XII BGK Conference 1 Discussion Panel : Strategic Directions for Regional Development Emilia Skrok Jan Gąska
2 Problem recognition and and objectives of regional development policy Regional development can be seen as a general effort to reduce regional disparities by supporting (employment and wealth-generating) economic activities in regions. Regional disparities in well-being: GDP per capita, Indicators covering material conditions (income, jobs, housing) quality of life (health, education, safety, environmental quality, access to services, and life satisfaction) shifting from GDP to indicators that focus on people s outcomes makes the issue of regional disparities within countries broader for policy makers
3 Regional disparities in Poland in GDP remains high though close to OECD average JPN SVN CHE KOR FIN IRL NOR DNK AUT PRT SWE GRC ESP NLD EST AUS POL NZL FRA ITA DEU GBR HUN BEL CAN TUR CZE SVK USA CHL MEX 83.2 83.3 88.7 81.4 82.2 65.3 54.8 69.7 68.5 81.3 81.4 72.5 68.8 70.3 64.3 71.3 70.5 66.9 75.2 57.2 67.0 71.0 73.7 60.2 38.0 73.8 75.2 40.6 66.1 68.7 40.9 115.4 118.5 124.1 118.6 129.5 112.8 103.1 124.6 124.2 138.7 141.5 134.8 136.2 142.7 139.9 153.4 158.5 156.1 165.1 150.0 161.8 169.3 173.1 161.5 186.8 151.0 210.0 244.6 326.8 307.2 0 100 200 300 400 500 600 Regional variation in GDP, country average = 100
4 but in disposable income, they are below OECD average, though significant DNK AUT SVN IRL BEL NOR KOR JPN FIN DEU SWE NLD HUN FRA PRT POL CZE CAN NZL GBR ITA ESP EST CHL GRC ISR USA AUS SVK TUR MEX Southern Denmark Carinthia Eastern Slovenia Border, Midland, West Wallonia Hedmark and Oppland Gangwon East and North Mecklenburg- Shikoku Vorpommern North Middle Groningen Northern Great Plain Nord-Pas-de-Calais North Podkarpacia Northwest Prince Edward Island Northland Northern Ireland Campania Extremadura Northeast Maule West Greece Northern District Mississippi Tasmania East Slovakia SE Anatolia Chiapas Capital Lower Austria Western Slovenia South and East Flemish Region Oslo, Akershus Capital Åland Southern-Kanto Bavaria Stockholm Utrecht Central Hungary Île-de-France Lisbon Mazovia Prague Northwest Territories Wellington Greater London Bolzano-Bozen Basque Country North Santiago Metropolitan Attica Tel Aviv District District of Columbia Capital Ankara Bratislava Territory Federal District 0 20 40 60 80 100 120 140 160 180 200 Regional variation in household disposable income, country average = 100
5 Objectives of regional development policy Most of OECD countries implement regional policies with following objectives: equity (regional balance, opportunities for citizens to increase their well-being ); efficiency (growth and competitiveness) objectives sustainable development; improved governance, especially decentralization and regionalism.
