Ministry for Regional Development
of the Czech Republic
Regional Development Strategy
of the Czech Republic
(Summary)
of the Czech Republic
Regional Development Strategy
of the Czech Republic
(Summary)
Prague, May 2006
Ministry for Regional Development
- 3 Pursuant
to Act No. 2/1969 Coll., as amended, the Ministry for Regional Development of the
Czech Republic (the “Ministry”) is a central state administration authority responsible for
regional policy and other areas, like housing, tourism and spatial planning, which also affect
to a great extent the development of the regions. Based on the foregoing, the Ministry sets
forth the regional policy principles of the Czech Republic and takes basic conceptual and
implementing steps towards their fulfilment.
The basic national document of the regional policy of the Czech Republic is the Regional
Development Strategy, elaborated under the supervision of the Ministry, which includes, in
particular, the following:
an analysis of the status of the regional development,
a characteristic of the strengths and weaknesses of the development of individual
regions (kraj) and districts,
strategic objectives of the regional development in the Czech Republic,
a definition of regions with concentrated state support)
recommendations to the relevant central administrative authorities and regions for the
focus of the development of sectors falling within their competencies.
Relation to other strategic documents of the Czech Republic
Principal trends and objectives of the regional policy of the Czech Republic:
are based on the Sustainable Development Strategy of the Czech Republic and form
a reform, growth-promoting plan formulated in the Economic Growth Strategy of the
Czech Republic (EGS) and the National Programme of Reforms (NPR);
interact with the principal objectives of ministerial and regional strategies and
programmes,
are harmonized with EU priorities set out in the economic and social cohesion policy
and in the renewed Lisbon strategy (cohesion, growth, employment).
However, the national specifics of the regional requirements and structures of the Czech
Republic still remain the set-off points. The regional development strategy is based primarily
on the Economic Growth Strategy of the Czech Republic, which is the basic governmental
document for the years 2007 – 2013 and which ties together sectoral and territorial aspects.
The regional development strategy is based on the “Czech Republic Strategy for
Sustainable Development” (Government Resolution No. 1242/2004), which represents
a long-term framework for maintaining the fundamental civilization values and quality of life
of the society and the basis for the preparation of other conceptual documents. The objectives
and tools of the Sustainable Development Strategy are directed at the reduction of imbalance
in mutual relations between the economic, environmental and social pillars of sustainability.
A number of thematically conceived strategic objectives are focused on securing such
balance; the link to the Regional Development Strategy is expressed concisely by the
objective “to promote the sustainable development of municipalities and regions”. The partial
1. Relations and Competencies in the Area of Regional Policy
- 4 conditions
that will alleviate, or even eliminate, regional economic disparities, while drawing
within the scope of the environmental pillar are set globally for the entire territory of the
Czech Republic. The regional specific stated in the social pillar is the promotion of the
development of rural areas. The objective specified in the chapter “Good Governance” is the
creation of conditions for optimising the use of own resources of the regions, to support the
utilisation of local sources of secondary raw materials and the preferential use of renewable
sources of energy with the maximum use of the regions' potential, to support the alleviation
of regional disparities, the balanced development and activation of internal resources of the
regions, mainly through the development of local economies of municipalities, cities and also
of micro-regions and small-sized enterprises and to support cultural diversity in individual
regions.
In its concept, the Regional Development Strategy adheres to the regional policy objectives
of the European Union and counts on the maximum possible use of all opportunities arising
to the Czech Republic from its membership in the European Union. It formulates globally the
objectives, problems and priorities which will have to be safeguarded during the
implementation of the regional development policy in the Czech Republic and the overlaps
between the European and the Czech regional policy. In accordance with the subsidiarity
principle, the development activities proposed by the strategy will be carried out at the local,
regional or departmental level and will be funded either by the national development
programmes or by the operational programmes with the use of funds provided by the
Structural Funds of the European Union. In this respect, the Strategy envisages both these
possibilities and covers the activities of ministries, regions (kraje) and municipalities,
provided that they have a relevant impact on the regional development. From this viewpoint,
the Regional Development Strategy is an important source document in the preparation of the
National Development Plan (NDP) and the National Strategic Reference Framework (NSRF)
and the operational programmes, focused on drawing financial means from the European
funds.
As regards the cohesion policy, the Regional Development Strategy is the fundamental input
document for the regional dimension of the basic national programming documents – the
“National Development Plan” and the “National Strategic Reference Framework”. These
documents are umbrella documents for all three new cohesion policy objectives –
convergence, regional competitiveness and employment and the European territorial
cooperation, define the main areas of intervention of the Structural Funds in the level of
priorities and justify the number and focus of the operational programmes. The relation of the
Regional Development Strategy is interactive, which means that the Regional Development
Strategy is based on the basic principles and priorities of the cohesion policy while bringing
into them at the same time the regional aspect.
The Regional Development Strategy is coordinated by another document of the Ministry, the
“Territorial Development Policy”, a national territorial planning tool which serves to
coordinate the territorial planning activity of the regions and the ministerial conceptions
linked to the territory. The Territorial Development Policy determined, for the relevant
period, the requirements of specification of territorial planning tasks in the national,
international, supra-regional and cross-border context, particularly with regard to the
sustainable development of the territory, and determines the strategy and basic conditions for
the implementation of these tasks. The content of the Territorial Development Policy will
include, in particular, the national territorial planning priorities to safeguard sustainable
on opportunities to support the cross-border cooperation of regions”. The objectives set forth
objective of the economic pillar is as follows: “in the field of regional development, to create
- 5 territorial
development and will define the areas with increased requirements for changes in
the territory due to the concentration of activities of the international, national and supraregional
importance. This document will also define areas which possess specific values and
which face specific problems, as well as corridors and areas of transport and technical
infrastructure of the international, national and supra-regional importance, and will determine
the criteria and conditions of the development of the defined areas, corridors and spaces.
Definitions of basic terms
The term regional development means the growth of the socio-economic and environmental
potential and competitiveness of regions leading to the increase of the living standard and
quality of life of their population. In this respect, this represents a dynamic and balanced
development of the regional structure of the relevant territorial unit and its parts (regions,
micro-regions) and the removal or alleviation of regional disparities.
Regional disparities mean the disparities in the level of economic, environmental and social
development of the regions to the extent which is acknowledged by the society as
undesirable. For instance, disparities resulting from diverse conditions of individual regions
and the differences in the quality of life resulting from these conditions, for instance, in urban
or rural areas, where the advantages and disadvantages are mutually balanced.
Regional policy represents a set of interventions focused, subject to the specific situation of
the state and its regions and with envisaged development tendencies, on the promotion of
measures leading to the growth of economical activities and their better distribution within
the territory and to the development of infrastructure. The basic condition is a clear definition
of priorities and concentration of funds on these priorities.
The important objective of the regional policy is the convergence of regions within a certain
territorial unit and its key characteristic is its selectiveness, which means the differentiation
of the focus of interventions to support selected problem regions, the development of which
lags behind significantly to the extent considered as undesirable by the society.
In the terms of the Czech Republic, the EU regional policy is implemented in selected NUTS
2 regions, the national regional policy is implemented in selected regions supported by the
state (Section 4 of Act No. 248/2000 Coll.) and the regional policy of the regions (kraje) is
implemented in selected micro-regions.
The basic levels of the regional development and the implementation of the regional policy
of the Czech Republic are as follows:
the cohesion regions (NUTS 2) – statistical areas,
self-governing regions (kraje) (NUTS 3) – higher-level local administration units,
district – regional units for the specification of regions with concentrated state aid,
administrative districts of municipalities with extended powers (SO ORP) – administrative
areas,
municipalities – municipal and city authorities.
The state is responsible for conceptual and executive activities of legislative and executive
components of the state in the field of regional policy and support of the regional
- 6 development,
including the procurement of state budget funds and adequate legislative
measures.
The state support of the regional development is supposed to ensure the growth of the socioeconomic
and environmental potential of regions, to increase their competitiveness, to
provide for a balanced development of the regional structure of the state and to diminish
excessive differences in the level of economic and social development and environmental
conditions of regions.
Thus, if the subsidiarity principle is applied, the tasks of the state in the field of support of the
regional development and implementation of the regional policy include, in particular, the
following:
elaboration of the regional policy concept of the state,
analysis and identification of regional disparities,
identification of problematic regions, which need to by supported at the national level,
determination of the scope and focus of the state support provided within the national
programmes of promotion of the regional development, required for the removal of regional
disparities.
