Regional Policy, An Integrated Approach

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panoramainforegio34Summer 2010Regional policy,an integrated approachA 360 viewen

contentsEditorialDirk AhnerOVERVIEW34–5Integrated approach to cohesion policy6–9INTERVIEWSFabrizio Barca – Brian Robson10–13AROUND EUROPEProjects from Portugal, Hungary, France, Poland, Germany and Belgium14–152122–23BAVARIA in DepthBavaria: integrated actions help structurallyweaker areas achieve their full potential16–17COMMON GROUND18–20ACROSS THE BOARDIntegration in actionUrban development and integrated policy Community support for urban developmentspecial featureThe outermost regions – an integrated approachREGIO MATTERSCohesion policy: at the heart of the Europe 2020 Strategy24–2526–2728INSIDE OUR PROJECTSInside the Popakademie, Mannheim – Inside the Centre for NanoHealthat Swansea UniversityNETWORKINGShared ideas, shared results (RegioStars 2010, Open Days 2010, Urbact annual conference)Diary Dates – MAKE YOUR VOICE HEARDCover: ECPhotosAll photos EC except: page 10 Miguel Rivas; page 12 MARR S.A.; page 13 Stadt Leipzig / Ch. Eisler and pages 14-15, Regensburg Luftbild Nürnberg, Hajo Dietz.This magazine is printed in English, French and German on recycled paper.It is available online in 21 languages at http://ec.europa.eu/regional policy/sources/docgener/panora en.htmThe opinions expressed in this publication are those of the author and do not necessarily reflect the views of the European Commission.

Editorial‘Integration’, ‘an integrated approach’, ‘integrated policy-making’ – in this edition of Panorama we considerwhat lies behind the words. The interdependence of policies means that, for example, transport systemsmust not only cover passenger services but also take into account environmental factors such as energyefficiency, noise levels and air pollution.The effects of the recent economic crisis on the EU make the push for effective policy even more urgent. Against this backdrop,the Commission published its Europe 2020 Strategy, which enshrines the following goals: Smart growth: developing an economy based on knowledge and innovation. Sustainable growth: promoting a more resource-efficient, greener and more competitive economy. Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion.Achieving this will require approaches that pay full attention to how one policy area affects another.The preparation of the next generation of programmes after 2013 will provide the opportunity to increase the effectivenessand the quality of delivery of cohesion policy. It is important to seize this opportunity to review the policy in order to increaseits focus on impact and results.As the debate on the future of European cohesion policy intensifies, one of the questions that will need to be addressed ishow it can provide the appropriate framework for integrated solutions tailored to people's knowledge and preferences, yetavoid a one-size-fits-all approach.This issue of Panorama looks at how the integrated approach is being applied in the current period with a special look atBavaria as well as examples from France, Germany, Hungary, Poland and Portugal. How this applies to territorial cooperationis also under the microscope in the Eurometropolis, Lille-Kortrijk-Tournai.The integrated approach has also worked particularly well in the urban context, and here the article ‘Europe needs cities, citiesneed Europe’ shows how European cohesion policy has helped to promote integrated urban development.Europe's outermost regions also deserve our attention because they often face difficulties in overcoming their remotenessfrom the centres of Europe's economic growth. Here the territorial approach, which is inherent to European cohesion policy,can play a particularly important role.Finally, two experts in the field, Professor Brian Robson from the University of Manchester (UK) and Professor Fabrizio Barca, authorof the independent report ‘An Agenda for a Reformed Cohesion Policy’, discuss their own views on the integrated approach.I hope you enjoy this edition of Panorama and that you are able to ‘integrate’ some of the ideas and concepts presentedhere into your own work.Happy reading!Dirk AhnerDirector General, European CommissionDirectorate-General for Regional Policypanorama 343

