Download Growth Poles to Promote Competitiveness and Cohesion

Growth Poles to Promote
Competitiveness and Cohesion
- Romania 2007-2013 Nicolae Rotileanu,
PM Chancellery
ROMANIA’S
DEVELOPMENT
REGIONS
(NUTS 2)
Nord Vest
Nord Est
Centru
Vest
Sud Est
Sud Vest
Sud
Bucureşti-Ilfov
ROMANIAN CONTEXT I


Romania’s GDP = 42% of the EU average
8 NUTS-2 regions, out of which 7 are among the 15 poorest regions of
the EU, but discrepancies exist.
Nr. crt.
Region
GDP in 2005
Million EUR
GDP in 2005
EUR/inhab.
1
NORD EST
9404.7
2519.1
2
SUD EST
9136.1
3210.8
3
SUD
10077.6
3028.0
4
SUD VEST
6735.2
2919.8
5
VEST
7989.1
4136.9
6
NORD VEST
9568.6
3499.1
7
CENTRU
9478.1
3742.3
8
BUCUREŞTI-ILFOV
17197.5
7775.9
8
ROMANIA
79586.9
3680.5
Source: EUROSTAT
GDP
per region
ROMANIAN CONTEXT II

Similar discrepancies in the levels of urbanization…
Nr. crt.
Region
Total
Population
2006
Urban
Population
2006
Percentage of Urban
Population
2006
1
NORD EST
3.732.583
1.629.250
43,6%
2
SUD EST
2.837.834
1.573.520
55,4%
3
SUD
3.312.342
1.379.073
41,6%
4
SUD VEST
2.293.895
1.092.922
47,6%
5
VEST
1.927.229
1.223.730
63,5%
6
NORD VEST
2.730.132
1.449.635
53,1%
7
CENTRU
2.530.818
1.513.670
59,8%
8
BUCUREŞTI-ILFOV
2.219.532
2.052.138
92,5%
9
ROMÂNIA
21.584.365
11.913.938
55,2%
Source: Romanian Statistical Yearbook 2007
Unemployment
and FDI
% per region
ROMANIAN CONTEXT III
… and in the levels of FDI and unemployment

FDI
at the end of 2006
Million EUR
FDI
at the end of
2006
%
Nr. crt.
Region
Unemployment
Rate
2006
1
NORD EST
6.2%
411
1.2%
2
SUD EST
5.6%
2653
7.7%
3
SUD
6.4%
2228
6.5%
4
SUD VEST
7%
238
2.7%
5
VEST
4.1%
1948
5.6%
6
NORD VEST
3.6%
1570
4.6%
7
CENTRU
6.1%
2559
7.4%
8
BUCUREŞTI-ILFOV
2.2%
22205
64.3%
9
ROMANIA
5.2%
34512
100%
Source: Romanian Statistical Yearbook 2007

these internal imbalances have been increasing
ROMANIAN CONTEXT IV

all eight regional capitals are specialized in one or
several economic sectors, with the potential of
increasing if provided with a better business
environment

all regions are rather balanced demographically,
with large rural populations spread around spatially
dispersed regional centers

…so each regional center has the potential to
become a growth pole
STRATEGY CHOICE
- fast growing, running behind economy
- great socio-economic imbalances
- shift towards strategies based on efficiency
 need for a fair and efficient strategy
A growth pole policy can:
- allow a fair chance for all regions
- channel the funds into investments with greater economic
return.
- ensure impact and visibility
 incremental approach - mid-term evaluation
IMPLEMENTATION MECHANISMS

Need for a wide political agreement in order to
ensure sustainable success
 the implementation mechanisms of the policy
has been discussed/negotiated for months
among the government members and with the EC
IDENTIFICATION OF POLES

the 7 (8-Bucharest) regional capitals have a clear
potential of becoming growth poles, but other cities
of Romania rightfully claimed their status as
potential growth poles too  considerable pressure

a decision was taken to limit the number of growth
poles to 7, in order to maintain the credibility of the
policy and avoid any suspicion of supporting a
clientele policy

nomination by means of government decision; funds
are set aside, but not granted beforehand
INSTITUTIONAL SETUP

strategic national coordinator responding directly
to the Prime Minister; Ministry of Development as
responsible body for the policy implementation

inter-ministerial working group, under the
auspices of the National Coordination Committee 
to ensure policy coherence sustainability and
appropriate funding

seven commissioners/managers, at the level of
the Ministry of Development, one for each growth
pole  to tackle variable or insufficient
administrative capacity at local level
STRATEGY DESIGN
Local authorities create integrated development plans
- based on “running engines”
- with spillover effects over the region
Ministry of Development
- analyzes viability of the plans
- integrates them
IM/PM level ensures coherence and coordination
- with other OPs
- and with the other major strategies of Romania
FUNDING

Guaranteed by government decision and by
decisions of the National Coordination Committee

A mix of:
 50% of Priority Axis “Sustainable Urban
Development” from the Regional Operational
Program
 contributions from all the relevant OP
 contributions from national programs
 possibly EIB loans
PROSPECTS


Details on implementation still under discussion
Strategy in the elaboration process