1. Regional Economy and development policies
Course 10
Regional Economy and development policies

2. REGIONAL DEVELOPMENT POLICY IN ROMANIA

3. When did regions appear in Romania?
Initiatives to create “bigger entities that counties” - until 1859 and 1918: more historical regions
1938 – 1940: incipient regions – Ţinuturi
1950 – 1968: Regions
: Authoritarian regime / centralized planning system
1995: Association to the EU
1998: Development regions

4. HISTORY – key moments
1996 – the regional development policy began to take shape once the PHARE programme became operational – elaboration of the “Green Book of Regional Development in Romania”
1998 – the legal framework of the regional policy was developed - Law 151 regarding regional development, establishes the objectives of the policy at national level, competencies and specific instruments for promoting regional development policy
2002 – the negotiating chapter 21 “Regional Policy” was opened – established the criteria that Romania had to fulfill in order to access the EU and its eligibility for structural funds.
2004 – a new law on regional development was adopted Law 315

5. Green Book of Regional Development in Romania
instituted a broad framework, in which the Romanian Government could introduce and implement the regional development activity.
preparation of a set of fundamental principles for developing the regional policy in Romania.
includes the proposals made by the Inter-ministerial Workgroup regarding the implementation of the regional development policy by the Romanian Government.
CHAP 1: proposed the objectives of the policy.
CHAP 2: presented the level of regional disparities and their trends taking into consideration the situation of the Romanian counties after 1990.
CHAP 3: described the objectives and functions of the regional and competition policies, in the last years at EU level and some of its member states.
CHAP 4: presented the institutional framework proposal for regional development policy and the necessary instruments for implementing this policy
CHAP 5: suggested 9 steps in implementing the regional policy

6. Regions’ composition
North-East - Bacau, Botosani, Iasi, Neamt, Suceava si Vaslui
South-East - Braila, Buzau, Constanta, Galati, Vrancea si Tulcea
South-Muntenia - Arges, Calarasi, Dambovita, Giurgiu, Ialomita, Prahova si Teleorman
South-West Oltenia - Dolj, Gorj, Mehedinti, Olt si Valcea
West - Arad, Caras-Severin, Hunedoara si Timis
North-West - Bihor, Bistrita-Nasaud, Cluj, Salaj, Satu Mare si Maramures
Center - Alba, Brasov, Covasna, Harghita, Mures si Sibiu
Bucharest-Ilfov - municipiul Bucuresti si judetul Ilfov.

7. Regions represent the framework:
Law 151/1998 (replaced by Law 315/2004) proposed 8 Development Regions in Romania (NUTS 2 level)
DEVELOPMENT REGION:
a voluntary association of neighbouring counties,
the result of a free agreement between county and local councils,
it’s not an administrative-territorial unit
has no legal personality
Regions represent the framework:
for elaboration, implementation and evaluation of regional development policies
for collecting specific statistical data

8. Regional development objectives Law 315/2004
In conformity with Art. 2.a), the first objective of regional development in Romania is: “reducing existing regional disparities, by stimulating a balanced development, by accelerated recovery of delays in development of disadvantaged areas due to historical, geographical, economic, social, political conditions, and by preventing the apparition of new imbalances”
preparing the institutional framework in order to meet the criteria of integration into the EU structures and to access the Structural and cohesion funds of the European Union;
Correlating Governmental sectoral policies and activities at regional level, by stimulating initiatives and harnessing local and regional resources in order to obtain sustainable socio-economic and cultural development of the regions;
Stimulating interregional cooperation, internal and international, crossborder cooperation, including within Euroregions, and the participation of the development regions to the European structures and organisations that promote economic and institutional development in order to elaborate and implement common interest (joint) projects, according to the agreements in which Romania is a part.

9. Institutional framework and the regional system of Romania

10. Ministry of European Funds coordination and management of European funds fonduri-ue.ro
cooperates with institutions involved in public procurement
cooperates with the Audit and the Certifying and Payment Authorities.
coordinates, together with the Ministry of Regional Development and Public Administration, the policy in the field of national growth poles in which there are priority investments from national and community financed programmes.
coordinates the elaboration, monitoring and evaluation of the National Reform Programme, the instrument for implementing the Europe 2020 Strategy.