OVERVIEWIntegrated approachto cohesion policyIn recent years, the debate about Europeancohesion policy has focused on its benefits as an‘integrated approach’ towards policy-making.But what does it really mean? This issue of thePanorama magazine sets out to explain what theintegrated approach is all about.Where does the idea stem from?The integrated approach dates back to the origins of Europeancohesion policy. In 1957, when the founding six countries signedthe Treaty of Rome, their aim was "to strengthen the unity oftheir economies and to ensure their harmonious developmentby reducing the differences existing between the variousregions and the backwardness of the less favoured regions".This aim was inspired by concern that some less developedregions would not be able to benefit from further marketintegration.Successive enlargements have substantially increased regionaldisparities in the EU. In 1986, as Greece, Spain and Portugaljoined the Union, the proportion of the population living in aregion with GDP per head below 30% of the EU average, jumpedfrom 12.5% to 20%. The last two enlargements dramaticallyincreased regional differences in levels of development andfurther strengthened the need for a policy that promotesdevelopment in all regions.The Lisbon Treaty explicitly recognises territorial cohesion asa fundamental objective of the Union, in addition to economicand social cohesion. This implies that territory matters andCommunity policies, including the objectives outlined in theEurope 2020 Strategy, should give more consideration to theirterritorial impact.be extremely valuable. Singling out one policy area, say forexample transport, does not make sense without taking intoaccount environmental, social and other economic policy areas.Recent research has shown that economic growth does notsimply depend on the availability of resources but on how toeffectively manage interdependent factors of growth. A 2009OECD report, for example, argued that improvements ininfrastructure on their own do not automatically lead to highergrowth. However, when combined with improvements ineducation and innovation, the impact of infrastructureinvestment on growth becomes significant.Similarly, even if research and development is concentrated onone particular area or region, this does not necessarily implythat the benefits will be felt only within the region in question.The performance of one region in one particular sector canoften be closely linked to the performance of another. In thisrespect, regional economic development strategies need toavoid being developed in isolation.But how do all these aims fit together?The overarching objective of European cohesion policy hasalways been to promote the harmonious development of theUnion and its regions. In this respect, it makes an importantcontribution to the three strategic objectives of the Europe2020 Strategy: Smart growth, by increasing competitiveness especially in lessdeveloped regions; Inclusive growth, by promoting employment and improvingpeople's well-being; G reen growth, by protecting and enhancingenvironmental quality.The integrated approach emphasises that promotingdevelopment requires close coordination of public policies.For example, both investments in infrastructure and investmentsin education and innovation can contribute to development.Such coordination, however, can only effectively happen atthe regional level since factors of growth vary so much betweenregions. As a result, cohesion policy relies primarily onintegrated regional development strategies.The current contextIn recent years, European cohesion policy has adopted a newmodel in regional economic development. It has evolved froma policy aimed at compensating regions for their disadvantages,to a policy designed to improve regional growth andcompetitiveness. This is where the integrated approach canA new visitor centre for the Roman theatre of Mérida, Extremadura, Spain4panorama 34

Integration and place-based policiesSo how does the integrated approach fit in with a territoriallybased policy such as European cohesion policy? The day-to-dayimplementation of European cohesion policy programmesunderlines the need to work with multiple levels of government.By working closely together at European, national, regional andlocal level, European cohesion policy can increase theconsistency and synergy between different policies. This canalso contribute to the spread of good practices.The territorial approach also highlights the need to work witha more flexible sense of geography which may be small, as inthe case of islands or urban neighbourhoods, or large, as in thecase of metropolitan regions or macro-regions such as the BalticSea. For example, some cohesion policy programmes may setout to improve access to broadband in parts of their regionwhere the return on the necessary investment is not highenough to motivate companies to go it alone. Other programmesmay want to have a multiregional dimension allowing them tocreate a shared strategy for a functional area. Geographycontinues to matter.Integration presents its ownchallengesFinally, an integrated approach also presents challenges forthose working on the ground. Adopting an integrated approachtowards regional economic development requires policymakers to harness programme strategies that address realneeds, without being diverted by the relative ease of spendingresources on individual sectors.This requires setting objectives and targets based on an analysisof the challenges faced by the region itself. For example, therole of a transport system in facilitating the achievement ofwider economic, social and environmental objectives needs tobe considered, possibly on a national basis.Local strategies should not be formulated in isolation but needto consider strategies that are implemented in other areas, suchas neighbouring regions, for example. Here, European cohesionpolicy has experience in supporting the development of transregional coordination schemes which are needed to help EUregions interact and exploit their synergies. Put simply, anintegrated approach, with coordination of actions across policyareas, will achieve better results than individual initiatives.The Estação do Oriente station, Lisbon, Portugal“ „.an integratedapproach also presentschallenges for those workingon the groundpanorama 345

