How to Make Cohesion Policy Better : Speculation on Possible Improvements

The paper shows that delivery mechanisms have significant impact on the effectiveness of cohesion policy whatever its structure. In the assessment of the present delivery mechanisms the conclusion is made that there are strong arguments for reform, which however would make sense even if one would believe that present system works fine. On this basis five proposals for reform have been analysed in detail. Expected positive impact in terms of improved effectiveness of cohesion policy is shown to be very closely related to the extent of the reform, which is in turn dependent on political commitment (and wisdom). Most promising proposals of the five seem to be output based disbursement of funds and the full-coordinated decentralization. In either case, benefits of a reform would accrue not only to recipient countries due to lower costs, but also to the paying countries as they would benefit both from greater direct and especially indirect effects. Arguing for a reform should therefore not be understood as cohesion policy's critique but as a move for its stronger justification instead