A major obstacle to the effectiveness of the treatment of regional development issues was the instability of the institutional environment at the central level. An issue of increasing importance in this regard will be the adoption of the new Act on Regional Development.
Fundamental Principles Underlying the new Regional Development Act of 2004
Chapter one The common provisions define the objectives of the law and the tasks and priorities of the national regional development policy. This is the most specific, clear and precise definition of the basic principles that aim to ensure consistency and continuity in regional development policy. The second chapter Strategic Planning of Regional Development regulates the system of strategic planning documents for the formation and implementation of regional development policy.
The third chapter of the Regional Development Action Plan regulates the operational document for the implementation of the National Strategy and regional development plans, i.e. The draft offers a solution to the issue of the need for government administrative structures in development regions in the form of regional coordination units Ministry of Regional Development and Public Works. It is important to note that the law provides for the establishment of the Regional Development Fund, which is used to finance regional development.
Institutional Framework and Administrative Capacity
Ensuring coordination among various units
In this regard, clearly defining the roles, functions and responsibilities of each unit is essential. With this coordinating purpose in mind, the specific units mentioned above have been created; the internal acts of the respective ministries have been changed to improve the institutional structure, to clarify the responsibilities and functions related to planning, programming, implementation, control, etc. Beyond that, as commentators point out, "the government must guarantee that the structures for ministerial coordination are efficient and based on political consensus" /Hauser, 2001/.
The question remains open, however, whether all these organizational measures to improve coordination between different units have achieved the stated goals. Here, commentators emphasize how important it is for the government to ensure that coordination structures are based on political consensus, have a clearly defined mandate and are supported by strong political support /Kapitanova, 2002, Hauser, 2001/. Assessment of the current institutional system of regional development in Bulgaria/units, coordination, administrative capacity/.
Assessment of the current institutional system of regional development in Bulgaria /units, coordination, administrative capacity/
A start in commenting on the institutional system for formulating and implementing regional policy in Bulgaria is the European Commission's assessment in its 2002 Periodic Report. It recognizes that “Bulgaria has begun to design the necessary institutional structures for the implementation of the Structural and Cohesion Funds after accession” and “must now implement the 2002 government decision”. Further clarification of the roles and responsibilities of the bodies or authorities involved in the preparation and implementation of the Structural Funds and the Cohesion Fund.
The assessment and the recommendations made by the EU Commission are based on the level of compliance of the existing institutional system in Bulgaria with the relevant acquis of the EU where explanations for the diverse reform outcomes are elaborated, mostly in relation to EU- context and patterns. In this format, most of the observations were made with the idea of structural fund regulations and supporting legislation. Some of the most serious and still unresolved problems of the current institutional structures for regional development are related to regional governors.
Developments, Trends, Framework for Reform
Regional governors are not in a position to present the government policy in its entirety, as they have no power to coordinate effectively between the responsible ministries. Financial and operational capacity is limited due to the current status of dependency and subordination of regional governments. Regional governors should be enabled together with the district council to conclude agreements for approved district projects with the other participants.
In line with EU practice, it may be possible to create regional funds for regional development under the management of regional governors and district councils. Unfortunately, the current 2004 law departs from the idea of the Regional Development Fund at the central level, proposed by the previous draft. Such a policy turn, not very convincingly justified by the Currency Board Regulation, cast a shadow of doubt on the feasibility of creating regional development funds as well.
Territorial organization: Planning Regions and Regions for a Purposeful Impact In addition to its formal administrative- territorial units and for the purposes of efficient regional
Each regional governor should be responsible for the finances related to the development of the district. In this regard, he should also be given the authority to transfer consolidated financial resources to his beneficiaries, which he manages and directs for the joint financing of approved district projects. In the eyes of the drafters of the new law on regional development, "planned regions did not have administrative structures.
Apart from the institutions created / the territorial units of the Ministry of Regional Development in the regions and the Commissions for Economic and Social Cohesion, not much has formally been done to promote the formation of OPP at this level. Thus, commentators note that "it remains to be seen whether they would become a territorial basis for partnership and coordination of the regional development initiatives"/Sklavonous, 2002/, or that they could become the basis for possible regional self-government in Bulgaria /Ivanov, 1999 /. A problem in this way of thinking remains how the new law on regional development sees the composition of the CESC in the planning regions and whether it creates conditions for these administrative units to become flexible, proactive and pro-partnership institutions-engines for development on this level.