interviewsFabrizio BarcaDr Fabrizio Barca is Director General of the Ministry of Economy and Finance in Italy.Barca is now a special advisor to the EU Commission,a university lecturer in political sciences in Parisand has written extensively on corporategovernance and Italian history.The second reason follows on from that: in order to tacklecurrent challenges you need to combine routine and universalknowledge, not based on a particular context, with the knowledge that is held by the very agents which operate at locallevel. It is local expertise that is also needed and we need anapproach that extracts it.In your report on the future of cohesion policy youdescribed the policy as ‘place-based’. As such, howdoes an integrated approach to policy-making feedinto that? Is there a connection between those twoways of looking at policy-making?The third element is to do with the delivery. We have learnedin both the US and in Europe that the way to be effective inpolicy is to never delude yourself into thinking that you havefound a permanent solution. There are no permanent solutions.However effective a policy is, it will turn ineffective very soon,because people will learn how to find a way to work around it.So experimentalism is the key way to approach, solve and runpolicy – experimentalism being defined as a policy which allowspeople to experiment with solutions and to monitor, criticiseand express consent and dissent. Once again, a place-basedapproach is the right policy space for experimentalism.A ‘place-based’ approach is a policy strategy aimed at promotingdevelopment from outside (the place) by means of interventionstailored to contexts. Integration among different sectoralinterventions is a component of place-based policy-making,together with contracts, multi-level governance and partnershipsystems.Integration requires a place-based approach, because youcannot integrate different sectoral interventions anywhere elsebut at ground level. You can have sectoral cooperation in thecapitals of a federation, a nation or a region, but any integrationwill only be theoretical. It is only at project level that you takeinto account the specificity of a given place and realise thatonly a mix of ‘four different things at once’ can do the job.In your paper ‘The Union and Cohesion Policy –Thoughts for Tomorrow’ you outline a series ofchallenges facing the EU, such as natural, economicand social challenges. Could you explain how youfeel an integrated approach to these issues can helpand why?There are several reasons why, and three in particular. The firstis that the challenges that we are talking about are place-basedby nature. Both climate change and migration challenges,along with the need to innovate, for example, manifest themselves as problems we can only really see at ground level.You talk of a need for a clear and explicit distinctionbetween policy interventions aimed at increasingincome and growth and those aimed at reducinginequalities. Doesn’t that run contrary to an integrated approach?The objectives of any development policy are both equity andefficiency: social inclusion, which refers to multi-dimensionalaspects of human well-being, and full utilisation of capacity,which is the efficiency strand. The question then becomes:“Isn’t it true that the very causes of failing to deliver social inclusion also explain the failure to deliver full utilisation ofcapacity?”It is indeed true that a place where the institutions and thecapacity are weak means the opportunity for innovators tocome through is limited and the tendency is, instead, for the‘old guard’ to remain in place, leading to institutionalstagnation.A place-based policy, properly utilised, will change the institutions and have an effect on innovation – but only over the longterm. But, although the cause may be the same, it isn’t the casethat by improving inclusion you will necessarily boostcapacity or vice versa. For too long we have beenhiding the social agenda behind the efficiencyagenda, we have been claiming we can doboth at once. But this is not the case.“ „Integration requires aplace-based approach6panorama 34

