Between November and December 2023, the partners of the EU Horizon EXIT project conducted an exploratory analysis on the gaps between factors of territorial inequality and the perceptions of relevant stakeholders in eight project countries. The methodology used a two-fold approach: focus groups and national online surveys. Twenty focus groups engaged 103 stakeholders from eight countries, including local authorities, institutions, civil society organizations, and other relevant actors from left-behind areas. Participants from regional, national, and EU levels also provided valuable insights into policy choices addressing territorial inequalities and highlighted differences in approaches across policy levels. Additionally, national online surveys were conducted with 409 stakeholders from seven of the project countries to understand the perception gap between policy drivers, strategies, and respondents’ perspectives.
Key findings from these participatory methods across eight project countries highlighted the critical role of strong institutions and effective governance mechanisms in combating territorial inequalities. The emphasis was placed on the importance of institutions and governance mechanisms, rather than on specific policy measures aimed at reducing territorial disparities. The joint message from relevant stakeholders is that effective institutions are a prerequisite for the efficient implementation of policies addressing territorial inequalities.
These findings align with some academic writings emphasizing the role of institutions in shaping development and addressing inequalities. Sen highlights that “our opportunities and prospects depend crucially on what institutions exist, how they function, and how inclusionary they are” (Sen, 2000, p. 33). Putnam observes that “some places are better governed than others, even when the governments involved have identical structures and equivalent legal and financial resources” (Putnam, 1993, p. 82). Khan notes that the global development debate focus too much on policies and strategies while neglecting the “governance capabilities appropriate for the effective implementation of these strategies” (Khan, 2008, p. 108). The authors of the Project Europe 2030 warn that ambitious objectives combined with limited resources and weak implementation mechanisms create a “recipe for disappointment” (EU, 2010, p. 7). Research also shows that institutions cannot function effectively without social trust, which must be built gradually (Rothstein, 2005) and that expectations, both positive and negative, heavily influence experiences (Ariely, 2009, p. 205).
The analysis conducted through the EU Horizon-funded EXIT project identifies the key factors that perpetuate challenges in areas left behind. The absence of a comprehensive policy framework, coupled with short-term policy implementation, often sustains these inequalities. Fragmented competences and coordination gaps across different government levels obstruct cohesive regional development, while weak inter-agency collaboration worsens these issues. Additionally, inadequate funding systems perpetuate inequalities, as unfair distribution and bureaucratic obstacles disproportionately impact rural and under-resourced areas. Balancing centralized and decentralized policies is crucial, as extremes in either direction can foster disparities—centralization can lead to neglect, while decentralization risks uneven service delivery and development. Furthermore, the distribution of EU funds can sometimes unintentionally deepen inequalities, especially in border regions. Finally, insufficient institutional capacities hinder the effective implementation of measures against territorial inequality.
The EXIT project, funded by the European Union’s Horizon Europe programme, explores sustainable strategies for tackling territorial inequalities using an intersectional approach.
References:
Ariely, D. (2009) Predictably Irrational – the hidden forces that shape our decisions, New York: Harper Collins Publisher
Center for Social Policy (2024). D2.2. Report on the exploratory analysis on gaps between factors of inequality and perception. EXIT Project. Horizon Program
European Union. (2010) Project Europe 2030: Challenges and Opportunities, A report to the European Council by the Reflection Group on the Future of the EU 2030, Luxembourg: Publications Office of the European Union
Khan, M.H. (2008) Governance and Development: The Perspective of Growth-Enhancing Governance, in GRIPS Development Forum (ed.), Diversity and Complementarity in Development Aid: East Asian Lessons for African Growth, Tokyo: National Graduate Institute for Policy Studies
Putnam, R. (1993) Making Democracy Work: Civic Traditions in Modern Italy. Princeton: Princeton University Press
Sen, A. (2000) Social Exclusion: Concept, Application, and Scrutiny, Harvard University, Social Development Papers No. 1, Office of Environment and Social Development, Asian Development Bank
