World Bank supports EU's Catching-Up Regions Initiative targeting regional disparities

World Bank supports EU's Catching-Up Regions Initiative targeting regional disparities
Banking & Financial Services
Webp ajaybanga
Ajay Banga, President at World Bank Group | The World Bank

The Catching-Up Regions Initiative (CuRI) was established in 2016 by the European Commission to address persistent regional disparities within the European Union. The initiative aims to provide targeted support to less-developed regions that have struggled to fully benefit from EU funding, particularly following the 2008–2009 financial crisis.

During the 2014–2020 programming period, approximately €461 billion from the European Structural and Investment Funds was allocated to foster regional development across member states. This commitment has continued into the 2021–2027 period, with around €392 billion dedicated to similar objectives. However, some regions have faced challenges in absorbing these funds effectively.

CuRI was piloted first in Romania and Poland. In Poland, the World Bank served as a technical partner due to its operational experience and global development knowledge. The collaboration aimed not only at providing expertise but also at facilitating coordination among various stakeholders.

"The World Bank’s role was not only to provide expertise, but also to serve as an honest broker and coordinator in a complex, multi-level environment," according to information provided by the European Commission. This partnership is part of a broader relationship between the two institutions, with the World Bank often citing the EU as a successful example of helping countries advance economically.

CuRI’s approach involves close cooperation with local actors who help define priorities and actions tailored for their regions. Technical experts work alongside multidisciplinary teams across sectors such as spatial planning, transport, education, energy efficiency, entrepreneurship, and health. Progress is regularly reviewed through Steering Committee meetings that involve all stakeholders.

In Poland, five voivodeships were identified in 2016 as lagging behind other regions despite national economic progress. CuRI pilots began in Podkarpackie and Świętokrzyskie due to their distinct challenges—Podkarpackie having strong R&D investment but low start-up activity and weak academic-business links; Świętokrzyskie facing issues with innovation and aligning vocational education with labor market needs.

Following positive results from its initial phase (2016–2017), CuRI expanded through two more phases up until 2019. Activities broadened to include support for mid-sized cities experiencing socioeconomic decline and areas such as energy efficiency, entrepreneurship support, financial instruments for SMEs, spatial planning reforms, and public service optimization.

Reports produced under CuRI detail strategies for improving business registration processes, activating entrepreneurship in deprived areas through enterprise support schemes co-financed by public funds, enhancing food safety enforcement based on international best practices, combating air pollution via energy efficiency measures for buildings, strengthening work-based learning in vocational education systems, setting up technology transfer offices like the Podkarpackie Center for Innovation (PCI), among others.

In Slovakia, CuRI began in January 2018 targeting regions such as Prešov Self-Governing Region due to ongoing structural challenges including gaps in infrastructure and high social exclusion among marginalized Roma communities. The initiative expanded over four main phases until 2023 before concluding transitional activities in early 2025.

Key priorities included modernizing vocational education curricula linked with employers’ needs; integrating marginalized communities; fostering industry-research collaboration; improving public transport using Geographic Information Systems (GIS); developing regional tourism; boosting energy efficiency; expanding water infrastructure; supporting social economy initiatives; and promoting sustainable tourism.

The Baltics CuRI launched efforts focused on Estonia’s South-East Region (Põlva,Võru,and Valga), Latvia’s Latgale region (notably Daugavpils and Rezekne), Lithuania’s Utena county plus Švenčionys District—all selected due to shared structural obstacles along EU’s eastern borders heightened by security concerns after Russia’s invasion of Ukraine. The initiative emphasizes locally led project development through stakeholder engagement rather than applying uniform solutions across different territories.

Running from mid-2024 through early 2026,the Baltic program features phased implementation: scoping exercises began with consultations/diagnostics leading up to technical workstreams like business retention surveys/skills analyses followed by peer learning forums held regionally.The final report/conference is scheduled for early 2026.

Throughout all participating countries,strong involvement of regional stakeholders has been highlighted as crucial for success.Local engagement ensures relevance while alignment with national/regional strategies maximizes impact.Many recommendations have unlocked further EU/national investments.The combination of field-based technical assistance,dedicated core teams,and regular coordination has enabled practical outcomes within limited timeframes according to those involved.