Lessons from European Union Policies for Regional Development

Regional disparities present an ever present development challenge in most countries, especially those with large geographic areas under their jurisdiction. A neglect of these inequities may create the potential for disunity and, in extreme cases, for disintegration. In view of this, most countries actively pursue policies with a view to helping lagging regions catch up with faster growing regions. These policies have at best a mixed record of success. It is therefore useful to discern what type of policies work and why? In this context learning from the experience of the European Union (EU) may be particularly instructive as, over the years, it has provided significant support to assist poorer regions achieve convergence with the richer regions. This paper reviews the impact of EU policies for regional development to draw lessons of interest to other countries pursuing similar goals. The paper concludes that policies that serve to create an internal common market by creating a level playing field that enables poorer regions to integrate with the broader national and global economies have the best potential to advance regional income convergence. In this context, removal of barriers to trade and factor mobility and providing enhanced access to information and technology to the lagging regions should be main policy priorities for regional development.

Bibliographic Details

Main Authors:	Shankar, Raja, Shah, Anwar
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2009-06-01
Subjects:	ACCESS TO INFORMATION, ACCOUNTING, AGRICULTURE, ALLOCATION, ARABLE LANDS, ARBITRAGE, CAPITAL STOCK, COMMON MARKET, COMPARATIVE ADVANTAGE, COMPARATIVE ECONOMICS, COMPETITIVE MARKET, COMPETITIVENESS, CONVERGENCE, CONVERGENCE HYPOTHESIS, DECENTRALIZATION, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DIMINISHING RETURNS, DISEQUILIBRIUM, ECONOMETRIC ANALYSIS, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC POLICIES, ECONOMIC TOOLS, EXPENDITURES, EXTERNALITIES, FINANCES, FINANCIAL INSTRUMENT, FINANCIAL INSTRUMENTS, FINANCING REQUIREMENTS, FISCAL POLICIES, FLOW OF INVESTMENTS, FUTURE RESEARCH, GDP, GDP PER CAPITA, GEOGRAPHIC PROXIMITY, GLOBAL ECONOMIES, GLOBAL ECONOMY, GLOBALIZATION, GNP, GOVERNMENT POLICIES, GROSS NATIONAL PRODUCT, GROSS VALUE, GROWTH MODEL, GROWTH PATH, GROWTH RATES, GUARANTEE FUND, HOLDING, HOST COUNTRIES, HUMAN CAPITAL, INCOME, INCOME CONVERGENCE, INCOME DIFFERENTIALS, INCOME GROUPS, INCOME LEVELS, INCOME TRANSFERS, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INFRASTRUCTURE INVESTMENT, INTERNAL BARRIERS, INTERNATIONAL BANK, INVESTING, INVESTMENT LEVELS, INVESTMENT PATTERNS, KNOWLEDGE CAPITAL, LABOR MARKET, LABOR PRODUCTIVITY, LAGGING REGIONS, LEGAL ENVIRONMENT, LEVEL PLAYING FIELD, LOCAL BUSINESSES, LOCAL ECONOMIES, LOCAL ECONOMY, LOCAL FINANCE, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MACROECONOMIC PROBLEMS, MARKET BARRIERS, MARKET CONDITIONS, MARKET DISCIPLINE, MARKET DISTORTIONS, MARKET ENVIRONMENT, MARKET ENVIRONMENTS, MARKET EVIDENCE, MARKET FORCES, MARKET INTEGRATION, MARKET OPENING, MARKET REFORMS, MARKET STRUCTURES, MEMBER COUNTRIES, MEMBER STATE, MEMBER STATES, MONETARY POLICIES, MONETARY POLICY, MONETARY UNION, MORAL HAZARD, NATIONAL MARKET, NATIONAL POLICIES, NATIONAL PRODUCT, PERFECT COMPETITION, POLITICAL ECONOMY, POLITICAL INTEGRATION, POLITICAL STABILITY, POVERTY REDUCTION, PRIVATE INVESTMENT, PRODUCTIVE CAPACITY, PRODUCTIVE INVESTMENTS, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PROTECTIONISM, PUBLIC FINANCE, PUBLIC INVESTMENT, PUBLIC SERVICES, RECESSION, REGIONAL CONTEXT, REGIONAL DEVELOPMENT, REGIONAL DEVELOPMENT POLICIES, REGIONAL DEVELOPMENT POLICY, REGIONAL DIFFERENCES, REGIONAL DISPARITIES, REGIONAL DISPARITY, REGIONAL FUNDS, REGIONAL GROUPS, REGIONAL GROWTH, REGIONAL INEQUALITIES, REGIONAL INEQUALITY, REGIONAL INTEGRATION, REGIONAL LEVEL, REGIONAL MARKET, REGIONAL PERFORMANCES, REGIONAL POLICIES, REGIONAL POLICY, REGIONAL PRODUCTIVITY, REGIONAL SCIENCE, REMOVAL OF BARRIERS, RULE OF LAW, RURAL AREAS, SAVINGS, STATE INTERVENTION, STRUCTURAL CHANGE, STRUCTURAL CHANGES, SUSTAINABILITY, TAX, TAX INCENTIVES, TAX RATE, TECHNOLOGICAL CHANGE, TOTAL FACTOR PRODUCTIVITY, TRADE BARRIERS, TRANSPORT, TREATY, UNEMPLOYMENT, UNEMPLOYMENT RATES, VALUE ADDED, WAGE RATES, WEALTH, WORLD ECONOMY, WORLD MARKET, WORLD MARKET INTEGRATION,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090622133035 http://hdl.handle.net/10986/4169
Tags:	Add Tag No Tags, Be the first to tag this record!