EXPLORATORY STUDY ON

PROJECTS CARRIED OUT IN

RURAL AREAS BY LAU 2 SELF-

GOVERNMENTS UNDER

OPERATIONAL PROGRAMS

2007-2013 IN POLAND

Joanna Rakowska, PhD

Faculty of Economic Sciences

Considering EU funding in budget perspectives 2004-2006 and 2007-2013 Poland was a beneficiary of funds allocated under Rural Development Programmes, carried out within CAP and Operational Programmes carried out within regional and cohesion policy. In EU strategies the intervention areas of these policies tend to be separated by demarcation line, which in practise seems not to be so strict.

That raises the question on the influence of RDP on urban LAU2s and regional policy on rural LAU2s.

The study is the first, exploratory stage of the research on the effects of absorption of EU structural funding under Operational Programmes 2007-2013 and under Rural Development Programme 2007-2013 by rural and urban LAU2s.

Method:-quantitative analysis based on data on 105 934 projects carried out by all kinds of beneficiaries from the National System of Information Monitoring and Financial Control for Structural Funds, as of June 30, 2015, obtained from the Ministry of Infrastructure and Development;

- qualitative analysis based on a questionnaire addressed to 861 self-governments of LAU2s in selected four voivodships – response rate 32%.

Research question 1

What is the share of EU funding allocated in projects carried out by rural LAU2s in total EU funding allocated in Poland and in EU funding absorbed by all kinds of LAU2s under OPs 2007-2013(2015)?

Under OP2007-2013 1536 rural LAU2s carried out 6 247 projects, which made 5,9% of all projects carried out and 35% of those carried out by all LAU2s.

They absorbed 7 733,7 million PLN of EU funding which equalled 1,5% of total EU funding allocated and 9% of that allocated to all LAU 2s.

Research question 2 What is the statistical significance of obtained funding, shown as a relation to average annual budget revenues of rural LAU2s?

Spatial layout and differentiation

Research question 3What is the differentiation of the value of EU funding obtained by the rural LAU2s calculated per 1 inhabitant?

Spatial layout and differentiation

Research question 1Why are EU funds an important source of finance to support development of LAU2?

No matter how much EU funding the rural LAU2s obtained, the majority (98%) claims that it is either very important or important support for local development, because it creates new investment possibilities and enables achieving also other tasks than the obligatory ones.

Remarks: non-refundable, but requires co-financing

Research question 2What sources of finance did you use to contribute to EU supported projects: own budget loans other ( what kind?)

- 33% of surveyed communes used only their own budget resources,

- 6% used only loans, - 1% used so called ‘other sources’, - 43% combined finance from their own budget and loans, - 10% combined finance from their own budget, loans and

other sources and- the remaining 7% combined finance from their own budget

and other sources(basis for further investigation into leverage effect)

Research question 3 (deadweight effect)Would you be able to carry out the same projects without the support from EU funds?

- 39% would not have realised their projects,

- 27% would have realised only part of their projects, - 29% would have had to delay the realisation and

- 5% of surveyed communes would have realised projects on their own.

Concluding thought of the exploratory part:

Despite the applied demarcation criteria, regional and cohesion policy supported also the development of rural LAU2s, i.e. rural

areas, in Poland in 2007-2013.

Joanna Rakowska, PhDAssistant ProfessorFaculty of Economic Sciences, WULS-SGGW

joanna_rakowska@sggw.pl

WULS-SGGW

THANK YOU

WARSAW UNIVERSITY OF LIFE SCIENCES - SGGW