The National Regional Development Fund: an underused instrument for regional economic development

Experts found that about half of the projects financed from the Fund were local rather than regional in scale, so its intended purpose was not fully respected. Weak conceptual preparation of projects and technical documentation undermines efficiency, causing delays and additional costs. Transparency is another key shortcoming: the responsible authorities have not published a critical set of documents explaining how the money is spent, which prevents identification of the main regional development problems.

To raise efficiency and impact, the analysts recommend changing the regional development paradigm by revising the current policy framework, and placing more emphasis on impact assessment. They also advise broader participation in project design, including the private sector, and extending the transparency provisions of the Operational Manual to cover information, consultation and involvement. The Ministry of Regional Development and Construction should ensure transparency principles are respected.