Implementation of regional development policy - what is it?
It is not easy to define all actions that could be considered within implementation of regional development policy. In narrow sense, implementation could be simply defined as conducting actions prescribed in the Act on regional development. However, in wider sense implementation of regional development policy can include any activity supporting achievement of regional development objectives - supporting competitiveness and realization of own potential by all regions/parts of the country.
Actual and long-term impact of single activity on regional development is generally related to respecting specific needs and potential of an area. In practice this is usually verified by checking compliance of actions/projects with strategic documents on county or even at local level (if such exists).
Contribution to balanced regional development is usually achieved with giving advantages to lagging areas. While doing that, it is possible to apply sectoral approach (providing additional support for employment to counties which recorded higher unemployment rates) or by using one of the composite indicators that indicates generally lower development level of certain area (e.g. providing additional support to counties with lower Development index). According to the Act on regional development, all state administration bodies are obligated to take into consideration potential impact of their measures and projects on assisted areas and other areas with specific development issues.
Projects are final and visible result of implementation of regional development policy. However, level of visibility is not the same for different type of projects - building new infrastructure is usually more visible than reconstruction of existing one, which is still more easy to be noticed than so called soft projects (related to educational, social, health services...). The need to implement high number of projects (especially related to absorption of European structural and investments funds) is often emphasized. However, it is crucial to select projects with strategic grounds which will potentially lead to achieving higher development level. This is one of the reasons why preparation of projects can take long time, especially when compared to expectation of less experienced beneficiaries.
It is not easy to define all actions that could be considered within implementation of regional development policy. In narrow sense, implementation could be simply defined as conducting actions prescribed in the Act on regional development. However, in wider sense implementation of regional development policy can include any activity supporting achievement of regional development objectives - supporting competitiveness and realization of own potential by all regions/parts of the country.
Actual and long-term impact of single activity on regional development is generally related to respecting specific needs and potential of an area. In practice this is usually verified by checking compliance of actions/projects with strategic documents on county or even at local level (if such exists).
Contribution to balanced regional development is usually achieved with giving advantages to lagging areas. While doing that, it is possible to apply sectoral approach (providing additional support for employment to counties which recorded higher unemployment rates) or by using one of the composite indicators that indicates generally lower development level of certain area (e.g. providing additional support to counties with lower Development index). According to the Act on regional development, all state administration bodies are obligated to take into consideration potential impact of their measures and projects on assisted areas and other areas with specific development issues.
Projects are final and visible result of implementation of regional development policy. However, level of visibility is not the same for different type of projects - building new infrastructure is usually more visible than reconstruction of existing one, which is still more easy to be noticed than so called soft projects (related to educational, social, health services...). The need to implement high number of projects (especially related to absorption of European structural and investments funds) is often emphasized. However, it is crucial to select projects with strategic grounds which will potentially lead to achieving higher development level. This is one of the reasons why preparation of projects can take long time, especially when compared to expectation of less experienced beneficiaries.
Restrictive factors in implementation of regional development policy
Even if suitable programmes and measures are implemented, expected impact on regional development can fail due to many factors. Some of them are described bellow.
Lack of financial resources is most commonly stated restrictive factor for implementation of all policies. This factor is quite understandable and related to recent economic crises and general lagging of country compared to EU average according to many socio-economic indicators. Lack can be partially compensated by available EU funds, by designing projects that do not require high amounts of financing and preforming large project in several phases.
Lack of prioritization - priorities set very widely also can lead to inefficiency of policies. Strategic documents are often designed based on principle that nothing should be left out, which complies with modern approach of integrated development. However, although it is usually clear that financial resources are not sufficient for everything, it is rarely decided which actions are considered as real priorities.
Delayed visibility is not unusual when it comes to complex issues. Even if the measures are properly design, impact on population and economy are not always (sufficiently) visible or significant. This can lead to low motivation of the personnel in charge of implementation and population to which measures apply.
Personal and entrepreneurial freedoms and habits can also reduce the impact of regional development measures. Measures usually have incentive character, but it is not possible to enforce people to chose their residence or to open business in other region.
Not sufficient involvement of sectoral bodies (divisions of sectors) may also be the problem. Bodies responsible for individual sectors at national level in some cases are not sufficiently familiar with regional development policy or are more focused on larger national projects which require more time and money. Of course, there are opposite examples of sectors that take significant care on regional unbalances and specific needs of individual territorial units.
Even if suitable programmes and measures are implemented, expected impact on regional development can fail due to many factors. Some of them are described bellow.
Lack of financial resources is most commonly stated restrictive factor for implementation of all policies. This factor is quite understandable and related to recent economic crises and general lagging of country compared to EU average according to many socio-economic indicators. Lack can be partially compensated by available EU funds, by designing projects that do not require high amounts of financing and preforming large project in several phases.
Lack of prioritization - priorities set very widely also can lead to inefficiency of policies. Strategic documents are often designed based on principle that nothing should be left out, which complies with modern approach of integrated development. However, although it is usually clear that financial resources are not sufficient for everything, it is rarely decided which actions are considered as real priorities.
Delayed visibility is not unusual when it comes to complex issues. Even if the measures are properly design, impact on population and economy are not always (sufficiently) visible or significant. This can lead to low motivation of the personnel in charge of implementation and population to which measures apply.
Personal and entrepreneurial freedoms and habits can also reduce the impact of regional development measures. Measures usually have incentive character, but it is not possible to enforce people to chose their residence or to open business in other region.
