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Scientific Conference
Contemporary Issues of Local Economic Development
Rijeka, Faculty of Economics, University of Rijeka
September 8 - 10, 2014.

INFO

     The goal of the scientific conference is to contribute to dissemination of knowledge and to discuss wider issues of local economic development. The need for additional efforts towards this scientific field was recognized by Faculty of Economics in the form of founding the Center for local economic development as a champion of modern theory and practice of local government affairs. The most important contribution of this Conference is gathering prominent scientists in the wider field of local economic development, which should provide transfer of knowledge to the young scientists, but to entrepreneurs and local government representatives as well.  

The conference covers a wide range of issues regarding local economic development:
   • Contemporary theory of local economic development;
   • Issues regarding local investment climate;
   • Investments in physical (hard) infrastructure;
   • Role of clusters;
   • Issues of local government finance;
   • Globalization and local economic development;
   • Policy issues at the local government level;
   • ICT at the local government level;
   • Other topics related to the main theme.


The Conference will be held at Faculty of Economics, University of Rijeka from September 8th – 10th, 2014 (http://www.efri.uniri.hr/en/).

Abstracts can be submitted by July 1st 2014. Full paper submissions are possible until September 1st, 2014. Only original papers are accepted. Already published manuscripts will not be accepted. There is no conference fee. Organizers will cover costs of accommodation and meals for participants. Participants will be accommodated in the hotel Palace Bellevue in Opatija (http://www.opatija.net/en/hotels/hotel-palacebellevue-opatija).

Selected papers will be published in special issues of the Proceedings of Rijeka’s Faculty of Economics: Journal of Economics and Business. The Journal has been abstracted and indexed in JEL (Journal of Economic Literature) / EconLit (American Economic Association’s Electronic Database), Pittsburgh, Pennsylvania, USA since 1993, as well as in the IBSS (International Bibliography of the Social Sciences), ProQuest, Cambridge, UK and DOAJ (Directory of Open Access Journals), Lund University, Sweden, since 2007.
Furthermore, since June 2008, the Journal has been abstracted and indexed in CAB Abstracts, UK, and from July 31, 2008, the Journal has also been included in SSCI (Social Sciences Citation Index), Social Scisearch and JCR (Journal Citation Reports / Social Sciences Edition) and Thomson Reuters, Philadelphia, USA starting with No 1/2007, along with ProQuest – ABI/INFORM and Ann Arbor, Michigan, USA starting with No. 1/2006.

In addition, SCOPUS, Elsevier, B.V., Amsterdam and The Netherlands have started coverage of all the Journal’s published material since 2008, and EBSCO, Ipswich, MA, USA also cover the Journal in their respective databases – EconLit with Full Text and SocINDEX in Abstracts&Indexing with references.

The guidelines for submitting the abstract and the manuscripts can be found at: http://www.efri.uniri.hr/en/proceedings.

Abstracts for the conference can be submitted at sdrezgic@efri.hr and/or zbornik@efri.hr.
Authors will be notified regarding the acceptance of their abstracts, and informed about the registration procedure and detailed conference program by the organizers of the conference.


Dr. Anwar Shah


Director, Center for Public Economics, Chengdu/Wenjiang, China



     Dr. Anwar Shah is Director of the Center for Public Economics, Chengdu/Wenjiang, China and also serves as an advisor/consultant to the World Bank and the Asian Development Bank. He directed the World Bank Institute’s Governance Program from 2004-2009. He has previously served the Ministry of Finance, Government of Canada, the Government of Alberta, the US Agency for International Development and the UN Intergovernmental Panel on Climate Change (as a lead author).

He has published more than two dozen books and numerous articles in leading economic journals on governance, public management reforms, budget reform, federalism, local governance, fiscal reforms and global climate change issues. His recent books include Fiscal Federalism (with Robin Boadway), by the Cambridge University Press, The Practice of Fiscal Federalism: Comparative Perspectives, published by McGill-Queen’s University Press, Fiscal Incentives for Investment and Innovation by the Oxford University Press, Local Governance in Developing Countries and Performance Accountability and Combating Corruption by the World Bank.




Professor Robert Huggins


Chair of Economic Geography at Cardiff University’s School of Planning and Geography



     Professor Robert Huggins is Chair of Economic Geography at Cardiff University’s School of Planning and Geography and Director of its Center for Economic Geography (2011). Prior to this he was Chair at the University of Wales Institute, Cardiff (2008-2011), and Senior Lecturer at University of Sheffield (2005-2008). Professor Huggins has published more than fifty articles in peer-reviewed journals, as well as numerous books.

As the originator of the European Competitiveness Index, the UK Competitiveness Index and the co-founder of the World Competitiveness Index of Regions, Robert is committed to furthering research that informs public policy. Professor Huggins’s key areas of interest include regional economic development, in particular, the study of competitiveness, knowledge flows, entrepreneurship, innovation, and inter-organisational networks. Research projects have focused on: the analysis of regional competitiveness; inward investment; the knowledge economy and high-technology industry; and the culture of entrepreneurship and business development – in particular, the creation and evolution of business networks and knowledge clusters; and the development and mobilisation of knowledge and skills.

