The Territorial Dimension of the European Social Fund

Abstract

The challenges today for local economic development and employment creation are putting pressure into traditional models of economic growth and the way policy makers and practitioners have seen development pathways for our countries and regions. New models are emerging and new ways of thinking are now directed to the meaning of 'territoriality' as an approach that takes into account the different geographical levels of modern development: national, regional and local. This territorial 'trilogy' calls for the integration of strategies to foster development in a sustained way and taking into account the social, economic and environmental factors integrated into local development. Today more than ever we have to focus on the interaction of these factors and the key issues they translate into: job creation, employability, entrepreneurship, inclusive growth, fostering education policy for qualifications and skill rich ecosystems.The combination of/or coordination across different territorial levels provides a more sophisticated approach for developing territoriality-proof policies that can reach the final delivery and implementation of strategies and initiatives. Improved coordination and policy coherence between supranational, national, regional and local governments will yield economic and social dividends in the form of better designed and more effective strategies that combat the immediate effects of high unemployment, mitigation of future economic shocks and building accountable, competent institutions that can meet the growing set of challenges.The OECD LEED Programme in cooperation with the Polish Ministry of Regional Development has prepared this paper to analyse in deep how the territorial approach (local, regional and national) is an effective and needed mechanism for development, employment, education and poverty reduction which are core issues of European and OECD countries. In particular the paper argues for stronger territorialisation of the European Social Fund as a vital tool in pursuing these goals through a more integrated territorial approach to create ownership at the local level and to foster a coordinated policy approach top-down and bottom-up.Through the examples and arguments presented in this working paper, the local level emerges as a key spatial dimension where economic development instruments apply. This does not mean that other levels from the national and the regional level are not involved or that they are minimised. On the contrary it means that the local level is gaining prominence as the place where people and firms operate, where economic and social activity happens, and therefore where policy makers and other key actors must pay particular attention.

Work Integration Social Enterprises (WISEs): Their Potential Contribution to Labour Market (Re-)Integration of At Risk Populations

“…The ESF continues to be the most important EU-level funding program for WISEs. 56 Created by the original 1957 treaty that established the European Economic Community, the ESF promotes employment for those at risk of being excluded from the labour market, including groups such as people with disabilities, migrants, minorities, and other high need groups (EC 2007;Martinez-Fernandez et al 2011). ESF funds go to training and re-training, enhancing skills, developing careers, and promoting entrepreneurship (EC 2007).…”

“…The now discontinued Global Grants program, part of the ESF, is also often cited as an important funding source for EU WISEs in the early 2000s. The program provided access to funding for smaller organisations that otherwise would not be able to apply for ESF financing (Martinez-Fernandez et al 2011), by delegating management of funds to intermediary organizations closely linked to local organizations (Martinez-Fernandez et al 2011). Funds were for use in local development projects such as social integration, services to enterprises, equal opportunities, strengthening of the third sector (DIESIS 2009;Martinez-Fernandez et al 2011).…”

“…The program provided access to funding for smaller organisations that otherwise would not be able to apply for ESF financing (Martinez-Fernandez et al 2011), by delegating management of funds to intermediary organizations closely linked to local organizations (Martinez-Fernandez et al 2011). Funds were for use in local development projects such as social integration, services to enterprises, equal opportunities, strengthening of the third sector (DIESIS 2009;Martinez-Fernandez et al 2011). The local intermediaries needed to be embedded in communities, have experience in the employment support field, and to be able to involve the populations their measures aimed to benefit (DIESIS 2009).…”

“…HOT achieved two objectives at the same time -delivering better services to its elderly residents, and also creating permanent jobs for long-term unemployed (DIESIS 2009). micro grants for local development projects (Martinez-Fernandez et al 2011). Some other major ESF programs existing prior to 2007 included EUROFORM (new ways of vocation training and employment), HORIZON (training for people with disabilities), NOW (New opportunities for women), YOUTHSTART (assisting young people without qualifications get a first job), and INTEGRA (assisting groups e.g.…”

“…Some other major ESF programs existing prior to 2007 included EUROFORM (new ways of vocation training and employment), HORIZON (training for people with disabilities), NOW (New opportunities for women), YOUTHSTART (assisting young people without qualifications get a first job), and INTEGRA (assisting groups e.g. Single parents, the homeless, refugees, prisoners and ex-prisoners get secure jobs, and fighting race or other discriminations in training or employment (Martinez-Fernandez et al 2011). 59 See EQUAL website: http://ec.europa.eu/employment_social/equal_consolidated/ 60 Ibid.…”