Ceps presentation world bank 18 may 2011

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For a training course for World Bank officials on 'The role of regional policy in the EU and its mutating objectives'

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  • Similar policy challenges for neighbourhood policies and Western Balkans
  • Ceps presentation world bank 18 may 2011

    1. 1. 5/24/2011<br />1<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />The role of regional policy in the EU and its mutating objectives<br />Jorge Nuñez Ferrer<br />CEPS<br />
    2. 2. 5/24/2011<br />2<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />GENERAL OBJECTIVES OF THE EU<br />THE TREATY OF THE EUROPEAN UNION<br />Economic Growth: “economic progress”<br />Sustainable Growth: “balanced and sustainable development”, “employment” and “social progress”<br />Cohesion or convergence: “economic and social cohesion” <br />+ External Security and Internal Security<br />Present motto: Smart, sustainable and inclusive growth - EUROPE 2020 strategy<br />3rd attempt to implement the ‘failed’ Lisbon Agenda and Gothenburg declarations 2000-2010<br />
    3. 3. 5/24/2011<br />3<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />2007-2013 instruments<br />Structural and Cohesion Funds<br />Common Agricultural Policy (mainly direct payments) + Rural Development Funds (mainly agriculture)<br />Competitiveness for growth and employment (new):<br />Support innovation (R&D) and growth <br />SMEs, ICT, energy<br />TENs<br />Each has a different role at different territorial level<br />+ External, i.e. Neighbourhood - IPA<br />
    4. 4. 5/24/2011<br />4<br />Centre for European Policy Studies (CEPS) • Place du Congrès 1, 1000 Brussels, Belgium www.ceps.eu <br />
    5. 5. 5/24/2011<br />5<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />Evolving strategy and philosophy<br />EU system of support in constant mutation within a policy paralysis over 30 years – complex, imperfect & difficult<br />Philosophy of structural (and other) funds based on changing development theories: <br />Growth pole and centre-periphery theories (60s – 70s)<br />Infrastructure endowments (80s)<br />Endogenous growth theories & human capital (endogenous technical growth, i.e. Lisbon agenda (90s)<br />+ PPPs, blending, mission oriented Europe 2020 (2010-)<br />Philosophy of rural development funds <br />Sectoral agricultural lobby dominated still today<br />Unclear future<br />
    6. 6. 5/24/2011<br />6<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />Evolving objectives of regional policy<br />Transfers for economic and social cohesion<br />Mainly infrastructures & training<br />Objectives, strategy mainly national – no strong guidelines<br />80s-90s<br />Increasing focus on growth – search for fundamental growth factors<br />Raising importance of R&D, SMEs<br />Increased importance of strategies<br />National Strategic Reference Frameworks<br />00-10<br />2010-<br />Budget Review / CAP and ‘old Structural Funding dominate’<br />Stronger ‘Mission oriented’ sought budget: R&D, climate, energy<br />Funding needs far above budget – increased need for extra budgetary funding and ‘blending’<br />
    7. 7. Convergence:<br />99 regions with per capita <br /><75% of EU GDP AV.<br />€ 283bn<br />Cohesion Fund for countries <br />with <90% of av GDP<br />Competitiveness & <br />employment:<br />172 regions - €55 bn<br />Territorial cooperation<br />5/24/2011<br />7<br />Centre for European Policy Studies (CEPS) • Place du Congrès 1, 1000 Brussels, Belgium www.ceps.eu <br />Regional Policy today<br />
    8. 8. 5/24/2011<br />8<br />Centre for European Policy Studies (CEPS) • Place du Congrès 1, 1000 Brussels, Belgium www.ceps.eu <br />Achievements and failures of regional policy<br />Difficult to attribute impacts to policy, but:<br />Most supported regions have seen a real GDP rise per capita<br />Declines have been rare<br />Improved governance and administrative capacity<br />Improved infrastructures<br />However: <br />Sub-optimal use of funds<br />Weak strategies<br />Weak accountability<br />Weak evaluations, no efficient performance monitoring<br />Weak ex-post evaluations and integration of lessons<br />
    9. 9. Big tensions on scope and size of structural policies and new objectives: e.g. <br />Energy grids<br />Innovation, R&D, Demonstration<br />Should wealthier regions be supported?<br />The Commission seeks extra budgetary solutions out of the budget:<br />Blending instruments (EIB blending RSFF, LGTT, etc.)<br />External blending (NIF, ITF, WBIF, LAIF, FEMIP, etc.)<br />Bond issue<br />Seeks BETTER STRATEGIES AND CONTROL<br />5/24/2011<br />9<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />Budget reform coming<br />
    10. 10. 5/24/2011<br />10<br />Centre for European Policy Studies (CEPS) • Place du Congrès 1, 1000 Brussels, Belgium www.ceps.eu <br />Challenges for territorial development<br />Incorporating growing number of EU objectives in strategies in a blocked budget<br />Redistributing the funds – large West –East imbalances, specially the CAP<br />EU objectives costly: funds are more to help implement EU acquisand objectives than to focus on own development<br />Increasing the quality of NATIONAL STRATEGIES and better accountability of recipients<br />Increasing value added& value for money<br />Increasing public and private leverage<br />Promoting innovative funding and increasing leverage<br />
    11. 11. 5/24/2011<br />11<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />National strategies are crucial<br />1st problem: Administrations do not really grasp what this is all about! (Including Commission officials)<br />Performance of funds highly connected to national macro policy & quality of strategy and implementation<br />Strategy (NSRF, RDP, etc.) should be based on local needs, built on incentives – setting direction. <br />These are not fund application formularies – these are strategies for the countries not the Commission. These are implementation documents. Others do applications.<br />Successful countries usually have implemented clear and sometimes unpleasant strategies<br />
    12. 12. 5/24/2011<br />12<br />Centre for European Policy Studies (CEPS) • Place du Congrès 1, 1000 Brussels, Belgium www.ceps.eu <br />
    13. 13. Thank you<br />Recommended reading:<br />FAO/World Bank working paper: The evolution and impact of<br />EU regional and rural policy<br />www.fao.org/docrep/011/aj280e/aj280e00.htm<br />For external finance – new blending mechanisms and aid coordination:<br />Innovative Approaches to EU Blending Mechanisms for Development Finance<br />CEPS special Report (published 18 May)<br />www.ceps.eu/books<br />On Agriculture and Rural Development<br />THE EU ADDED VALUE OF AGRICULTURAL EXPENDITURE – FROM MARKET TO MULTIFUNCTIONALITY – GATHERING CRITICISM AND SUCCESS STORIES OF THE CAP<br />Study for the European Parliament`<br />http://www.europarl.europa.eu/activities/committees/studies/download.do?language=en&file=20293#search=%20THE%20EU%20ADDED%20VALUE%20OF%20AGRICULTURAL%20EXPENDITURE%20–%20FROM%20MARKET%20TO%20MULTIFUNCTIONALITY%20–%20GATHERING%20CRITICISM%20AND%20SUCCESS%20STORIES%20OF%20THE%20CAP%20%20<br />5/24/2011<br />13<br />Thinking ahead for Europe • Centre for European Policy Studies (CEPS) • www.ceps.eu <br />

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