Alongside peer-reviewed publications, he has also written more than 100 other contributions including practitioner articles, conference and working papers, and research consultancy reports, which has significantly enhanced the dissemination of his research beyond the academic community.




Professor Dao-Zhi Zeng


Graduate School of Information Sciences, Tohoku University, Japan



     Dr. Dao-Zhi Zeng is a Professor at the Graduate School of Information Sciences of Tohoku University in Japan and a guest professor of the University of Chinese Academy of Sciences in China. He also served as professor of Kagawa University of Japan and Zhejiang University of China. His research fields include Spatial Economics and Conflict Analysis. He won the 9th Springer-Verlag Award from the Western Regional Science Association in 2004 and the 2nd Sakashita Prize from the Applied Regional Science Conference, Japan in 2005.

He has published numerous papers in well-known journals on new economic geography of regional science, new trade theory of international trade, and arbitration of conflict resolution.
Sunday, September 7th, 2014
Arrival of the participants
Monday, September 8th, 2014
08:00 – 09:00 Registration of the participants
09:00 – 09:30 Welcome speeches
09:30 – 10:15 Presentation of the Center for Local Economic Development, Faculty of Economics, University of Rijeka (CLER Ltd.)
10:15 – 10:30 Coffee break
10:30 – 11:15 Dr. Anwar Shah
Decentralized Provision of Public Infrastructure and Corruption
11:15 – 12:00 Professor Robert Huggins
The Global Competitiveness of Regions
12:00 – 12:45 Professor Dao-Zhi Zeng
Capital Mobility and Spatial Inequalities
12:45 – 13:45 Lunch
13:45 – 15:15 Panel on regional and local government competitiveness
Lead panelist: Professor Robert Huggins
15:15 Visit to municipality
Tuesday, September 9th, 2014
Contemporary local economic development issues
09:00 – 09:20 Consequences of Joining the EU for the Economic Performance of Countries’ Internal Regions - Vera Boronenko, Olga Lavrinenko, Vladimirs Mensikovs
09:20 – 09:40 Place-Based Approach to Local and Regional Development: Trends and Challenges in Lithuania - Kostas Zymantas Svetikas, Algirdas Astrauskas
09:40 – 10:00 Estimation of the Value Added of the Automotive Regional District of Győr - Krisztián Koppány, Norbert Kovács, Dániel Róbert Szabó
10:00 – 10:20 Can Multinational Company Create Real Estate “Bubble” at Local Level? The Case of Fiat and City of Kragujevac - Nikola Makojević, Petar Veselinović, Ljubina Kalinić
10:20 – 10:40 Assessing the Capacity of Local Governments to Improve Cooperation with the Business Community: Evidence from Serbia - Srđan Marinković, Jelena Stanković, Vesna Jankovid Milić
10:40 – 11:00 Coffee break
11:00 – 11:20 The Inquiry into the Economic Life of Croatian Municipalities - Ivana Rašić Bakarić, Hrvoje Šimović, Maruška Vizek
11:20 – 11:40 Restructuring of the Fiscal Equalization System in Croatia - Marko Primorac
11:40 – 12:00 Regional determinants of export competitiveness in Croatian manufacturing industry– Nebojša Stojčić, Đuro Benić, Petra Karanikić
12:00 – 12:20 E-Procurement in Optimization of Local Authority’s Budget Expenditures in Russia - Olga Sidorova
12:20 – 12:40 Evaluation of Development Partnership Scenarios of the Port of Rijeka Using Multi-Actor Multi-Criteria Analysis – Ana Perić Hadžić, Alen Jugović, Alen Host
12:40 – 13:00 Coffee break
13:00 – 13:30 A FAIR Governance Framework for Performance Accountability of Local Governments – Anwar Shah, Nahida Ahmadova
13:30 – 14:30 Panel on performance accountability of local governments
Lead panelist: Dr. Anwar Shah
14:30 – 15:30 Lunch
15:30 Visit to municipality
Wednesday, September 10th, 2014
Political economy aspects of local economic development
09:30 – 09:50 Political Independence of the Municipal Authority in Russia: Myth or Reality? - Lira Gazizova
09:50 – 10:10 The Experiences of the Administrative Supervision of Local Authorities’ Activities – Zsuzsanna Árva
10:10 – 10:30 National spatial development communities in Central and Eastern Europe - Garri Raagmaa, Cyril Blondel
10:30 – 10:50 Putting Multi-Level Governance to Work for Local Economic Development: the Role of Inter-Organizational ICT Networks – Luca Brusati et al.
10:50 – 11:20 Coffee Break
11:20 – 11:40 Mass valuation of market value of similar type residential property objects in Latvia – Oksana Ruzha , Janina Stashane , Arturs Ruzhs
11:40 – 12:00 Globalization of Regional Development in Two Border Cities: Strategies for Uzghorod and Nova Gorica – Yulianna Voloshyna, Uroš Pinterič
12:00 – 12:20 Local Economic Development Policy in Poland. Determinants and Outcomes - Mariusz Sienkiewicz
12:20 – 12:40 Women’s Contribution on Rural Development; Assistance Factors & Obstacles: A Study in Afghanistan – Abdul Qayoom Qaeem
12:40 – 13:00 Roma Settlements and Poverty in Slovakia: Various Policy Approaches of the State, Local Governments and NGO’s – Daniel Klimovský, Tomáš Želinský
13:00 - 14:00 Lunch
14:00 – 15:30 Panel on capital mobility and spatial inequalitiesDaniel Klimovský, Tomáš Želinský
Lead panelist:Professor Dao-Zhi Zeng
15:30 Visit to municipality

