Regional policy is the sum of a series of policies formulated according to regional differences to coordinate regional relations and regional macro operation mechanism, which affects regional development at the macro level. It includes regional economic policy, regional social policy, regional environmental policy, regional political policy, regional cultural policy, etc. Regional policy aims to improve economic conditions in regions of relative disadvantage, either within a nation or within a supranational grouping such as the European Union. Additionally, a regional policy may try to address high levels of unemployment and lower-than-average per capita incomes. Its main tool is public investment.
Regional policy in the European Union
Although the European Union is one of the richest parts of the world, there are large internal disparities of income and opportunity between its regions. The May 2004 Enlargement, followed by accession of Bulgaria and Romania in January 2007, has widened these gaps. Regional policy transfers resources from richer to poorer regions. “Regional policy targets all regions and cities in the European Union in to support job creation, business competitiveness, economic growth, sustainable development, and improve citizens’ quality of life.”[1] The argument for regional policy is that it is both an instrument of financial solidarity and a powerful force for economic integration.
Regional policy in Italy The major Italian experience of regional policy is the Cassa per il Mezzogiorno, set up in the mid-1950s to foster economic development in southern Italy. Originally intended to last for six months, it survived until 1984. New roads, irrigation projects and developments in infrastructure were built in an area where local communities had suffered seriously from poverty, de-population and high levels of emigration. Tourism projects attempted to exploit Calabria’s beaches.
Regional policy in the United Kingdom
UK regional policy was born during the economic depression of the 1930s, when heavy industries in the north were devastated. "Assisted Areas" were established, within which companies could acquire grants or capital allowances – known as Regional Selective Assistance (RSA) – in return for protecting jobs. The overall pattern of policy changed little in the next forty years. Despite criticism by a 1970s Royal Commission that it was "Empiricism run mad; a game of hit and miss played with more enthusiasm than success", governments of both parties maintained Assisted Areas. Under the 1980s Thatcher government, regional policy was significantly rolled back, with Assisted Areas substantially reduced in size. The post-1997 Labour administration reorganised regional policy, with RSA replaced by Selective Finance for Investment in England and Scotland. UK policy has been subject to EU regional policy framework, with its strong injunctions against unfair competition (generally meaning state aid).
Regional policy in China
In China, regional policy is delivered through multi-level governance that involves central government, provinces, counties, townships and villages. The key role in regional policy and regional development plays The Department of Regional Economy under the Chinese National Development and Reform Commission (NDRC). The development of regional policy in China can be divided into three stages.
Balanced development in the early 30 years of New China (1949-1978) The balanced development policy implemented in the early 30 years of the founding of the People's Republic of China is a process of the top-down one-way directive plan. The central government uses the national financial resources to implement major projects (infrastructure, national defense), carry out investment and construction, and adjust and control the layout of productivity. From the spatial level, it carries out strategic planning, guidance and control characterized by the unity of regional development. It established a number of industrial bases with initial scale, and laid the foundation for China's industrialization construction. During China's Third Front construction, concerns of invasion by the Soviet Union or the United States prompted the development of infrastructure, industry, and specialized talent remote regions, ultimately laying a foundation for continued economic development in China's western regions even after the end of the initiative.It was distributed in the scattered mountainous areas, with the priority given to heavy industry, especially military industry. The development of light industry was insufficient, and there was a shortage of materials. In addition, the tendency of "attaching importance to the mainland but less to the coast" in the application of the balanced development policy has restrained the economic development. After a Party Work Conference in May 1973 resolved to re-direct state investment efforts from the Third Front to the northeast and the coastal regions, the Third Front was no longer the country's most critical economic objective.
Unbalanced development in reform and opening up (1979-1998) At the end of 1978, China began the historical process of reform and opening up, and profoundly summed up the lessons of the "Cultural Revolution" and the disadvantages of planned economy. During this period, unbalanced development was highly praised, which basically dominated the economic layout and regional development of China. In order to make some areas rich first, it encourages coastal cities and regions with low cost, quick effect, easy project landing and convenient foreign trade to develop first, and open up the riverside, belt and inland areas in stages, with emphasis and efficiency. Specific measures include establishment of special economic zones, economic and technological development zones and coastal port cities, etc.
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