Does EU cohesion policy work? Theory and evidence

This paper evaluates the effectiveness of European Cohesion Policy in the regions of 12 EU countries in the period 1991–2008, on the basis of a spatial growth model, which allows for the identification of both direct and indirect effects of EU funds on GDP per worker growth. We find that “Objective 1” funds are characterized by strong spatial externalities and a positive and concave effect on the growth of GDP per worker, which reaches a peak at the ratio funds/GDP of approximately 3 percent and becomes non‐significant after 4 percent. “Objective 2” and “Cohesion” funds have nonsignificant effects, while all the other funds exert a positive and significant effect, but their size is very limited. EU Cohesion Policy, moreover, appears to have increased its effectiveness over time. In the period 2000–2006 Objective 1 funds are estimated to have a median multiplier equal to 1.52, and to have added 0.37 percent to the GDP per worker growth. Overall, in the period 1991–2008, funds are estimated to have added 1.4 percent to the median annual growth, and to have reduced regional disparities of 8 basis points in terms of the Gini index.     

The impact of EU Objective 1 funds on regional development: Evidence from the U.K. and the prospect of Brexit

Brexit means that regions of the United Kingdom will lose access to the EU Cohesion Policy. Have EU funds been effective, and what might be the consequences of an interruption of EU financial support? This paper studies the impact of “Objective 1” funding—the highest form of EU aid—in Cornwall and South Yorkshire, two of the U.K.’s most subsidized regions. Counterfactual methodologies assessing their labor market and economic performance provide evidence of a positive effect of EU Objective 1 funds. When in 2006 South Yorkshire lost Objective 1 eligibility, this massively reduced its share of EU funds and the region was unable to sustain the gains obtained in previous years. This suggests that while Structural Funds may be effectively improving socio‐economic conditions of poorer regions, the performance of subsidized areas could be deeply affected by a reduction (or worse, an interruption) of EU aid.     

Assessing Territorial Impacts of the EU Cohesion Policy: The Portuguese Case

This article examines the territorial impacts of the EU Cohesion Policy in Portugal, between 1990 and 2010, at the national level. To reach some conclusions, after a brief overview of the existing literature on territorial impact assessment (TIA) procedures, we present the main features of a proposed TIA technique, which we called TARGET_TIA, and applied to our study case. This analysis permitted us to go beyond the general scope of the EU Cohesion Policy evaluations, which concentrate mainly on the socioeconomic and environmental dimensions, by placing on evidence other key-territorial dimensions, such as Territorial Governance/Cooperation and Polycentricity. Findings indicate that, in general, the EU Cohesion Policy had positive territorial impacts in Portugal, namely by supporting the construction of absent and necessary physical infrastructures. However, the lack of spatial planning and strategic vision limited a more effective and efficient use of Cohesion Funds in Portugal.     

Structural Funds and European Regional Growth: Comparison of Effects among Different Programming Periods

Strengthening social, economic and territorial cohesion is a central objective of the European Union (EU) and the Structural Funds reflect the main financial effort of the EU to pursue this goal. So far we have gone through four programming periods; to what extent the EU Funds have become more effective in promoting growth and reducing the disparities between EU Member countries is a matter of concern. We investigate the existence (or not) of learning effects and efficiency improvements following the reforms of Regional Policy. The study is applied to data from EU regions (EU12) in the most recent programming periods where data are available. The results suggest an improvement of the Funds efficiency in growth in 2000–2006 when compared to the previous programming period. Moreover, the returns from investments of Funds tend to be higher in richer, higher-educated and more innovative regions. Finally, the Cohesion group has not been able to transform the large transfers received into additional growth.     

Territorial cohesion storylines in 2014–2020 Cohesion Policy

The purpose of this paper is to elaborate the concept of territorial cohesion in the context of 2014–2020 Cohesion Policy. The main goal is to investigate how European Union (EU) Member States (MSs) are coping with territoriality in their policies and to assess whether they are only fulfilling the minimum standards of a place-based approach or whether they are moving towards a new paradigm of policy-making characterized by a more territorially sensitive approach. This paper analyses Partnership Agreements which were signed between the European Commission and EU MSs and identifies the perception of territorial cohesion in the Cohesion Policy in the programming period 2014–2020. The analysis shows that different MSs choose different ways of addressing territoriality of their policies. It is thus possible to categorize countries into several groups sharing similar features and to discuss underlying ideas and approaches, which could shed some light on the still rather fuzzy concept of territorial cohesion.     