Monday, September 8th, 2014


Author(s)

Anwar Shah

Title

Decentralized Provision of Public Infrastructure and Corruption

Abstract

During the past three decades, a large number of countries have introduced reforms to decentralize public decision making. Such reforms have proved controversial.  Critics of these reforms argue that decentralized provision of infrastructure enhances vulnerability to corruption.  Proponents of these reforms counter that corruption arises from lack of people empowerment and decentralization by bringing decision making closer to people shines sunlight on government operations and empowers people to hold government to account and thereby offers potential for combating corruption in the long run. They further state that decentralized provision of infrastructure holds a great promise in upgrading infrastructure to underserviced especially rural areas with local self-government. In theory such decentralization is also expected to improve integrity of such operations especially in the event of local financing.  These debates, nevertheless, remain unsettled as empirical evidence on the impact of decentralization on infrastructure provision is scant or non-existent.  Empirical work is hampered by a lack of reliable data on the incidence of corruption. This paper presents conceptual underpinnings of the impact of decentralized provision of infrastructure on the incidence of corruption and synthesizes scant available empirical evidence to make a case for further empirical research to document the real world experiences to update our current state of knowledge on this subject. Much work lies ahead to limit our wide zone of ignorance in this area.

JEL classification

 

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Author(s)

Robert Huggins

Title

The Global Competitiveness of Regions

Abstract

 

JEL classification

 

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Author(s)

Dao-Zhi Zeng

Title

Capital Mobility and Spatial Inequalities

Abstract

This paper considers how imperfect capital mobility affects various spatial inequalities. The framework of Takahashi et al. (2013) is applied to investigate the effects of integrating the capital market on income inequalities. Several new findings are obtained. First, nominal income inequality displays a bell-shaped relationship with falling trade costs if the capital mobility is not too low. Second, the inequality in terms of nominal income and the inequality in terms of firm share behave differently when the capital market is integrated. Finally, the integration of the product market and the integration of capital market have different impacts on the real wage inequality.

JEL classification

F12, F15, R12

Key words

capital mobility, globalization, spatial inequality

 

Author(s)

Robert Huggins

Title

Regional Competitiveness and Development: An International Study

Abstract

 

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Tuesday, September 9th, 2014

Author(s)

Vera Boronenko, Olga Lavrinenko, Vladimirs Mensikovs

Title

Consequences of Joining the EU for the Economic Performance of Countries’ Internal Regions

Abstract

There are many empirical evidences in literature about the existence of cross-country convergence in economic performance. At the same time the role of the factor of countries’ unionization – for instance, within the European Union, – in this convergence has not been investigated carefully, as well as the influence of this factor on the equality of the economic performance of countries’ internal regions. The research objective is to prove that joining the EU stimulates divergence processes in economic performance on territorial mezolevel, i.e. for countries’ internal regions, versus convergence existed on territorial macrolevel, i.e. for the EU countries. The conception of analysis is based on the convergence theory which states that all industrial systems would converge because of the determinant effects of technological development. The sample for empirical analysis includes NUTS1, NUTS2 and NUTS3 territories of the EU, the economic performance of which is measured by real GDP per capita for the period of 2004-2013, the applied method – basic panel data analysis. The main findings of the research show that NUTS1 and NUTS2 territories, i.e. the EU countries themselves and large internal regions within them have been experienced convergence in their economic performance over 10 years’ period after having joined  the EU. But it is not true for NUTS3 territories, i.e. the EU countries’ internal regions, and economic performance of them become more unequal during the period of 10 years ‘after having joined the EU. The authors conclude that only large and competitive territories can benefit from countries’ unionization, but it happens at the expense of small and less competitive internal regions.

JEL classification

 

Key words

EU countries, internal regions, economic performance, convergence, divergence

 

Author(s)

Kostas Zymantas Svetikas, Algirdas Astrauskas

Title

Place-Based Approach to Local and Regional Development: Trends and Challenges in Lithuania

Abstract

The aim of this presentation (and a paper) is to explore adaptation of “old” and “new” place based paradigm in Lithuania local and regional economic development. The paper analysis underutilized regional potential and growing regional disparities in Lithuania; the need for context – specific place – based territorial policies in developing cities/ regions; mobilizing entrepreneurship and innovation for local and regional development, where every city/region would compete in global markets; developing regional innovation systems and creation regional development agencies for successful place based approach economic development in Lithuania.

JEL classification

 

Key words

place based development, city/region, entrepreneurship, local business clusters, regional innovation systems

 

Author(s)

Krisztián Koppány, Norbert Kovács, Dániel Róbert Szabó

Title

Estimation of the Value Added of the Automotive Regional District of Győr

Abstract

Győr and its automotive industry area can be considered as a pole in the Hungarian economy.  To prove this, a calculation of the gross domestic product of this area can be used. However, when determining the value of this index only an estimate can be accomplished, because the area in question does not fit into any available regional level. County level data provided by the Central Statistical Office can be disaggregated in the estimation of the value added of our study region.