The regional level is responsible for conceptual and executive activities of selfadministration
bodies of the regions in the field of regional development. These bodies of the
region (kraj) form the basic structural units for the creation and implementation of the
regional development in the Czech Republic, cooperate with the central state administration
authorities and coordinate the interests of municipalities in regional development issues of
supra-municipal importance.
The tasks of the regions include, in particular, the following:
coordination of the development of the territorial area of the region and the
development of sectors falling within their own powers,
designing the internal development policy of the regions, elaboration and
implementation of development programmes,
defining regional development priorities, influencing the development of
regional disparities within the region and paying attention to the
preservation of the diversity of the landscape and economic structure of the
territory.
Until 31 December 2002, the districts were responsible for temporary performance of
certain tasks related to the designing and implementation of support of the regional
development (pursuant to the Government Resolutions No. 258/99 and 511/99, the district
authorities were closed down and their activities were replaced, since 1 January 2003, by
municipalities with extended powers).
The tasks of the municipalities include conceptual and executive activities of selfadministration
bodies of the municipalities in the field of local development, preparation of
incentives for solution of supra-local problems, definition of supra-local programmes and
participation in the implementation of regional programmes.
- 7 Relation
to regions
The state and the regions (kraje) have their irreplaceable roles in the promotion of the
regional development. They cooperation but cannot replace one another. The regions are
unable to assume the role of the state for the simple reason that they operate merely within
their own designated territory and cannot overcome the spatial limits of powers of territorial
self-administration units. On the contrary, the removal of regional disparities requires
a unified evaluation of problems throughout the state territory and deciding in accordance
with unified criteria as to which deprived territorial units are to be supported and how to
support them. Moreover, the state acts towards the relevant institutions of the European
Union as the irreplaceable partner in the implementation of the economic and social cohesion
policy and thus also in the realisation of EU regional policy in the Czech Republic territory.
The Regional Development Strategy respects the self-governing role of regions in the
performance of partial regional policy functions and in the development of the regions. The
crucial element in this respect is the application of the subsidiarity principle, in the light of
which the Regional Development Strategy represents an umbrella conceptual document both
for the elaboration of regional development strategies and for the application of individual
tools in the implementation of the national regional policy in the course of preparation for
a drawing of funds from the European Funds.
- 8 -
2. Starting points of the regional development strategy
The ultimate objective of the priorities of the regional development strategy is the alleviation
of existing regional disparities through:
an active policy of directing funds to the support of optimisation of the development
potential of the regions,
a policy of allocation of funds to additional removal of adverse social effects of the
economic downsizing of structurally affected regions.
The purpose of the regional policy of the Czech Republic does not lie in an egalitarian
distribution of limited resources, but in a clear definition of priorities and concentration of
funds.
Such conceived growth strategy can be safeguarded by the following diversified
development processes of the regions:
a) Mobilization of the natural and cultural potential
Effective use of the development potential of the regions based on mapping the locally
diversified natural and tangible development potential and application of efficient measures
for its use. Expansion of capital absorption capacities of the regions for the purpose of
maximum utilization of the natural and cultural development potential. Revitalization of
regional traditions and their use as a source of economic growth within the framework of
globally dynamically developing segments, like tourism or economisation of the cultural
heritage.
b) Dissemination of development innovations
Dissemination of the effect of spatial development poles in the form of transmission of
information to regions indifferent to development.
c) Use of comparative advantages
Competition between regions and large cities for important economic activities, based on the
accentuation of their positive factors and development prerequisites and support of measures
which aim at the elimination of negative disparities dysfunctional for their development and
which allow further use of these factors and prerequisites.
d) Spatial cohesion, development of infrastructure
Internal integration of regions based on the territorial division of labour, optimising the use
of comparative advantages and accessibility of individual parts of the territory and
catchments links among them. Strengthening of economic and social cohesion by capital
investments into the development of the infrastructure of the regions.
e) Differential development of human resources in regions
Increase of education, skills, motivation, social and spatial mobility of the inhabitants and
their readiness to act in order to ensure higher effectiveness of their involvement in the
development projects and in the application of the principles of the local Agenda 21.
- 9 f)
Cross-border and inter-regional cooperation
Making use of the possibility of cross-border regional cooperation within the Central
European space and cooperation with other European regions and international organizations.
g) Increasing social cohesion of regions
A high level of social cohesion of regions based on an economic and civic participation of
individual population groups and their identification with the relevant territory and on
functional support of integration of excluded groups with the common aim of improving the
quality of life in the region. Modernization of the socio-economic structure of the population
in the regions and a prerequisite for their long-term sustainable development.
h) Stabilization of the settlement structure of the regions and revitalization of the rural
area
To increase the spatial flexibility on the labour market by promoting the substitution of
permanent migration with commuting to work without making significant changes in the
settlement structure of the country with the aim of reducing the depopulation tendencies of
municipalities and prevention of urban sprawl. Revitalization of the rural area by means of
use of modern technologies, IT, modernization of agricultural production and enhancement
of the environmental functions of the landscape. Increasing prestige of the country side by
means of improving the quality of the environment and providing support to the
improvement of the landscape potential.
i) Quality and openness of public administration in regions
Improvement of the quality and effectiveness of the exercise of the regional and local public
administration and of its availability to the inhabitants. Promotion of the development of the
partnership among the private, public and non-profit sectors and of open communication.
j) The environment
Thoughtful use of the environmental potential in further increase of the socio-economic
potential and competitiveness of regions in accordance with the principles of sustainable
development. Improvement of the quality of life through systemic protection and increase of
the quality of the environmental components.
3. Principles of the Regional Development Strategy:
Solidarity
The fundamental principle is the solidarity of the strong regions with the weaker and
disadvantaged regions. The solidarity and its effects are an extra-economic category;
however, re-distributed sources represent a real cost. Therefore, they have to bring along
positive economic effects not only to the recipients but also to the providers of the aid, even
in a long-term perspective.
Cohesion
The key effect of solidarity is the strengthening of cohesion of the entire territory of the
country. Such cohesion is conditional upon equal development opportunities of all territorial
units, i.e. upon levelling dysfunctional regional disparities. The cornerstone of such concept
of cohesion is the completion of adequate transport, technical environmental, administrative,
social, educational and other infrastructure in individual regions.
- 10 -
Growth
One of the prerequisites of successful regional policy is the dynamic and environmental
sustainable economic growth and the increase of the quality of life of the population of the
Czech Republic. This is not only a condition of fast elimination of barriers, but also
a prerequisite for full utilization of the potential of the regions.
Competitiveness
At the same time, a growth-oriented regional policy is focused on strengthening the
competitiveness of individual regions and areas, which promotes the utilization of
comparative advantages with positive effect in the regions.
Sustainability
The regional policy stems from the principle of sustainable development, which is
represented by a balanced relation among the economic, social and environmental
components of the regional development.
Since it is the aim of the regional policy of the Czech Republic for the years 2007-2013 to
utilize to the maximum extent the financial means provided by EU funds, the major part of
the objectives is presumed to be implemented through the operational programmes specified
in the National Development Plan and in the National Strategic Reference Framework for
this period. The aim is to implement individual regional development projects through the
following operational programmes:
regional operational programmes elaborated and implemented by the regions (kraj)
(NUTS 2 cohesion regions), with an emphasis on capturing (tackling) problem
specifics and development possibilities of individual regions,
the Integrated Operational Programme covering the field of services (social, health
care, information, administrative, cultural, tourism, recreation, etc.) with a primarily
regional dimension, which is elaborated and implemented by the Ministry of Regional
Development in cooperation with the regions,
Sectoral operational programmes in the field of enterprise, infrastructure and human
resources development, which are elaborated and implemented by central state
administration bodies and authorized organizations and which have a secondary
regional dimension.
If it is impossible to use the financing from EU funds in the implementation of certain
objectives, the Regional Development Strategy identifies the possibilities of their funding
from other public sources (National Regional Development Programmes) or from private
sources, including the Public-Private Partnership. Moreover, some of these objectives will be
implemented by way of organizational, legislative, institutional and financial measures.
4. Economy of the regions
The economic performance and regional competitiveness are important factors of the
development of regions. A competitive region is attractive (attracts investments, knowledge
and its characteristic feature is the location of companies and immigration).
- 11 a)
Gross domestic product
The basic indicator for comparison of regional competitiveness and socio-economic level of
regions is the gross domestic product, which represents the value of goods and services
produced in the given region.
