Regional development and regional policy

Economic polarization is a process that is present at global, national and regional level. Economic activity is extremely spatially concentrated. Cities and developed regions use the agglomeration effect to attract labor and capital, thus achieving more favorable economic conditions than the agrarian region. Scientific research and European experiences over the past decades have contributed to the discrepancy among theorists about the causes and consequences of regional inequalities. Regional development is a complex process that involves a multidisciplinary approach. Without a detailed analysis of successful regional development cases, the implementation of their development systems directly to other regions can lead to the loss of time, capital, and human resources. Regional development is a process that needs to be adapted to specific conditions. Each region has its own identity and unique characteristics. Key factors of development include: natural and human resources, level of technological development, capital, knowledge, institutional and legislative framework, values, ethics and commitment. Regarding the pace and nature of regional development, institutional structures can play a key role. The prevailing opinion today is that regional development is closely linked to the use of endogenous capacities. The region can achieve long-term progress only if it uses its specific properties and endogenous / internal capacities. The challenge for each region is to use its endogenous resources that will make it competitive and attractive to the market. The progress of one region depends to a large extent on the circumstances and networking of different sectors at the local level. The modern concept of neo-endogenous development implies integral and sustainable development of the region, which includes the harmonization of economic, social and ecological goals. It combines the spatial, temporal and multisectoral dimension and emphasizes 'the reciprocal of local and external forces in the control of development processes.' Undeveloped, mainly rural regions are no longer just territories that provide food and are not identified exclusively with the agrarian environment. Regional or cohesion policy is an important mechanism for sustainable economic development. Regional policy aims to reduce underdevelopment. The main motive for countries to adopt regional policies is to help poor and backward regions, for whose development and recovery the state itself does not have enough strength. Regional development in a comprehensive way defines regional development priorities and ways of their realization.