JEL classification

 

Key words

value added, spatial statistics, GDP, region, Automotive Regional District of Győr, city and agglomeration

 

Author(s)

Nikola Makojević, Petar Veselinović, Ljubina Kalinić

Title

Can Multinational Company Create Real Estate ‘’Bubble’’ at Local Level? The Case of FIAT and City of Kragujevac

Abstract

The aim of the research is to analyze multinational company influence on real estate market at local level in transition economy. The paper deals with FIAT production plant in city of Kragujevac and changes at local real estate market which can be seen as ‘’irrational exuberance’’, term related with expatiation not based on rational judgment. This term is related to real estate prices, not explained by rational economic conditions at local level. The research showed irrationality in real estate prices and rental condition, because model presented in paper didn’t find any causality between real estate prices and economic condition at local level. The prices at real estate market were experiencing increase which cannot be explained by changes in the level of employment, level of income, level of rental conditions, mortgages interest rates and construction costs. As a conclusion, multinational company presence at local level can create ‘’bubble’’ at real estate market resulting in high production level and price increase. When ‘’bubble’’ broke it created problems through unoccupied real estates, decrease in price and unpaid mortgages.

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Author(s)

Nataliya Оrlova, Alina Khaletska

Title

Towards the Formation of a Favorable Investment Climate in Ukraine

Abstract

The basis for economic and social strategy of Ukraine today is the investment policy aimed to the development of attractive investment environment and significant increasing of the investments volume. Implementation of innovative model of development of the national economy of Ukraine is strategically important task and its solution depends on the economic growth based on the main principles of public investment policy. Methodology is based on the National economic program of investment for 2011-2015 in Ukraine. It also summarizes the analytical framework based on Centre of Excellence Experience Reports of UNCTAD, the results of regular monitoring of business climate by the top officials of companies who are members of the EBA (in assessment of the investment climate in Ukraine and its investment attractiveness), the legal framework for the regulation of investment process in both on the national and regional levels. It is also based on the authors’ methodology for the calculation of the integral index of investment attractiveness of regions of Ukraine. In the publication the government impact on the investment process in Ukraine has been identified. The problems of investment environment and peculiarities of investment climate for some regions of Ukraine have been also found. The factors of influence on the investment attractiveness of some regions have been studied. The recommendations for the creation of a favorable investment climate in Ukraine in the conditions of the EU integration processes have been elaborated. The practical issues can be discussed on the basis of evidence of development of the main directions of improving the investment climate, in particular: changes in the legal regulatory framework; strengthening cooperation with NGOs and businesses in creating conditions for improving the investment attractiveness of the region; creating a favorable investment climate by organizing and participating in international exhibitions, fairs, investment projects, publications, etc.; promotion of investment  infrastructure (investment funds, accounting and insurance companies); improvement of information support of foreign investors on potential investment opportunities; small businesses support; development of the stock market, etc.

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Author(s)

Srđan Marinković, Jelena Stanković, Vesna Janković Milić

Title

Assessing the Capacity of Local Governments to Improve Cooperation with the Business Community: Evidence from Serbia

Abstract

The business environment is one of the central issues of contemporary economic literature, which has been analyzed in a variety of micro and macro studies, in terms of national and international business, taking into account the impact of its strategic elements such are economics, administration and society. In all these studies, it is generally accepted that the business environment, along with the capacity of state and local institutions to create a favorable business environment, is the most important determinant that affects the intensity and quality of business activities. One of the primary purposes of state administration, when it comes to the domain of economics, is to provide a stable business environment. On the other hand, the role of local self-government institutions has almost marginalized in the conditions of the high level of centralization that exists in Serbia. The aim of this paper is to draw attention on the need to strengthen institutional cooperation between local self-governments and the business community. The paper analyzes the ability of socio-economic councils in Serbia, as a part of local government, to improve the business environment. In addition to socio-economic councils, this analysis includes the departments, divisions and offices for local economic development and their responsibilities. The results in the paper has been generated using relevant statistical methods, based on the analysis of primary data collected in empirical research on 56 municipalities in Serbia.

JEL classification

 

Key words

business environment, socio-economic council, local self-government institutions

 

Author(s)

Olga Sidorova

Title

E-procurement in Optimization of Local Authority’s Budget Expenditures in Russia

Abstract

The article deals with the problems of impetuous development of e-procurement (electronic purchases) for local government needs in Russia, which is one of the dominant directions of local authority budget’s expenditures optimization. Purpose of scientific research is evaluation of economic effectiveness of e-procurement for local authority necessities. Conception of analysis includes defining of e-procurement’s potency for local authority necessities by comparative analysis of local authority budget’s savings by electron and traditional types of purchases. Findings of analysis demonstrate that during last 3 years cost cutting of local authority budget at e-procurement varied from 16 to 20 percent. These assets are returned to budget and redistributed further to other expense items, which gives an opportunity, for example, to send savings to social aims or infrastructure. Russia’s entry into World Trade Organization has opened  new prospects for electron trade owing to inflow of foreign suppliers to Russian local markets and due to striving of manufacturers for their competitive ability’s increasing (including cost saving, which is possible thanks to introduction of electron purchases  system). Factors, allowing to decrease essentially starting prices of purchases at electron auctions and raise a solid barrier to price collusions, author’s accounts of budget efficiency during last three years are conducted in the article. Conclusion of research is calculation of components of economic efficiency from electron auctions for local government needs in Russia.

