Overcoming Obstacles. Regional Capacities for Administration of EU Funds in Croatia.

Abstract

This study provides an in-depth analysis of the relationship between administrative capacities of regional institutions and the absorption capacity for European Cohesion Funds. Specifically, administrative capacities are expected to be one of the most important explanations for varying absorption capacity across regions in the EU. First, an extensive literature review provides the main definitions and expectations for this relationship. Administrative capacity is defined here as the ability for reform, and the capacity to overcome structural obstacles stemming from regional and national politics and procedures, and create a culture of mutual learning and capacity building. This was tested in a case study of IPA fund implementation in four Croatian counties, using findings from data analysis, interviews with policy makers and existing evaluation studies, to provide an as complete as possible picture of regional administrative capacity. The study suggests that EU fund absorption capacity differs greatly between Croatian counties, which, despite having many of the same structural obstacles, show large variation in amount of implemented IPA funding. Over time, some counties have overcome obstacles through active training and capacity building, networking and partnership, an active civil society and good evaluation practices. The county that was found to be less successful in this regard had a significantly lower amount of implemented projects, and seemed to be stuck in procedural processes. As such, the results indicate that administrative capacity and ability for reform of regional institutions is an essential part of creating regional absorption capacity for EU funds.