Table No.1 Regional GDP in constant prices., 1995=100 %
Region 2000 2001 2002 2003 2004
Average
growth
rate
1996-2004
Prague 122.8 134.0 130.8 129.8 136.4 4.0
Central Bohemian 119.1 121.5 125.6 128.4 133.5 3.7
South Bohemian 106.5 105.0 111.7 114.5 119.1 2.1
Plzeň 104.4 105.6 104.4 110.4 114.5 1.6
Karlovy Vary 94.5 91.4 96.8 100.2 102.0 0.3
Ústí 92.1 89.7 91.5 97.8 103.1 0.3
Liberec 106.2 107.1 112.0 110.8 114.4 1.6
Hradec Králové 108.9 108.0 113.4 119.3 122.1 2.5
Pardubice 104.0 103.9 107.3 114.1 118.7 2.1
Vysočina 108.9 113.4 111.5 115.8 122.1 2.6
South Moravian 103.7 106.6 110.8 115.5 121.0 2.3
Olomouc 102.1 101.8 106.5 111.0 116.4 1.8
Zlín 98.9 100.1 98.7 107.2 110.6 1.2
Moravian-Silesian 96.1 97.2 98.8 104.1 112.4 1.4
Czech Republic 107.5 110.3 112.0 115.5 121.0 2.3
Source: Czech Statistical Office, Regional Accounts 2004
As regards accumulated change of GDP, the regions can be divided into the following
categories:
Regions whose GDP increase significantly exceeds the GDP increase in the Czech
Republic.
The greatest dynamic in the period under review has been demonstrated by the
capital city of Prague, whose increase of performance was equal to nearly twice
the value for the Czech Republic. The metropolitan character of the region with
a markedly different economic structure allows for significant acceleration of
growth, which can continue even in the next period. The remarkable development
of Prague has a positive impact on the neighbouring Central Bohemian Region,
particularly because Prague has no greater reserves of a territory suitable for
further extensive expansion, the prices of labour and lands in Prague differ from
those in the Central Bohemian Region, some improvement of infrastructure in
Prague's surroundings may have an impact on de-concentration of investments and
capital and the opening of a new transport corridor could result in a further
increase of the number of commuters to Prague. The Central Bohemian Region,
whose performance used to be adversely affected for a long time by Prague, has
been profiting now from the dynamic development of Prague. In the period under
review, the increase of GDP in the Central Bohemian region following closely
Prague. Particularly the district neighbouring with Prague are becoming attractive
for migrants from the whole Czech Republic.
- 12 Regions
whose GDP increase is comparable with the GDP increase of the Czech
Republic.
The dynamic of most of the other regions correlates closely to the dynamic of the
Czech Republic. Despite this, it is possible to distinguish two groups of regions.
The first group is comprised of those whose dynamic is by several points higher;
this group includes Vysočina and Hradec Králové Region. The South Moravian
and the South Bohemian Region keep the average rate of the Czech Republic. On
the other hand, the Regions of Plzeň, Liberec and Pardubice may be placed in the
group of regions with slower growth rate. In the last monitored year, Olomouc
Region and the Moravian-Silesian Region became to overcome stagnating
tendencies.
Regions whose GDP increase is significantly below the average of the Czech Republic.
The lowest long-term dynamic has been demonstrated by the Regions of Karlovy
Vary and Ústí. The crisis of these regions is also reflected in the average growth
rate of these regions within the period under review, beginning with 1995, when
the growth rate of these regions had been negative until 2001. These regions have
been undergoing a deep social and economic restructuring, which has not yet been
completed. The data for the years 2002-2004 indicate, however, a potential
acceleration of growth even in these regions. Together with the Moravian-Silesian
Region and Zlín Region, which can be described as stagnant (with the average
annual growth rate of less than 1.5%), these regions belong to a group
characterized by insufficient economic growth of the whole regions or of some of
their parts, accompanied by negative employment tendencies. Their unemployment
rate is much higher than the average of the Czech Republic. These regions are
distinguished by the concentration of structurally affected areas and a part of
economically weak areas of the Czech Republic.
Table No. 2 Regional GDP per cap. Czech Republic = 100 (in %)
Region 2000 2001 2002 2003 2004
Prague 199.4 210.9 206.5 203.1 201.8
Central Bohemian 97.8 95.9 96.3 94.9 93.6
South Bohemian 89.3 86.7 90.6 89.8 89.0
Plzeň 95.3 94.3 91.5 93.4 92.6
Karlovy Vary 83.0 78.8 81.5 80.7 79.9
Ústí 83.4 80.6 81.3 83.2 84.5
Liberec 86.1 84.2 86.5 82.2 81.5
Hradec Králové 91.3 88.4 90.8 91.9 90.2
Pardubice 85.5 83.4 84.4 85.5 85.1
Vysočina 88.6 91.8 87.1 86.3 86.5
South Moravian 90.2 90.3 92.9 93.8 93.9
Olomouc 77.7 75.6 77.2 77.9 78.0
Zlín 84.3 83.1 80.1 82.8 82.2
Moravian-Silesian 78.0 77.6 77.9 78.7 82.1
Prague 100 100 100 100 100
Source: Czech Statistical Office, Regional Accounts 2004
- 13 The
above table offers a possibility to compare shares of the per capita GDP generated in
individual regions with the average per capita GDP of the Czech Republic. Differences in the
GDP growth rate in individual regions were also reflected in the changes of the performance
ratio of individual regions as compared to the performance ratio of the whole country. If we
leave aside the Prague phenomenon, the leading place among regions whose performance has
been improving since 2000, i.e. where the gap between the performance of the region and of
the whole country has been diminishing, is held by the South Bohemian Region, where the
difference was reduced by more than 3.5% in 2000 – 2004. A slight improvement has been
demonstrated by the Ústí, Olomouc and the Moravian-Silesian Region.
An important parameter for international comparison and namely for the determination of
eligibility for aid provided through the EU cohesion policy is the regional per capita GDP
restated to the purchasing power parity. NUTS 2 regions which do not reach 75% of the EU
Member States are eligible for aid provided through the main cohesion policy objective. The
allocation amount is also subsequently derived directly from the amount of the difference
between the performance of the region and EU average.
Except for Prague, all other cohesion regions meet the condition for being included into the
Convergence objective (the main objective of the cohesion policy for the next programming
period with the greatest volume of allocated sources) in the years 2007 - 2013. It can be
realistically expected, however, that this limit will be exceeded after 2013 by the Central
Bohemian and Southeast regions and the Southwest region will come close to it.
b) Unemployment
In 1993 – 1996, the general unemployment rate in the Czech Republic fluctuated (was)
around 4%. Later on, it began to grow and reached its peak figures in 1999 and 2000, when it
was doubled (8.8% in 2000). Then, it fell slightly but has begun to grow again since 2003
and fluctuates now around 9%.
The most problematic region as regards unemployment is the Ústí Region, where the
unemployment rate has tripled in the period under review. The development in individual
regions (kraje) (NUTS 3) differs and does not copy the development of unemployment rate in
the whole country. The differences among regions had deepened until 1998; since 1999, they
have rather oscillated. In the last years, the most problematic regions (Ústí, the MoravianSilesian
and the Olomouc Region) have been joined by the Region of Karlovy Vary.
The regional differences in the unemployment rate are much higher in districts that in regions
(since the “statistical average” effect does not operate here). The differences among districts
increased and the territorial division of unemployment changed significantly in the monitored
period of 1993-2004. These changes include territorial concentration of unemployment in the
district that have been most heavily affected by it in the long run - Most, Teplice, Chomutov,
Karviná, Jeseník and Bruntál.
Minimum or permanently less than average unemployment rate can be found in direct
neighbourhood of the development poles of growth (Prague, Mladá Boleslav, Brno) and
basic development axes (Prague-Plzeň-South-Domažlice, Prague-České Budějovice, or even
Prague-Brno (along the D1 motorway)). All other Bohemian territory fluctuates around the
average unemployment rate in the whole country (8%). While the unemployment rate in the
majority of Bohemian districts ranges between 6.4%-9.4%, the unemployment rate in the
majority of Moravian district ranges between 9.4%-15.4%.
- 14 The
risk of unemployment is markedly differentiated socially by age and level of education.
The most affected age categories are the 15-19 years old and 20-24 years old economically
active persons (6 out of 10 economically active persons between 15 and 24 years of age are
outside the labour market). The situation of age groups of 30-34 years and 45-49 years has
improved in the Czech Republic in the last years; on the other hand, the situation of the age
categories before the retirement age (50-54 and 55-59 years) has deteriorated. The persons
who are most affected by unemployment are those with basic education or vocational
training (without the general certificate of education), whose position at the labour market
has been steadily deteriorating. The unemployment rate of secondary school graduates is
more or less stable but has recently somewhat deteriorated. Among those graduates, the
chances of men to find a job are not markedly different from the chances of women.
