Regional Development in Poland Maciej Jarosaw Kolczyski Ministry

Regional Development in Poland Maciej Jarosław Kolczyński Ministry of Regional Development Regional Forum for Investments and Innovations "Cooperation for Development" May 23, 2013 Costesti, Moldova 1

Main economic indicators (2012) § The average annual growth of the GDP: 2% § Unemployment rate: 13, 2 § Inflation rate: 3, 7 § Public debt: 52% § GDP per capita: 65% of the average EU level (2011) Form of government and territorial structure § Unitary state (parliamentary republic) § Three levels of administrative division 2

2479 communes [GMINAS] 3

379 districts [POVIATS] 4

16 regions [VOIVODSHIPS] 5

Period from 1989 to 1999 – a giant leap forward: • Lack of policy or very soft activities limited to coordination and monitoring of sectoral instruments, • A few pilot programmes financed by the EUPhare and national sources, • Territorially different instruments of sectoral policies • The reform of territorial structure – decentralization of public authorities 6

Period from 1999 to 2004– establishing the legal framework: • Legislative bases of regional policy, • First programming documents on national and regional level, • More pilot programmes financed by the national sources and the World Bank, • More EU funds for regional development, entrepreneurship, rural areas and infrastructure development 7

Period from 2004 to 2010 – the “largest beneficiary”: • Increased role of regional Policy = EU cohesion policy • More complex approach [regulations on development policy], • Development of a set of strategic programming documents for EU funds, • Decentralization of the EU fund management [since 2007]. 8

Current period from 2010 – towards a new paradigm: • System of strategic development management [new model strategies in different fields], • Multi-level and inter-sectoral mechanisms of coordination, • Bigger emphasize on effectiveness, • Further decentralization of the EU funds, • Attempt to identify national funding sources. 9

External determinants ü Debate on the future of cohesion policy; ü New European and global challenges, for example globalization, demography, energy, crisis; ü Debate on a role of territorially oriented public policies in socio-economic growth and regional policy; National determinants ü Introduction of a new system of development management; o reduction of the number of strategic documents ü Lack of a document concerning regional policy; ü Use of experiences connected with the EU funds; ü Increase of the efficiency of programming; ü Links between programming and operational level; ü Evaluation of development programmes. 10

Long-term national development strategy Medium-term national development strategy Transport Development Strategy National Security Strategy of the Republic of Poland Energy Safety and Environment Social Capital Development Strategy of Innovation and Economic Efficiency Strategy for Sustainable Development of Rural areas and Agriculture Human Resources Development Strategy Efficient State National Strategy of Regional Development 11

PARADIGM SHIFT ü Regional policy perceived broader than before – as an intervention aimed to achieve development goals, through territorialy oriented measures, where regional level is a main level of planning and implementation; ü Focus on endogenous development potentials, ü policy not only for poor areas but for all Polish regions and territories using their development potential and/or providing external resources; ü Regional policy is effective – in order to deliver, it supports necessary institutional, legal and financial changes; ü Reorientation of thinking about the development objectives, priorities and thus about the instruments, delivering the intervention that enable to fully utilize development potential of specific territories. 12

NEW STRATEGY - NEW QUALITY ü Defines objectives and strategy of activities of public entities in reference to territories, to achieve strategic development objectives on national level; ü Reforms the way of planning and implementing the regional policy, including public policies with territorial influence [managing these policies, cooperation, coordination, monitoring and evaluation]; ü Includes the proposals of a new role of voivodship self-government and other public entities in the implementation of regional policy; ü Reinforcement of territorial cohesion in Poland: o instruments supporting effective territorial development, o instruments which are simple, complementary with each other and supporting integrated approach. 13

Ob jec tiv e 3 tiv e 2 Ob Ob jec tiv Eff s es en tiv eti n o cy mp esi Co Coh icien e 1 ü Objectives of NSRD reflect the main areas of intervention of the strategy until 2020 ü They create the „triad”: competitiveness – cohesion – efficiency Strategic Objective 14

Supporting growth of competitiveness of regions üThe objective covers the entire Poland üFocus on: Ü making use of development potentials of growth poles Ü creating conditions for diffusion and absorption mechanisms Directions of measures o Fostering the metropolitan functions of the voivodship capitals and integration of their functional areas; o Creating conditions for diffusion of development processes and their absorption in non-voivodship cities [transport accessibility, creating conditions for investments in sub-regional cities and rural areas and stimulating the urbanization process]; 15 o Creating basis for competitiveness of voivodships – thematic measures [horizontal].