6 Where people live has an important impact on their opportunities to live well
Number of physicians per 1000 of population, 2014 7 No matter where people live in Poland health services is below peers 8 Region with lowest GDP per capita in PL 7 6 5 4 3 2 1 0 CZE FRA DEU POL PRT SVK ESP SWE 0 20000 40000 60000 80000 GDP per capita, constant prices, PPP, 2014
Self-reported life satisfaction level Life satisfaction declines with increase of unemployment and pollution Self-reported life satisfaction level 8 6.8 6.8 6.6 ZPM 6.6 ZPM 6.4 6.4 6.2 6.0 5.8 5.6 5.4 POM DSL WMZ WLK KPM LBU MAZ LDZ OPOSLA LUB PDL MLP SWK PKR 5.2 5.0 10.0 15.0 Unemployment rate in given region 6.2 6.0 5.8 5.6 5.4 POM WMZ PDL KPM DSL LBU SWK WLK SLA MAZ LUB PKR LDZ MLP OPO 5.2 9.0 14.0 19.0 PM2.5 concentration in air Better Life Index
Labour utilization growth, 2004-2013 9 Growth is fueled mainly by labour productivity growth 15 Polish regions were among the 40 OECD regions with the highest GDP per capita growth rate during 2000-13. labour productivity growth was a major determinant of the economic performance for the top 40 regions Urban regions at the productivity frontier Both sustain employment and productivity growth is needed for long term growth 0.3 0.25 0.2 0.15 0.1 0.05 0-0.05 POM SLA SWK WMZ OPO LDZ MAZ PDL LBL PKR LBU ZPM DSL WLK MLP 0 0.1 0.2 0.3 KPM 0.4 GVA per employee growth, 2004-2013
GDP growth (PPS), 2000-2014 The quality of human capital is central to increasing productivity Average GDP growth in 20% worst regions, 2000-2014 10 1.3 1.2 1.1 1 0.9 0.8 0.7 POM LBU ZPM LDZ MLP LUB WMZ KMP DSL SWK MAZ PDL WLK OPO PKR SLA 0.6 0.5 1 1.5 2 2.5 Growth in the percentage of employees with tertiary education, 2000-2014 2 1.8 1.6 1.4 1.2 1 LT EE BG LV RO 0.8 HU 0.6 SI LU CZ DE 0.4 DK UK IE AT PT MT NL IT 0.2 FI BE FR ES SE 0 CY EL -0.2 0.8 1.8 Average growth of the percentage of skilled workforce in 20% worst regions, 2000-2014 SK PL
Tertiary education enrolment, %, 2014 Human capital is ample in all Polish regions 11 14 Region with the lowest GDP per capita in PL 12 10 8 6 4 2 0 CZE FRA DEU POL PRT SVK ESP SWE 0 20000 40000 60000 80000 GDP per capita, constant prices, PPP, 2014
MEX TUR CHL ISR IRL KOR ISL SVK LUX NZL AUS POL CAN NOR NLD CZE SVN GBR HUN CHE BEL ESP FRA DNK AUT EST FIN SWE PRT DEU ITA JPN 12 And high share of elderly population is a challenge, especially for most vulnerable regions 35 Best region Country average Worst region 30 25 20 15 10 5 0 Share of Elderly Population (% 65+ over total population)
Strategic directions for regional development 13 Policies to promote regional development could focus: sustain productivity and increase labour utilization (investments for higher value added production); generate fairer and livable regional economies (access to key public services health!, quality of air and ITC); promote effective governance at all levels of government (local-regional-central level cooperation)
Features of effective regional strategy 14 An effective strategy is one that: Is embedded in its institutional, socio-economic and territorial context; Identifies a widely shared vision for the future development of the region; Engages regional stakeholders in an open and inclusive planning process; Communicates its key messages clearly to a diversity of audiences; Identifies delivery mechanisms and responsibilities in a phased and coherent manner; Establishes a simple and effective monitoring framework; Is flexible enough to react to unforeseen circumstances and is able to take advantage of windows of opportunity.
15 Common weaknesses in regional development strategies There are also a number of common weaknesses in such strategies that should be avoided: An over emphasis on analysis and description of the region; Limited engagement of regional stakeholders; Poor communication strategy that limits the profile of the strategy; Avoidance of wicked issues (i.e. particularly difficult and complex issues); Weak linkages between the analysis, strategy and implementation; Excessively broad focus trying to address all issues or spread resources too thinly; Lack of clarity about delivery mechanisms, responsibilities and phasing; Insufficient attention to monitoring frameworks and an over emphasis on quantitative rather than qualitative indicators.
16 The Priority matrix can assist regional authorities to make informed decisions High Quick wins Complex wins Impact Fill ins Hard slogs Low Low Effort High Source: http://www.timeanalyzer.com/lib/priority.htm
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