国家精准扶贫政策对贫困农户脱贫增收的效果评价——基于双重差分模型的检验

基于重庆市武陵山区和秦巴山区贫困农户与非贫困农户的调研数据，运用双重差分模型检验精准扶贫政策对贫困农户收入增长的影响。结果表明，贫困农户在精准扶贫政策的支持下，家庭人均纯收入增长显著，与非贫困农户相比差距进一步缩小；家庭主要收入来源，由单一渠道向多渠道转变，人均种植业收入和人均养殖业收入增长最明显，二者贡献率合计达到61.87%；农户的年龄、家庭人口数量、老人小孩数量、耕地面积、耕作半径、是否发展特色产业等因素对贫困农户家庭人均纯收入影响显著。因此，发展特色产业，解决贫困农户的教育、医疗、住房和土地撂荒问题是保障贫困农户脱贫后稳定增收的关键。     

The Lisbonization of EU Cohesion Policy: A Successful Case of Experimentalist Governance?

This article traces the emergence of a new “experimentalist governance architecture” in EU Cohesion policy and assesses its effectiveness. Following trends in other EU policy areas, the core features of the architecture are the joint setting of objectives between EU institutions and the Member States, (semi-)autonomous implementation by the Member States and regions, the use of performance reporting and peer review mechanisms at the EU level and the periodic revision of policy objectives. The new architecture—characterized by a hybrid mix of soft and hard new modes of governance—has been instrumental in driving policy and governance change in the 2007–2013 strategies and delivery arrangements, although a direct and exclusive “EU-driven effect” is not always easy to discern. More fundamentally, the effects on mutual learning have so far been weak and are unlikely to improve unless a more structured and robust assessment and peer review process is introduced.     

Gaining in impacts by leveraging the policy mix: Evidence from the European Cohesion Policy in more developed regions

This paper investigates how the overall impact of the European Cohesion Policy depends on the composition of the regional investment in Hard (infrastructure) and Soft (business and technical support) projects. The study employs a generalized propensity score (GPS) analysis in a multidimensional treatment context. In particular, the two dimensions considered are given by the Hard and Soft investments. The GPS estimation is based on a set of relevant idiosyncratic features of the regions. The second step estimates a dose–response function in a two-dimensional setting. The results confirm the existence of nonlinearities in the effect of different amounts of funds, but more importantly, show a degree of complementarity between Hard and Soft investment and that for policymakers, it is crucial to exploit such features to achieve more significant impact. The EU's more developed regions could have achieved a doubled GDP p.c. growth rate by pursuing a policy mix where Hard investments are reduced in favor of Soft investments. This improvement is comparable to the one obtained by at least doubling the available resources. The findings add to the evidence collected on the impact of the Cohesion Policy, suggesting a shift of the debate from the quantity to the quality of the expenditure pursued under the umbrella of territorial policies.     

Territorial Cohesion of Tomorrow: A Path to Cooperation or Competition?