Programming/Planning Cycle
Furthermore, “the regulation of the development of various types of plans, programs and strategies by law, as well as their scope and content, was far from complete. It led to major problems in the development and implementation of planning documents and the need for extensive secondary legislation adopted by the Council of Ministers and interpretive letters from the Ministry of Regional Development and Public Works”. The new law in its chapter two Strategic planning of regional development regulates the system of strategic planning documents for the formulation and implementation of the regional development policy.
Matters relating to the national development plan are considered to fall outside the scope of the law. National Regional Development Strategy, integrating its main provisions with the forecasts of the National Development Plan, thus becoming part of the latter. In addition, some of the general urban development plans are very outdated and do not reflect a proactive development approach.
Trends, Development, Framework for Reform
Financing Regional Development
Policy Profile of Regionalization and Regional Development Profile of Bulgaria – A Brief Overview
Policy Context
Regional policies in Bulgaria, especially at national level, are failing to adapt to the new economic, political and social environment and to efficiently use the opportunities related to the country's preparation on accession to the EU. Not only does it demonstrate a very insufficient level of absorption of pre-structural funds, but it also fails to adapt sufficiently quickly to the new philosophy of promoting development by using new instruments, creating efficient public -private partnerships, proactive thinking about development, with a vision of opportunities and cooperation. The Bulgarian regions must get ready to compete and not only cooperate within Bulgaria in terms of funds, investments and partnerships.
Policy Issues
The regional level in the third sector is still characterized by unbalanced development, a lack of visions and workable strategies and a lack of resources. Indeed, regional governors are unable to effectively address regional development and unable to represent government policies in an integrated, comprehensive manner due to the lack of subordination of the regional representatives to the line ministries. There is a lack of clarity regarding the criteria and indicators underlying the evaluation of progress in achieving the goals of various plans and programs or the adjustment of inappropriate management decisions.
Scarce financial resources to finance activities related to regional development; lack of clarity regarding the identification of the sources and mechanisms of financing or a system for efficient and legal appropriation of resources;. Amendments to the detailed urban plans are often made on a case-by-case basis and their cumulative effects are often not related to or in conflict with the general objectives of the city development and the general development plan. In addition, the case-by-case approach with the lack of legally required monitoring and reporting to the City Council does not give Councilors the opportunity to rule on changes to the general urban plan as normally required by law.
SUGGESTED FRAMEWORK FOR REFORM
Policy Options
Maintaining the Current Policy Approach
Radical Reform towards Establishment of Regional Self-government
Redefinition of Roles and Responsibilities in Regional Development at the Legal and Operational levels, Optimizing Programming/Planning Cycle and Financing
AREAS FOR REFORM
- Legal Framework Revisited
- Professional Practices
In the drafting process, proposals should be discussed among all affected groups and supported by professional evaluations and case studies selected to highlight potential impacts. The Regional Development Act should be amended to establish a new structure of District Councils, to define the authorities of the district councils, to define the procedure for the preparation and updating of regional development plans, to strengthen the role of the Minister of Development Regional as a government coordinator. regional development policies approved by the Council of Ministers define the new role of the Governor in the supervision and coordination of regional development planning and implementation. The Spatial Planning Act should be amended in terms of the scope and process for the preparation of the general urban plan.
Expand the geographical area covered by the plan to incorporate the entire area administered by the municipality, strengthen the responsibility and supervision method of the municipal councils for the ongoing review and reporting of changes for urban development as they relate to the overall urban plan, control in the current law and, if necessary, strengthen the links between land management and the introduction of public investment for development. Laws on Administrative and Territorial Division and Law on Administrative Service of Natural and Legal Persons need to be amended to redefine the position of the Governor as an overall administrator of the consolidated portfolio of activities at the district/regional level. The Act on Local Self-Government and Local Administration should be amended to introduce an article describing the position, responsibility and process of setting up special purpose unions of local authorities.
