New tools for integrated urban development:
ITI and CLLD in national context
Iván Tosics
Metropolitan Research Institute
Budapest
EUKN Policy Lab Romania
“Integrated approach in urban planning and
development”
Bucharest
11 October 2013
URBAN CHALLENGES ARE LINKED
• The main challenges of the upcoming decades:
– demographic (ageing)
– economic (growing global competition),
– environmental (less renewable energy sources, more
carbon produced)
– socio-spatial (migration with growing inclusion problems,
growing inequalities within society)
• All these challenges have to be handled AT
ONCE
• The „best” solutions create huge externalities
(negative outcomes) regarding the other
challenges
2
INTEGRATED ANSWERS ARE NEEDED
ON THE LEVEL OF URBAN AREAS
• Instead of mono-sectoral („best” for the given sector)
interventions integrated answers are needed
• The smart, sustainable and inclusive aspects of growth
have to be linked to each other
• It is the cities, the level of urban areas where the different
aspects can best be linked to each other
• However, there are strong interests against integrated
planning:
– „opportunity planning” in east-central European countries
(subordinate urban development to investors)
– „revanchist regeneration” (making inner cities attractive in
order to maximize tax incomes) in western Europe
– free market led development without planning and public
control (Spanish and Irish examples)
3
CRISIS MAKES INTEGRATION NOT EASIER
Novelties of the present situation:
• for a number of years there will be no economic
growth
– and even later the present form of economic growth will
be questioned as sacrifying the scarce environmental
resources and increasing socio-spatial inequalities
• the capacities of the public sector will be – for long
time – much more limited than so far
• the tolerance level of the people (regarding
inequalities and democracy deficits) is sharply
decreasing
4
TYPES OF INTEGRATION POLICIES
• between policy areas (horizontal, in terms of policy
management), coordinating the policy fields
• between neighbouring municipalities (territorial, in
terms of geography), allowing for cooperation in
functional urban areas
• between different levels of government (vertical, in
terms of government), allowing for multi-level
governance
5
INTEGRATION BETWEEN POLICY AREAS
• Avoiding silos
• All sectoral decisions should be controlled regarding
their effects on other sectors
• Needs strong initiatives:
– policy schemes (national, regional or local) for integrated
planning;
– appropriate tools (for investments, for management);
– special organizations managing the integrated process;
– citizen participation
Integrated development might require sub-optimal
solutions along each dimension in order to reach good
balance between all dimensions
6
EXAMPLES ON POLICY INTEGRATION
• Neighbourhood regeneration: improving the
physical environment with measures helping local
people into jobs and promote social and cultural
cohesion
• Neighbourhood management: to bring local
services together to address long-standing
problems in the area. Participation of local
communities is crucial.
7
COORDINATION BETWEEN MUNICIPALITIES
Cooperation between neighbouring municipalities in
functional urban areas is crucial to
• avoid the negative effects of competition
(investments, services, taxes) between local authorities
• help to integrate policies – economic, environmental
and social challenges can best be addressed at once
on broader urban level
• reach the economy of scale – size matters in
economic terms and in services
However, functional urban areas are undefined and
usually weak in administrative-political sense
8
CITIES (million)
Admin city
MUA/city
FUA/city
London
7,43
1,1
1,8
Berlin
3,44
1,1
1,2
Madrid
3,26
1,5
1,6
Paris
2,18
4,4
5,1
Budapest
1,70
1,2
1,5
Vienna
1,60
1,0
1,6
Lisbon
0,53
4,4
4,9
Manchester
0,44
5,0
5,8
Liverpool
0,44
2,7
5,1
Katowice
0,32
7,1
9,5
Lille
0,23
4,1
11,3
42.63 mill
1,7
2,3
…
AVERAGE (40 cities)
Sources: ESPON, 2007: Study on Urban Functions. ESPON Study 1.4.3 IGEAT, Brussels. Final Report
March 2007 www.espon.eu City population: http://www.citypopulation.de
COORDINATION BETWEEN GOVERNMENT
LEVELS
• Multilevel governance means sharing
responsibilities between different levels of
government
• Rationale: higher levels of government are
concerned with outcomes at the lower level,
agreeing in co-assignment of responsibilities
• Cities can strive for more integration, BUT cities
can not achieve the most important goals without
regional and national frameworks
10
EU level interventions are required for
integrated urban development
• For the success of EU2020 integrated planning,
green and social economy strategies are needed
on the level of functional regions.