Not sufficient involvement of sectoral bodies (divisions of sectors) may also be the problem. Bodies responsible for individual sectors at national level in some cases are not sufficiently familiar with regional development policy or are more focused on larger national projects which require more time and money. Of course, there are opposite examples of sectors that take significant care on regional unbalances and specific needs of individual territorial units.
Examples of programmes / measures contributing to regional development
It is not possible to list all programmes contributing to regional development and for that reason only some examples are presented bellow:
It is not possible to list all programmes contributing to regional development and for that reason only some examples are presented bellow:
Programmes of Ministry of regional development and EU funds
Ministry of regional development and EU funds is responsible body for regional development and as such during last years regularly introduces programmes to support regional development. Some of them are listed below. Programme of sustainable development of local community co-finances projects of construction and reconstruction of communal, social and bussiness infrastructure. Until 2017 it was dedicated to local self-government units with development index lower than 100% and as of 2018 after new calculation of development index entered into force projects can be implemented in assisted areas. Additional information: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-odrzivog-razvoja-lokalne-zajednice/454 Programme of supporting regional development is complementary to aforementioned Programme and supports units witch are not assisted, but are still lagging if compared to the most developed ones. It was introduced in 2017 and envisaged for units with development index bellow avarage but not included in assisted areas according to definition at that time (local units classified in III group according to development indeks, counties classified in I group if project is implemented in local unit in III group and counties classified in II group if project is implemented in local unit in I, II or III group). As of 2018 it can be used by units with development index above 100% that are lagging in comparison to the most developed (local units classified as group V and VI, counties classified as I or II group if the project is implemented in local units from groups V and VI and counties from group III implementing projects in assited local units). Additional information on this Programme introduced are available at: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-podrske-regionalnom-razvoju/3537 and https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-podrske-regionalnom-razvoju-2018/3774 Programme of community investment was implemented in 2017 with aim to foster investments in reconstruction and construction of public objects. More information: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-ulaganja-u-zajednici/3651 Programme supporting conditions in elementary schools and high schools is another programme introduced in 2017: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-podrske-poboljsanju-materijalnih-uvjeta-u-osnovnim-i-srednjim-skolama/3671 Programme supporting sanation of infrastructural projects in hilly-mountainous areas is introduced for the first time in 2018 and aims to support sanation of communal and social infrastructure damaged due to specific climate and other condition in these areas. Additional information: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/program-podrske-brdsko-planinskim-podrucjima-u-sanaciji-infrastrukturnih-projekata/3792 Previously, from 2012, Ministry implemented Programme of preparation and implementation of development projects acceptable for financing from EU funds design to facilitate access to EU funds for local and regional self-government units. Programme consisted of several sub-programmes:
https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/programi/priprema-i-provedba-razvojnih-projekata-za-eu-fondove/442 Actions and measures for Croatian islands
MRDEUR conducts set of activities and measures related to development of Croatian islands such as: supporting public road transport on island, incentives for costs of water supply, supporting island economy, supporting non-governmental organisation on islands, Croatian Island Product... More on this subject: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/regionalni-razvoj/otoci-i-priobalje/122 Examples from other institutions
Some programmes of Entrepreneurial Impulse published in 2015 under the jurisdiction of the Ministry of entrepreneurship and crafts, also gave advantages to assisted areas by awarding additional points for beneficiaries situated in those areas. Environment protection and energy efficienty fund provides higher co-financing level for family houses and multi-residential buildings in areas of special state concern, hilly-mountainous areas and on islands. More info: http://fzoeu.hr/hr/energetska_ucinkovitost/enu_u_zgradarstvu/ |
Fund for co-financing implementation of EU funded projects at regional and local level
To increase absorption from available EU funds, new Fund was established. Its purpose is to provide share in own co-financing to regional and local units, depending on development level. Ordinance on Fund was published in Official Gazette 82/15, 15/16 and 19/17 Details on Call for 2015 https://razvoj.gov.hr/fond-za-sufinanciranje-provedbe-eu-projekata-na-regionalnoj-i-lokalnoj-razini-za-2015-godinu/3192 Call published in 2016 is available at: https://razvoj.gov.hr/pristup-informacijama/javni-pozivi-i-natjecaji/aktualno/javni-poziv-za-dodjelu-sredstava-fonda-za-sufinanciranje-provedbe-eu-projekata-na-regionalnoj-i-lokalnoj-razini-za-2016-godinu/3283 Call published in 2017: https://razvoj.gov.hr/pristup-informacijama/javni-pozivi-i-natjecaji/aktualno/javni-poziv-za-dodjelu-sredstava-fonda-za-sufinanciranje-provedbe-eu-projekata-na-regionalnoj-i-lokalnoj-razini-za-2017-godinu/3566 Tax reliefs for businesses in assisted areas and in the City of Vukovar are approved based on Ordinance from Official Gazette 147/14
http://narodne-novine.nn.hr/clanci/sluzbeni/2014_12_157_2971.html More information - website of the MRDEUF: https://razvoj.gov.hr/o-ministarstvu/djelokrug-1939/regionalni-razvoj/drzavne-potpore-grad-vukovar-i-potpomognuta-podrucja/153 Increased personal deduction for which income tax is not paid based on residence and actual living in assisted areas or City of Vukovar is defined by Article 54 of Act on income tax.
Details available in instructions of Tax administration on income tax. Aids to local and regional self-goverment units in 2015 planned in the State Budget, item related to Ministry of Finance based on Articles 35 and 36 of Act on execution of State Budget of RoC for 2015:
Source: Ministry of Finance, August 2015
http://www.mfin.hr/hr/pomoci-jlprs |