European Union Cohesion Policy: Structural Funds and Regional Development Goals
Explore the European Union's Cohesion Policy focusing on Structural Funds allocated to regions below certain GDP levels, with a goal to reduce regional disparities in development. Learn about the criteria, implementation strategies, challenges, and the impact of corruption on fund distribution and project selection.
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Presentation Transcript
Cohesion Policy: Structural Funds for regions below 75% of EU average GDP/capita (PPP) Cohesion Funds for regions below 90% of EU average GDP/capita (PPP) Targeted at 25% of EU citizens (2014-2020) Total transfers: 0.36% of EU GNI in 2012 Certain countries (e.g. Hungary or Poland) receive more than 2% of their GNI Declared goal: Reduce regional disparities in development
1. Funds are targeted at the least developed regions (concentration) 2. Regional and local authorities should be involved in the planning, implementation and monitoring phases (partnership) 3. Priorities are fixed for seven-year periods (programming) 4. Financing through the Structural Funds is intended to complement national investments in the same fields (additionality)
Diverting stated development goals for private gain Influencing project selection for private gain Bribery/favouritism in the public procurement process Fraud in the use of funds
The issue of absorption Crowding out budgetary resources Non-corruption rent-seeking (!) Exchange rate Mentality and attitude differences - two discourses Project approach+
SIDESTEP AWARENE X EVALUATI RESULTS INCOME OTHER FUNDS GOV MIN X ON SS EP SF distribution mechanisms represent pork-barrel politics SF outcomes are dependent on the nature of the institutions and the political regime in the receiving MS X X X X X X X Corruption: Ineffectual control mechanisms in the recipient MS X X X X X Corruption: Diverting stated development goals for private gain X X X X X Corruption: Influencing project selection for private gain and Bribery/favouritism X X X X X Corruption: Fraud in the use of funds X X X Other structural problems: General rent-seeking, crowding out, attitudes X X X
flexible funding participatory grant-making (including participatory needs assessment, diverse options in terms of grant size and type; encouraging strategic thinking, and ensuring liquidity for budget-constrained)
Severely materially deprived (% of the population, 2012) 30 25 Cohesion countries Not Cohesion countries 20 15 10 5 0 BG RO HU LV LT CY PL IT EL IE MT SK PT EE UK CZ SI BE FR ES AT DE FI DK NL LU SE