• This new approach needs policy guidance and
financial support from the EU, initiating crosssectoral and cross-territorial planning on the
functional region level.
EUROPEAN COHESION POLICY
2014-2020
Integrated urban development is the key to
achieve the EU2020 targets. New EU tools:
• CLLD: people-based integrated interventions in
smaller municipalities and on neighbourhood
level in larger cities (10-150 th population)
• ITI: place-based integrated approach in larger
cities, potentially on metropolitan level
• Horizon2020: „spatially blind” innovative
economic actions in large urban areas
Urban policies in integrated way
12
Integrated sustainable urban development
Example: Member State A
Regional
ERDF OP
I
T
I
Total allocation
for ITI at least
5% of Member
State’s ERDF,
delegated to
cities
National/sectoral
ERDF OP
ESF OP
City 3

City 1
City 2
City 3


City 25
City …
CF OP
+ additional
ESF and CF,
if appropriate
ITI MODELS IN DIFFERENT
COUNTRIES
Some initial and informally collected ideas about
the national understanding of the Commission
proposals (as part of the forming Partnership
Agreements) in the following countries:
• France
• England
• Germany
• Poland
14
FRANCE
• Natonal Priority is to earmark min 10% of regional OP
of ERDF and part of ESF to urban deprived
neighbourhoods, either as ITI or urban integrated
development axis.
• Contrat de Ville: contract will be signed between the
central state and the intermunicipal bodies of urban
areas (co-signed by regional and departmental
authorities). The 7 years contract will concentrate on
deprived areas.
• The 27 regions will become the MA, cities will get the
possibility of global grant, based on the contract.
15
ENGLAND
• In England ERDF, ESF and part of rural will be given to
LEP areas, which have to do integrated programme.
Almost no sectoral programmes will exist, the whole money
will be devoluted to the LEPs.
• Few months ago 28 city deals were signed. In the future
the deals will be between government and LEPs. Tension
between LEPs and municipalities: each LEP is developing
a Wider Growth Plan (integrated territorial development
strategy).
• In practice 39 ITIs will be prepared (not be called ITI). The
LEPs and their partnes will ’select’ a package of activities
and projects, this package will be approved by the national
PMC; the MA will then only do a technical appraisal. 16
GERMANY
• regional policy is the task of the 16 Länder, OP-s and
MA-s exist on Länder level
• Länder opposed the ideas of compulsory delegation:
only the minimum level of delegation towards the cities
will be applied, they will have some say in the selection
of projects but will not get global grants
• in most Länder no ITIs but priority axes will exist
• the urban dimension will be applied in each eastern
Land but not necessarily in the more developed
western Länder
• the national programme „Soziale Stadt” still exists and
it also uses co-financing from ERDF money
17
POLAND
• The Government requires ITI associations to be formed between
the 16 regional capitals and the municipalities belonging to their
functional urban areas
• The Government provided lists of settlements – at least half of
the settlements should become part
• The municipalities within the FUA, which do not join the ITI, will
have a more difficult access to EU funds in fields, where the ITI
will have projects
• The association creates a Board (to be headed by the mayor of
the core city) which has to prepare integrated strategy
• The carrot EU funds in the form of an ITI seems to be efficient in
the Warsaw Functional Area (Franz Thun)
18
ITI – Teritorial definition of the Warsaw Functional Area
 surface: 2.932 sqkm.
