LITHUANIAN REGIONAL POLICY 2014–2020

Dr. Gediminas ČesonisHead of Regional Policy Strategic Coordination Division

Ministry of Interior of the Republic of LithuaniaRegional Policy Department

REGIONAL POLICY

• Regional policy is important part of public policy• Regional policy is consisting of vertical and horizontal, which includes many sectors

policies, themes • „two regional policies“:

• Regional policy of European Union– Lithuania in the context of EU regional policy is one NUTS II region

• National regional policy• These regional policies are combined as much as possible for seeking

sinergy and most effective results

Provisions of 2007–2013

REGIONAL POLICY: INSTITUTIONS• Government– Making strategic decisions: approves priorities of national regional policy, composes National

Regional Development Council, approves criteria for problem territories, approves list of problem territories; strategies and inter-institutional programmes in field of regional development)

• Ministry of Interior– Coordination of national regional policy: approves target ministerial programmes, heads National

Regional Development Council, prepares draft inter-institutional programmes, and etc.

• National Regional Development Council– Consultative body, consisting of representatives of ministries, chairs of regional development

councils, social and economic partners. All main decisions before approval within the Government must be discussed within Council.

• Regional Development Councils– Making strategic decisions on regional level: approves regional development plans, list of projects

to be financed from structural funds and etc. Consists of mayors and members of municipal councils of the region as well as one representative of appointed by the Government

• Regional Development Department under the Ministry of Interior– performing functions of secretariat of regional development councils, drafting regional

development plans

PROGRAMME ON REDUCTION OF SOCIAL AND ECONOMIC DISPARITIES

• Approved by the Government• 2,5 billion Litas (apprx. 725 MEUR) for its implementation are foreseen for years

2007-2013 (EU structural funds, EEA and Norway grants, national and municipal budgets)

• Has vertical (growth centres, problem territories and rural areas) and horizontal (projects selected by the regional councils) approach

• Detailed via problem territories development programmes and regional economic growth centres complex development investment programmes

• Main objective – to reach that in all counties (regions) unemployment rate would not be higher than 135 percent of country’s average and average monthly income of inhabitants would not be less than 75 percent of country’s average in 2013

Percentage of EU structural support, allocated to national regional policy

89% 6%

4%

MainstreamRegional planning (all municipalities)Targeted territories

Ministry of the Interior

Government

Managing authority and ministries (intermediate bodies)

Regional development department under MoI

(territorial divisions)

Municipalities (beneficiaries)

coordination

Regional development council (1, 2,3... 10)

Implemetation at the regional level

Regional development

plan

Regional projects list

Initiatives (policy

making)

Administration, coordination, monitoring

Policy making

Implementation

Regional policy (and EU SF regional dimesion) implemetation scheme

National regional development council

Policy making

Agencies (implementing institutions)

Regional and local projects

Design of support measures

Vertical dimension of national regional policy

Vertical measures are implemented in target territories/sectors :

– Regional centers (7 cities) (incl. Visaginas, Ignalina nuclear power plant region);

– Problem territories (14 municipalities);Target sector – rural development, diversification of rural

economy.

Direct (vertical) measures of EU support:Regional centers:• Development of urban infrastructure and living envinronment,

investment attraction (120,3 MEUR until 2013);Problem territories• Development of urban infrastructure and living envinronment,

investment attraction (31 MEUR until 2013);• Renovation of multiflat housing (47 MEUR until 2013);• Development of social housing (11,8 MEUR until 2013).Rural areas: Development of public spaces and social infrastructure, diversification of

economic activity (100,4 MEUR until 2013)

Target territories 2007-2013

REGIONAL GROWTH CENTRES

• All 7 have their development investment programmes approved by the Minister of Interior

• Projects target to improve business and living environment are being implemented.

Regional centre model. Single (complex) urban development measure

Accessability

Recreation, culture, wellness

Public spaces Infrastructure for SME’s

Brown-field conversion

PROBLEM TERRITORIES

• Selected by the criteria approved by the Government• List of municipalities which are named as a problem

territories is approved by the Government• All 14 municipalities – problem territories have their

development programmes approved by the Government

Problem territory model. complex urban measure+sectoral measures

Housing, social housing

Urban, sub-urban mobility

Social infrastructure

Public spaces

Public spaces

REGIONAL DEVELOPMENT 2014–2020

Regional dimension of EU support 2014–2020• Integrated approach at national level – coordination of actions between

sectoral institutions via Regional development interinstitutional action plan (1040 MEUR for regional planning/and URBAN (ITI‘s), 15,1 percent of structural support);

• Integrated approach at regional level – coordination of actions between municipalities and other actors via regional development plan, approved by the Regional development council;

• Regional development council shall continue with pre-selection functions of local and regional projects

Ministry of the Interior

Government

Managing authority and ministries (intermediate bodies)

Regional development department under MoI

(territorial divisions)

beneficiaries

Regional development council (1, 2,3... 10)

Regional development

plan

Initiatives (policy

making)

Administration, coordination, monitoring

Policy making

Implementation

Regional policy 2014-2020 (and EU SF regional dimesion) implemetation scheme

National regional development council

Policy making

Agencies (implementing institutions)

Targeted national

interventions

ITI

Urban authority

coordination

CLLD

Implemetation at the regional level

Integrated territorial investments (ITI)

URBAN challenges:

o Larger urban centres of Lithuania in past 10 years attracted significant flows of internal migration, which led to increasing social problems (including alcohol, drug abuse and crime rates) within deprived neighbourhoods, also emigration to the foreign countries and spread of cities into suburban territories, which leads to unsustainable and costly use of urban infrastructure.

o Smaller cities suffer from severe depopulation (decrease of population during 2006–2013 – 13.3 percent), ageing, insufficient share of services in economic structure and low economic activity (which limits youth employment possibilities and deepens demographic challenges).

