Even Small Countries Need Systemic Regional Governance

The main aim of this paper is to analyse the complexity of establishing a functioning regional governance system in a small country, such as the Republic of Croatia, an EU member state since July 2013. The EU integration process triggered an evolutionary institutional adaptation process through changing public management structures, approaches and cultures. Methodologically, this research combines the findings of a study on the regional development strategic planning system commissioned by the Croatian Ministry for Regional Development and EU Funds (2012), and links practical with theoretical insights established within the field of regional planning, policy and governance. The regional governance system is evolving since the early 2000s and strategic planning processes were introduced on all levels of governance including central government institutions, regional and local self- governments. The early attempts of introducing systemic regional development planning were entirely focussed on creating institutional structures and administrative capacities for managing European structural funds. This has simultaneously initiated broad political discussions about what would be the optimal administrative territorial division of the state to serve in the best way national regional and local development policy management needs. Due to global pressures caused by economic, environmental and social crises, national, regional and local governments need to rethink the role and scope of regional development plans in a national context. While, the main question in this paper is what makes a good planning system within which a region, regardless of administrative- territorial scope, can create an „implementable“ development plan that will serve its purpose, even in times of crisis. Strategic planning practices in Croatia encompass formally participatory approaches, sustainability, social inclusion, innovation, youth unemployment etc. However, concrete impacts of such new policy approaches are still in its infancy as monitoring and evaluation systems are just being established. The research results indicate that systemic guidance from above is needed to foster better organisation of existing public management structures from lower governance levels, enable vertical and horizontal policy coordination, and promote modern understandings of political leadership.