Explicit reference was made to “Territorial Cohesion” in the draft Constitution for Europe. The concept has recently been celebrated by many stakeholders of territorial development policies, including the European community of planners. Territorial Cohesion does not seem to have received any official definition, but it is clearly meant to aim at some sort of “spatial justice” while promoting integration between EU sector policies that have a territorial impact. Seemingly a consensual principle: who in Europe would object to a better coherence between various EU policies and the provision of reasonably equal standards of living to all EU citizens, regardless of their area of settlement? Yet a close examination of the current political debate suggests that very divergent views are being expressed as to what Territorial Cohesion exactly entails in practical terms. Two main different policy approaches seem to emerge in this debate. The first approach tends to equate Territorial Cohesion to a range of positive discrimination steps in favour of various penalised areas. Interest groups, in particular lobbies for specific regions, have proved influential in propagating this conception. In the area of regional policy, this approach embodies the neo-corporatist, depoliticised line of the contemporary political culture. It is primarily inspired by financial considerations and a competitive zero-sum game scenario: regions of a specific category should increase their share of the EU funding at the expense of the others. The opposite approach places much more emphasis on the need for integrated territorial planning strategies and the integration of EU policies. Its proponents are the heirs of the post-war urban and regional planning tradition. They strive to revive the politicised and rationalist ideology of the Enlightenment, based on the notion of public interest. They raise awareness about the steadily growing interdependence between regions and cities of Europe and advocate a cooperative approach focusing on issues of transnational relevance and win-win situations. This rather idealistic cooperative approach seems to be less influential than its rival, and currently confined to a relatively small group of planning professionals. The question remains: which of the two models—interregional competition or cooperation—will finally succeed in shaping the EU cohesion policy?     

From Conditionality to Europeanization in Central and Eastern Europe: Administrative Performance and Capacity in Cohesion Policy

Abstract

This article assesses the role of administrative capacity in explaining the performance of eight Central and Eastern European countries in managing Cohesion policy over the 2004–2008 period. Drawing on a conceptual framework from the Europeanization literature, it explores whether pre-accession administrative adjustment to comply with the “acquis” continued in the post-accession period, against a backdrop of critical assessments about the state of administrative capacity for managing Cohesion policy. We conclude that administrative capacity was developed faster and more substantially than commentators predicted. The findings have implications for our understanding of the post-accession compliance record of the EU8, challenging the contention that they fall within a “world of dead letters”. Administrative capacity has been underestimated and insufficient attention has been given to the dynamics of capacity evolution and learning.     

Tailored polities in the shadow of the state’s hierarchy. The CLLD implementation and a future research agenda

The paper provides a theoretical contribution to the multi-level governance debate, discussing the role of the policy instruments in tailoring polities for local development strategies. To this purpose, it examines the Community-Led Local Development (CLLD), a policy tool of the EU Cohesion Policy 2014–2020, which has generated more than 3000 local initiatives across the EU. An institutionalist perspective enables a reflection on the multi-level normative dimensions of these local initiatives. A combination of the post-functionalist governance theory, the soft space debate, state-theory and strategic-relational approach provides an interpretative framework to be deployed for a dedicated research agenda. The interpretative challenge is about whether the CLLD enables spatial-temporal fixes in which a deliberative polity pursues a spatial imaginary for an ad-hoc territory. The consequent analytical dimensions can be found in (a) the relationship between attendant ad-hoc polity, policy agenda, territorial design and societal processes; and (b) the meta-governance dimensions that locate the bottom-up constituency of this institutional technology in the shadow of state’s hierarchy. An overview of the CLLD implementation across the EU provides evidence on the latter.     

EDUCATION AND INCOME INEQUALITY IN THE REGIONS OF THE EUROPEAN UNION*

ABSTRACT This paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995–2000, it analyses how microeconomic changes in human capital distribution affect income inequality for the population as a whole and for normally working people. The different static and dynamic panel data analyses conducted reveal that the relationship between income per capita and income inequality, as well as between a good human capital endowment and income inequality is positive. High levels of inequality in educational attainment are also associated with higher income inequality. The above results are robust to changes in the definition of income distribution and may be interpreted as a sign of the responsiveness of the EU labor market to differences in qualifications and skills. Other results indicate that population ageing, female participation in the labor force, urbanization, agriculture, and industry are negatively associated to income inequality, while unemployment and the presence of a strong financial sector positively affect inequality. Finally, income inequality is lower in social‐democratic welfare states, in Protestant areas, and in regions with Nordic family structures.     

