Docoral Sudens Conference h 7 h July, 2009 Thessaloniki, Greece 6 h Susainable Developmen and he Bulgarian Naional Sraegy for Regional Developmen 2005-2015: 2015: an applicaion of a hree dimensional heoreical model Julia Dobreva PhD suden, 3 rd year Ivan Ivanov - Associae Professor Sofia Universiy S. Klimen Ohridsky,, Bulgaria
1. Why susainable developmen? The resuls of excessive producion and consumpion: - Depleion of resources; - Spreading of dangerous polluans; - Desrucion of ecosysems; - Disrupion of he plane s climaic balance
1. Why susainable developmen? We have less han 250 years o save he plane! Is i possible o make policy changes ha could lead o a susainable world and wha policies would be effecive?
1. Why susainable developmen? To achieve susainabiliy, environmenal proecion and social welfare, we mus op for a less consumpive economy Bu Is i possible o have boh increased consumpion and clean world? Which is he key for governmens o achieve his conroversial symbiosis?
2. The hree dimensions of susainabiliy We ofen refer o he hree dimensions of susainabiliy as sysems he economic sysem, he environmenal sysem and he social sysem and each sysem has is own logic, so i seems almos impossible o analyze all of hem a once The hree main objecives of our analysis: To make a differeniaion beween Susainabiliy and Susainable Developmen To propose he hree-dimensional model of susainable developmen To prove ha susainable developmen can be achieved hrough he combined acion of he hree elemens under he condiions of subsidizing public and privae producion
2. The hree-dimensional model The funcion ϕ(x,, y, z z is an objecive funcion, which we wish o maximize under a given linear consrain: max x 0, y 0, z 0 ϕ ( x, y, z such ha a 1, x 2 3 + a, y + a, z b
2. The hree 2. The hree-dimensional model dimensional model 1 1 1,, R z R y R x,, ( * * * * z y x m = А (x*, y*, z* b z a y a a x l = + + 3 2 1 : k z y x =,, ϕ(
2. The hree-dimensional model
2. The hree-dimensional model v( a, b = max x 0, y 0, z 0 ϕ( x, y, z such ha a 1, x 2 3 + a, y + a, z b The soluion o his equaion is he vecor m*( *(a, b which defines he poin of maximum. g( a, k = min x 0, y 0, z 0 1 2 3 a, x + a, y + a, z such ha ϕ ( x, y, z k The soluion o his equaion is h*( *(a, k, which defines he poin of minimum.
2. The hree-dimensional model The Slusky equaion: m ( a i * a j, b * = h ( a i * a, k j * m j ( a *, b * * m ( a, b i b * following he general equilibrium heory, and depending on he changes in he values of he consrain, we can classify he variables as normal, ordinary, luxury, necessary, inferior or Giffen variables, and also as subsiues or complemens
3. Susainabiliy and susainable regional developmen Analyze susainable regional developmen by inroducing he ime facor, where such ha v ( p, M = max E, B, S u( E, B If { 1,2 }, hen he soluions o he problem for 1 =1 and = 2 2 will be accordingly * 1 1 1 1 * 2 2 2 2 x1 ( pe, pb, ps, M and x 2 ( p E, p B, p S, M. <, 0, S p E, E > + < pb, B > + < ps S > M [ 1,+
3. Susainabiliy and susainable regional The dual problem: developmen e ( p, u = such ha min E, B, S u 0 ( p ( E E, p, B B,, S p S,( E u, B, S The soluion o he minimizaion problem for period * 1 1 1 = 1 is he vecor h1 ( p, u, and for period = 2 2 * 2 2 * * is he vecor and we also have e = h h h ( p, 0 2 u 2 2 1
Susainabiliy Susainabiliy: susainabiliy is presen when he soluion for a maximum of he uiliy funcion and minimum of he expendiure for period is higher in value han he soluion o he same model for period 1 where [ 1,+ or: x ( p, M h ( p, u x ( p, M ( p * * * 1 1 * 1 1 1 1 h, u
Susainable Regional Developmen Susainable Regional Developmen: developmen which is analyzed in a hree- dimensional opimizaion model in which he quaniies of environmenal goods, privae goods and social welfare goods increase over ime along he opimaliy pah, i.e. hey are eiher normal, ordinary or luxury goods. We have a process of susainable developmen from momen 0 when in each momen ha follows he goods remain of he ype hey were in he iniial momen.