A steadily lowest unemployment rate exists among university graduates; there are virtually
no differences in the unemployment rate between male and female university graduates.
The share of the long-term unemployed, i.e. of people who have been unemployed for more
than a year, has been increasing significantly in the last years (52.7% in 2004); the same
applies to the average length of unemployment (24.5 months in 2004). Long-term
unemployment is concentrated into a relatively small number of districts (Most, Teplice,
Chomutov, Ostrava-Město and Karviná).
The number of job applicants per one vacancy has been reduced slightly in the past two
years. The highest of them still exist in structurally affected regions. While the value of this
indicator in the Czech Republic amounted in the first half of 2005 9.5 applicants per one
vacancy, it reached more than 50 applicants per one vacancy in the districts of Karviná, Most
and Bruntál.
It can be said in general that the unemployment indicates insufficient use of the potential of
the regions.
5) Regional structure of the Czech Republic and the diversification policy
a) Main regional disparities
Due to the difference in factors affecting the regional development and depending on various
basic conditions, the location and degree of urbanization of the of the Czech Republic, the
development of the regions has been characterised by different dynamic and different
changes of their territorial economic structure.
The comparison of main regional development factors reflects a tendency towards
deepening of inter-regional disparities, which can be characterized as follows:
relatively significant deepening of differences in the economic performance of the
regions in a number of indicators which are decisive for the living standard of the
population (the per capita GDP, average wages, unemployment, etc.),
marked differences in unemployment rate and per capita earnings existing among
districts,
the unemployment rate in regions affected by the necessity of extensive industrial
restructuring (particularly in the Region of Ústí and in the Moravian-Silesian Region)
- 15 is
still high and the necessary structural transformation are not sufficiently quickly
implemented,
the disadvantages of rural areas as compared to urban areas have been depending and
the municipalities in rural areas suffer from unfavourable business conditions and
ageing of the rural population,
the economic level of a number of border district lag behind the rest of the country,
the connection of north-eastern Moravia and Silesia to trans-European
communication routes and to the capital is still insufficient, which contributes
significantly to lack of interest of investors, particularly foreign, in this territory,
there are differences in the share of university graduates between the two largest
cities (Prague and Brno) and the other regional cities,
the environmental damage caused by past industrial activities in north-western
Bohemia and northern Moravia and by the development of automobile transport in
Prague and other large cities has not been overcome yet.
b) Typology of the regional structure
The orientation of the regional policy to specific types of territorial units stems from the
typology of regions, which is based on the following criteria:
economic activity of the region,
long-term socio-economic development and extent of concentration of activities
geographic location
Developing, stagnating regions and regions lagging behind
1. Developing regions: This group includes Prague as the most dynamically developing
region, which represents a significant link in the hierarchy of central European metropolises
and fulfils supra-national functions. It also includes the Central Bohemian Region, which has
a significant growth potential relating to the location of Prague in its centre. The inclusion of
the Plzeň Region is based on the successful job creation process in the newly developing
zones and enterprises. The South Moravian Region can be placed in this group particularly
due to the dominant position of the Brno conurbation,; at the same time, this region manifests
certain weaknesses, particularly in its southern and south-eastern parts.
2. The regions with average or lower growth rate include the South Bohemian Region, the
Regions of Hradec Králové, Pardubice, Vysočina, Zlín and Liberec, which demonstrate very
good results in certain indicators (mainly their central conurbations), but fail to reach the
average of the Czech Republic in many other indicators. The problem faced by some of these
regions lies in particular in poor transport accessibility (the South Bohemian and the Zlín
Region); all of these regions then suffer from the existence and poor accessibility of remote
(peripheral) rural areas. Vysočina is a new region established is less favourable natural
conditions on the border between Bohemia and Moravia. The territory of this region is
comprised of areas lacking significant industrial traditions, except the regional centre Jihlava,
and has a generally rural character. Its hidden tourism potential has not been sufficiently
utilized yet. Another adverse factor in this region is the downsizing of agricultural
production. However, this region has recently begun to show symptoms of growth as well.
3. Regions lagging behind and other problematic regions: the Regions of Karlovy Vary,
Olomouc, Ústí and the Moravian-Silesian Region. The basic problem of the Region of
- 16 Karlovy
Vary is its remoteness and low level of transport connection with other centres in the
Czech Republic. This problem is not outweighed even by the neighbourhood with the Federal
Republic of Germany, which has a positive effect in the other cases. Another problem is the
inherent heterogeneous nature of the Region of Karlovy Vary, which is comprised of spa
district and of districts which have been significantly affected by restructuring, like the
district of Sokolov. The economy of the region has been affected by restructuring of
industrial production, which has been reflected in the growing lag of the region behind
average wages in the other regions. This region is one of the regions with younger
population; however, the limited offer of secondary schools is reflected in low education
level of its inhabitants, which is below the average of the Czech Republic. Due to the above
problems, the region has to cope with very low GDP growth, compared with the other
regions.
The Moravian-Silesian Region and the Region of Ústí have to cope mostly with problems
relating to the downsizing of formerly dominating industrial branches and the problems
caused by it, like the high unemployment rate, existence of pathological social phenomena
or outflow of young and skilled workforce. The problems in the Region of Olomouc,
however similar to the problems of the above regions, have different causes. The basic
causes of the current situation of the Region of Olomouc include its marked internal
heterogeneous nature, the existence of remote peripheral districts in its northern part and
insufficient use of its growth potential offered by its regional centre characterised by the
high level of education of its inhabitants, the prevailing rural nature and the long-term low
level of development of some parts of its territory, which are mostly agriculture-oriented.
c) Poles of growth and development axes
Beside production indicators, the long-term socio-economic development of regions is
affected by the overall structure of production and manufacturing capacities, by innovation
characteristics, labour force quality and last but not least also by the settlement structure,
because economic growth is closely linked with urbanization.
Large conurbations with a diversified structure of economy and existence of industries
capable of generating growth in their surroundings create the development poles. The
importance of cities as the development poles results from the following factors. the
number and growth of the population, the competitiveness and communication
connections. Not all cities reach such results in all indicators to play the role of poles;
therefore, their influence on their surroundings is limited. The development poles are also
characterized at present by their participation in the knowledge-based economy.
The document named “Territorial Development Policy of the Czech Republic”, prepared
pursuant to the new Act on Urban Planning, defines the following 12 main development
areas of the Czech Republic with significant concentration of activities of the international or
national importance: Prague, Ostrava, Brno, Hradec Králové – Pardubice, Plzeň, Ústí nad
Labem, Liberec, Olomouc, Zlín, České Budějovice, Jihlava, Karlovy Vary.
These urban centres, which represents the development poles of the Czech Republic, face
specific problems which should not be neglected (the European regional policy has also
designated a special Urban Community Initiative for the regeneration of cities and resolution
of specific urban areas). These problems include, for instance, the transport infrastructure, the
quality and capacity of which does not match the growing automobile transport and the
related environmental damage, the existence of brownfields and non-optimum functional
- 17 utilization
of the territory, global housing problems (regeneration of prefab housing projects),
lack of greenery, etc.
The “Territorial Development Policy of the Czech Republic” also defines the development
axes of international and national significance (a total of 11). They have been defined by
the administrative districts of municipalities with extended powers which have significant
links to major transport routes. With regard to regional development, the development axes
can be characterized as channels spreading socio-economic growth from the poles to their
surroundings. These development axes have to be universally supported, particularly by high
quality transport and communication infrastructure to ensure the dissemination of growth,
innovation and competitiveness. The promotion of the development axes, focused
particularly on spreading of positive effects emanating from the centre, prevents some
undesirable effects, like migration of labour force (which is selective as to age and skills),
concentration of negative environmental impacts in centres, increased competition of
enterprises located in the centres, etc. The following map shows the development axes , as
transposed from the “Territorial Development Policy of the Czech Republic”, i.e. the axes of
international and national significance, which are supplemented with lower-level axes of
regional importance, which help illustrate the needs of the territorially focused operation of
some development programmes,. However, the specific determination of regional axes is
carried out by the regions in their spatial planning documentation.
[Legenda: Development Axes Development axes
of international and national significance shown in the
Territorial Development Policy
of regional significance
Map source: ]
- 18 d)
Rural areas, regions located outside the development axes and peripheral regions
The regions without significant development poles or development axes have lower
economic performance and face a number of development barriers, like rural settlement,
absence of technical (transport, communications) infrastructure, unfavourable age and
education structure of the population and others. These are mainly rural areas.