(8% of the surface of the region)
 population:
2.656.917 inhabitants
(50,3% of the population of
the region)
 40 communes –
including Warsaw
(within 11 counties)
Results of the survey to the
communes (July 2013)
• 33 Municipalities answered, all ready to join
• 28 preferred the legal form of an agreement between
municipalities
• Economic development, urban regeneration and
digitalization of schools, transport infrastructure main
topics for cooperation
• 2/3 of municipalities accept participation in management
cost
• 4/5 support coordinating role of Warsaw
151,8 mio Euro for the Warsaw Function Area within the
Regional Operational Programme
Inititial steps (2013)
• Submission of a project concerning the programming of
the development of the Warsaw Metropolitan Area
• Project brain storming by 5 municipalities and the
Mazovian Planning Office
• Maj and June meetings with all municipalities of the
Warsaw Functional Area concerning the programming
project
• June, proposal by the City of Warsaw for the future ITI for
discussion
• Survey in July
• 13 of August, signature of a joint declaration of 33
municipalities of the Warsaw Functional Area concerning
the cooperation within the future ITI
• August, designation of an ITI coordinator in each
participating municipality
Future steps
• August- September, preparation of a project list for the
wojwodship contract
• September 2013, creation of an ITI association by all
participating municipalities for the Warsaw Functional
Area, start of work on the development strategy for the
area to be accepted by all participating municipalities
• September – November 2013, discussion of the strategy
with the Ministry of regional development and the
regional management authority
• October 2013, resolutions in all municipal councils
concerning ITI
• November 2013, acceptance of the strategy by the
Ministry and the regional management authority, formal
agreement between the ITI association, the Ministry and
the regional management authority
• January 2014 ITI ready for implementation
SUMMARY OF NATIONAL REACTIONS
ON ITI
• Mostly oriented towards large cities (except for
England)
• France and Poland: explicit requirement to
include the FUA level
• Delegation to metropolitan associations strong
in Poland, in England (to the LEPs), no
delegation in Germany
• Thematically broad in England and Poland,
narrow (deprived areas) in France and Germany
• Legal form ITI or urban axis
23
A paradigm shift. “From the “terroire guichet”
to the “territoire projet.”
Strategy
Territory
Partnership
› From “territoire guichet” – administrative boundaries –
deficits or gaps - management body redistributes grants
› To “territoire projet” – What is our project for the future? –
who (which allies) do we need to achieve it? – what is the
appropriate (functional) area over which to achieve it?
CLLD in cities. Monday, 21 May 2012 I Page 2
Community-led local development shall be:
(Art 28 Common Provisions)
› Focussed on specific sub-regional territories
› Community led by local action groups composed of
representatives of public and private interests where at
the decision making level neither the public sector nor
any single interest group shall represent more than 49%
of voting rights
› Carried out through integrated and multisectoral area
based local development strategies
› Designed taking into consideration local needs and
potential and include innovate features in the local
context, networking and where appropriate cooperation
CLLD in cities Monday, 21 May 2012 I Page 2
„Predecessors” of urban CLLD-s
› Between 1994 and 2006 the cohesion policy supported
›
two rounds of the URBAN Community Initiative which
focussed mainly on deprived urban neighbourhoods with
an average population of 28 000 people
Since 2007 URBACT II has involved around 500 cities in
approximately 60 thematic exchange and learning
networks. Each city that takes part in an URBACT II
network has set up a broad multi-stakeholder local
support group, which develops a local action plan.
Although URBACT’s local support groups are not
designed to implement the local action plan and these are
not automatically funded; many could be the seeds of
CLLD partnerships and strategies.
Extending the partnership I Monday, 21 May 2012 I Page 2
Possible types of CLLD in cities
› Small areas within cities. Deprived urban neighbourhoods and
historic centers but also other types
URBACT examples: REG GOV, SURE, CTUR, REDIS, LINKS, REPAIR, HERO
›
Smaller cities and their surrounding rural areas
URBACT examples: Esimec, Creative Clusters…..
›
Target group approaches
URBACT examples: My Generation, Romanet, Active Age…
›
Thematic approaches
URBACT examples: Active Travel, EVUE, CASH, SUITE, HERO (ESIMEC + CC)
Conditions: strong involvement of community of users, focussed
but integrated strategy, appropriate (functional) areas - larger if
justified .Possibility of dealing with urban-rural links for the theme or
target group.