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Author(s)

Marko Primorac

Title

Restructuring of the Fiscal Equalization System in Croatia

Abstract

The aim of this paper is to propose a model of fiscal equalization in Croatia. This paper tests the hypothesis of lack of effectiveness of the existing fiscal equalization model compared to a model that would be based on alleviating the difference in the potential to collect revenue from personal income tax and surtax. Fiscal inequalities of local government units are determined first for the current equalization system by calculating the Gini coefficients. Thereafter, a distribution of equalization grants is simulated based on the new (proposed) model. The effectiveness of the proposed model in alleviating the fiscal inequalities is determined in relation to the effectiveness of the current equalization system. It was found that the model based on equalizing the difference in the capacity to collect revenue from personal income tax and surtax alleviates inequalities in the fiscal capacity of local government units much better than the existing system with the same cost for the state.

JEL classification

H77, D63

Key words

fiscal inequalities, fiscal equalization, Gini coefficient, Lorenz curve, Croatia

 

Author(s)

Ivana Rašić Bakarić, Hrvoje Šimović, Maruška Vizek

Title

The Inquiry into the Economic Life of Croatian Municipalities

Abstract

The aim of this paper is to analyze the main determinants of the economic life in Croatian municipalities. For that purpose, we collected data related to the municipal budgets and business results of entrepreneurs registered in 427 municipalities during 2007-2011 period. In order to determine and study the variations in municipal economic outcomes related to the size of municipalities, their administrative status (municipalities belonging to the areas of state national concern, hill and mountain areas, and island areas), their geographic location and dominant political party in the municipality, we apply multivariate statistics methods (Levene’s test of variance homogeneity, ANOVA, and Sheffe post-hoc test). The results suggest that size of the municipalities explains the variation related to municipal fiscal capacity and average net earnings of inhabitants living in municipalities. The political affiliation of a mayor is related to the differences in the relative amount of aid granted from the central government budget, fiscal capacity and indebtness, while the differences in administrative status of municipalities account for discrepancies observed in employment, average net earnings, indebtedness, central government aid, and expenditures for social protection.

JEL classification

C21, H70, L25

Key words

municipalities, local government, variance analysis, entrepreneurship

 

Author(s)

Ana Perić Hadžić, Alen Jugović, Alen Host,

Title

Evaluation of Development Partnership Scenarios of the Port of Rijeka Using Multi-Actor Multi-Criteria Analysis

Abstract

The aim of this paper is to evaluate development partnership scenarios of the port of Rijeka using the Multi-Actor Multi-Criteria Analysis. Previous authors research have indicated a number of effects and criteria that public - private partnerships can achieve in order to ensure sustainable port development and consequently the development of local community. However, implementation of partnership in seaports in the Republic of Croatia is still poor as a major obstacle to enhanced implementation is unresolved issues of investment in the maritime domain. The authors use Multi-Actor Multi-Criteria Analysis as a tool for evaluate port development using the tripartite structure of scenarios, criteria and stakeholders. The authors have defined three possible scenarios of port development according to the degree of private investor’s involvement (status quo, minimal participation and maximal participation of private sector) measured by the relevant criteria for the evaluation of public-private partnerships (economical-financial, organizational, technical-technological, social criteria, and the criteria aiming at harmonizing with the policies of the European Union) from relevant stakeholder point of view  (public interest, private interest and the interest of the wider community). The research results show that the best evaluated scenario is maximal participation of private sector. It has positive influence on port development from economic and technological side, directly contributes to the different stakeholders interests, and on the long term contributes to the local community development.

JEL classification

O180

Key words

public-private partnership, multi-actor multi-criteria analysis, Port of Rijeka, local development

 

Author(s)

Anwar Shah, Nahida Ahmadova

Title

A FAIR Governance Framework for Performance Accountability of Local Governments

Abstract

Democratization through political decentralization spread like wildfire in developing and transition economies in the 1990s yet fruits of this democratic participation remain largely elusive in most developing countries. What went wrong? This paper argues that these disappointing results may be attributable to a lack of progress in citizen empowerment to hold governments accountable in between elections as a median voter lacks the information and the skills to evaluate government performance and hold it to account. It is in the interest of political and bureaucratic elites to ensure that the status quo prevails and the sun does not shine on government operations. Unraveling of this system requires fundamental institutional and legal reforms to empower citizens to demand accountability for performance from their governments. This paper focuses on local governance especially the role of local governments to bring about this change.  Local governments around the world have done important innovations to strengthen local accountability to earn the trust of their residents. The practice in this area, however, has leapfrogged the conceptual perspectives. This paper attempts to fill this void by developing a general framework for performance accountability of local governments and by relating real world practices to aspects of this framework. In doing so, the paper highlights better as well not so good practices in local government performance accountability and draws lessons of policy interest from these experiences.

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Wednesday, September 10th, 2014

Author(s)

Lira Gazizova

Title

Political Independence of the Municipal Authority in Russia: Myth or Reality?

