On-line journal no. 4 – July 2012 - Modelling the New Europe

On-line Journal Modelling the New Europe
Issue no. 4/2012
A frequently asked question regarding the Cohesion Policy is whether it has generated the
desired results in it’s almost twenty five years of existence. How about in the context of
European Integration expansion towards the Eastern countries, and in the economic crisis
of 2007-2008? According to European Commission statistics, the Cohesion Policy
significantly increased economic growth and human development in the last quarter of a
century. Between 1988-2008, 1,870,000 jobs were created and 1,520,000 of small and
medium sized businesses were invested in. Moreover, over 40,000 kilometers of highway
and roads were built, and the GDP increased between 1.3% and 6.2% 72 in the member
states – all this through the Cohesion Policy and the EU financial instruments. Hence, at
Community level, we are dealing with an effective policy, but we must certainly take into
account regional and local specifics, with their endogen and hexogen factors, which could
lead to good or less good results. This observation raises another question: why is the
Cohesion Policy more effective in some regions than in others? This is the case if the
North-Eastern Region - the least developed of the eight Romanian development regions,
which has had the most difficulties and the least effectiveness in implementing the
Cohesion Policy. These difficulties were due to regional peculiarities, such as a
predominantly rural environment, autarchy agriculture, under-qualified workers, low
productivity, non-competitive products, lack of outlets, low level of infrastructure and
utilities, lack of resources for sustainable investments, and poor regional management,
especially when it comes to disseminating information regarding Structural Funds,
supporting entrepreneurship, facilitating access to mortgages, insuring good project
management, transparency in handling funds, and minimizing corruption. Consequently,
the North-Eastern Region set as primary goal for 2010-2013 the elimination of all
difficulties in the way of absorption of Structural Funds. Thus, regardless of the obstacles
in the way of proper implementation, the Cohesion Policy has had a great contribution to
the economic development of the North-Eastern Region in the last five years. Our
statement is supported by statistical data as follows: 5,000 new jobs in the last five years,
3,000 participants in professional trainings in the most popular fields, the employment rate
decreased from 9% (2004), to 6,4 % (2011); 141 small and medium sized businesses have
received Cohesion Policy funds; regional GDP/capita increased from 2,517 Euros (in the
year 2000), to 5,070 Euros (in 2005), and presently reached 6,925 Euros; due to the
72 Wolfgang Petzold, doc. cit., pp. 13-25.
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