The common problem of rural regions is the lack of job opportunities, insufficient technical
infrastructure and level of services and last but not least also the adverse age and educational
structure of the population. The existing concept of rural regions reflects the settlement
structure rather than the economic performance of the territory. The distance of the region
from the main centres of the countries or from large markets has a decisive effect on its
development potential. The inaccessibility of regionally disadvantages territories represents
a barrier to their development in a similar way in which the central location of the region
represents a significant potential.
The Czech Republic has about three types of rural areas, each of which is characterised by
different trends. This difference results from their distance from urban areas.
Rural areas surrounding large cities (the suburban rural areas), which are affected by
suburbanization and witness a significant population increase, affecting their
development and particularly their investment priorities. The population works
mostly in production and services and commutes to the catchment cities; however,
most of the lands are use for agriculture. The urbanization pressure has its
requirements regarding the territorial structure and protection of the natural
environment.
Rural areas characterized by average development and located at a greater distance
from large settlement centres (semi-remote rural areas), but with good transport
connection and relatively available infrastructure. These areas have stable population
and undergo an economic diversification process. Such easily accessible rural areas
have a potential to become the recreational background for urban areas, which has
a specific impact on their needs. It is necessary to preserve their economic potential,
to increase, to increase the pace of their economic diversification and to strengthen
their relations to medium-sized and small cities.
Peripheral rural areas, which are scarcely populated, isolated from catchment cities
and main transport network (remote rural areas). Such areas can be found in the
Czech Republic at the level of districts and micro-regions and include, in particular,
the border and mountainous regions in the north-eastern part of the country. With
regard to the size of the Czech Republic, it is not the absolute distance from the centre
(Prague) and from the leading export countries (FRG), even though this factor plays
its role, but rather the fast transport possibilities, particularly the motorway and
expressway networks, which matter in this respect. The most serious problems of the
peripheral regions are caused by insufficient transport connection to the regional
centres, which causes problems with commuting to work. Their remoteness
contributes to the preservation of higher than average unemployment rate, to the low
level of income of their inhabitants and of the basic services and to the overall
stagnation of economic activities in their territory, which is not compensated to the
full extent by income from tourism and agriculture. Peripheral regions suffer from
lack of interest of investors, who do not locate there any new manufacturing facilities.
- 19 Due
to their distance from the development centres, border areas used to be peripheral
regions for a long time. Their distance from the development centres, particularly from
Prague, represented one of the barriers of their development.
The entry to the EU has opened new relations to the areas of the neighbouring countries
across the border and their centres. The prerequisite for such integrated development is the
removal of border barriers (for instance, the enlargement of the Schengen area), of
infrastructural barriers (construction of cross-border roads ensuring the accessibility of future
common centres of the cross-border area from both sides of the border, IT networks, etc.) and
also of barriers resulting from the historical development accompanied by national and other
conflicts, the language barriers and others.
The elimination of these barriers will contribute to the development of the endogenous
potential of these area, which results mainly from the physical-geographic characteristics
(border mountains, natural wealth – existence of national parks, etc.) and from the sociocultural
features (long-term blending of cultures, nations, traditions and the resulting
specifics) of cross-border areas. This constitutes the basis for current development of
economic sectors, like tourism. Another unused potential is represented by the development
of higher education and research in cross-border areas and their centres and the related
development of human capital.
Regional Development Strategy Chapter IV – SWOT Analysis
- 20 -
6. Summary evaluation of regional problems and development prerequisites
The analysis of the main regional development factors indicates that, as regards the strengths,
one of real strengths of the regional development in the Czech Republic continues to be the
skilled and still relatively cheap labour force. At the same time, it has gradually appeared
that, due to the development of new business activities in some parts of the regions, related to
the influx of foreign investment, certain types of labour force (possessing certain skills) have
become in short supply in these regions.
Other major strengths include the development of manufacturing capacities in connection
with direct foreign investments, as indicated above, which is connected with an actual large
offer of areas for the development of business in the regions. This development creates
prerequisites for the establishment of new ties with local businesses and for future
penetration of these businesses into foreign markets. This can be also identified as one of the
causes of the dynamic development of small and medium-sized enterprises in the Czech
Republic.
Traditional strengths of the regional development can be identified in areas with cultural
heritage or natural potential, which exist in various regions in the Czech Republic.
Weaknesses can be divided into several basic problem categories. First, there are weaknesses
which continue to hinder, by their nature, the development of business activities, like
complications connected with the very start-up of these activities. Secondly, there are
weaknesses connected with shortcomings in various sector of infrastructure, like transport
and communications. The third category of weaknesses is connection with the operation of
the labour market, for instance, low mobility of the labour force, housing problems, etc.
A specific problem of this part of the SWOT analysis is represented by the generally low
level of promotion of research and science, of the cooperation between research institutions
and businesses and of the knowledge-based economy in general.
- 21 -
7. Strategic framework
The strategic framework of the regional development of the Czech Republic after 2006
declares the following:
where, at which level the Czech Republic, as a Member State of the European Union,
and its regions are currently positioned as compared with the other developed EU
Member States,
the vision which the Czech Republic would like to achieve in the next years by the
implementation of its regional development strategy,
which global objective the Czech has been set with regard to the implementation of the
development vision,
on what ground this objective is to be fulfilled – the main development tendencies,
what has to be considered as the main pillars on which the regional development in the
Czech Republic will rely, which priorities of the regional strategy of the Czech
Republic will pre-determine the nature and intensity of its regional development.
a)
Until 2013, the Czech Republic intends to be
an active country with good economic performance, competitive, with good quality
environment, which will reach, in accordance with the sustainable development
principles, the standards of the European Union in all basic criteria (the level of
knowledge-based economy, per capita GDP, employment, social security, etc.) and will
provide for increasing quality of life of its population.
At the same time
the regional disparities will be significantly alleviated and the number of cohesion regions with
economic power and growth rate reaching the EU average will grow,
at least a minimum development potential in all micro-regions will be ensured in the field of
infrastructure and other components forming the living conditions for their inhabitants,
the share of active and innovative population in regions will increase.
The regional development strategy endeavours to promote the principles of long-term
sustainable development, utilizing all positive development potential of the Czech Republic.
For this purpose, the Czech Republic and its regions will activate all internal utilisable
resources of municipalities, regions and the state and will use solidary sources of the
Communities, particularly during the implementation of its cohesion policy for the years
2007 - 2013.
Sustainable development will mean the development based on stable economic growth with
thoughtful use of natural sources and reduction of their specific consumption, respecting
cultural and social needs of the population and efficient environmental protection and the
development promoting the learning and self-organization process subject to environmental,
economic and social limits of the global society.
The overall concept of the strategy forms the basic framework of the implementation of the
regional policy of the Czech Republic as an independent national regional policy of an EU
- 22 Member
State and as an integral part of the regional policy of the European Union, and these
aspects must be mutually complementary.
The regional policy of the Czech Republic provides for the harmonization of the strategic
objectives of the regional development of the European Union with the strategic objectives of
the regional development of the Czech Republic and with own interests and needs of
individual regions (NUTS 3 and 2). It must also facilitate efficient combination of utilisable
sources of municipalities or their associations, of regions, the state and the EU funds, which
may be activated, with domestic and foreign resources of private investors. This purpose will
be implemented through active inter-regional (particularly cross-border) cooperation and the
cooperation of the state with Member States of the European Union.
b) Global objective and its structure
The global objective that has been set for the purpose of implementation of the vision in
compliance with the five main principles and ten key processes of the regional development
set forth in the first part of the document specifies the following basic direction of the longterm
development of regions in the Czech Republic:
a balanced, harmonious and sustainable development of regions, which will lead
to an increase of the quality of life of the population.
This global objective is comprised of three strategic objectives:
the development-oriented objective represented by an increase of economic and
environmental potential, competitiveness and social level of regions in the Czech
Republic to a level comparable with developed regions of Europe,
the disparity-oriented objective focused on stopping the growth and gradual
diminishing of excessive regional disparities and utilization of territorial specifics,
the instrumental objective focused on institutional and financial safeguards of the
strategy.
The development-oriented objective focused on the achievement of an economic, social
and cultural level of the regions of the Czech Republic which will be comparable with the
developed regions in Europe reflects the strategic objectives of the regional policy of the
Czech Republic, which respect the objectives of the Czech Republic Strategy for
Sustainable Development and the Economic Growth Strategy of the Czech Republic.