Abstract

The purpose of the research is studying the problem of the degree of independence of the municipal authority in Russia due to the imperfection of the legal and financial framework. The objective of research lies in the contradictions between the regulations governing the legal and economic foundations of the municipal authority in Russia. In this research we used the method of analysis of the legal framework. The basic laws regulating municipal authority proclaim independence of local power. At the same time the Law № 131-FZ is not creating a real financial platform for the implementation of local matters. Around 98% of the Russian municipalities subsidized with explicit congestion of responsibilities. We can note the following issues of matters of local importance: the amount of municipal government liabilities exceeds the revenue base of municipalities; centralization of financial resources involves the transfer of funds from the municipality in the federal budget and then return to the same municipality in the form of intergovernmental transfers; increasing a number of state duties transferred to the local level and not conforming to the nature and purpose of local government. The situation is full of financial dependence creates dependence mentality of local government officials and actualize the issue of real independence of municipalities. This problem goes beyond the purely legal level. The federal government is not interested to grant municipal real political power and financial autonomy by virtue of strong authoritarian traditions of the government.

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Author(s)

Zsuzsanna Árva

Title

The Experiences of the Administrative Supervision of Local Authorities’ Activities

Abstract

The Article 8 of the European Charter of Local Self-Government expressly stipulates the administrative supervision of local authorities. In Hungary the Government has controlled the local-governments on the grounds of the Constitution since 1990. In 2012 took effect The Fundamental Law of Hungary as the new fundamental rule of constitutionality. It induced the extensive reexamination and reframing of the legal system. As part of this process, the new law on local self-governments was created in 2011 and the new act has started a new chapter in the history of administrative supervision in many respects. Since then the Government shall ensure supervision of the legality of local governments through the capital or county government offices. In parallel with this change the system of public administration was transferred also significant, the government offices are the “mega systems” of the middle level, and they have a new scope: they can initiate the process of the State Audit Office. It would be very important because of the increased number of municipal debt adjustments, and the stronger control is able to help to protect the local governments from insolvency. The paper analyses the experiences of the administrative supervision of local self-government in the context of economy in Hungary. My hypothesis is the State Audit Office in itself is not able to take satisfactory control over the local governments. In the study I examine the applying tools of government offices to find out the local problems.

JEL classification

 

Key words

administrative supervision, local self-government, fundamental law, public administration, municipal debt adjustment

 

Author(s)

Todor Tanev

Title

Regional Success Cases amidst Global Chaos: Exploring Unprecedented Opportunities for Self-Determined Local Development after Shifting from MbO Routine towards Governance-by-Consent Strategizing

Abstract

This paper examines the reasons for the economic development of a growing number of small centers of public management in times of scarcity. The sustainability of this trend and its indirect support to national and supranational economies is being focused on. The leading hypothesis is that particular local governments take advantage of the unprecedented opportunities for independent strategizing. The theoretical basis includes: (1) Political analysis

- globalization discredits political centers while simultaneously delegates strategic initiative to local authorities; (2) Economic analysis - arising economic polycentrism favors the emergence of a new economic actor, policy networks; (3) Administrative analysis - traditional bureaucratic power is substituted by governance by consent; the reductionist notion of strategy as planning is contrasted to the conception of strategy-as-practice; (4) Sociological analysis - local communities possess highest degrees of subjectivity to perform economically. The empirical basis of the analysis includes the comparison of 3 successful cases of high sustainable autonomous development of small municipalities with 3 traditional municipalities nearby through interviews on the political, economic, administrative and social issues. Thus a matrix of 12 principles of successful local strategic governance is constructed. However the analysis outlines also parallel negative trends of "new feudalism": who controls strategic networks and strategic synergy? Strategic control is an underdeveloped theme; the paper contributes to it by formulating a specific economic role of the state as networking agent.

JEL classification

R580

Key words

regional development, regional strategy, local policy making, public economy

 

Author(s)

Yulianna Volshyna, Uroš Pinterič

Title

Globalization of Regional Development in two Border Cities: Strategies for Uzghorod and Nova Gorica

Abstract

Non-capital border cities have always different socio-economic position that assumes possibility of globalization by the sole fact of higher cross-border migration as well any other type of (non)economic exchange and cooperation. In this article we are comparing two border cities which are comparable by two main elements. They are considered to be part of more prosperous region within the national framework and they are both geographically located on the border with economically better standing region in neighboring country. Everything else from political system, local economy structure and societal structure is absolutely different. Article tries to compare main socio-economic indicators and at the same time provide some possible policy solutions which could help both cities as well as regions to develop even more. Article at the same time tries to show that, even in the case when national comparison is methodologically unsound, on sub-national level there can be enough similarity to provide possibilities for comparison. At the same we try to provide some options, for further development of both analyzed cities.

JEL classification

 

Key words

 

 

Author(s)

Maria Rosaria Alfano, Anna Laura Baraldi

Title

Electoral Systems and Economic Growth What is the Importance of the Proportionallity Degree

Abstract

Previous empirical studies analyzing the effect of electoral systems on growth lack unanimous answers as they miss-specify mixed systems in the empirical setting, that is, they neglect to consider the proportionality degree of mixed electoral systems. This work supplies the missing answers by properly distinguishing the three types of electoral rules using a proportionality degree index, that is, the Gallagher index. We estimate a non-linear relationship between the Gallagher proportionality index and the per capita GDP growth using cross-country panel data. Our findings show that the proportionality degree is significant for growth; mixed systems (characterized by an intermediate level of proportionality), combining the different advantages of both proportional and plurality systems, solve the problem of the accountability-responsiveness and the political-government instability trade-offs. As a consequence, they reach relatively higher growth rates with respect to more “extreme” electoral rules.

