What new period of 2007–2013 Convergence program

brings to Lithuania’s regions

Rolandas KriščiūnasMinistry of Finance of the Republic of Lithuania

Overview•Regional policy in Lithuania

•Structural funds for regional development:

in 2000-2006

in 2007-2013

Role of the Ministry of Finance

•2001-2004 – responsible for preparation for Structural funds (management and control system, Single programming document)

•2004-now – Managing, Paying and Audit coordinating authority for SPD

•2005 – now – responsible for preparation for 2007-2013 period (management and control system, NSRF, 3 Operational programs)

•2007-2013 Managing, Certifying and Audit authority for 3 Operational programs

Legal framework for regional policy in Lithuania

•Law for Regional development

•Lithuania Strategy of Regional Policy to 2013

•Regional development Plans (midterm strategic documents).

Regional development level (GDP/pc.)

• Vilnius +44.3%

• Klaipėda +2,9%

• Kaunas –3,9%

• Telšiai, Utena, Panevėžys

• –10.7-16.8%

• Šiauliai, Alytus, Marijampolė

• -24,4-34,9%

• Tauragė –45%

Regional dimension in 2004–2006 SPD

• Horizontal priority in the SPD: for projects, aiming to solve particular regional social economic development problem

• Priority is implemented through project’s selection criteria

• Centralised decision making procedure: regional projects being evaluated and selected by Intermidiate bodies (Ministries)

Regional dimension in 2007–2013 NSRF and OP’s: general view

1 NACIONAL PROJECTS

(National/central

level of competency)

10 REGIONAL

DEVELOPMENT

COUNCILS PROJECTS

(Local level of competency)

7 - priority for regional centres of growth

7 + 12 - priority for regional centres of growth and problematic teritories

I OP

II OP

III OP

Priority for use of structural funds will be in line with main objectives of Lithuanian Strategy of Regional Policy to 2013 :

- development of economic growth centres in regions (cities and towns with economic growth potential – Alytus, Marijampolė, Mažeikiai, Tauragė, Telšiai, Utena ir Visaginas);

- additional assistance for problematic teritories (14 municipalities, with high level of unemployment, low qualification labour force, bad demographical situation and etc.).

Regional dimension in 2007–2013 NSRF and OP: national projects

Problematic teritories

Regional centres

Additional centres

Specific teritories under imlpementation of National Regional policy

Regional dimension in 2007–2013NSRF and OPs: local level

‘Virtual’ Regional ProgrammeRegional Councils will agree and submit detailed programmes featuring lists of projects to be implemented within the allocated budgets; i.e., effectively they will decide which projects to fund. Compliance with OP, EU&nat rules of the projects will be assessed by bodies in charge of implementing a specific OP

Tota

l allo

cati

on

per

regio

n,

Lt

Energy Efficiency,

X Lt

Urban infrastructure,

X Lt

• Lithuania is facing the lack of qualified labour force problem, meanwhile 16 % of population are employed in agriculture sector

• One of 2007 – 2013 priorities is to transfer human resources from agriculture to other sectors of economy, providing adequate skills and qualification

• Other important objective is to ensure quality of life and public services in rural areas, and to provide conditions to start and develop alternative business activities in rural areas

Regional dimension in 2007–2013 NSRF and OPs: rural development

Conclusions•The regional aspect of the development strategy is integrated

into the overall development vision and strategy, which will have a strong regional impact during the implementation stage.

• As the economic development of the whole country gathers

pace, particular attention will be paid to the needs of less developed and poorer regions, adjusting the development of various economic branches or supporting various investment axes accordingly.

•Administrative capacity for long term investment planning in the regions shall be developed, decision making for use of structural funds assistance for local developemt needs could serve as a tool