CITIES AND CONTEMPORARY CHALLENGES OF REGIONAL DEVELOPMENT POLICY THREE KEY MESSAGES FROM THE POLISH LABORATORY

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1 INSTITUTE OF SOCIO-ECONOMIC GEOGRAPHY AND SPATIAL MANAGEMENT CITIES AND CONTEMPORARY CHALLENGES OF REGIONAL DEVELOPMENT POLICY Paweł Churski 12th WORLD CONGRESS OF RSAI TRSA Activities during the RSAI World Conference SPATIAL SYSTEMS: SOCIAL INTEGRATION, REGIONAL DEVELOPMENT AND SUSTAINABILITY ADAM MICKIEWICZ UNIVERSITY FACULTY OF GEOGRAPHY AND GEOLOGY InstItute of Socio-Economic Geography and Spatial Economy Department of Regional Analysis Bogumiła Krygowskiego POZNAŃ POLAND

2 Agenda 1. Introduction 2. History matters is it the foundation determining development paths? 3. Money is not everything how do we absorb EU public funds? 4. Institutions rule how do we apply the tools? 5. Summary

3 Introduction

4 Introduction Poland information in brief Akcesja Polski do UE 1 maja 2004r. Area: 312,679 km 2 (9th biggest in Europe, 68th globally) Population: m (8th place in Europe, 32nd globally)

5 Introduction Success story? Real GDP Growth Rate EU 27, USA, Japan (annual % change, 2009) Source: EUROSTAT and own resources

6 Introduction Polarisation of development development potential Source: World Bank Reports

7 Introduction Polarisation of development Regional disparities of socio-economic develoment European Union (GDP/per capita 2009) The twenty highest: The twenty lowest: 1 Inner London (UK) Severozapaden (BG) 27 2 Luxembourg (LU) Severen tsentralen (BG) 29 3 Bruxelles-Cap. / Brussels Hfdst. (BE) Nord-Est (RO) 29 4 Hamburg (DE) Yuzhen tsentralen (BG) 31 5 Bratislavský kraj (SK) Severoiztochen (BG) 36 6 Île de France (FR) Sud-Vest Oltenia (RO) 36 7 Praha (CZ) Yugoiztochen (BG) 36 8 Stockholm (SE) Sud-Est (RO) 38 9 Groningen (NL) Észak-Magyarország (HU) Åland (FI) Sud-Muntenia (RO) Wien (AT) Lubelskie (PL) Oberbayern (DE) Podkarpackie (PL) Bremen (DE) Észak-Alföld (HU) North Eastern Scotland (UK) Dél-Alföld (HU) Darmstadt (DE) Nord-Vest (RO) Utrecht (NL) Dél-Dunántúl (HU) Noord-Holland (NL) Podlaskie (PL) Hovedstaden (DK) Warmińsko-Mazurskie (PL) Bolzano / Bozen (IT) Centru (RO) Berkshire, Buckinghamshire & Oxfordshire (UK) Swiętokrzyskie (PL) 47 Source: Regional GDP Regional GDP per capita in 2009: seven capital regions in the ten first places. European Commission. STAT/12/ March

8 Introduction Concept for the spatial development of Poland Source: based on Koncepcja Polityki Przestrzennego Zagospodarowania Kraju 2001, adapted in Bański 2007: 67.

9 Introduction Interregional divergence [%] [%] 18,0 60,5 17,0 60,0 16,0 59,5 15,0 59,0 14,0 58,5 13,0 58,0 12,0 57,5 11, ,0 Source: own compilation based on data from Poland s Central Statistic Office 5 least developed regions 5 best developed regions

10 History matters. Is it the foundation determining development paths?

11 Division of Europe after World War II History matters. Is it the foundation determining development paths? Teheran 1943 Yalta 1945 Potsdam 1945

12 Consequences of division of Europe after II World War CITIES AND CONTEMPORARY CHALLANGES OF REGIONAL DEVELOPMENT POLICY THREE KEY MESSAGES FROM POLISH LABORATORY History matters. Is it the foundation determining development paths? SYSTEMIC FEATURES OF STATE SOCIALISM (OF SOVIET TYPE) Central planning as the basis for the mechanism of economy regulation Collective property (state and cooperative) as the dominant property type No division of powers (legislative, executive and judiciary) Principle of the leading role of the party Principle of nomenclature Source: J.Wilkin. Transformacja systemowa polskiej gospodarki. WNE UW. Warszawa. PKB per capita 1950 ver Poland Spain Hungary Austria Source: L.Balcerowicz, Transformacja polskiej gospodarki na tle innych państw regionu. FOR. Warszawa; Maddison Database. Goa, May 29 - June