The effectiveness of UN and EU sanctions: lessons for the twenty‐first century

A fractious UN Security Council has contributed to the decline in effectiveness of a number of UN sanctions adopted in recent years. Yet they remain a tool of the Council, for example with regard to Libya in 2011. The challenge is to understand how UN, country (US) and regional sanctions (EU, AU, Arab League) can be meaningful in such a climate. The four books reviewed make various suggestions, from clarity of mandate to better evaluating impact. Mikael Eriksson's Targeting peace seeks to evaluate the complexity of the sanctions policy process. He argues that effectiveness comes partly from understanding politics (episodes of sanctions), but also from institutional reform—‘black box’ processes, as he calls them. Sanctions are more successful as part of a wider package. Clara Portela in European Union sanctions and foreign policy examines the use of sanctions as a political tool, including the suspension of development aid and the withdrawal of trade privileges. She shows how the EU plays an important role in signalling and constraining when UN sanctions are weak. For example, informal measures like the 2003 EU decision to invite only dissidents to national day receptions in Havanna resulted in the release of detainees that it had aimed for. The high rate of success of development aid cut‐off stands in sharp contrast with EU Common Foreign and Security Policy sanctions. The unintended consequence of good intentions is also highlighted by both Portela and Eriksson—Zimbabwe in particular but also Côte d'Ivoire and Iran pose similar challenges. The imposition of EU or UN sanctions is easier than reaching consensus to lift them, although events in Burma (Myanmar) in 2012 have resulted in smooth suspensions of most US and EU sanctions. All four books show that targeted sanctions cannot be seen as stand‐alone measures, nor assessed in isolation. Sanctions are multi‐faceted and require detailed assessment of political context, episode and institutional process.     

The dynamics of the community support framework for Greece and its contribution to regional convergence

The objective of this paper is to shed light on the dynamic aspects of the Community Support Framework for Greece and to further explore its contributions to regional convergence. Given that, the majority of the Greek regions have been classified among the poorest regions of the European Union (EU) with a major inter and intra regional divergence gap, the issue of catching up the convergence factors acquires paramount importance in view of the new trends of European Community (EC) Regional Policies. Unquestionably, the convergence of the Greek regions requires a series of macroeconomic management devices and the encouragement of a series of soft and hard infrastructure projects which will restructure, upgrade and adjust their regional economy. The analysis of this paper will focus on the assistance stemming from the Regional and Structural Funds of the EU, plus the Cohesion Fund with the aim to uncover the factors which determine the extension and intensity of the convergence and divergence procedure. Using the data from the Community Support Framework (CSF I) (1989–1993), which has already been completed, attention will be paid to some of the basic problems which decisively impedes the real convergence of the Greek regions. The author will also examine in depth the criteria used by the competent authorities in allocating the funds to the regional bodies in relation with the existing regional imbalances and then he will propose a new synthetic method considering more factors which influence the final allocation approach. The conclusions of the paper might systematically unravel a series of problems facing the regions both socio‐economic and administrative which if they are not effectively confronted may possibly enlarge the existing divergence gap of the Greek regions.     

The Quality of Aid: Measuring Trends in Donor Performance

Donor performance can be quantified in four ways: (1) by the amount of aid given; (2) the terms and conditions under which it is given; (3) the extent to which it is tied; and (4) by its allocation to recipients. The way in which each of these criteria can be used to measure donor performance is discussed. The evolution of international guidelines by the Development Assistance Committee of the OECD for each performance criteria and actual donor performance in these areas are also addressed. Finally, these four aspects are brought together into a single performance indicator by means of ‘aid diamonds’.     

Smart specialization and institutional context: the role of institutional discovery,change and leapfrogging

ABSTRACT

Recent years have witnessed much experimentation with smart specialization strategies (RIS3) and entrepreneurial discovery processes (EDPs) in European regions. The EDP can be seen as an opportunity to address institutional questions. Because institutional patterns can explain why some policies are eventually successful while others are not, looking at the institutional context of regional economies can increase the effectiveness of regional policy. This article argues that the EDP functions as a framework to discover institutional patterns specific to a regional economy, and to define policies either consistent with existing institutions or aiming at institutional change. The article proposes a conceptual framework to understand and analyze the two institution-related roles of the EDP, first as an institutional discovery process and second as an institutional change process. The article builds on empirical case studies in two regions (Lower Austria, Austria and South Tyrol, Italy) and two small countries (Slovenia and Croatia). The case studies focus on how these regions or countries organized the EDP that eventually led to the formulation of their RIS3, and on the institutional dynamics of the EDP in discovering and changing institutions. The article concludes with policy implications that contribute to the debate on post-2020 EU Cohesion Policy.     

