Creating a more effective function model for regional development councils

Problem

The current regional policy pursued by the state is not able to ensure balanced economic and social progress in the regions. The 2024  report by the Government Strategic Analysis Center notes the insufficient progress in reducing social and economic regional disparities, growing interregional and intraregional differences. The current situation indicates insufficient regional policy coordination at the national level.

In this context, it is worth exploring the regional development councils (hereinafter RDCs), which in 2020 were granted legal entity status and saw their responsibilities expand by the Parliament through amendments to the Law on Regional Development. The granted regional public administration entity status gave RDCs formal mandate to participate in regional policy formation and coordinate its implementation, promote the fulfilment of regional common interests and cooperation. Unfortunately, this potential has not been realized to date.

Policy formation

At the national level, it is recognized that effective regional policy should be formed in accordance with the “bottom-up” principle. Although the 2021 amendments to the Law on Strategic Management formally provided the regions with opportunities to plan investments from the bottom up, this principle was not fully implemented because the RDCs had to “fit” their problems to the specific measures first formulated by the ministries. The fact that the measures did not reflect the priorities of the regions and municipalities was pointed out by 27% of municipalities, and more than half  noted the lack of measures in the areas where the ministries responsible did not participate in the Regional Development Program.

Policy implementation

The regional policy implementation process is also not yet optimal. The main implementation tool, the regional development plan, is prepared and coordinated by the each of the RDCs in accordance with the measures set out in the development program and local needs. Its formulation for 2022-2030 has been hampered by the prolonged process of ministries developing, coordinating and reshaping the funding guidelines, which forced municipalities to redraw their project proposals as the guidance changed, and restrictions created by  the set preconditions, which limiting the choice of measures for municipalities. Additionally, projects to realise the regional development aims are only being developed by municipalities according to the plan, and the role of the RDCs is restricted to verifying the projects status as that of regional significance according to the established criteria.

Cooperation

Despite the existing potential to promote economic and social development, the cooperation possibility between municipalities and regional partnerships with the private sector has not yet been widely exploited. RDC partner groups are only formally given the opportunity to evaluate plans and provide their recommendations, but this does not sufficiently enable them to participate properly in the preparation of regional development plans and their content formulation. The result is a loss of important perspectives in identifying regional problems and appropriate solutions.

Lastly, there is a lack of clear mechanism for attracting private investment in the regions. The Association of Local Authorities in Lithuania in its report identifies the lack of investment as an important factor hindering regional development and reducing economic viability. They emphasize that attracting investment and improving the business ecosystem is a challenge for both the central and the local governments.

The discussed challenges in the regional policy formulation and implementation support the need to empower regional development councils by raising their competences and rethinking their areas of responsibility. By transferring more regional policy and implementation functions to strengthened councils and increasing their abilities to coordinate cooperation, positive changes in the field of regional policy are possible.

Goal

The goal of the project is to reduce regional disparities and promote sustainable development by enabling regional development councils to contribute to the formulation of regional policy direction and strategies, implement policies more effectively at the regional level, and coordinate cooperation.

Participants

2025/26

Emilija Abraitytė