A major part of its implementation will be funded out of the financial sources of the
cohesion policy. It is addressed to all regions of the Czech Republic and expresses, in
relation to the European Union, the disparity in their development level, measured by per
capital GDP compared with the average of the Member States. Interventions made within
this objective should give priority to the improvement of the institutional environment for
the implementation of the regional policy, to the initiation of active growth-promoting
policy in regions, stimulating business activities, implementation of innovations and
increased competitiveness of regional players at the national and the European market,
mobilization of the human factor, increased employment and social cohesion,
improvement of infrastructure, environmental protection and sustainable development.
This means, in direct relation to the growth, the promotion of business, investments and
exports. The promotion of business activities means in this respect a general increase of the
quality of the business environment and direct support to small and medium-sized
- 23 enterprises.
With regard to the role that is played now by SME in the Czech economy, the
objective is not focused on support of any kind of business, but preferably of innovative
activities with higher added value. The existing support of foreign investments has
indisputably its importance; however, the aim is to spread these impulses into other regions,
which means, in practice, also the support of domestic investments.
Another objective is the achievement of the maximum possible utilization of the production
potential of the region, which ceased to be focused a long time ago on continuing
exploitation of natural resources, but is rather concentrated on their cultivation for the
purpose of increasing the quality of life of the population in the region and of the
development of tourism.
The main potential of the regions is the human factor –skilled, enterprising and independent
human beings capable of flexible adaptation to the changing conditions. Even though the
vision of such population is a long-term objective, the investments into human capital
represent the key current investments, provided that they are correctly focused and utilized.
This concerns not only the increase of the level of education and science, but focusing of
both these aspects on the preparation of active and pro-innovative population and business.
An integral part of the proposed measures is the maximum reduction of unemployment.
Science, technical progress and innovations result, among others, to savings of the
workforce. Therefore, the development objectives of the strategy also include creation of new
jobs, which will be attractive and can be utilized by idle workforce (including people
encountering difficulties in finding a job).
The above objective and growth-promoting measures would encounter sooner or later the
sustainable development limits. Therefore, the objectives also include the development of
transport infrastructure, further improvement of the environment and also a well-planned
development of the settlement structure, housing and cultural heritage, including all their
Czech specifics.
The disparity-focused objective, which is directed at the reduction of undesirable regional
disparities and at the development of specific problem territories, reflects the focus of the
internal regional policy of the Czech Republic on urgent problems of its regional
development. These problems are represented by distinctive regional disparities (undesirable
inter-regional differences or marked deviations from the average values of the Czech
Republic), can be identified by territory and operate or will likely operate against balanced
regional development of the Czech Republic. This objective will also be implemented with
a significant contribution from the financial funds of the cohesion policy. The proposed
measures are addressed to regions with concentrated state aid and to territories facing
specific problems. The relevant interventions are to be directed towards modernization and
diversification of the economic structure of structurally affected regions, the increase of
economic performance of regions with weak economy, towards the development of the
labour market in regions with excessively high unemployment, the resolution of specific
problems of cities, conurbations and territories located on the development axes and towards
the enhancement of rural areas and peripheral regions located outside the development axes.
The disparity-focused objective respects the fact that despite the disparities existing among
the regions (which appear relatively small in the international context) and thus despite the
relatively great cohesion of the regions, these disparities have been deepening with the
progress of de-aggregation (of regions, districts or otherwise defined micro-regions), as well
as with the passage of time.
This results from two factors. The first of them is the delayed effect of some transformation
costs (in structurally affected regions). Secondly, it has been confirmed indirectly that
- 24 although
the existing regional policy mitigated the regional transformation costs, it did not
manage to fully prevent growing disparities. This concerns not only regions affected
specifically by industrial restructuring, but also rural and peripheral regions.
These regions require special attention of the state and their list has been traditionally
announced by the Czech Republic Government. Such regions require concentrated public
support, taking into account their specifics, including possible utilization of their potential. In
other words, these regions require steps towards minimizing negative comparative
advantages and support of positive advantages. Such steps cannot be taken without close
cooperation with regional authorities.
The instrumental objective respects the fact that the fulfilment of the above global
objectives depends on an effectively functioning public administration, its sufficient
administrative capacity (not as regards the number of staff but rather its skills) to cope with
the implementation of the development objective, on the absorption capacity of subsidies
provided by the Structural Funds, on the involvement of the state in the field of consultation
and simplification of the agenda relating to the administrative preparation of project, and
finally, on the provision of funding subject to the compliance with the general terms, which
include:
co-financing and additionality principles,
rules of public aid,
updating and creation of regional strategies.
Other conditions include:
e-government at all public administration levels,
reduction of the high staff turnover in public administration,
enhancement of administrative capacities in regions,
simplifying administrative measures for the business sector.
All of the three above-mentioned strategic objectives will be implemented through
thematically focused priorities and measures divided by their objective content into eight
priority areas, which will become the basic pillars of their implementation.
c) Structure of priority areas and of the priorities of the Regional Development Strategy
The objective of the strategy lies in formulating the themes and aspects that play an
important role in the promotion of regional development and in the incorporation of the
regional dimension in individual sectoral policies where it is useful and necessary. Therefore,
the strategy does not deal will all sectoral problems. Thus, the regional development strategy
represents a strategic orientation for future regional development programmes, whether
implemented at the central or regional level or with or without financial aid of the European
Union. A relation between the Strategy and programming documents of the structural funds
exists in the development activities, priorities and measures the support of which is permitted
by the relevant regulations on individual structural funds and in activities that can be used in
a differentiable manner in support of a balanced regional development of the Czech
- 25 Republic.
Thus, the Regional Development Strategy is not a direct basis for distribution
of means from the structural funds, but a basic document for the preparation of
regional development programmes (Section 6 of Act on Promotion of Regional
Development) and for the formulation of regional approaches of sectoral and policies
and programmes, including the operational programmes of the structural funds.
Due to the foregoing, the scope and focus of individual preferred areas and priorities is
specified to a broader extent than in the National Development Programme and the
National Strategic Reference Framework for the preparation of the operational
programmes.
- 26 priority
axis
P2.2 Increasing
SM E's
com petitiveness
P1.1 Institutional
system of support
and cooperation of
regions
P1.2 Efficient and
effective public
adm inistration in
regions
P3.1 Support of
investm ents into
hum an capital
P3.2 Settlem ent
structure and housing
P3.3 Social
cohesion in
regions based on
equal opportunities
P4.1 Ensuring
regional and
supra-regional
transport
accessibility
P4.2 Ensuring high
quality regional,
interregional and
supra-regional
transport services
P4.3 Developm ent
of energy and
com m unication
netw orks and
equipm ent in
regions
P5.1 Protection of
environm ent incl.
nature
P5.2 Thoughtful
handling of
m aterial and
energy sources
P5.3
Environm ental
education,
consulting and
aw areness
PO 2
Econom y
of regions
PO 3
People and
settlem ent
PO 4
Infrastructure
PO 5
N ature,
landscape and
environm ent
PO 1
European and
national econom ic
strategic
fram ew ork
P2.4 Job creation
P2.1 Creation of
conditions for
dynam ic econom ic
developm ent of
regions
PriorityareaPriority
P6.2 Developm ent
of tourism
infrastructure
PO 6
Tourism
P6.1 Organization
and m anagem ent
of tourism
P6.3 Developm ent
of tourism
products and
services
P4.4 Developm ent
of inform ation
technologies in
regions
P1.3 Ensuring
sources of funding
of the regional
policy
PO 8
Problem
territories
P8.1 Increase of
econom ic
perform ance of
problem territories
P8.2 Labour
m arket
interventions in
territories w ith
excessively high
unem ploym ent
P8.3 Support of
solution specific
developm ent
problem s rural
and peripheral
areas
P3.4 Developm ent
and regeneration
of cities
P2.3 Support of
innovative
business and
research in regions
P7.1 Organization
and m anagem ent
of cultural events
PO 7
Culture
P7.Developm ent of
cultural
infrastructure and
services
P7.3 Preservation
and use of cultural
m onum ents
P7.4 Education
and inform ation
- 27 d)
Ensuring (implementation) of the strategy
Current experience indicates that the regional policy, as defined above, complies with the
principles of EU policy; however, for a number of reasons, it is still somewhat
underestimated in the Czech Republic. The causes may be summarized in several points:
accentuation of partial interests of individual ministries to the detriment of mutual
coordination of activities towards regions,
larger or smaller scale rivalry among the central, regional and local administration,
underrating the regional dimension of social and economic life.