CLLD in cities. Monday, 21 May 2012 I Page 2
Possible configurations of CLLD in urban areas
Extending the partnership I Monday, 21 May 2012 I Page 2
Areas within the city: Berlin
› Berlin, federal Socially Integrative City program: between
›
›
›
1999 and 2009 the city used €83.5 million of ERDF,
35.1million from the federal programme and 83.5 million
from the budget of the state of Berlin.
34 neighbourhoods are included in the programme based
on socio economic indicators. Areas vary in size, with
the largest of around 22000 people. Across Berlin the 34
areas cover a population of 391 968 compared to 3.5
million for Berlin as a whole.
A neighbourhood management office is set up in each
area. Mostly these are procured from the private sector
through open tender processes. The neighbourhood
management team works with a neighbourhood council
to develop a strategy and action plan for the area.
Participative budgeting approaches to bring in project
ideas.
Extending the partnership I Monday, 21 May 2012 I Page 2
How to achieve integrated local
development in post-socialist cities?
Overwhelmingly private housing, weak welfare policies and no
tradition of civic organizations (weak social capital)
Integrated development can only be achieved with placebased approaches and special methods for inclusion
No tradition in direct involvement of population into planning
and decision making. Second best solutions have to be found,
with intermediary institutions:
• in deprived areas with substantial public ownership
intermediary management organization is needed (Rév8)
• in deprived areas with overwhelmingly private ownership
condominiums are the tools to involve residents (Ady)
CASE 1: a socially sensitive urban
regeneration programme in Budapest:
Magdolna quarter
• Strategic plan of district VIII for fifteen years
(2005-2020)
• Phases of interventions in Magdolna:
– Phase I (2005-2008): jointly funded by the Budapest
and the District 8th Municipalities, 2.7 million eur
– Phase II (2008-2011): ERDF funding (ROP), 7.2
million eur
– Phase III – (2013-onwards) ERDF, 13 m eur total
investment
• Integrated programmes: both physical and soft
projects (housing is compulsory element)
Main pillars of the Magdolna programme
The aim of the programme is not to turn Magdolna
into a rich area, but terminate deep poverty.
• Urban renewal: special programme for the tenants
– To involve them into the renewal
• Programme for creating communities
– Create a community house
• Public space program
– Improve the central square (Greenkeys, Interreg IIIB)
• Educational program, safety program
– De-segregate the school (from 98% to ‘normal’ share of
Roma kids)
1. Management structure of social
urban renewal
Mayors offices are too bureaucratic and
thematically focused (silos)
• RÉV8, as publicly owned interdisciplinary
company, has been established outside the
office to develop long-term integrated solutions
However, RÉV8 has gradually lost decisionmaking power over the years, politicians
intervened into all decisions
Conclusion: politicians should keep only
strategic decisions while devolving everyday
management; financing should be lomg-term
2. Public participation
• First phase: 2 mill eur, working with 4 publicly owned
buildings, making the cellar areas clean (own work of
residents taken into account in the new rent level).
• Second phase: 7,4 mill eur, renovation of 16 publicly owned
buildings, support to 7 condominiums.
• Third phase: 13 mill eur, 28 programmes, only one (public
space renewal) will be implemented with the people
together – in all others the municipality found it too risky to
accept real involvement of people
Conclusion: the more EU money, the less opportunity for
participatory planning (under present national SF rules)
3. The level of improvements
• Second phase: all flats got WC and shower, rent
increased 2-3 times and utility payments even more.
Tenants did not want to move back.
• The higher is the quality of renovation, the less is the
chance to keep the original residents as the national
social safety net has been cut drastically
Conclusion: for the success of social renewal the national
social benefit system has to follow the increase of the
housing costs of original residents
CASE 2: Csepel Ady project in
Budapest
- Csepel: one of the 23 districts of Budapest
- Ady estate: appr. 5000 inhabitants in 2064 apartments
- Ten 10 storey high buildings, 5 cooperatives and 5
condominums (94% of the units owner occupied)
- Social composition: one of the least prestigious
(however, not deeply marginalised) estates in Budapest.