Are new patterns of low‐income distribution emerging in Canadian metropolitan areas?

Recent studies on urban poverty in Canadian cities suggest a growing spatial concentration of poor populations within metropolitan regions. This article assesses trends in the intra‐urban distribution of the poor population from 1986 to 2006 in eight of Canada's largest cities. We consider five well‐known dimensions of segregation, as identified by Massey and Denton (1988) , in order to examine changes in the spatial distribution of poor populations within metropolitan areas: evenness, exposure, concentration, clustering, and centralization. These indices were calculated for low‐income populations at the census tract level using data from five Canadian censuses. Although each metropolitan area has distinctive characteristics, we were able to identify some general trends. The results suggest that, in 2006 compared to 1986, low‐income populations lived in more spatially concentrated areas, which were, at the same time, socioeconomically more homogeneous and more dispersed throughout the metropolitan area. In addition, we observed that over the last twenty years areas of poverty have been located, for the most part, in neighbourhoods adjacent to downtown cores. Nevertheless, we found that poverty has mostly increased in suburban areas located outside inner‐city neighbourhoods. Growing socioeconomic homogeneity and dispersion of low income areas in metropolitan areas reveal new spatial patterns of urban poverty distribution. These findings should be cause for concern as social isolation in the most disadvantaged neighbourhoods could affect the life chances and opportunities for the residents of those areas.     

Polycentricity – one concept or many?

This paper aims to discuss polycentrism and its implications. Polycentricity plays a key role in EU Cohesion Policy and has done so since 1999 when the notion was included in the European Spatial Development Perspective. Politically, it emerged as a key tool because of its ability to fuse together the two primary and conflicting perceptions of spatial–economic development, cohesion and competitiveness. No agreed definition of polycentricity exists. Furthermore, different actors and disciplines define polycentrism differently. The absence of a concise and coherent definition makes it difficult to measure polycentricity. Moreover, several studies have concluded that it is difficult to identify empirical evidence to support the positive claims made in its name. Polycentrism is assumed toolbox to reduce regional disparities, but polycentric countries display higher regional disparities than monocentric countries. Polycentric countries do not perform better than monocentric countries with regard to competitiveness and GDP/cap. As such, this paper concludes that not only does the political meaning of polycentricity struggle over aims with the inherit dichotomy at its heart, it also struggles in terms of basic credibility.     

The Effect of Business Support on Employment in Manufacturing: Evidence from the European Union Structural Funds in Germany,Italy and Spain

This study investigates employment growth in the business activities supported by the European Cohesion Policy. We examine cross-industry, cross-regional variations in a sample of fourteen manufacturing industries and seventy European regions (in Germany, Italy and Spain) and take advantage of detailed European Union Structural Funds data at the regional level for the period 2000–2006. We show that business support is positively associated with higher employment growth in industries that are initially smaller and in those with higher growth opportunities. The results suggest that direct support to businesses by the European Cohesion Policy contributes to the growth process of employment in different industries. Because previous estimated effects at the aggregate level may in fact conceal large differences across industries, we conclude that our empirical analysis contributes to the understanding of how Structural Funds can affect industrial and regional development as well as adjustment paths.     

Australia and the European Union: conflict,competition or engagement in agricultural and agri-food trade?

Many scholars have mounted convincing cases that the engagement of Australia and the European Union (EU) has been characterised by skirmishes regarding the Common Agricultural Policy and its distortion of world markets, and lack of Australian access to EU markets. This article illustrates that agricultural and agri-food trade constitutes a relatively small portion of Australia–EU trade flows; that Australia exports more goods to the EU than in the past; and that, in some agri-food sectors, it exports more goods to the EU than the EU does to Australia. Further, it argues that conflict and competition regarding the Common Agricultural Policy need to be understood in the broader context of world trade and in the context of a new and deeper engagement between the two interlocutors.