ROMANIA'S REGIONAL DEVELOPMENT AT THE CROSSROADS: WHERE TO?

 
Autor (i): Sebastian I. Burduja
 
JEL: R10, R11, R50, R58, P48
 
Cuvinte cheie: regionalization, regional planning, regional investments, Regional Development Agencies, EU funds
 
Abstract:
Drawing from the literature on regional and urban development, and taking into account technical evaluations of the current institutional structure at the regional level, this article seeks to assess the strengths and weaknesses of Romania’s current “regionalization-lite” model. Law 151/1998 established the primary framework for implementing regional planning, paving the way toward eight NUTS II regions. While these regions are not formal administrative units and remain based on associations of counties, they have begun functioning and delivering development impact. The main institutional structures at the regional level are the eight Regional Development Agencies (RDAs), which have among their tasks the drafting of Regional Development Plans, the main regional-level planning tool, and the implementation of the Regional Operational Programme (ROP), the main source of infrastructure financing for county and local authorities. While few question the importance of these tasks and the high effectiveness of RDAs in fulfilling their mandates, regional-level planning and investments continue to showcase significant shortcomings. This article describes the existing institutional structure and reviews its main strengths and weaknesses. Based on this diagnostic, it lays out several options for improving the status-quo, from enhancing the current model all the way through pursuing formal administrative regionalization. The choice will fundamentally shape Romania’s development for generations to come.
 
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