Furthermore, and more importantly, it is not the case that theinterventions which best address one issue are also best ataddressing the other. A concrete example: imagine you havea region that is suffering under a bad education system and isinvesting regional funding to improve the quality of educationit offers. You have the top twenty, potentially brilliant universitystudents who need the courses they are offered to be radicallyimproved. You also have a majority of school leavers who quitwith no qualifications at 16.Where do you channel the money? If you invest in the academically gifted and their opportunities and ideas you will ensurea positive impact on research and innovation within a shortturnaround time. You will boost your region’s competitiveness.If you invest in the under-qualified school leavers you will donothing to address innovation in the region, but you will contribute amazingly to social inclusion because these guys willbe better citizens in two or three years’ time and do better forthemselves and those around them.Development includes both and cohesion policy should coverboth, but they should be addressed by clearly defined, separateinterventions which are declared to be either for one or theother.Evaluation is currently under the spotlight – won’tintegrated policy-making be harder to evaluate?The honest answer is ‘yes’ – the quantitative, rigorous,counterfactual impact evaluation is made harder by integrationsince, by definition, integrating different sectoral interventionsmeans that interventions are multi-component. In order toimprove the opportunities for children in a difficult area, youwant to put together a package including the quality ofteaching, the security of the kids at school and in the streets,their mobility and so on.Assessing packages presents you with a problem: you neverknow which one of the components works, you come up withthe answer that the package worked but you would still liketo know why and how exactly. Couldn’t one of the things havebeen done without the others?So it is more challenging, but experimentalism – which isallowed under a place-based approach – is the answer, becauseit encourages open, honest discussion with those in the area.It is a real-time, collaborative laboratory which permits roomfor failure.There is one more reason to do that and it has to do withachieving results. If we claim we are doing both at once, publicadministrators at the local level will not say very clearly whatthey are aiming at. That way they escape monitoring and verification of their results. By clearly distinguishing the differenttargets we can see what is happening much more clearly.panorama 347

interviewsBrian RobsonBrian Robson is Professor Emeritus at Manchester UniversityThrough the Centre for Urban Policy Studies(CUPS), which Robson established in 1983, he hasconducted a wide range of research forgovernment to evaluate urban and regionalpolicy.What is the added value of having an integratedapproach in regional economic development?Two aspects of integration can contribute to successful economicdevelopment. The first is to link the various ‘domains’ of theeconomy. Housing, transport, employment, environmentalquality and a host of social elements all interact to affecteconomic development. Yet, for administrative reasons,governance arrangements are invariably partitioned intoseparate domains. Developing common priorities across thesesilos is never easy since each has its own targets, priorities andbudgets. Nonetheless, regional economic development needsto identify how these institutionally separate elements impacton each other. The key links between labour markets andhousing markets provide a fundamental architecture for theeconomy. This reinforces the need to get transport policiesinvolved – something that not every Member State has beengood at.A second benefit is to put space centrally on the agenda.Economic development forces us all to become geographersand recognise the salience of place. Within the UK, Englishregional agencies currently face the task of integrating previouslyseparate economic strategies, which were aspatial, and spatialstrategies that include housing policy. This is not straightforward.It forces policy-makers to identify the most relevant geometryand to be more selective about investment priorities. Integratingeconomic and spatial strategy makes it difficult to dodgepriorities. It also highlights the relevance of a city-regiongeometry in place of administrative geographies based ondistricts or formal regions. City-regions are more appropriatesince they are defined functionally to recognise the footprintof the major cities which are the drivers of our post-industrialeconomies.8panorama 34When we consider the relative development ofLiverpool and Manchester, what role has anintegrated approach played in urbancompetitiveness?City competitiveness brings in a third aspect of integration:linking private, public and voluntary sectors into partnerships.Manchester has been outstandingly good at this. At the heartof its approach to re-inventing itself has been a series of strongpublic-private partnerships. Many of its major developmentshave been undertaken by delivery bodies designed to remainat arm’s length from the council and to include public andprivate sector staff. Such structures give potential investorsmore confidence about the commercial logic and the speed ofdecision-making required. The most dramatic example was thebody established to re-build the central area after it was bombedin 1996. It drew on secondees from the council and from privatesector developers and investors. The redesigned centre wascompleted in a remarkably short space of time and boostedthe retail and office offer of central Manchester at a time whena major out-of-town shopping complex came on stream andcould otherwise have undermined the commercial pull of thecentre.Liverpool’s economic turnaround has come about only recentlyand much less securely. This has partly reflected the fractiousnessof its more unstable political governance. Many of its politiciansopposed working with the private sector, and partnershipdevelopment was scanty. Hence, the large sums that flowed tothe city from Objective 1 initially resulted merely in stasis ascompeting voices jostled for slices of the cake. This is now pasthistory. Liverpool has begun to attract new investment and itseconomic prospects look less gloomy. Had it been ready todevelop priorities through stronger integrative partnershipsits recovery might have come earlier, rather than in the midstof recession. However, too much weight should not be placedon its erstwhile lack of integration. Like all ‘cul-de-sac’ towns,it suffers from its location: facing away from Europe, and witha restricted catchment area because its coastal location restrictsits city-region footprint to 180 degrees.