4. The policy of financing susainable regional developmen as a hree dimensional model The susainabiliy principle is laid down in he modern regional developmen policy of he EU as a hree-dimensional model by covering he hree main dimensions, i.e. environmenal proecion, economic growh hrough encouragemen of business aciviies, and increased qualiy of public services which improves he level of social welfare.
4. The policy of financing susainable regional developmen as a hree dimensional model maximizing he uiliy from he subsidies for regional developmen: v ( θ, F = max W( u1( E E, B, S 0, B, S,... u n ( E, B, S such ha θ 1 E + θ 2 B + θ 3 S F
4. The policy of financing susainable regional developmen as a hree dimensional model The dual (inverse problem of cos minimizaion: e ( θ, W = min θ E B 1 + θ 2 + θ 3 E 0, B 0, S 0 such ha W( u 1 ( E, B, S,..., u n ( E, B, S S W
4. The policy of financing susainable regional developmen as a hree dimensional model successful susainable regional developmen policy is a policy in which he soluion for a maximum of he social welfare funcion and minimum of he expendiure for subsidized producion for period is greaer in value han he soluion o he opimizaion model for period 1, or: x ( θ, F h ( θ, W x ( θ, F h ( θ, W * * * 1 1 * 1 1 1 1
5. Susainable regional developmen and is incorporaion in he Bulgarian Naional Sraegy for Regional Developmen 2005-2015 2015 Regional developmen policy laid down in he Consiuion of 1990; The crisis during he period 1992-1998; 1998; Major goal o overcome he differences wihin he regions and ackle he problem cenre-periphery, i.e.: - To se up a sysem of prioriies and goals in order o esablish a policy for a balanced regional developmen; - Transnaional cooperaion and developmen of infrasrucure hrough he physical opening of he naional erriory o neighboring counries.
5. Susainable regional developmen and is incorporaion in he Bulgarian Naional Sraegy for Regional Developmen 2005-2015 2015 Goals: 1. Increase regional compeiiveness and diminish he differences beween he regions developmen of business neworks and regional clusers and modernizaion f regional infrasrucure; 2. Achievemen of social developmen and cohesion hrough improvemen in he qualiy of life in he sraegy arge regions; 3. Developmen of European and regional cooperaion and parnership The proecion of he environmen is a horizonal prioriy
5. Susainable regional developmen and is incorporaion in he Bulgarian Naional Sraegy for Regional Developmen 2005-2015 2015 Regional Developmen Operaional Programme launched in December 1007; Managed by he Minisry for Regional Developmen 759 projec have been submied for he period December 2007 February 2009; Analyzed daa covers a period of wo years 2008 and 2009 Wih he increase in he absorpion levels of EU grans for regional developmen here is a subsanial increase in he susainabiliy y levels; The analysis shows ha he amoun of he financial aid is eiher increasing or remains he same Main beneficiaries municipaliies and regional srucures of respecive minisries bu final beneficiaries are he residens of a given region
5. Susainable regional developmen and is incorporaion in he Bulgarian Naional Sraegy for Regional Developmen 2005-2015 2015 Regional Developmen in he Balkan region: - developmen of cross-border economic, social, environmenal aciviies hrough join sraegy for susainable erriorial developmen; - Cohesion Policy defines cross-border cooperaion on he Balkans and ulimae objecive is o srenghen ransnaional cooperaion hrough he promoion of inegraed erriorial developmen - Srong connecion wih he aspiring counries FYRM, Serbia, and Turkey hrough IPA as well as wih Greece and Romania hrough he Srucural Funds - Main insrumen cross-border areas
6. Conclusions: 1. To examine he relaion beween a heoreical hree- dimensional model and he resuls of he EU policy for susainable regional developmen in Bulgaria and he region; 2. To prove how a mahemaical opimizaion model can be used in a pracical applicaion, namely he planning of poliical decisions by aking ino accoun he precise measuremen of heir inended impac; 3. The Bulgarian Regional Developmen Sraegy for he period 2005-2015 2015 provides subsanial financial resource for achieving he argeed susainabiliy levels 4. Regional developmen is no limied o he increase in producion and social welfare wihin he counry bu also covers he neighboring Balkan counries
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