A STRATEGIC APPROACH TO COHESION:

The Development Planning of EU Member States

Professor John Bachtler

European Policies Research CentreUniversity of Strathclyde, Glasgow, Scotland

john.bachtler@strath.ac.uk

Second National Development ConferenceAthens, 9 December 2005

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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

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IQ-Net partners – national and regional programme management authorities

United Kingdom• North-East England• Office of Deputy Prime Minister• Wales (WEFO)• Western Scotland (SEP)

Spain• País Vasco

Sweden• Norra Norrland • Norra

Germany • North-Rhine Westphalia

• Saxony Anhalt

Finland• Western Finland Alliance

•Ministry of the Interior

France• DATAR/CNASEA

Belgium• Min of Flemish Community

Denmark• North Jutland/Nat Agency

Italy• Lombardy • Tuscany• IPI/Min. of Prod. Activities

Hungary• National Office for Territorial Development

Austria• Lower Austria

•Styria

Poland• Marshall Office of Slaskie Voivodeship

Greece• Min of Economy & Finance

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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

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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

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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

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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

Austria, Poland, Malta, Latvia, Spain, Netherlands

France, Greece, Hungary, Finland, Italy, UK

Denmark, Germany, Sweden

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Regional input Regional input Regional input

National Strategic Reference Framework

National Strategic Reference Framework

National Strategic Reference Framework

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Mix

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Approaches to Strategy Development: Regional input

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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

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National Strategic Reference Frameworks: Content

Scope Objectives Development paths Types of strategy

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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)

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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

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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: o sustainable development/gender mainstreaming (Austria)o territorial cooperation (Austria, Sweden)o balanced regional structure (Finland)o attractiveness of urban/rural areas (Germany)o development of peripheries and special-type regions (Hungary, France)

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NSRF – Types of Strategies

Three broad groups of countries:1. Lisbon-focused strategies2. Basic development strategies3. Mix of basic development and Lisbon strategies

Consider each group in terms of:– EU funding– Policy context– Focus of EU programmes– Implementation issues

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NSRF – Types of Strategies Group 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

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NSRF – Types of Strategies Group 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?

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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

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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-conditions in 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

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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

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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

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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