Concentration and diffusion – the way we see it New model of regional policy Concentration of development processes on basic urban network [voivodship cities] accompanied by… Spreading the development processes from the abovementioned areas to other [outside the functional areas of voivodship, sub-regional and local centres] 16

Establishment of territorial cohesion and preventing marginalization of problem areas ü Objective only covers selected areas, which are endangered with exclusion; ü Areas too distant from main urban centres or the scale of problem is too big for diffusion; ü These areas are so called problematic areas; ü Five directions of measures: Ü Strengthening cohesion in national dimension; Ü Support to rural areas with the lowest level of inhabitants access to the goods and services following from the development possibilities; Ü Restructurisation and revitalisation of cities and other areas losing their previously fulfilled socio-economic functions; Ü Overcoming the difficulties related to the situation of the border areas, especially along the external EU borders; Ü Increasing transport accessibility to voivodship centers situated within the areas with the lowest accessibility. 17

Strenghtening cohesion in national dimension 18

Rural areas with the lowest level of access to goods and services 19

Cities and other areas losing previous socio-economic functions 20

Areas with the lowest accesibility ransport accesibility to voivodeship centres 21

Border areas, especially along the external EU borders 22

Establishment of conditions for efficient, effective and partnership implementation of development measures targeted at territories Ü Horizontal objective; Ü Increasing the role of voivodships – main decision and coordination centres on regional level; Ü More EFFECT oriented approach. Directions of measures: 1. Strengthening the strategic dimension of regional policy; 2. Reconstruction and reinforcement of coordination in the multi-level governance system; 3. Improving the quality of managing public policies, including proper territorial orientation; 4. Support to the construction of social capital for the regional development on the basis of network of cooperation between various actors of regional policy. 23

Ü an agreement between the government and self – government being subject to mutual negotiations; Ü development vision of a particular area seen by the government: o VISION goals to be achieved and concrete undertakings/projects [only the most important] o AREA either the whole voivodeship or just a selected part – areas from the NSRD Ü funding = EU funds + national sources (matchfunding and other); Ü negotiation mandates prepared in cooperation with interested entities; Ü translating areas/directions of intervention envisaged in strategic documents on regional and national level to concrete undertakings. 24

Ü strenghtens vertical and horizontal partnership Ü gives the posibility for both sides to shape the intervention in region, also in terms of allocation of financial means; Ü links strategic and operational documents on central and regional level; Ü coherent objectives for given territory, by government and selfgovernment = coherent intervention, also through the integration of various projects (soft+hard) within one undertaking; Ü implementation of priority undertakings, which wouldn’t be otherwise implemented. 25 25

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Ü 72. 9 bln EUR for Cohesion Policy for Poland o ERDF, o ESF, o Cohesion Fund. Ü of which almost 1/3 will be managed at regional level + matchfunding from national resources. Ü Additional national money – identified for the purpose of territorial contracts: o more than 5 bln EUR according to MRD estimates. 27

Result oriented approach Territorialy-oriented intervention Thematic concentration Multi level governance 28

In the area of regional policy Poland in recent 20 years has undergone shift from: Centrally run, concentration of efforts on given problem areas with very modest impact Integrated, coordinated, multi level EU Cohesion Policy-like system becoming the major development instrument with a bigger role of regions 29

Not only to spend the money, but to modernize the country with the use of money How to do it? ? Create a good, effective policy for everyone! 30

Ü Institutional and systemic changes in Poland, including enhancement of: o Coordination of the management of processes – MRD leadership; o Strategic planning and management; o Good governance; o Partnership principle; o Result-oriented policies, performance budget. Ü Coordination with other European policies and national development policy: o CAP, Maritime policy, Fishery policy o national policies Ü Integrated territorial approach; Ü Effective instruments; Ü Focus on pro-development measures; Ü Open to international cooperation: exchange of experience. 31

In order to maximize the development effect: Ü Use of territorial potentials of endogenous growth Ü Coordination of territorialy oriented sectoral policies Ü Delivery mechanism that proved its worth in 2004 -2006 and first years of 2007 -2013 period - has everything what is required of effective policy: Ø Objective-oriented Ø Effective monitoring system Ø Conditionality Ø Partnership principle Ü Polish response to financial crisis ? ü thematic and geographical concentration ü smart growth ü integrated approach 32

Thank you for your attention Ministry of Regional Development polityka. regionalna@mrr. gov. pl