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Keith McLean World Bank June 26, 2008

Conference on Regional Development and Municipal Finance Implementation of Regional Development and Synergies with Other Operational Programs. Keith McLean World Bank June 26, 2008. Context. EU accession has provided an unprecedented convergence opportunity

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Keith McLean World Bank June 26, 2008

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  1. Conference on Regional Development and Municipal FinanceImplementation of Regional Development and Synergies with Other Operational Programs Keith McLean World Bank June 26, 2008

  2. Context • EU accession has provided an unprecedented convergence opportunity • Realize broad range of social and economic development objectives • Converge with the rest of EU • ROP has evolved significantly over time • Many positive developments • Some challenges and opportunities remain

  3. Operationalizing Regional Development • Role of Regions in decision-making and project selection streamlined but could be strengthened • RDAs administrative and eligibility checks • Regional Committees for Strategic Assessment • Not yet playing strategic role, so far advisory, and future role is under discussion • MA’s primary focus should be on getting the RoP right in early years of programming period • horizontal coordination among OP(s) possible later • Coordination mandate needs clarification with other MAs

  4. Improve Resource Allocation and Local Absorption • Indicative Envelopes Finalized and Now Public • Need to be willing to do reallocations from non-absorbing regions to avoid N+3/N+2 penalties • But ensure intensive capacity building support to weak regions as first step before reallocation • MEF Harmonized counterpart contribution of 2% for all public authorities that are beneficiaries • But not clear how to access the government contribution or the 15% advance payment • NRDP has its own co-financing framework

  5. Building a High Quality Pipeline of Local Projects • Project Selection Criteria and processes harmonized across all 8 regions • Does not preclude limited regional customization • Develop a capacity building program to support various types of local authorities • Cities, towns, communes, counties • Participatory planning, social partnerships • Strengthen strategic Role of RCSA • Move from advisory to strategic upstream approvals • Well written projects may note have real regional significance • prioritization needed given large needs and limited funds

  6. Longer-Term Issues • Enhance Fiscal Decentralization • Local Administrations need more stable and predictable sources of revenues • Predictability in equalization transfers; discretion on own revenues • Ability to mobilize additional financing (borrowing) • Regional model needs to be strengthened • Regional governments or planning regions? • RDAs to remain as NGOs or institutionalize to facilitate horizontal coordination function? • Develop system to evaluate impacts of projects and ROP itself on development • Process evaluation, for financial and eligibility compliance only first step though important • Evaluate whether Romania’s own objectives are being realized

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