12. Ministry of Regional Development and Public Administration http://mdrap.ro/en/
MRDPA elaborates the Governmental policies in the following fields:
Regional development
Territorial cohesion and development
Crossborder, transnational and interregional cooperation
Spatial planning
Urban planning
Constructions
Public works

13. Ministry of Regional Development and Public Administration
Programmes financed through European funds:
Regioanl Operational Programme
Administrative Capacity Operational Programme
European Territorial Cooperation Programmes (RO-UA, RO-MD, RO-BG, RO-SE, RO-HU, HU-SK-RO-UA, INTERREG EUROPE, URBACT III, INTERACT III, DANUBE)
Programmes financed through national funds:
Local Development National Programme (water systems and water treatment plants; sewerage systems and wastewater treatment plants, undergraduate educational institutions, rural health units, county public roads, local interest roads, communal roads and /or public roads within localities, bridges, footbridges or pedestrian bridges, cultural objectives of local interest (namely libraries, museums, multifunctional cultural centers, theatres), waste dumps, public markets, trade fairs, fairs, upgrading sports units)

15. INSTITUTIONAL FRAMEWORK (Law 315/2004)
The Regional Development Board (RDB) = the deliberative regional body, without legal personality, which is established and operates on partnership principles, at the level of each region, in order to coordinate the activities of elaboration and of monitoring resulting from the regional development policies.
Main attributions:
a) analysis and approves the regional development strategy and programmes;
b) supports the elaboration in partnership of the National Development Plan;
c) approves the regional development projects, selected at regional level;
e) approves the criteria, priorities, allocation and destinations of the Regional Development Fund resources, and monitors their implementation;
f) coordinates and supports the development of regional partnerships;
g) endorses the contracts, conventions, agreements, protocols and other similar documents concluded by the RDAs in its specific field of activities with third parties, including with similar institutions of the EU

16. 2. The Regional Development Agency (RDA) = a non-governmental and non-profit body, of public utility, with legal personality, operating in the field of regional development.
Main attributions:
a) elaborates and submits for approval to the Regional Development Board the regional development strategy, Plan, programmes and the planning of the management of the funds;
b) ensures the implementation of regional programmes and the planning of the management of the funds, and is responsible for their achievement;
c) submits requests to the national institution with attributions in the field of regional development, for amounts from the National Fund for Regional Development to finance the approved development projects;
d) acts together with the Regional Development Board to attract resources in order to carry out their attributions;
e) provides technical and financial management of the Regional Development Fund in order to achieve the objectives foreseen by the regional development programmes;
f) is accountable to the RDB and to the national institution(s) with which it concluded contracts as well as to the bodies authorized by law, for the accurate management of the allocated funds;
g) submits for approval to the RDB the projects selected within the regional development programmes on the basis of priorities, criteria and methodology elaborated by the national institution responsible
h) identifies and promotes in partnership, projects of local and regional interest

17. North-West RDA http://www.nord-vest.ro/north-west/

18. Programming establishing allocating funds objectives for the necessary
means the organising, decisionmaking and financing process carried out in a number of stages to implement on a multiannual basis the joint action of the Community and the Member States to attain the Objectives
ensures coordination of the Funds between themselves and with the other existing financial instruments, the EIB and the European Investment Fund (EIF). Such coordination should also cover the preparation of complex financial schemes and public-private partnerships
the programming period is to last for a single period of seven years in order to maintain the simplification of the management system
carried out at the level of the operational programmes and priority axes
establishing allocating funds
objectives for the necessary
within a programme actions to fulfill
the objectives

19. Programming Framework
Strategic programming
Objectives (Vision, medium and long time objectives)
Present situation (Profile, SWOT) – knowing and evaluating resources in the area
Priorities – strategic direction – image in the future
Programmes/sub-programmes - interconnected, linked and not directed to punctual, isolated developments – moving in the direction established by the priorities
Groups/packages of measures – contribute to the realization of the programmes and sub-programmes
Next: defining target groups, development areas, financial framework and planning
Operational programming
Measures - activities
Projects – lead to the accomplishment of the development strategy

20. Project cycle management

21. Programming framework
Is given by some documents that describe the framework for implementing different:
European level – Community Strategic Guidelines + Europe 2020 Strategy
national level – Partnership agreement
national/regional level – Operational Programmes

