Ukraine’s regional development – how and where resources should be directed – Ukraine news

Ukraine's regional development - how and where resources should be directed - Ukraine news

Figure 2. Coverage of the territory of the Czech Republic by ITI. Source: Regional Development Strategy of the Czech Republic 2021+

To apply the ITI tool in the 2014-2020 program period, Poland has identified 24 cities with their surrounding areas, of which 17 are the centers of provinces (voievodstvos). EUR 6.2 billion was allocated for their development, including EUR 3.8 billion from EU structural funds. A prerequisite for raising funds was the formalization of cooperation between the respective centers and neighboring municipalities (gminas) in the form of associations or memoranda.

This approach is also being applied in the current program period, and experts from the Krakow Institute for Urban and Regional Development offer to supplement the selected growth poles, viewed as economic development drivers, by 54 more development balancing centers to mitigate territorial disparities.

Figure 3. ITI zones in Poland

How to launch the economic growth poles in Ukraine?

It is clear that the time has come to tackle the challenge of stimulating economic growth and overcoming territorial disparities within national regional policy. The solution to these problems must not be viewed as a choice between two separate approaches, but rather as two complementary tools.

The EU recommendations set the guideline. “Regional policy in the EU is the main instrument for reducing regional disparities and investing in sustainable and inclusive socio-economic growth,” the European Commission states in Ukraine 2023 Report on its progress in implementing the requirements of the chapters included in the list of negotiated ones in the European integration process.

The path of EU member states demonstrates that an approach based on growth poles (centers) of various levels (key agglomerations, regional and subregional growth poles) is actually inevitable. Each of these poles must be viewed not as a separate city (community), but as a FUA. There must be specific incentive programs aimed at the development of such multilevel functional urban areas and the fulfillment of their functions in course of the national, regional, or local economy development.

While we do not have direct access to EU structural funds, it is clear that the mechanism for such incentives resembling the ITI instrument can be built at the national level. This means not only identifying specific lines of support for different types of growth poles, but also synergizing sectoral programs based on a place-based approach.

Funding for the poles must be provided at least on a medium-term basis (3-5 years). To attract it, functionally interconnected neighboring municipalities must develop joint (integrated) strategies/plans with a list of key projects aimed at boosting economic development, strengthening functional ties, and improving access to services for residents.

This approach can also facilitate a more effective solution to local recovery challenges, when affected municipalities will not be limited to government support only, but will be also supported by neighboring partner municipalities from their common functional group.

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Publish date : 2024-09-30 06:26:00

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