In your opinion, should European regional policyfocus simply on reducing inequalities, or should italso address growth and competitiveness?What examples of successful regeneration haveyou seen, resulting from an integrated approach?East Manchester provides a splendid example. The loss of itsheavy industry base left the area destitute. But a series ofReducing inequality is the right focus, but one of the tricks ingovernment-funded initiatives consciously targeted at the areathis is to link deprived areas to more prosperous competitiveover many years by the city enabled it to create a virtual singleplaces. This may be a question of simple physical access topot of resources, even though the streams of money were drawnimprove transport links to employment areas; it may be to tailorfrom different departments. The area still faces challenges butskills to the needs of local employers; it may entail attractinghas made impressive changes. The secret ingredients include:wealthier households to less prosperous places. So, one of thelongevity – tackling problems consistently over decades; scalechallenges for policy is to link poor areas to growth areas at a– an area of over 1 000 hectares which gives it heightenedvariety of spatial scales – local, sub-regional, regional. Toopolitical salience; community participation – with anmany towns and regions see themselves as islandsinitial programme of genuine local consultation– perhaps understandable for a politician withand involvement; commitment – with able,a ‘patch’ to defend – rather than as part of aunchanging staff; and comprehensivenesswider functional area. A broader city– simultaneously tackling jobs, schooling,region perspective again helps. Forhousing, health, crime.example, in an English context the mostIntegrating economic“ „plausible strategy for some impoverishedand spatial strategy makes itex-single-industry towns lies less indifficult to dodgeattempts to recreate an industrial baseprioritiesthan in creating a housing stock andresidential environment to attracthouseholds to commute to jobs in nearbylarge cities; thereby bringing a flow of potentialincome through local tax and patronage of localgoods and services.Regenerating Salford Quays in Greater Manchester with regional fundspanorama 349

