Regional Policy and Development in an Enlarged Europe: A Survey of Theoretical Arguments Valentin Cojanu

Disparities of wealth between both a country's regions and groups of countries have attracted the economists' attention for long and found practical solutions embedded in the workings of regional policies. This material presents a survey of this theory and its accompanying realistic problems against the background of the European integration process.
The emphasis lies on two issues of paramount importance to any regional policy-maker: development of regional capabilities and development gap between regions and countries. Despite the absence of clear-cut theoretical arguments to support a liberal approach to market functioning, there is however considerable work, which keeps the liberal tenets of equal opportunities for growth in an extremely changing economic landscape.
These changes refer mostly to the capacity of various industries to cluster in arbitrarily defined areas, a phenomenon with far-reaching consequences for regional policies. The conclusions supports a more locally based approach to development with appropriate consideration to the needs of businesses and labor's ability to contribute to regional initiatives.