Europe 2020 Strategy: The Role of Cities and Regions

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1 Europe 2020 Strategy: The Role of Cities Philip McCann University of Groningen Special Adviser to the EU Commissioner for Regional Policy Johannes Hahn Economic Advisor on the Sixth Report on Economic, Social and Territorial Cohesion,

2 June 2010 European Council approves the Europe 2020 Strategy smart, sustainable and inclusive growth European Commission (2010), Europe 2020: A European Strategy for Smart, Sustainable and Inclusive Growth, [COM (2010) 2020] , Brussels Reflects a multi-dimensional and multi-thematic approach to growth and development broader than the largely sectoral Lisbon strategy Changes in thinking were evolving prior to the onset of the Global Financial Crisis in 2008 and also were emerging both outside as well as within Europe OECD (2009) global standard growth agenda stronger, cleaner and fairer growth and development 2

3 Commission on Growth and Development (World Bank 2008, 2010a,b) Stiglitz, J.E., Sen, A., and Fitoussi, J-P., 2009, Report by the Commission on the Measurement of Economic and Social Progress Monitoring economic performance, quality of life and sustainability jointly produced by the French Conseil d analyse économique and the German Council of Economic Experts, December 2010 Re-orienting of US growth strategy (2010) and NIC (2012) Berg and Ostry (2011); The Economist (2014) 3

4 Europe 2020 is not a shopping list or a menu aimed at choosing between mutually exclusive alternatives A call to view growth and development processes as multifaceted phenomenon The process of development is a recipe (Rodrik 2007) with different potential combinations Links between smart, sustainable and inclusive dimensions need to identify and distinguish between complementarities and trade-offs Aim to identify missing links which can be bridged and bottlenecks which can be overcome to reconfigure the system 4

5 Regions and cities play a key role in responding to these societal challenges and for developing the appropriate recipes (OECD 2011; US growth strategy 2010) Earlier thinking in EU on these issues (European Commission 2008; DG Regio 2008, 2009a,b) and more recent analysis (European Union 2011) Links between smart, sustainable and inclusive - the complementarities and trade-offs differ between cities, regions and localities so we need mechanisms to respond to these differences (OECD 2011, 2012) Neither exclusively top-down nor exclusively bottom-up policy-making can achieve these outcomes 5

6 Importance of building on local and regional knowledge in order to identify challenges and to work out potential solutions and to implement them (Barca 2009) Essential to mobilise local and regional actors and institutions (Rodrik 2007) in the policy design and delivery processes alongside central government The partnership principle is inherent - explicit and implicit - in real multi-level governance modes of working In the long-term the role of sub-national actors in public policy is increasing across the OECD and across almost all dimensions (OECD 2013) 6

7 Integrated policy actions CSF Common Strategic Framework Policy must be results-oriented and the policy prioritisation logic based on smart specialisation Aim for regional differentiation and specificity build on local and urban assets to diffuse knowledge and promote innovation Self-awareness and transparency is critical for capacity building and for good policy design data, baselines, monitoring and evaluation Move away from league tales and towards appropriate and relevant policy learning RIS3 Platform 7

8 References European Commission, 2008, Regions 2020: An Assessment of Future Challenges for EU Regions, Commission Staff Working Document, European Commission, Directorate-General for Regional Policy, Brussels, November 2008, SEC(2008) 2868 Final European Commission, 2010b, Europe 2020: A European Strategy for Smart, Sustainable and Inclusive Growth, [COM (2010) 2020] , Brussels DG Regio, 2008, Regions 2020: Demographic Challenges for European Regions, EU Directorate General for Regional Policy, Brussels DG Regio, 2009a, Regions 2020: Globalisation Challenges for European Regions, EU Directorate General for Regional Policy, Brussels DG Regio, 2009b, Regions 2020: The Climate Change Challenge for European Regions, EU Directorate General for Regional Policy, Brussels European Union, 2011, The Urban and Regional Dimension of Europe 2020: Seventh Progress Report on Economic, Social and Territorial Cohesion, Publications Office, Brussels 8

9 References OECD, 2009, OECD Global Charter / Legal Standard An Inventory of Possible Policy Actions, ILO International Labor Organization, the IMF International Monetary Fund, the OECD Organization for Economic Cooperation and Development, the World Bank and the World Trade Organization, Organisation for Economic Cooperation and Development, Paris OECD, 2011, OECD Regional Outlook 2011: Building Resilient Regions for Stronger Economies, Organisation for Economic Cooperation and Development, Paris OECD, 2012, Promoting Growth in All Regions, Organisation for Economic Cooperation and Development, Paris OECD 2013, Investing Together, Organisation for Economic Cooperation and Development, Paris 9

10 References NIC, 2012, Alternative Worlds 2030: Global Trends 2030, National Intelligence Council, Office of the Director of National Intelligence, Washington DC US growth strategy of Sustainable Communities, Innovation Clusters and Revitalizing Neighborhoods. See: m10-21.pdf World Bank, 2008, Growth Report: Strategies for Sustained Growth and Inclusive Development, World Bank, Commission on Growth and Development, Washington DC World Bank, 2010a, Post-Crisis Growth in Developing Countries: A Special Report of the Commission on Growth and Development on the Implications of the 2008 Financial Crisis, Commission on Growth and Development,Washington DC, World Bank, 2010b, Globalization and Growth: Implications for a Post-Crisis World, Commission on Growth and Development, Spence, M., and Leipziger, D., (eds.), Washington DC 10

11 References Barca, F., 2009, An Agenda for A Reformed Cohesion Policy: A Place- Based Approach to Meeting European Union Challenges and Expectations, Independent Report Prepared at the Request of the European Commissioner for Regional Policy, Danuta Hübner, European Commission, Brussels Berg, A.G., and Ostry, J.D., 2011, Inequality and Unsustainable Growth: Two Sides of the Same Coin, IMF Staff Discussion Note, SDN/11/08, International Monetary Fund, Washington DC Rodrik, D., 2007, One Economics Many Recipes: Globalization, Institutions and Economic Growth, Princeton University Press, Princeton Stiglitz, J.E., Sen, A., and Fitoussi, J-P., 2009, Report by the Commission on the Measurement of Economic and Social Progress, See Monitoring economic performance, quality of life and sustainability jointly produced by the French Conseil d analyse économique and the German Council of Economic Experts, December Available at: The Economist, 2014, Free Exchange: Inequality is Bad for Growth, 01 March 11