plan. And it has to be planned to finance theses activities by EU structural funds.

What’s new and definitely is a big challenge for the department that in this new

2014-2020 programming period we will have to evaluate whether project’s

alternative’s choice was based on cost benefit analysis.

Projects with the value more than 300 thousand euro have to use CBA to ensure

efficient allocation of resources, demonstrating advantages of a particular

intervention rather than other alternatives. There have to be chosen to

implement the best quality projects offering best value for money and best

impact to municipality, region and the whole country.

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RDD has to evaluate different projects in 22 different infrastructural regional

planning measures. Those 22 measures are related with different sectors –planning measures. Those 22 measures are related with different sectors –

integrated urban development, environment (water supply and sanitation,

waste management, landscape protection), social services, primary personal

and public health care, education (pre-school, pre-primary, general, informal

education), transport (sustainable mobility, renewal of public transport

vehicles, hiking / walking and biking trails, local roads). On one hand, CBA is a

universal approach for different sectors projects but variety of sectors requires

specific CBA knowledge in each sector, to be acquainted with different sectors

specifics, challenges, to ensure the quality of project evaluation on the other

hand.

So RDD evaluates project ideas and creates / draws up projects’ lists. Only

projects’ that meet financing requirements are added included into projects’ list.

The lists of projects financed by regional planning method are approved by

regional development councils. Projects are carried out by municipalities or

institutions of municipalities.

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Equal rights of all citizens of Lithuania of women and men are established in

Constitution of the Republic of Lithuania. Also there is Law of the Republic of Constitution of the Republic of Lithuania. Also there is Law of the Republic of

Lithuania On equal opportunities, approved by the Government. This Law has to

ensure implementation of equal rights of women and men guaranteed in the

Constitution of the Republic of Lithuania.

According to this Law within the limits of their competence, state government

and municipal institutions must:

ensure that equal rights for women and men be guaranteed in all the legal acts

drafted and enacted by them;

draw up and implement measures aimed at ensurance of equal rights;

in the manner prescribed by the law, provide assistance to the programmes of

public organisations, public institutions, societies and charitable foundations

which assist in the implementation of equal opportunities for women and men.

To serve public services without prejudice of equal rights of women and men.

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There are 52 civil servants working in the department – 35 women and 17 men.

Number of women and men working in heading positions is almost equal. These Number of women and men working in heading positions is almost equal. These

numbers changes slightly but in principle they are equal. But we have much more

women in specialists’ positions.

First sphere were equal rights has to be ensured is employees hiring. According

to the law there has to be ensured possibility to pretend / claim to the position

equally to men and women while hiring employees of department.

There is centralised civil service system operating in Lithuania. There are

announced all advertisements about contest to the department’s and other

institutions’ job positions and people equally can compete for the position. Civil

Service Department under the Ministry of the Interior is responsible for handling

of this system.

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If to talk about gender equality principle implementation in regional

development projects, there has to be ensured possibility to use results of a development projects, there has to be ensured possibility to use results of a

project for everybody without prejudice to the principle of gender equality. And

this has to be considered and evaluated at application submission stage and has

to be reported after project implementation. Gender equality is one of horizontal

themes that have to be taken into account while planning and implementing

projects financed by EU and by Lithuania Republic budget. Other horizontals

themes are – sustainable development, non-discrimination, promotion of

information society and regional development.

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