22. The method: Programming, Partnership and Shared Management
Common Strategic Framework
Partnership Agreements
Operational
Programmes
Management of programmes/ Selection of projects
Monitoring/ Annual reporting
Common Strategic Framework translates the Europe 2020 priorities into ESIF priorities
Shared management: Sharing of responsibilities between the commission and the member states in the first place, and between the state and the regions (where applicable). Up to 1987 the Commission used to manage all the programmes.
Partnership Agreement: An overarching strategy at national level
Proposed by the Member State, finally adopted by the Commission
Covers the 5 European Structural & Investment Funds (ESIF)
In line with the Common Strategic Framework sets out the planned use of the Funds
consistent with the Europe 2020 strategy and relevant Country Specific Recommendations
coordinated to ensure an integrated approach
Core elements:
strategic choices = selected thematic objectives, allocations, main results
list of programmes
coordination between Funds and with other policies
commitments on administrative capacity and reduction of administrative burden
Operational programmes:
Set out a coherent intervention strategy for the territory/sectors
Selection of thematic objectives, investment priorities, specific objectives, allocations and justification – intervention logic
Financing plan and list of major projects
Integrated approach to territorial development; specific needs and demographic challenges
Ex ante conditionalities
Performance framework
Short, concise programmes with a clear focus on results.
Main platform for ex ante conditionalities.
Management of programmes/Selection of projects:
Projects selected by the Member States and/or the regions to be "shared management". Major projects are decided by the Commission (total costs EUR 50 million and EUR 75 million for transport projects)
Monitoring/Annual debate: by the Spring European Council on the basis of a Annual Report of the Commission and the Member States

23. Five European Structural & Investment Funds (ESIF) working together
Common rules for ESI Funds
Simplified cost options.
E-governance.
Eligibility rules.
Financial instruments.
CLLD- Community –Led Local Development.
PARTNERSHIP AGREEMENT
European Agriculture Fund for Rural Development
Cohesion Fund
European Social Fund
European Regional Development Fund
European Maritime and Fisheries Fund
Simplified cost options:
Where simplified costs are used, a category of costs of a project or of a whole project itself are calculated according to a pre-defined method based on outputs, results or some other costs. The approach of tracing every euro of co-financed expenditure to individual supporting documents is not required any more: it significantly alleviates the administrative burden of a project administration.
E-Governance:
All exchanges of information between beneficiaries and a managing authority, a certifying authority, an audit authority and intermediate bodies need to be carried out by means of electronic data exchange systems instead of by paper documents.
CLLD – Community-Led Local Development: Rural or Urban Development Instrument with help of Structural Funds. Already used with the European Agricultural Fund for Rural Development Fund. Can now be used with all ESI Funds.

24. 3 authorities to implement Cohesion Policy
A managing authority to implement the operational programme, and a monitoring committee to oversee it.
A certification body to verify the statement of expenditure and the payment applications before their transmission to the Commission.
An auditing body for each operational programme to supervise the efficient running of the management and monitoring system.
National, regional or local public authorities.

25. Institutional framework in Partnership Agreement

26. Partnership framework for the PA
For the elaboration of the Partnership Agreement a broad network of consulting and partnership structures has been used. It’s formed of 12 thematic advisory committees and numerous specific workgroups, coordinated by the Interinstitutional Committee for the Partnership Agreement

27. Interinstitutional Committee for Partnership Agreement (CIAP)
organized and coordinated by the Ministry of European Funds
consulting role – represents the institutional forum which ensures the coordination of the national partnership framework.
promotes partnership in the elaboration of the programming documents for , and of the Partnership Agreement and the subsequent programmes.
it operates both in plenary and section meetings, through meetings of the advisory committees
examines proposals and documents prepared within consulting committees and approves the grouping of intervention areas corresponding to each programming document, and also the main elements regarding the implementation, monitoring and evaluation of the interventions established within programming documents.
It is composed of representatives at decisional level, of the stakeholders within advisory committees, and other institutions of central and local public interest, and organizations of the economic, social, academic environment, and the civil society, that represent 30% of the total members.
59 members

28. National institutional framework for 2014-2020 http://www. fonduri-ue
Advisory Committee on regional Development (CCDR), is coordinated in partnership by MEF and MRDPA.
WG Urban development
WG Energy efficiency
WG Disadvantaged communities
WG Regional and local infrastructure
WG Business environment

29. Institutional framework for European funds management for 2014-2020
Ministry of European Funds
Large infrastructure operational programme
Competitiveness operational programme
Technical assistance operational programme
Human capital operational programme
Disadvantaged people operational programme
Ministry of Regional Development and Public Administration
Regional operational programme
Administrative capacity operational programme
Ministry of Agriculture and Rural Development
Rural development national programme
Fishery and aquaculture national programme

30. Institutional framework for European funds management for 2014-2020
Intermediate Bodies
Ministry of Transport
Ministry of Environment and Climate Changes
Ministry of Economy
Department for infrastructure projects, FI, PPP
Department for Energy
Ministry of National Education
Ministry of Informational Society
Tourism National Authority
Regional Development Agencies
Ministry of Labour, Family, Social Protection
Agency for financing rural investments
MRDPA