Around EuropePanorama visits projects from Portugal,Hungary, France, Poland, Germany and ajoint Franco-Belgian project to see differentforms of integrated development in action.Creative clusters –creativity asa driving forceÓbidos in Portugal is a popular touristdestination, well-known for its medievalarchitecture. This picturesque town and itssurroundings are buzzing with creativity: acreative cluster is providing the region with freshbusiness ideas which in turn produce spill-oversfor the traditional rural economy.Óbidos’s old Saint Michael’s Convent has been refurbished tohouse the ABC Support System, an organisation offering helpto creative entrepreneurs. Design, tourism, publishing orjewellery – diverse profiles are brought together under oneroof.“The work [ ] is based on a crucial idea: we must innovate anddevelop unique projects when we are faced with a territorythat is small or depressed,” says Telmo Faria, Mayor of Óbidos.The ‘creative clusters’ project is putting this idea into action. Itstimulates creativity in small towns in order to boost culturaland economic activity, an approach traditionally used for bigcities.While the main objective is the promotion of entrepreneurship,the integrated approach creates important spin-offs, e.g. forthe knowledge economy or the regeneration of neighbourhoods.The creation of galleries, thematic restaurants and specialisedschools and the organisation of workshops or trade fairs gohand-in-hand with developments in sectors such as tourism,gastronomy, agriculture and furniture which have been part ofthe local economy for a long time.The concept is being put into practice in 10 partner locationsas part of a network led by Óbidos.Creative clusters – fundingTotal project budget: 709 337ERDF contribution: 532 380Find out ivity/creative-clusters/Magdolna quarter,Budapest: putting thelocal community firstHelping people help themselves– this is the underlying principle ofthe Magdolna quarter project. It addresses social,economic and environmental issues whileinvolving the residents at every step of theprocess.With high unemployment and crime rates, low education levelsand poor housing conditions, the Magdolna quarter (Józsefvárosdistrict) is one of Budapest’s poorest areas. A project waslaunched in 2005 to turn this situation around. It started outfrom the assumption that an integrated approach taking intoaccount the three basic elements of urban regeneration (society,economy and environment) was needed to improve livingconditions.And who better than the residents themselves to bring thisabout? By involving them in the design and implementationof the various measures, the risk of not hitting targets wasminimised.The Mátyás square restoration project, aimed at giving thesquare a community/building function, is one example of howthis idea was put into practice. The plans were discussed inon-the-ground meetings with the residents, surveys werecarried out during the design phase, and pupils from a localschool created ‘sitting mounds’ for the square. The followingphases included traffic reorganisation, construction of a publiclavatory, the creation of a pedestrian area and the opening ofa community centre in a former glove factory overlooking thesquare.The programme is Hungary’s first experiment in terms ofrehabilitating a district, with the direct involvement of residentsand integrating social, cultural and technical aspects.Magdolna quarter project – fundingTotal project budget: 8 180 047ERDF contribution: 7 218 733Find out more:http://www.rev8.hu/10panorama 34

Île-de-France: buildinga greener futureThe green building sector has emergedas a tailor-made solution for the Seine-Avalarea. By giving a boost to this seminal industry,a set of interconnected issues affecting the regionis being addressed.Situated upstream on the river Seine northwest of Paris, theSeine-Aval area has suffered from de-industrialisation, generatingjob losses, as well as from a mismatch between skills and jobs.This has in turn resulted in high numbers of commuters.The green building sector was found to match the area’s needsand assets: favourable conditions are being created throughplans to create 2 500 new homes yearly from 2010 as well as newguidelines on the energy efficiency of buildings. A large availableworkforce, high numbers of existing enterprises in theconstruction sector and the nearby river are additional assets.As a positive spin-off, the image of professions in the constructionsector receives a boost through the link with new technologies.Thanks to funding being made available within the frameworkof the In’ Europe project for integrated urban development, anall-round offer including training facilities, advice forentrepreneurs and measures to stimulate demand was put inplace. The ‘Green Building Agency’ opened its doors in June2009. It houses the green building training institute (IFECO) whichis the first of its kind in the region.Efforts to stimulate demand in the green building sector havealso been undertaken. They range from awareness campaignsto regulatory measures extending the use of wood as aconstruction material.“The institute is creating a leverage effect,” explains Jean-MarieRipart, director in charge of economic development andemployment at the Communauté d'Agglomération Deux Rives deSeine implementing the project. “It prepares the population fortomorrow’s job market.”In’ Europe project in Seine-Aval – funding sources(2007–13)Regional funds:ERDF: 12 millionESF: 4 millionOther sources:EAFRD: 1.07 millionInnovationcapital:channellingresearch fromlaboratory to marketThe Capital Investment Fund managed by theMałopolska Regional Development Agency(MARR), Poland, is forging the link between localresearchers and entrepreneurs.Thanks to a number of higher education, business and scienceinstitutes, the R&D sector is among the region’s key assets, asconfirmed by indicators such as the number of patentsregistered. The Fund wa

Geography continues to matter. Integration presents its own challenges Finally, an integrated approach also presents challenges for those working on the ground. Adopting an integrated approach . integrated approach, with coordination of actions across policy areas, wil

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