1. OPEN DAYS Workshop Programme “Managing Regional Development” 28 + 29 September 2004 in Brussels RG7 – Cohesion Fund Management Date: Tuesday 28 | Time: 11:15 – 13:00 | Place: Perm Rep of the Czech Rep, Rue Caroly 15 Challenges for Cohesion Fund management in Portugal An overview on Alentejo’s regional development model Fernando Teigão dos Santos; PhD Student; fernandots@isa.utl.pt Faculty of Science and Technology of the University Nova of Lisbon

2. Overview Main objective: To promote the discussion and the exchange of experiences between regional stakeholders about the European Cohesion Policy. Points to address: 1. Success factors in the management of regional development. 2. Alentejo’s regional development model in the European context. 3. Challenges for the European cohesion policy.

3. Regional development in mind… EU Regional Development Policy as “catalyst-enzyme” -Strategy (eg. Lisbon and Gothenburg) -Priorities (eg.Convergence) -Money (eg. Cohesion Fund) “Context-atmosphere” -Globalization -Enlargement -Regionalism Economic growth High-tech clusters Fashion-regions-model Cooperation speech Infrastructure promotion Territorial cohesion Common vision “stereotype” on development Regional Development Models Successful Regions Less Successful Regions ???

4. Regional development in mind… Regional Development Models Successful Regions Less Successful Regions “Get more money strategy” Large infrastructure promotion Myth-projects National context of centralization and lack of planning Capacity deficit of regional stakeholders Lack of debate, information and leadership Adaptative strategies Good governance Innovation and knowledge Sustainability 3-D Good projects Effective partnerships Regional global thinking eg.Case of Alentejo’s region Success mainly assessed by the same development socio- economic indicators?? Specific territorial characteristics??

5. Importance of the cohesion policies to reduce the regional asymmetries. Alentejo as a chronic depressed region with indicators showing slow trend of recovery being a strong challenge to the future cohesion policy. Ref*1)

6. Negative demographic tendencies Alentejo with 30% of the Portuguese territory and with 5% of the population (540.000 inhabitants in 2001). Total Regional Dynamic Index composed by demographic, economic and education indicators showing the comparative level of development between municipalities. Lisbon Metropolitan Area Alentejo Region Ref*2)Ref*3)

7. Relative small dimension of the superior education system in the region. Low level of people with superior education in the region (around 5% when the national average is on 12% and the EU15 is on 22%). Low innovation and technological levels being a “slow-tech region”. Ref*3) Ref*2) Ref*4)

8. Alentejo LEADERLEADER The regional development model… The strategic development model of the region is based on the promotion of large infra-structures. Infrastructural model with high investments and uncertain results. General lack of regional strategic thinking according to the paradigms of sustainability, knowledge society and good governance. Alqueva Dam The new interior sea of Alentejo Airport of Beja The sky is the limit Harbour of Sines The deep waters hotspot TGV The future on high-speed ? ? ? ?

9. The regional development model… Need to promote the shift from the infrastructural perspective of development towards a perspective more based in capacity building of human resources. Need of global cost-benefits analysis and more mechanisms to control the efficiency of the investments. The creation of a new regional development strategy for Alentejo is fundamental in the context of the new challenges (EU25; Reform of the financial instruments; Lisbon and Gotemburg objectives; Sustainability issues).

10. Challenges for the Cohesion Policy… The reform of the EU cohesion policy is an opportunity to promote the efficiency of the financial instruments. Convergence and competitiveness as objectives need the instrument Cohesion Fund to be adaptative to different regional realities and to be complementary to the other financial instruments. The Cohesion Fund should consider the background of the “old” cohesion countries and the realities of the “new” ones. The strategic thinking and the innovation must be actively applied to the management of regional development.

11. Challenges for the Cohesion Policy Regions need to develop good governance models, practices and processes, in relation to responsibility, accountability, transparency, participation, coherence and efficiency. Need to articulate academic and political perspectives in order to promote better strategies and tools for the management of the regional development The public debate about the regional strategic options must be promoted through open processes at several scales. Good information and clear communication should be a priority for the managers of regional development.

12. Discussion topics: EU: how to balance competitiveness and cohesion? Cohesion Fund: how to improve the efficiency? Alentejo: what priorities in the road to convergence? ?????? References:  Ref*1) European Commission, 2004. Third Report on economic and social cohesion. DG Regio. Luxemburg.  Ref*2) Tadeu, L. 2002. 1º Report of characterization of Lisbon and Alentejo region’s. Instituto Superior Técnico. Lisbon. Portugal.  Ref*3) Chorincas, J. 2003. Regional dynamics in Portugal – Demography and investments. Department of Prospective and Planning. Lisbon. Portugal.  Ref*4) European Commission, 2003. European Trend Chart on Innovation2003. European Innovation Scoreboard: Technical Paper No 3 Regional innovation performances November 28, 2003. DG Enterprieses. A publication from the Innovation/SMEs Programme.