31. EU level National level National level 2007-2013
Nivel național
POR
POC
PO IM
PO CU
PO CA
PO AT
PO AD
PNDR
PNPA
National level
POS CCE
POS T
POS M
POS DRU
PO DCA
POP
National level
National Reference Strategic Framework
Partnership Agreement and National Reform Programme
EU level
Common Strategic Framework
Common Strategic Framework and Europe 2020 Strategy

32. Budget allocations per Member State (2014-2020)
BG 7.588
CY 0.736 CZ DE
DK 0.553
EE 3.590 EL ES
FI 1.466 FR
HR 8.609 HU
IE 1.189 IT
LT 6.823
LU 0.060
LV 4.512
MT 0.725
NL 1.404 PL PT RO
SE 2.106
SI 3.075 SK UK

33. Partnership Agreement Romania 2014-2020

34. National Reform Programme 2014 http://ec. europa
All Member States have committed to the Europe 2020 strategy. However, each country has different economic circumstances and translates the overall EU objectives into national targets in its National Reform Programme – a document which presents the country's policies and measures to sustain growth and jobs and to reach the Europe 2020 targets

35. National Reform Programme 2014
quality
housing
European funds management
Public procurement
Public administration
financial and guarantee financing instruments
technological capacity
bureaucracy
promotion and exports
Improving business environment
efficiency and effectiveness of the ANOFM services
EURES network
labour force – adaptability and development
creating jobs
Employment
promoting RDI in sectors with growth potential
investments’ efficiency
Research, development, innovation
floods
National Strategy on Climate Change
Environment and climate change
use
production
Renewable energy
improvement
Energy efficiency
The National Reform Programme 2014 presents the main short- and medium-term reforms for Romania in accordance with the country specific recommendations made by the European Commission and the objectives assumed within Europe 2020 Strategy. These reforms cover 9 areas and 58 actions

36. National Reform Programme 2014
education reforms and professional training,
youth
equal opportunities
higher education
life long learning
Education
social assistance
health system – infrastructure and medical assistance at regional level
Social inclusion

37. Partnership Agreement 2014-2020 http://ec. europa

38. EC recommendations – financing priorities for Romania 2014-2020
1. Improving human capital by increasing employment and better policies for social inclusion and education. 2. Development of a modern infrastructure for economic growth and jobs. 3. Promoting economic competitiveness and local development. 4. Optimize the use and protecting natural resources and assets. 5. Modernizing and strengthening national administration and the judiciary system.
Partnership Agreement was elaborated on the basis of country specific recommendations.
In 2015 the Commission has made four country-specific recommendations to Romania to help it improve its economic performance. These are in the areas of: implementation of the programme; public finances, taxation and pensions; labour market, wage-setting, education and health; state-owned enterprises.

39. Partnership Agreement Romania 2014-2020
Reducing economic and social development disparities between Romania and the EU member states
competitiveness and local development
people and society
infrastructure
resources
administration and governance
The PA focusses on the following challenges and corresponding priorities:
 Promoting competitiveness and local development, with a view to reinforcing the sustainability of economic operators and improving regional attractiveness;
 Developing human capital, by increasing the employment rate and tertiary education attainment, but also tackling the severe social challenges and poverty levels, in particular for deprived or marginalised communities and in rural areas;
 Developing physical infrastructure, both in ICT and the transport sector, in order to increase the accessibility of Romanian regions and their attractiveness for investments;
 Encouraging sustainable and efficient use of natural resources through promotion of energy efficiency and a low carbon economy, protection of the environment and adaptation to climate change;
 Building a modern and professional public administration by means of a systemic reform aimed at overcoming the structural governance shortcomings.

40. Partnership Agreement - development challenges -
jobs
RDI
competitiveness
ITC
Competitiveness
employment
social inclusion and reducing poverty
education and training
Human capital and social issues
transport
Infrastructure
energy
risks
climate changes
environment protection
natural resources
Resources
quality public services
judiciary system
e-governance
Administration and governance

41. Regional Operational Programme http://www.fonduri-ue.ro/por-2014
ROP
1. Support to sustainable development of urban growth poles
2. Improvement of regional and local transport infrastructure
3. Improvement of social infrastructure
4. Strengthening the regional and local business environment
5. Sustainable development and promotion of tourism
ROP
1. Promoting technological transfer
2. Improving small and medium enterprises’ competitiveness
3. Supporting the transition towards a low-carbon economy
4. Supporting sustainable urban development
5. Improving the urban environment and the sustainable conservation, protection and capitalization of cultural heritage
6. Improving road infrastructure of regional importance
7. Diversifying local economies through the sustainable development of tourism
8. Health and social infrastructure development
9. Supporting economic and social regeneration of disadvantaged communities in urban area
10. Improving educational infrastructure
11. Geographical expansion of the system of property registration in cadaster and land registry

