European Policies for Regional Development

1
European Policies for Regional Development

• Ken Thomson, University of Aberdeen
• TERA Project Conference
• Ferrara, October 2007

2
Definition(s) of Region

• A small part of a country?
• A distinctive (i.e. different) part of a country?
  by geography, culture, etc.?
• City-centred? - or urban, peri-urban,
  rural?
• A territory?
• Eligibility for policy support e.g. for
  cohesion and convergence but also
  environmental or cultural protection?
• Size(s) by population, area, economy, etc.?

3
Wider EU Issues

• Global challenges globalisation, demography
  (ageing, migration), climatic change
• Rural areas more consumption for residence,
  leisure, nature less farm production
• Territorial cohesion getting better across
  EU-27, but worse within most countries

4
Peripheral growth is improving territorial
cohesion

• Regions outside the traditional core of the EU
  grew faster than the core
• Several core regional economies are struggling,
  some even shrinking
• From Ahner (2007)

5
EU Structural Funds (SFs)

• Regional Development Fund (ERDF) concentrates on
  poorest regions
• Cohesion Fund mainly for transport (e.g. TENs)
  and environment in poorer Member States
• Social Fund worker/enterprise adaptability,
  labour participation, social inclusion
• Total SF budget 2007-13 308 billion (at 2004
  prices), i.e. 33 over 2000-2006
• Also Pillar 2 (rural devt.) of European
  Agricultural Fund for Rural Development (EAFRD)
  70bn

6
Changes for 2007-2013

• More policy ownership at regional and local
  levels
• Simplicity, efficiency, transparency
• and/but
• A more strategic approach, e.g. National
  Strategic Reference Frameworks

7
EU Regional Policy Objectives

• Convergence (Lisbon Agenda)
• modernise and diversify economy for sustainable
  jobs, via innovation IT environment risk
  prevention tourism culture transport energy
  education health
• Regional Competitiveness Employment via
• Innovation for knowledge economy, RD, financial
  engineering
• environment and risk prevention cleaning up
  pollution, energy efficiency, clean public
  transport
• transport and telecoms services.
• European Territorial Cooperation
• cross-border and inter-regional, e.g. urban-rural
  links

8
Problems of Implementation I

• Capacity of Member States and Regions to draw up
  Operational Programmes, encourage applications,
  ensure efficient spending, etc.
• Urban and agricultural bias, e.g.
• SF proposals favour towns also high minimum
  grant levels
• EAFRD Pillar 2 proposals favour farms or
  environment, not rural quality of life

9
Problems of Implementation II

• Conflicts between EU objectives, e.g.
• economic development vs. environmental protection
  (e.g. Natura 2000)
• comparative advantage vs. territorial cohesion
  (no locational disadvantage)
• EU Commission Directorates, e.g.
• DG Regio
• DG Agriculture and Rural Development

10
Economics and Politics!

• Is EU Regional Policy
• A transfer system from richer countries to poorer
  countries (or to poorer regions?), or
• A more balanced formula, applicable to all
  countries and regions?
• Does EU Regional Policy seek to
• Promote economic efficiency, or
• Compensate for undesirable effects?
• A Green Book on Territorial Cohesion in 2008