Regional Policy in Portugal: From NSRF formulation to present challenges on the ground

1. Duarte Rodrigues Deputy Coordinator of the NSRF Observatory Warsaw, 13th November 2008 Regional Policy in Portugal:From NSRF formulation to present challenges on the ground

2. Summary • 20 years of Cohesion Policy; • NSRF (re)orientation; • Critical challenges for Regional policy on the ground;

3. 20 years of Cohesion Policy

4. After 50 billion € from Cohesion Policy…Structural EU Funding 1989 - 2013

5. …significant macroeconomic impactsCSF I, II and III Macroeconomic Impact 1989 - 2013 Source: DPP

6. 1800 25 1600 20 1400 PORTUGAL 1200 PORTUGAL 15 1000 800 10 600 400 5 200 0 0 1980 1990 1995 2000 2001 2002 2003 1999 2000 2001 2002 2003 2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 78 65 77 55 76 PORTUGAL PORTUGAL 45 75 74 35 73 25 72 15 71 1985 1990 1995 2000 1980 1990 1995 2000 2001 2002 2003 …remarkable achievements LENGH OF MOTORWAY NETWORK INFANT MORTALITY LIFE EXPECTANCY AT BIRTH SECONDARY ENROLMENT Source: OECD and EUROSTAT

7. ... also at governance level • Improving strategic planning and operational programming skills; • Multi-annual investment budget; • The policy assessment culture; • Partnership approach;

8. GDP pc PPS – EU15=100 130 120 IRELAND 110 100 SPAIN 90 80 PORTUGAL 70 GREECE 60 50 1989 1987 2001 1986 1996 2000 2003 1985 1988 1991 1994 1995 1997 2002 1993 1990 1992 1999 2004 1998 R&D INVESTMENT - % GDP 2,0 60 EU15 1,6 55 50 1,2 EU15 45 0,8 PORTUGAL 40 PORTUGAL 0,4 35 0 30 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1998 1999 2000 2001 2002 2003 2004 1990 1991 1992 1993 1994 1995 1996 1997 ...some persistent structural problems in thePortuguese economy, society and territory GDP per HOUR WORKED – Annual Increase Rate 12 10 8 6 4 EU15 2 0 PORTUGAL -2 -4 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 LONG-TERM UNEMPLOYMENT Source: OECD and EUROSTAT

9. NSRF (re)orientation

10. Portuguese NSRF 2007-2013 • Three thematic agendas : human potential; Competitiveness factors and territorial enhancement; • Two cross-cutting goals: social and territorial cohesion; governance efficiency; • More concentrated (e.g. 3 Thematic Operational Programmes (OP) instead of 12 sectorial OP and the regional OP follow the same agendas as 2 ERDF national OP – Factors of competitiveness and Territorial Enhancement); • More focus on competitiveness factors (the qualifications of economic activity became more relevant while reducing the relevance of infrastructure’s provision); • More strategic approach (Regional strategies developed in a wide participated process; strategic monitoring)

11. 6 147 M€ 3 104 M€ 2 905 M€ ERDF: 1 599 M€ Cohesion F: 2 890 M€* ERDF: 2 859 M€ Thematic agendas – Operational Programes Strategic Priorities AGENDAS Thematic OP Regional OP (mainland) Human Potential Competitiveness Factors Territorial Enhancement Education and Qualification Human Potential Sustained Growth Social Cohesion Competitiveness Factors Urban and Territorial Enhancement Territorial Enhancement Governance Efficiency *Mainland

12. Thematic Financial Boxes NSRF vs. CSF III

13. 2 top priorities of Portuguese NSRF in European framework (priority themes of regulation) % of NSRF funds by priority theme according clusters of MS

14. NSRF – Changes in Governance model NSRF Operational Programmes Thematic Regional Political Orientation Ministerial Coordination Committee* OP Ministerial Coordination Committees Strategic Advisory Body Management and Monitoring Technical Coordination Management Body** Strategic Coordination and Monitoring Monitoring Body (Municipalities and Economic and Social Partners) Financial Coordination and Monitoring * Participation of the National Association of Portuguese Municipalities ** Participation of 2 members indicated by the municipalities and 2 members indicated by the Central Government in mainland Regional OP New (comparatively to CSF III)

15. Critical challenges

16. Portuguese Regional Policy target • Sustained and sustainable development of Portuguese regions: • Anchored on endogenous and specific resources; • Central assumptions: • Sustained growth of region is a critical guarantee for its own medium/long term socio-economic cohesion; • But . . . it’s crucial to ensure a certain limit of cohesion as a necessary condition to promote regional competitiveness.

17. Critical challenges for Regional policy on the ground • Partnership and coordination between regional development stakeholders (public and private): • From inter-municipal cooperation in planning process to inter-municipal process on implementing phase (e.g. global grants to municipal associations); • Genuine partnership to support innovation and competitiveness initiatives (e.g. cluster approach); • Governance – integrated approach on conception side and on supporting side – (institutional capacity); • Current crisis – find, at political level, the right balance between quick and strong answer on short term approach and maintain a long term view about the goal of structural policies;

18. Duarte Rodrigues Deputy Coordinator of the NSRF Observatory Warsaw, 13th November 2008 Regional Policy in Portugal:From NSRF formulation to present challenges on the ground