URBAN challenges:o Interventions in the 2014-2020 period will primarily seek to increase

territorial cohesion within regions, maximizing labour force potential of subregional territories (deprived territories within bigger cities and medium-small cities, facing specific challenges)

o One of key conditions to achieve this goal – is to utilize cross-sectoral approach for integrated investments in the urban infrastructure.

Territorial scope of ITI in LT (I)

The territorial scope of ITI and CLLD implementation in urban areas:• 5 biggest cities, concentrating on: socially, economically

isolated, confronting environmental problems and material deprivation areas (neighbourhoods) (30-40 thus. inhabitants)

• Small and medium sized towns (over 6000 inh. and centres of municipalities, except 5 biggest) facing lower economic activity, employment diversity and demographic challenges

Specific target areas are selected according set of criteria, specific to each group.

Territorial scope of ITI in LT (II)

• 5 biggest cities – 1 ITI programme per city (1 or 2 target territories+adjacend territories)

• Small and medium sized towns – 1 ITI programme per region (10 programmes)

Selection of target territoriesSpecific target territories are selected according set of criteria or principals, specific to each group. Bigger cities (URBAN/SUD/ITI)5 biggest cities selected their target areas (30-40 thus. inhabitants) according principals set in PA (deprived neighbourhoods / sustainable development / employment / quality of life issues+potentials);

Small and medium cities (ITI)23 target territories (small and medium towns) were selected by Ministry of Interior according to criteria:• low economic activity;• imbalanced economic structure (high dependence on raw materials or

manufacturing) and low economic diversity (which does not allow for sufficient employment in the city or regional territory);

• significant depopulation due to migration or insufficient demographical change.20 transition (phasing out) territories.

target territories 2014-2020

• Integrated territorial development programmes (urban strategies) shall be drafted by municipalities in cooperation with national, regional authorities and local institutions (incl. ministries, universities, territorial labour exchanges, other public subjects), social and economic partners and local community.

• Programme sets out list of operations and provisional guidelines for community led local development strategies.

Participation of Urban authorities

City/cities

ITI territory

Demographics

Economics

Social development

Environment

Climate change

Target territory

Integrated projects (specific objective 7.1.1 of priority 7)

CLLD (specific objective 8.6.1 of the Priority 8)

CLLD (specific objective 8.6.1 of the Priority 8)

Integrated territorial development programme (strategy) (using ITI)

Other operational priorites – contribution: transport, environment,

energy, social services, etc. (to tackle specific problems)

CLLD of rural areas

Urban/rural cooperation

Links with suburban/rural territories

CLLD beyond target territory (optional)

CLLD beyond target territory (optional)

ITI model

Integration of actions in ITI programsSectorial integration (horizontal): is about ‘joining up’ different policy sectors and their associated actors within a selected areas. Two dimensions can be distinguished: 1) cross-sectoral integration between different policy areas, which can operate at a territorial scale; 2) stakeholder integration between public, private and voluntary sector.

Territorial integration (vertical): some developments of territorial structures or systems which are planned under ITI program due to their positive or negative externalities , internal territorial relations and complexity of their nature cannot be easily split up into different parts and attributed to the sectorial institution and investment priority.

As horizontal integration is not always sufficient to tackle cross cutting issues, it should also include vertical integration – the instrument for that is ITI program

CLLD as a part of URBAN and ITI

o Use of CLLD in urban areas is seen as a possibility of better coordination of „soft“ and „hard“ ITI based instruments for sustainable urban development and to achieve the highest value–added and efficiency of public investments in urban areas.

o Basic urban infrastructure is maintained/developed by public authorities/enterprises, though shall not be an object of CLLD

To make it more complicated

5 bigger cities:ITI = sustainable urban development, CLLD – obligatory part of SUD and ITI;

Medium and small cities: ITI ≠ sustainable urban development (although uses same principles and planning methodology), CLLD – mandatory part of ITI.

CLLDimplementation in urban areas

• CLLD in urban areas shall be coordinated by the Ministry of the interior, CLLD in rural areas and fisheries regions – by the Ministry of Agriculture.

• Local development strategies, drafted by LAG’s shall be approved by Joint selection committees (each for respective group of territories), representing Managing authority, ministries, social and economic partners;

• LAG’s shall perform functions, related to drafting and implementing Local development strategies (drafting strategy; capacity building; cooperation; setting out selection procedures and selecting operations (projects));

CLLD strategies’ compatibility/complementarities

CLLD implementation in urban areas (municipal centres and towns over 6000 inhabitants)

Delimitation

Fund – European Social fund

CLLD implementation in rural areas (under 6000 inhabitants, except municipal centres )

Fund – EAFRD

Possibility of combination of two instruments available for sustainable urban development - ITI and CLLD - to achieve the highest value – added to and efficiency of public investments in the urban areas.

Encouraging local rural communities to participate in solving local development problems.

Successful implementation of some initiatives may/will need to cross physical boundaries of cities, towns, fisheries regions and rural areas. It is also important to encourage sharing of experience while implementing all types of strategies. Therefore it is advisable to designate part of funding (5-10 percent) to implement cooperation activities.

CLLD implementation in fisheries regions

Delimitation

Fund – EMFF

Encouraging local fisheries regions’ communities to participate in solving local development problems.

VIEW INTO FUTURE (AFTER 2020)

VIEW INTO FUTURE• Need to change territorial statistic system (NUTS II level regions should be

established)• Wider usage of ITI model in regional planning• More “specialized” regional development

THANK YOU FOR YOUR ATTENTION