Regional development:

Progress and Priorities

Chisinau, May 2014

Implementing Regional Development Policies:What are the key factors for success?

Presenter: Liviu Oboroc

Ministry of Regional Development and Construction

Central body responsible for implementing regional policy for regional development

General Department for Regional Development

Department for Policy and Regional Cooperation

Department for Relations with Regional Development Institutions

Regional Statistics Section

Deputy Minister – responsible for Regional Development

Ministry of Regional Development and Construction

Main objectives:

Achieve balanced, sustainable socio-economic development in the entire territory of the Republic of Moldova

Reduce misbalances in the socio-economic development levels between regions and within them

Strengthen financial, institutional and human opportunities for the socio-economic development of the regions

Support local public administration authorities and local communities with the aim of socio-economically developing the localities and coordinating inter-action between these and the national, sectorial, and regional development strategies and programmes

Ministry of Regional Development and Construction

Legal and regulatory framework:

Law on Regional Development in the Republic of Moldova (№438 from 28.12.2006) The Government Decision on measures for the implementation of Law

No.438-XVI of 28th December 2006 on Regional Development of the Republic of Moldova (GD №127 from 08.02.2008)

Regulation of the National Coordinating Council for Regional Development

Framework regulation of the Regional Development Council

Framework of Regional Development Agency

Regulation of the formation and utilisation of the National Fund for Regional Development resources

Ministry of Regional Development and Construction

National Strategy for Regional Development – 2013-2015

Single Programming Document for 2013-2015

Regional Development Strategies (RDS): North, South, Centre

Regional Operation Plan: North, South and Centre

Operational Manual of the NFRD

Legal and regulatory framework:

Ministry of Regional Development and Construction

Development regions

DR North

DR Center

DR South

DR Transnistria

DR Chisinau

DR Gagauzia

Ministry of Regional Development and Construction

DR North - 0.9 mln. Inhabitants, NUTS 2

DR Center – 1.06 mln. Inhabitants, NUTS 2

DR South– 0.53 mln. Inhabitants, NUTS 3

Regional Development Councils and Regional Development Agencies have been created and are functional

3 development regions are functional

Development regions

Ministry of Regional Development and Construction

Institutional and financial framework:

National level

National Coordinating Council for Regional Development

General Department for Regional Development within MDRC

National Fund for Regional Development

Regional Development Councils: North, Centre, South

Regional Development Agencies: North, Centre, South

Ministry of Regional Development and Construction

Funding priorities:

1. Rehabilitation of physical infrastructure

2. Supporting private sector development

3. Improving the environment and tourist attractiveness

Ministry of Regional Development and Construction

Expenditure on RD projects:

0.00 €

2.00 €

4.00 €

6.00 €

8.00 €

10.00 €

12.00 €

14.00 €

16.00 €

18.00 €

0.4

7.16

16.7

11.2

16.2

2010 2011 2012 2013 2014

82%

14%4%

Funds processed: Source:

Ministry of Regional Development and Construction

Current activities:

Updating the regional operational plans

Updating the regional development strategies

Revising the normative documents related to regional development

Developing the Single Information System

Developing Regional Sectoral Planning in various sectors

Elaborating the ”Balanced urban development in Moldova” policy

Improving regional statistics

Capacity building of regional actors

Ministry of Regional Development and Construction

Our Partners

Developmentpartners LPA

contribution

National Fundfor Regional

Development

GIZ

USAID

EU

Ministry of Regional Development and Construction

What solutions are offered by regional development?

Regional development is a strategic approach for more coordinated investment planning

Developing and implementing regional strategies in strong coordination with sectorial strategies

Support the identification and implementation of development opportunities in cross-border, transnational and inter-regional cooperation

Building the institutional capacity of Regional Development Agencies to facilitate initiatives by local government, the private sector and civil society actors.

Involvement of regional actors from different areas: academic, business, civil society

Solution of common problems for more communities

Ministry of Regional Development and Construction

Main challenges:

Weak capacities of potential applicants to design viable RD projects

Lack of a long-term development vision of LPAs

Lack of LPA experience in creating regional partnerships

Weak awareness of involved actors of the need for a regional approach vs. a local approach

Unclear delimitation of Regional and Rural Development in the national normative documents

Few applications on supporting the private sector

Many national developments funds covering different sectors

Ministry of Regional Development and Construction

Priorities for the future:

Developing a new National Strategy for Regional Development - 2020

Launching the Development Region Gagauzia

Increasing the capacity and role of regional actors and institutions

Developing a single programming document for all national funds

Increasing the synergy of national funds for regional development projects

Revising of the LAW №438 from 28.12.2006 on Regional Development

Developing a policy based on polycentrism

Ministry of Regional Development and Construction

Priorities for the future:

Withdrawing the RDAs from the public procurement process and focusing their efforts on project management and monitoring

Changing the RDAs’ legal status and contracting them as implementers of regional development projects

Increasing the capacities of RDAs in project application and fund absorption

Increasing the number of projects funded by European partners

Ministry of Regional Development and Construction

Thank you for your kind attention!

Liviu Oboroc,Deputy Minister of MRDCof the Republic of Moldova

Thank you for attention!

www.cord2014.md