1887

Making the Most of Public Investment in the Eastern Slovak Republic

image of Making the Most of Public Investment in the Eastern Slovak Republic

The Slovak Republic joined the European Union in 2004, the Schengen area in 2007 and the euro in 2009. These events, coupled with decentralisation reform and the creation of administrative regions, have brought significant change. While overall growth has been impressive compared to OECD countries overall, benefits have not accrued equally across the country. Public investment could potentially improve regional conditions and attract private funding, but governance bottlenecks stand in the way. This case study shows that the main obstacles to effective public investment are linked to high local fragmentation as well as the challenges national and subnational administrations face in designing and implementing investment strategies that correspond to local needs. Drawing on a detailed set of indicators, the study provides recommendations to address these challenges and make the most of public investment in the Slovak Republic.

English

.

Strengths and challenges for public investment management for the Eastern Slovak Republic

Effective public investment could potentially improve regional conditions and attract private funding, but bottlenecks in governance currently stand in the way. Since joining the EU in 2004, most public investment in the Slovak Republic has been financed through the EU Structural and Cohesion Funds (now Structural and Investment Funds, ESI). The Slovak Republic received approximately EUR 13.3 billion in EU Structural and Cohesion Funds for the 2007-13 period, and will receive approximately EUR 14 billion in ESI funding for 2014-20. The clear importance of ESI spending makes past practices and future plans with respect to Structural Funds implementation revealing as regards public investment for regional development in Východné Slovensko. Historically low absorption rates for EU funds suggest changes are needed to make better use of the funds for the 2014-20 period. This chapter looks at public investment management in Východné Slovensko directly. It reveals the strengths and opportunities for improvement that exist to make better use of public investment for regional development and inclusive growth. Challenges are in particular linked to: i) top-down orientation of public investment; ii) high local fragmentation; iii) limited private sector engagement; iv) weak sub-national administrative capacities; and complex regulatory framework and procurement conditions.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error