- Aim: to stop the further degradation of the estate and in
parallel to improve the social position of the inhabitants
(not crisis management but PREVENTION)
Project content
- Project budget: 4,5 million Eur (2,85 million ERDF)
- Project duration: Oct 2009 - June 2012
- Partial renovation of 7 large prefabricated residential
buildings (3 buildings rejected to participate)
- Renewal of the public spaces and public buildings
- Upgrading of the commercial buildings
- Creation of a new Community Centre
- ESF types of measures (vocational trainings and
community building activities)
Results of the Ady project
- Energy saving: 6-40%, resulting in 10-100 euro
saving/year/flat
- The decrease of real estate prices slightly
moderated
- 45 inhabitants got certificates of vocational
training (46% of them employed over 6 months)
- Attendance of the new community centre well
above the expectations
Key findings
– ERDF with housing element provides opportunity for
integrated interventions in the most marginalised areas
– Renewal with ERDF was a new experience for the
management system → high burdens of administration
→ low level of flexibility, innovation
– Public participation existed through the cooperatives
and condominiums but its level was low (lack of culture
in this field)
– The time frame (1.5+1 years) was not appropriate to
reach the most marginalised layers of the society
3. Conclusions: challenges to
apply CLLD in post-socialist cities
• Once deprived areas are selected the local
residents have to be included into decisionmaking about renewal
• The level of physical renewal of deprived areas
has to be determined very carefully (the higher
this level is, the more will the population change)
• The application of the CLLD methodology
requires special approach in post-socialist cities
Drift through
urban space
and time
Position
of communities
in fragmented
urban space.
Urban
value
S
p
a
c
e
Market
change
Public
intervention
A3
A t0
A4
Which strategies?
A1 decline
A tn
A2
A2 steady state
A3 gentrification
A4 coherence
best practice
A1
t0
tn
tx
Time
Summary: chances for CLLD
Sustainable social results can only be achieved in combination of
horizontal and area-based interventions: area-based
interventions may only have limited results if the higher level policies
(welfare systems) do not work properly
Enough time has to be ensured for planning and implementation
of area-based interventions
Area-based interventions have to be carefully designed, with the
involvement of residents, as the level of physical improvements
determine to large extent the social outcomes
In order to achieve the CLLD-type model intermediary institutions
have to take leading role: interdisciplinary public management
companies, cooperatives, condominiums, NGOs
The roles of politicians and managers should be separated and
subordinated to the CLLD type organizations in which residents
have to be well represented – however, this is difficult to achieve
ITI and CLLD
ITI (ESF, ERDF, CF)
CLLD (CSF Funds)
Multisectoral, integrated approach to territorial development – investments based on a
territorial strategy
Strategy is elaborated by the
region/municipality (no formal community
involvement)
The territorial strategy is elaborated
bottom-up by local communities: cannot be
imposed if there is no local initiative
The strategy can be implemented by the
MA or another body. Certain delegation of
tasks is obligatory under Article 7 of ERDF
The strategy is implemented by LAGs with
strict balance of representation.
Delegation of certain tasks (in particular
project selection) to LAGs is obligatory
Involves combination of funds from multiple
priority axis (or operational programmes)
In the case of ERDF and ESF, CLLD is
implemented within a single investment
priority
All types of investment
Community-defined projects, mostly of
small scale
No specific methodology
Methodology set out in regulation
43
INTEGRATED DEVELOPMENT AND EUROPEAN
POLICIES
The different levels of functional areas might use
different EU tools to strengthen integrated urban
development:
• Local-neighbourhood level: CLLDs, led by publicprivate-thirdsector partnerships
• Metropolitan areas: ITIs, led by the core city
– there is a need for defined boundaries and (at least
delegated) fixed institutional structure
• Broader economic cooperation areas: Horizon2020
innovation partnerships (including administrative
regions)
– can and should be kept on flexible spatial level
44
Thanks for your attention!
tosics@mri.hu
45