The practical consequence of these causes includes, among others, the fact that the public aid
policy accentuates excessively on the one hand the sectoral (“blanket”) dimension and
suppresses the regional dimension. In this respect, however, the correct setup of the
instruments should not provide a competitive but a complementary view. Therefore, the
sectoral approach must be enriched (supplemented), beside specific regionally focused
programmes, with the regional superstructure. This is evident, for instance, in the policy of
support and enterprise. The “blanket” aid policy is in place and any effective business plan is
welcome; however, priority may and must be given to plans which help resolve at the same
time the regional disparities (for instance, a higher unemployment rate) or expand the
regional potential (e.g. tourism).
e) Organizational and institutional safeguards
The framework of the organizational and institutional safeguards of the implementation of
the regional development strategy is defined by Act No. 248/2000 Coll. on Promotion of
Regional Development.
Basic regional development levels
The role of the state consists in the conceptual, programming and executive activity of the
executive components of the state in the field of regional policy and support of the regional
development, including the procurement of funds from the state budget and adequate
legislative measures.
The role of the regions (kraj) consists in the conceptual, programming and executive
activity of the self-government bodies of the regions in the field of regional development.
The bodies which form the basic structural unit of the creation and implementation of
regional development in the Czech Republic coordinate the development of their respective
territorial areas, cooperate with central state administration authorities and coordinate the
interests of municipalities in regional development matters beyond the municipal level.
The role of the municipalities consists in the conceptual, programming and executive
activity of the self-government bodies of the municipalities in the field of local development,
their incentives concerning the solution of problems exceeding the municipal level and their
participation in the implementation of regional programmes.
f) Main participants in the regional development
Ministry for Regional Development
Coordinates the activities of the other ministries in safeguarding the national regional policy
and cooperates with them in the preparation of drafts of the strategy and of the national
regional development programmes. In addition to the foregoing, it is responsible for the
- 28 coordination
of important activities concerning the economic and social cohesion policy and
for other policies falling within its competencies (housing policy and tourism), which also
affect regional development.
Other ministries
Support of the regional development has a cross-sectional, multi-sectoral nature. The
competencies of nearly all ministries include activities which affect more or less the regional
development issues, have an impact on the development of individual territorial units and
may lead to the reduction or to the occurrence of regional disparities.
The Regional Development Strategy has been conceived as a horizontal strategy, which uses
in the effective development of regions, beside their endogenous potential, also individual
sectors of the national economy and proposes differentiated ways in which their activities
may influence regional development.
To safeguard the implementation of the Regional Development Strategy, the competent
ministries (Ministry of Industry and Trade, Ministry of Labour and Social Affairs, Ministry
of Agriculture, Ministry of the Environment, Ministry of Education, Youth and Sports,
Ministry of Transport, Ministry of Culture, Ministry of Health, Ministry of Informatics,
Ministry of the Interior and Ministry for Regional Development) will carry on, in sectors and
areas covered by their respective competencies, the following activities in the next planning
period 2007 – 2013:
analyze and evaluate every year regional differences in sectors falling within their
competencies, and will identify regional disparities (see Section 11 of Act No.
248/2000 Coll. on Promotion of Regional Development, as amended),
cooperate with the Ministry in the preparation of evaluation reports concerning the
implementation of the Regional Development Strategy,
incorporate regional approaches in their policies and concepts relating to the
implementation of the objectives of the Regional Development Strategy,
apply regional differentiation of incentives in operational and ministerial programmes
with the aim of reducing undesirable regional disparities and strengthening of the
development potential of regions with concentrated state aid,
implement measures to support territories requiring specific support defined in
chapter 5.3.
Regions (kraje)
Coordinate within their independent competencies the development of their territorial areas
and arrange for the processing, implementation and control of the performance of the
strategic development of the region (leading to sustainable development) and the fulfilment
of the development programmes of the region. Furthermore, they evaluate the intra-regional
development level, provide loans to municipalities and other legal entities operating within
the region, establish legal entities for the purpose of support of the regional development, e.g.
regional development agencies, cooperate in the performance of the national tasks of
promotion of the regional development and prepare, implement and control the
implementation of the regional operational programmes and regional support programmes,
for instance, the programme of renewal of rural areas. For the implementation of the
partnership principle at the regional level, the regions will coordinate plans of municipalities
or associations of municipalities in matters of support of the regional development going
beyond the municipal level. Promote the establishment and ensure the existence of
- 29 partnerships
among public administration, the business sphere and non-state non-profit
organizations in the regions.
In addition to their independent powers, the regions were also awarded the “delegated
powers” which they have to execute in matters defined by the law (particularly by Act No.
132/2000 Coll., which stipulates the tasks of regions in a number of state administration
areas).
g) Programming safeguards
The development and disparity-focused objectives of the Regional Development Strategy,
structured in accordance with partial priority areas into specific priorities, will be
implemented through multi-annual development programmes. The planning period of 2007 –
2013 counts on the implementation of the major part of objectives by means of the
operational programmes specified in the National Development Plan and the National
Strategic Reference Framework (NSRF). The relevant implementing structures (particularly
Regional Councils) will be developed in connection with the above. However, it will be
impossible to finance some priorities and particularly the related measures from the structural
funds. Therefore, they will be also implemented within the “domestic”, i.e. ministerial or
regional development programmes.
In this respect, the ministerial and sectoral competencies concerning the implementation of
the development activities carried on within the framework of the Regional Development
Strategy are divided among competent ministries and regions so that each activity is
definitely assigned. The specific division of individual activities is shown in Annex No. 2;
however, their assignment to a specific operation programme is only tentative, because the
European Commission will approve the numbers and content the operational programmes
only by the end of 2006.
The priorities of the Regional Development Strategy are reflected in the operational
programmes of the structural funds at several levels:
the regional operational programmes, prepared and implemented by cohesion
regions,
the integrated operational programme,
the operational programmes prepared by the specialized ministries, which also
respect explicitly the regional dimension of the problem,
the operational programmes of cross-border cooperation,
the operational programmes for the objective of regional competitiveness and
employment, implemented in NUTS 2 region Prague.
h) Definition of regions with concentrated state aid
Based on an ongoing analysis of the economic and social development of the state, the
Ministry for Regional Development proposes to the government, in cooperation with the
other affected central administration authorities, the definition of regions whose development
has to be supported with regard to the balanced development of the state and the settlement
of differences between levels of its individual territorial units. The types of regions with
concentrated state aid are defined in Section 4 of Act No. 248/2000 Col.. on Promotion of
Regional Development. This Act recognizes:
- 30 a)
regions with concentrated state aid, which are divided, in accordance with the nature of
their stagnation, into structurally affected regions, economically weak regions and rural
regions,
b) the other regions, whose support by the state is desirable for other reasons: e.g. crossborder
regions, former military areas, regions affected by natural disasters, regions with
heavily affected or damaged environment, regions with less favourable conditions for
agricultural development, regions with unemployment rate exceeding the average rate in the
Czech Republic.
Beside regions with concentrated state aid, there may be regions supported at the level and
under the competencies of kraje.
With regard to available data concerning districts and municipalities with extended powers,
the designation of regions supported within the scope of concentrated state aid to problem
regions is newly construed, from the systemic and methodological viewpoint, as follows:
the referential level – supported territory - the mezzoregional level, i.e. districts of the
Czech Republic, has been preserved,
the evaluation system using indicator weights characterizes (accentuates) two
substantial aspects of mezzoregions (districts) i.e. the situation at the labour market and
their economic strength.
Since statistical data concerning employment and wages reflecting the situation across
territories are no longer available, the following relevant indicators have been applied in this
definition:
a summary evaluation of the situation at the labour market (unemployment), including
the unemployment rate, long-term unemployment and number of job applicants per
one vacancy,
per capita tax income,
number of entrepreneurs per 1000 inhabitants,
purchasing power of the population.
The results of investigation of the distribution of purchasing power of the population are
based on a model which processes a large number of data entries from official sources
(demographic and educational structure of the population, income level, the employment
structure and other economic characteristics, the settlement structure) and on a large-scale
primary survey carried out by GfK (including interviews with 16,000 randomly selected
households throughout the Czech Republic).
The resulting assessment of the level of districts is represented by a weighed sum of indices
characterizing individual indicators calculated as the average of the years 2002 – 2004,
except for the purchasing power indicator, which is available for the year 2005, and for older
tax yield values, which will be replaced after obtaining new data1
.
- 31 With
regard to the EU regional policy, which has been concentrated predominantly after
2006 on problems of employment and job creation, and to the informative ability of the
“purchasing power” as an indicator of economic strength of the region, the weighs used in
the presented identification of problem regions are set up as follows:
unemployment: 0.4,
tax income: 0.15,
businessmen: 0.15,
purchasing power: 0.3.
Like in the period prior to 2006, the defined regions include territorial areas of 21 districts
and of municipalities with extended powers with the total area equal to 29.4% of the territory
of the Czech Republic and with 31.9% of the total population of the Czech Republic.