JEL classification

C23, D72, H1

Key words

economic growth, electoral system, proportionality index

 

Author(s)

Albena Taneva

Title

Local Public Policy as Capitalist Adventure: the Economic Growth or Failure in the European Periphery

Abstract

The paper is focused on the analysis of the local policy that creates economic growth and improves quality of life in unfavorable circumstances. There is number of examples that identify successful cases of activities of the local authorities despite the lack of prerequisites for their achievement. There are also opposite examples of communities with similar conditions that constantly fail to have progress. The analysis is based mostly on data from a desk research of cases with positive and negative experience. It aims at identifying the key factors for that difference. The main question is: how the same legislation, the identical economic frame and situational obstacles lead to the opposite public results. The findings of the desk research are verified in an interview with representatives of the local business, local authorities and ordinary citizen of the given community. The paper argues that the key division between successful cases and those with chronic lack of achievement is the approach of the mayor (analyzed in terms of leadership Burns/Bass concept) and the type of public-private partnership of the local authorities (between party partisanship and synergy of public-private cooperation). Based on the findings the paper draws conclusion about specificity of the step by step approach of the added value to the local economy.

JEL classification

R500

Key words

local policy making, local leadership, public-private partnership, local economic development

 

Author(s)

Abdul Qayoom Qaeem

Title

Women’s Contribution on Rural Development; Assistance Factors and Obstacles: A Study in Afghanistan

Abstract

By virtue of their supply of labor, women as a part of every community can play a very important role in the economic development of a country. Female labor force participation is one of the most important criteria to measure the degree of development in a country. Nowadays, the world looks at females as active labors which obviously can accelerate social and economic development in a country. After the collapse of Taliban Regime and establishment of the new government with support of international community, in Afghanistan a new page of Afghanistan Fate book in political, economic and social area was opened. In no other period of Afghan history, as the last ten years, Afghanistan has not experienced such broad economic, political and social development. Afghanistan is a country in which females form approximately half of the population. A huge part of its population is living in rural areas. Although, during the last decade, women have had their role on rural development in the county, they and men are faced with different situations in terms of types of job, employment status and labor force participation rate. A form of discrimination which has had a negative effect on the status of women, exist based on gender differences. This paper highlights women contribution on rural development of the country and recognizes the influencing factors, which positively or negatively affects this type of development.

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Author(s)

Daniel Klimovský, Tomáš Želinský

Title

Roma Settlements and Poverty in Slovakia: Various Policy Approaches of the State, Local Governments, and NGOs

Abstract

According the official censuses there are approximately 90,000 Roma in Slovakia, although experts have estimated the actual numbers at between 350,000 and 500,000. Various international organizations and institutions recently noted that widespread discrimination against Roma had been found in employment, education, health services, housing and loan practices. Many of their settlements lack a formal infrastructure, access to drinking water and proper sewage systems. Generally, poverty of Roma is very high, and the state has been failing in implementation of its official anti-poverty policies. Therefore other stakeholders, especially local governments and NGOs, have become much more important in this field. The main research question is as follows: “Have other stakeholders replaced the state in the field of anti-poverty policies linked to the marginalized Roma communities?” Taking into account recent development as well as present state, we assume that both NGOs and local governments have significantly replaced the state in this field, and on the other hand we assume that their approaches vary a lot too and therefore their outcomes differ a lot in terms of impacts. For the research purposes we use quantitative data (obtained from various authorities as well as by means of the field research), and qualitative data (e.g. content analysis of various strategic documents and implemented projects, interviews with representatives of the relevant stakeholders). Besides analysis based on quantitative data, the article contains a few case studies in order to support interpretation of quantitative data and to point out cases of good and bad practices.

JEL classification

 

Key words

Roma, Slovakia, poverty, anti-poverty policies, local governments, NGOs

 

Author(s)

Garri Raagmaa

Title

The Territorial Governance and Core-Periphery Relations: The Implications of European Policy Concepts to Central and Eastern Europe

Abstract

This paper discusses the impact of territorial governance to periphericalization. The notion of territorial governance, closely related to the concept of territorial cohesion, has been growingly discussed at the European level within its new policy agendas. Central and Eastern European (CEE) countries have gone through rapid structural and spatial changes, resulting in the peripherialization of vast territories, although the dispute over territorial governance and economic restructuring has been rather modest in some CEE countries. It is widely acknowledged that governance varies from country to country because of non-governmental actors and cultural differences. Therefore, we start discussion by addressing the reasons why people tend to emigrate and the conditions that should be set for wider and active participation in local development. Then, we examine territorial governance structures and policy actions comparatively in old and new EU member states in the light of multi-level governance and the so called “soft spaces and fuzzy boundaries” concepts. Finally, we evaluate how new public management influenced EU cohesion policies and national regional policy agendas.