13 POSTMODERNIZATION GLOBALIZATION MODERNIZATION POSTMODERNIZATION GLOBALIZATION INTEGRATION INTEGRATION 1945 WESTERN EUROPE CENTRAL AND EASTERN Kierunek i zakres oddziaływania EUROPE współczesnych CONTEMPORARY SOCIO-ECONOMIC DIVERSIFICATIONS OF EUROPEAN UNION REGIONS CONDITIONS megatrendów AND DEVELOPMENT rozwoju FACTORS społeczno-gospodarczego na przemiany czynników rozwoju regionalnego MODERNIZATION TRANSFORMATION CENTRALLY PLANNED ECONOMY 1990 TRANSFORMATION CRISIS IGU Thematic Conference, Moscow, 4-6 June 2018 PRACTICAL GEOGRAPHY AND XXI CENTURY CHALLENGES

14 History matters. Is it the foundation determining development paths? Team of authors: Dr hab. Paweł Churski, prof. UAM Dr Barbara Konecka-Szydłowska Dr Robert Perdał MSc. Tomasz Herodowicz New challenges of regional policy in shaping factors of socio-economic development of less developed regions Project of the Polish National Centre for Science NCN 2015/19/B/HS5/00012

15 Division of Poland and relic boundaries Between History matters. Is it the foundation determining development paths? Kaczyński Tusk (2005) Parliamentary election (2007) Between Duda Komorowski (2015) Parliamentary election (2015)

16 Division of Poland and relic boundaries History matters. Is it the foundation determining development paths? growth stagnation areas areas transition areas stagnation growth areas areas stagnation growth

17 Money is not everything how do we absorb EU public funds?

18 bln EUR Money is not everything how do we absorb EU public funds? From 200 m EUR to 10.9 bln EUR per year Source: own compilation based on data from Ministry of Regional Development

19 EU Budget Money is not everything how do we absorb EU public funds? POLAND IN EU BUDGET COHESION POLICY EU POLAND Common Agricultural Policy Source: own compilation based on data from Ministry of Regional Development Europe s biggest Operational Program Infrastructure and Environment, budget over 24 bln euro. Over 60% of funds spent regionally!

20 Money is not everything how do we absorb EU public funds? Spatial distrubution: absorption vs. development Spatial incidence of cumulated per capita values of EU funds and values of the location quotient (LQ) by poviats in the period Spatial distribution of nodes of development and development peripheries by poviats in Poland ( ). Source: Churski P., Perdał R., 2016, Where Do Cohesion Policy Funds Flow and Do They Have any Impact? - The Polish Lesson, Barometr Regionalny, 14/3, Wyższa Szkoła Zarządzania i Administracji w Zamościu: 7-24.

21 Białystok Bydgoszcz Gdańsk Gorzów Wlkp. Katowice Kielce Kraków Lublin Łódź Olsztyn Opole Poznań Rzeszów Szczecin Toruń Warszawa Wrocław Zielona Góra Białystok Bydgoszcz Gdańsk Gorzów Wlkp. Katowice Kielce Kraków Lublin Łódź Olsztyn Opole Poznań Rzeszów Szczecin Toruń Warszawa Wrocław Zielona Góra Cities in spatial diversity CITIES AND CONTEMPORARY CHALLANGES OF REGIONAL DEVELOPMENT POLICY THREE KEY MESSAGES FROM POLISH LABORATORY Money is not everything how do we absorb EU public funds? Share of the regional centres in the absorption of EU means in a region numer of project ( ) value of project ( ) 100% region 90% 80% regional center 70% 60% 50% 40% 30% 20% 10% 0% region regional center share of the regional centers is from 7 to 21% share of the regional centers is from 12 to 51% Source: Churski, P., Perdał R., Herodowicz T., Can a biggie get more? The place of regional centres in process of absorption of European funds in Polish voivodeships,,,europa XXI, t. 30, Instytut Geografii i Przestrzennego Zagospodarowania PAN, Warszawa:

22 Structure of absorption to 1999 TECHNICAL INFRASTRUCTURE HUMAN CAPITAL ENTREPRENEURSHIP AGRICULTURE AND RURAL DEVELOPMENT ENVIRONMENTAL PROTECTION CITIES AND CONTEMPORARY CHALLANGES OF REGIONAL DEVELOPMENT POLICY THREE KEY MESSAGES Structure FROM of POLISH value of LABORATORY inputs Pieniądze to nie wszystko jak korzystamy z europejskich środków publicznych? TECHNICAL INFRASTRUCTURE ENTREPRENEURSHIP HUMAN CAPITAL AGRICULTURE AND RURAL DEVELOPMENT ENVIRONMENTAL PROTECTION TECHNICAL INFRASTRUCTURE ENVIRONMENTAL PROTECTION ENTREPRENEURSHIP AGRICULTURE AND RURAL DEVELOPMENT HUMAN CAPITAL AND TECHNICAL INFRASTRUCTURE ENTREPRENEURSHIP ENVIRONMENTAL Structure PROTECTION of value of inputs HUMAN CAPITAL INFRASTRUCTURE AND SOCIAL CAPITAL Source: own complitation based on data from Ministry of Regional Development

23 Money is not everything how do we absorb EU public funds? Cities in structure of absorption per capita absolute values administration safety energetics science and education health protection revitalization telecommunications and e-services R&D none culture and art. environment conservation work and social integration business development transport Source: own compilation based on data from Ministry of Regional Development administration safety energetics science and education health protection revitalization telecommunications and e-services R&D none culture and art. environment conservation work and social integration business development transport

24 Institutions rule how do we apply the tools?

25 Institutions rule - how do we apply the tools? Smart specialization areas in Poland country approach Source: own compilation based on data from Ministry of Economy

26 Institutions rule - how do we apply the tools? Smart specialization areas in Poland regional approach Source: Dziemianowicz, Szlachta, Peszat (2014) and own compilation based on data from Ministry of Regional Development

27 Institutions rule - how do we apply the tools? Smart specialization areas in Poland regional vs. country approach Source: own compilation based on data from Ministry of Economy and Ministry of Regional Development

28 Institutions rule - how do we apply the tools? Smart specialization areas in Poland regional ver country approach Source: own compilation based on data from Ministry of Economy and Ministry of Regional Development

29 Integrated Territorial Investments (ITI) Regions Functional Urban Area population Institutions rule - how do we apply the tools? number % Source: Korceli (2010); Szafranek (2015) and own compilation based on data from Ministry of Regional Development

30 Institutions rule - how do we apply the tools? Public Participation our future is human Source: own compilation based on data from The Project of Strategy of Development of Powidz Commune. Goa, May 29 June 1, 2018.

31 SUMMARY

32 Summary cities are poles of growth and must be responsible for the development of not only their areas but also their immediate and more distant environment, let us remember that development factors change under the influence of various conditions. Historical conditions play a large role. This prevents a simple replication of proven solutions and forces adjustment of the intervention to local specifics, public developmental intervention must be focused more on long-term supply-side effects, with impact on human and social capital. Let us not opt for quick fixes - let us opt for lasting effects, efficient institutions are a pre-condition for an effective development policy. The use of ex-ante evaluation in the system of inefficient institutions results in multiple pathologies, the decentralization of powers and funds, rather than the current reverse trend, increasing the role of the state and the European Union, is a means to increase the effectiveness of development interventions.

33 ADAM MICKIEWICZ UNIVERSITY INSTITUTE OF SOCIO-ECONOMIC GEOGRAPHY AND SPATIAL MANAGEMENT REGIONAL ANALYSIS DEPARTMENT CITIES AND CONTEMPORARY CHALLENGES OF REGIONAL DEVELOPMENT POLICY THREE KEY MESSAGES FROM THE POLISH LABORATORY Thank you for your attention Paweł Churski 12th WORLD CONGRESS OF RSAI TRSA Activities during the RSAI World Conference SPATIAL SYSTEMS: SOCIAL INTEGRATION, REGIONAL DEVELOPMENT AND SUSTAINABILITY ADAM MICKIEWICZ UNIVERSITY FACULTY OF GEOGRAPHY AND GEOLOGY InstItute of Socio-Economic Geography and Spatial Economy Department of Regional Analysis Bogumiła Krygowskiego POZNAŃ POLAND