Based on the evaluation of the current situation of the regions in the Czech Republic, on the
objectives of the EU and the Czech Republic for the programming period of 2007 – 2013 and
on the availability of indicators:
the regions on which the concentrated state aid will be focused have been defined
on the basis of the above indicators only in a single form, i.e. the data regarding
structurally affected regions and regions with excessively high unemployment rate
were not calculated separately, because the impacts of the basic structural changes in
the regions and the high unemployment rate are sufficiently taken care of in the current
algorithm used in the calculation and can be affected significantly by weight.
Thereafter, the regions with a higher share of mining and heavy industry (Teplice,
Most, Chomutov, Sokolov, Ostrava, Karviná, Frýdek-Místek a Nový Jičín) were
defined as structurally affected pursuant to Section 4 of Act No. 248/2000 Coll. and the
other districts were classified, with regard to the extent of their problems, as
economically weak or with high above average unemployment,
the concentrated state aid provided within the framework of the Regional
Development Strategy of the Czech Republic has been left mostly at the district
level; based on the confrontation with the unemployment rate in territorial areas of
municipalities with extended powers (in relation to Act No. 72/2000 Coll. on
Investment Incentives, these areas are the territories of the municipalities with
extended powers, where the unemployment rate exceeds by 25 or more percent the
unemployment rate in the Czech Republic), such territories, except for catchment areas
of the municipalities with extended powers which are defined below, are fully covered
by the existing definition by districts. The catchment areas of the municipalities with
extended powers, which are referred to below, are proposed to be defined as regions
with above average unemployment.
i) Focusing the support in structurally affected regions
These regions are characterized by deep structural changes and massive increase of
unemployment, which is caused by inadequate structure of skills of the offering party at the
labour market, which corresponds to the past economic structure, by inadequate technical and
business infrastructure, etc.
- 32 Effective
support has to be concentrated here, in particular, on:
attracting new business activities,
education, lifelong learning, training,
higher-range technical infrastructure (for companies involved in high-tech, research,
development of technologies).
All investments and support must be related to the economic performance and utilization of
economic potential, of course with the compliance of all further requirements (e.g.
sustainable development).
Focusing the support in economically weak regions
Economically weak regions are characterized by low economic performance, connected with
low wages, weak economic activity, high unemployment rate, unfavourable geographic
location and undeveloped technical infrastructure.
Effective support has to be concentrated here, in particular, on:
investments into education,
development of small and medium-sized enterprises,
construction of technical infrastructure, particularly transport, information and other.
Focusing the support in regions which highly excessive unemployment
These regions usually combine the deficiencies of both previous types. Efficient and
effective support in this case is focused particularly on:
local small and medium-sized enterprises and services,
technical infrastructure,
measures aimed at the development of rural areas,
basic social infrastructure,
development of urban areas.
The development of urban areas and the implementation of specific programmes is to be
supported by operational programmes funded from the European Regional Development
Fund.
The development strategies and support of the development of conurbations, development
poles and territories in development axes focus on the resolution of their specific economic,
environmental and social problems and on the improvement of their competitiveness. With
regard to this, the operational programmes should focus their support, subject to their
orientation, on the following areas:
Development of socio-economic functions of the poles, creation of conditions for development of
business activities, industrial parks, logistic centres and state-of-the-art technology zones, measures
aiming at the protection and development of historical and cultural heritage, combined with measures
- 33 supporting
the enterprising spirit of local employment or with the provision of services to the
population in accordance with the changing age structure.
Improvement of physical environment, re-cultivation of former industrial facilities and regeneration of
spaces, promotion of transport infrastructure, improvement of condition for housing development.
Promotion of educational, research and development infrastructure.
Environmental protection in cities and their surrounding.
Improvement of the quality of life in urban areas, social integration and services, crime prevention.
Support of special planning activities in these areas.
j) Development of rural areas
Operational programmes financed from the European Regional Development Fund may also
participate in the development of rural areas and in the resolution of their specific problems.
The development strategies and promotion of the development of rural areas will be focused
mostly on the economic diversification of these areas and on the improvement of their
accessibility. In this respect, the operational programmes should direct their support, in
accordance with their respective orientation, into the following areas:
Strengthening of connection between urban and rural areas, infrastructure for improvement of
accessibility.
Expansion of telecommunications networks and services in rural areas.
Development of new economic activities except agriculture, creation of conditions for the development
of tourism, including ecotourism, support of small businesses, use of local resources, etc. In this
respect, the operational programmes should direct their support, in accordance with their respective
orientation, into the following areas:
the development of facilities and services for the improvement of living conditions and stabilization of
the rural population;
protection of cultural and natural values of the territory, care of the landscape, preservation of
biodiversity, etc.
- 34 -
1
Regionswithconcentratedstatesupport
2007-2013
structurallyafflicted,ecomomicallyweak,highunemployment
- 35 [Legenda
k předchozí tabulce:
Definition of regions with concentrated state aid
Structurally affected regions
Economically weak regions
Region with high above average unemployment
District borders]
Selected government resolutions
a) Government Resolution no. 560/2006 on the Regional Development Strategy of the
Czech Republic
T h e G o v e r n m e n t
I. approves
1. the Regional Development Strategy of the Czech Republic, contained in part II of the document
ref. no. 745/06 (hereinafter the “Strategy”),
2. the definition of the regions with concentrated state aid for the years 2007 – 2013, listed in the
annex to this Resolution;
II. orders
1. the Minister for Regional Development to submit to the Government for review, in two-year
intervals beginning with 2009, a report on the implementation of the Strategy, prepared in cooperation with the
relevant ministers;
2. Deputy Prime Ministers and to the Minister of Labour and Social Affairs, the Ministers of Industry
and Trade, of the Interior, Agriculture, the Environment, Health, Culture, Education, Youth and Sports and
Informatics
a) to cooperate with the Minister for Regional Development in the preparation of the evaluation
report on the implementation of the Strategy;
b) to assess regional disparities within the sectors for which they are responsible and the
contribution of programmes of mitigation of regional disparities, implemented by them,
3. the Deputy Prime Minister and the Minister of Labour and Social Affairs, the Minister of Industry
and Trade and the Minister of Education, Youth and Sports to give preference in selected priorities of
ministerial and operational programmes to the support provided in defined regions with concentrated state aid;
III. authorizes the Minister for Regional Development to present to the government, in case of major
deterioration of social, economic and environmental conditions in a region, a proposal of change of the
definition of regions with concentrated state aid;
IV. recommends to commissioners of regions and to the mayor of the capital city of Prague
1. to utilize the Strategy for the elaboration of a sustainable development strategy of the regions
(kraje) and of the relevant measures in the regional operational programmes and the aid programmes set forth
by the regions (kraje),
2. to assess the development of internal regional disparities in their respective regions and to
cooperate with the Minister for Regional Development in the preparation of the report on the implementation of
the Strategy.
- 36 b)
Definition of regions with concentrated state aid for the years 2007 – 2013
(Annex to the Government Resolution No. 560/2006)
I. Structurally affected regions are comprised of the territory of the following districts:
Most , Karviná, Chomutov, Teplice, Ostrava-město, Frýdek-Místek, Nový Jičín, Sokolov
II. Economically weak regions are comprised of the territory of the following districts:
Hodonín, Znojmo, Třebíč, Bruntál, Opava, Jeseník, Přerov, Šumperk, Svitavy, Louny, the territory of the former
military areas Ralsko and Mladá
III. Regions with high above average unemployment rate are comprised of the territory of
a) districts:
Děčín, Ústí nad Labem, Litoměřice
b) municipalities with extended powers
Ostrov, Frýdlant, Králíky, Bystřice n. Pernštejnem, Bučovice, Mikulov, Šternberk, Uničiv, Kroměříž, Rožnov
pod Radhoštěm, Valašské Klobouky
c) Transitional aid provided until 2008 to economically weak regions which were not
included among the regions with concentrated state aid for the years 2007 to 2013 Government
Resolution No. 829/2006
T h e G o v e r n m e n t
agrees with transitional support of economically weak regions to be provided until 2008, to the
regions covering the territory of the following districts
Český Krumlov, Tachov, Rakovník, Vyškov
which were supported until 2006 by the regional programmes of the Ministry for Regional Development and
were not classified as regions with concentrated state aid for the years 2007 to 2013.
MINISTERSTVO PRO MÍSTNÍ ROZVOJ
STAROMĚSTSKÉ NÁM. č. 6
110 15 PRAHA 1
www.mmr.cz