JEL classification

 

Key words

peripherialization, central and eastern Europe, territorial identity, empowerment, multi-level governance, new public management

 

Author(s)

 

Title

The Multi-Stakeholder Partnerships - The New Actors of Local Development in Poland

Abstract

The proposed paper analyses legal-institutional and practical aspects of multi-stakeholder partnerships (especially three-sector partnerships in the Local Action Group formula) as introduced in Poland under the European Program since 2004. They are seen as one of the instruments to enhance local governance, improve performance of local communities and local development in the rural areas. The theoretical context of the study refers to the governance approach. The proposed article uses a number of methods such as institutional-legal analysis, literature overview, analysis of quantitative secondary data and analysis of primary data (quantitative – based on questionnaires and qualitative – based on interviews) as well as comparative method. The research project was dedicated to investigating mechanisms to create and operate multi-stakeholders partnerships as exemplified by the rural Local Action Groups (all existing 31 LAGs in Podkarpackie region). The core element of the research was the actual role of the partnerships in local/rural development including diversification of agricultural sector and creation of new forms of economic activities. Preliminary findings: Partnerships created under the LEADER program were expected to be a chance for rural areas development. In practice, they turn out to be artificial/ fictitious tool. The are several reasons that weakened the assumed potential of partnerships including: overregulation of the LEADER program, bureaucracy of Polish administration, inexperienced members of local communities unable to apply for support from the LEADER program, complicated requirements and formalities e.g. the need for project pre-financing, similar activities implemented under other, parallel and similar programs but less formalized. In practice sources provided by LEADER program for economic development of rural areas were poorly utilized by the local communities. They have been transferred to o called “soft projects” focused - in vast majority - on promotion and cultural development.

JEL classification

R

Key words

 

 

Author(s)

Luca Brusati et al.

Title

Putting Multi-Level Governance to Work for Local Economic Development: The Role of Inter-Organizational ICT Networks

Abstract

Network governance (Rhodes 1997) and multi-level governance (Piattoni 2010) became central concepts in public policy. They refer to a situation in which decisions are taken and implemented within a network of multiple tiers of government and multiple societal or business organizations. Governance arrangements bring organizational consequences for institutions in charge for delivering programs. Dispersed authority implies silos mentality, which leads to coordination problems, i.e. the occurrence of redundancies, incoherencies and lacunae (Peters, 1998). This paper focuses on governance problems in local economic development, exploring the potential of one policy tool for horizontal coordination: inter-organizational ICT networks. Using the framework suggested by Bouckaert and Verhoest (2010), the paper analyses three policies implemented by Friuli Venezia Giulia Autonomous Region:

1. a shared portal for tourism promotion, doubling up as extranet for EDI;

2. a shared system for the monitoring of containers moving across intermodal networks;

3. a shared database of the infrastructures designed to prevent flooding and landslides. Results suggest that inter-organizational ICT networks can be effective coordination tools, but do little to overcome interest opposition, and help most when the underlying logic is closest to hierarchy.

JEL classification

 

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APPLICATION

FIRST AND LAST NAME
ORGANIZATION/UNIVERSITY/
FACULTY
ORGANIZATION/UNIVERSITY
IDENTIFICATION NUMBER
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CITY AND POSTAL CODE
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ORGANIZERS

PROGRAM COMMITTEE

1. Asst. Prof. Saša Drezgić, Ph.D., Faculty of Economics, University of Rijeka, President, Croatia
2. Prof. Saša Žiković, Ph.D., Faculty of Economics, University of Rijeka, Vice-president, Croatia
3. Prof. Luca Brusati, Ph.D., Department of Economics and Statistics Udine University
4. Asst. Prof. Paolo Fedele, Ph.D., Department of Economics and Statistics Udine University
5. Prof. Robert Huggins, Ph.D., Chair of Economic Geography at Cardiff University’s School of
Planning and Geography, Great Britain
6. Prof. Daniel Klimovsky, Ph.D., Comenius University in Bratislava, Faculty of Social and
Economic Sciences, Slovakia
7. Prof. Srđan Marinković, Ph.D., University of Nis, Faculty of Economics, Serbia
8. Prof. Uroš Pinterič, Ph.D., Faculty of Social Sciences,St.Cyril and Methodius, University
inTrnava, Slovakia
9. Prof. Ivo Sever, Ph.D., Faculty of Economics, University of Rijeka,
10. Dr. Anwar Shah, Ph.D., Director, Center for Public Economics, Chengdu/Wenjiang, China Prof.
11. Dao-Zhi Zeng, Graduate School of Information Sciences, Tohoku University, Japan

ORGANISATIONAL BOARD

1. Prof. Helena Blažić, Ph.D., Faculty of Economics, University of Rijeka
2. Prof. Mato Crkvenac, Center for economic development, Management board
3. Prof. Nada Denona-Bogović, Ph.D., Faculty of Economics, University of Rijeka, President
4. Asst. Prof. Saša Drezgić, Ph.D., Faculty of Economics, University of Rijeka
5. Prof. Marija Kaštelan Mrak, Ph.D., Faculty of Economics, University of Rijeka
6. Prof. Davor Vašiček, Ph.D., Faculty of Economics, University of Rijeka

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CENTER FOR LOCAL ECONOMIC DEVELOPMENT
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