42. Competitiveness http://www.fonduri-ue.ro/poc-2014
IEC SOP
1. An innovative and eco-efficient productive system
2. Research, technological development and innovation for competitiveness
3. ICT for private and public sectors
4. Increasing energy efficiency and security of supply in the context of combating climate change
COP
1. Research, technological development and innovation (RDI) in support of economic competitiveness and business development
2. Information and communication technology (ITC) for a competitive digital economy

43. Infrastructure http://www.fonduri-ue.ro/poim-2014 LIOP 2014-2020
TSOP
1. Modernization and development of TEN-T priority axes aiming at sustainable transport system integrated with the EU transport networks
2. Modernization and development of the national transport infrastructure aiming at sustainable national transport system
3. Modernization of transport sector aiming at higher degree of environmental protection, human health and passenger safety
ESOP
1. Extension and modernization of water and wastewater systems
2. Development of integrated waste management systems and rehabilitation of historically contaminated sites
3. Reduction of pollution and mitigation of climate change by restructuring and renovating urban heating systems towards energy efficiency targets in the identified local environmental hotspots
4. Implementation of adequate management systems for nature protection
5. Implementation of adequate infrastructure of natural risk prevention in most vulnerable areas
LIOP
Transport
Improving mobility by developing the TEN-T network and the subway
Developing a quality, sustainable and efficient multimodal transport system
Environment
Developing the environmental infrastructure in term od efficient resource management
Environmental protection through measures for the conservation of biodiversity, air quality monitoring, and decontamination of historically polluted sites
Promoting adaptation to climate change, risk prevention and management
Energy
Promoting clean energy and energy efficiency in order to support a low-carbon economy
Increasing energy efficiency at the level of centralized heating system in selected cities
Intelligent and sustainable electricity and natural gas transport systems
Infrastructure

44. Human resources http://www.fonduri-ue.ro/pocu-2014
HRD SOP
1. Education and training in support for growth and development of knowledge based society
2. Linking life long learning and labour market
3. Increasing adaptability of workers and enterprises
4. Modernisation of Public Employment Service
5. Promoting active employment measures
6. Promoting social inclusion
HCOP
1. Youth Employment Initiative
2. Improving the situation of NEET (not in education, employment or training) youths
3. Jobs for all
4. Social inclusion and combating poverty
5. Community-led local development (CLLD)
6. Education and skills

45. Administrative capacity http://www.fonduri-ue.ro/poca-2014
DACOP
1. Structural and process improvements of the public policy management cycle
2. Improved quality and efficiency of the delivery of public services on a decentralized basis
ACOP
1. Effective public administration and legal systems
2. Accessible and transparent administration and legal systems
Administrative capacity
TAOP
1. Support to the implementation of Structural Instruments and coordination of programmes
2. Further development and support for the functioning of the Single Management Information System
TAOP
1. Strengthening beneficiaries’ capacity to prepare and implement ESIF funded projects, and dissemination of related information
2. Support for coordination, management and control of ESIF
3. Increasing the efficiency of human resources involved in the coordination, management and control of ESIF in Romania
Technical assistance

46. Agriculture and rural development http://www. madr
NRDP
1. Improving the competitiveness of agricultural and forestry sector
2. Improving the environment and the countryside
3. The quality of life in rural areas and the diversification of the rural economy
4. LEADER Axis
NRDP
1. Modernization and increase in the viability of farms by strengthening them, market-opening and processing agricultural products
2. Encouraging rejuvenation of generations of farmers by supporting young farmers’ installation
3. Developing basic rural infrastructure as a precondition for attracting investments in rural areas and creating new jobs and implicitly developing the countryside
4. Encouraging the diversification of the rural economy by promoting the creation and development of SMEs in non-agricultural sectors in rural area
5. Promoting fruit growing sector as a sector with specific needs through a dedicated sub-programme
6. Encouraging community-led local development by LEADER approach

47. Operational programme for helping disadvantaged people http://www
Areas:
food
school supplies
MA Ministery of European Funds
Euro

48. Territorial cooperation programmes 2014-2020
Romania-Ukraine
Romania-Moldavia
Romania-Bulgaria
Romania-Serbia
Romania-Hungary
Hungary-Slovakia-Romania-Ukraine
Black Sea Basin
INTERREG EUROPE
URBACT III
INTERACT III
DANUBE
ESPON 2020