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The Interplay Between Administrative Capacity and Political Factors. the Case of Structural Funds Absorption in Bulgaria and Romania (2007-2013)

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The Interplay Between Administrative Capacity and Political Factors. the Case of Structural Funds Absorption in Bulgaria and Romania (2007-2013) Governing EU Cohesion Policy in Central and Eastern Europe: the interplay between administrative capacity and political factors. The case of Structural Funds absorption in Bulgaria and Romania (2007-2013) by Neculai-Cristian Şurubaru Doctoral Thesis Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy (PhD) of Loughborough University 30 March 2017 © by Neculai-Cristian Şurubaru, 2017 ABSTRACT This dissertation examines how new European Union (EU) member states manage and implement European Cohesion Policy (CP). It assess the administrative and political factors that might explain the variation in the financial absorption of Structural Funds (SF), with a specific focus on two homogeneous cases from Central and Eastern Europe (CEECs). Whilst there is a dense literature on the potential socio- economic impact of CP in the EU, less attention has been paid to the factors affecting CP and SF governance at the national domestic level. Questions of financial absorption, delivery effectiveness and quality of the spending remain open and are puzzling for both academics and practitioners. Subsequently, one of the main aims of this thesis has been to provide an in-depth investigation of, on the one hand, the structural administrative capacity employed by states to manage this policy and, on the on the other hand, the political factors and dynamics that influence its delivery of SF in new member states. The study carries out an archaeology of the capacity of the specialised institutions involved in the different stages of the absorption process with the general aim of explaining some of the determinants of absorption performance, particularly in the countries’ assessed. It proposes an absorption capacity model in order to assess these claims and the original empirical evidence collected. The thesis fills in several empirical and theoretical lacunae in knowledge. Empirically, the study draws on multiple comparative case studies from Bulgaria and Romania, two problematic yet diverging cases in terms of absorption performance, during the 2007- 2013 implementation period. These countries’ first experience in managing and implementing SF provides empirically rich insights. Theoretically, this thesis offers a more nuanced account of the governance of CP and SF in CEECs. It builds and refines the concept of administrative capacity as well as several political factors (stability, support and clientelism) in order to examine the complexity and problematic issues surrounding SF absorption. Insights on CP governance, administrative capacity- building and the impact of politicisation at the national and local level are outlined and discussed. The main argument put forward in this thesis is that the variation in absorption performance is generated by the interplay between administrative and political conditions. In other words, the way in which administrative and political factors have interacted has shaped the ability of the two countries to govern EU Cohesion Policy and influenced their performance in absorbing EU funding. This argument is developed in line with several key findings. First, administrative capacity is a necessary but not sufficient condition for countries to deliver effectively CP. Second, political conditions can facilitate or hinder the development of national administrative capacities and have often influenced the different stages of the absorption policy process. The thesis highlights the need to critically reflect on the overall dynamics between structural administrative arrangements and domestic political conditions, in order to advance our understanding of how EU policies are governed and implemented at the national level. Finally, the thesis formulates several recommendations, for the different stakeholders involved, on how to facilitate the delivery of SF in order to improve cohesion and development in Europe. i ACKNOWLEDGEMENTS “It always seems impossible, until it is done” (Various) Doing a PhD can be a long and transformative intellectual journey. For me this was a period of discovery marked by several episodes, including the common ups and downs. It was process during which I worked and lived in several countries, cities, libraries and communities in Loughborough, Southampton, Brussels, Bucharest, Sofia, Glasgow and Edinburgh. Engaging in research and teaching, meeting new people and exchanging knowledge have all been part of this process. However, the impossible wouldn’t have been possible without the support of several individuals and institutions to whom I am very grateful. First and foremost, I am indebted to Dr Jeremy Leaman for his kind support throughout the process. Jeremy has been there for me from the very start of my journey in Loughborough. His detailed comments and proofreading, wonderful personality and encouragements, even at difficult times for the both of us, have been truly helpful. Second, I would like to thank Prof Helen Drake for her extremely valuable advice during the later years of my PhD. Helen has helped shape my perspective of what a PhD is and has reminded me that the best dissertations do not have to be perfect in the literal sense of the word. In addition, I would like to thank Prof Lee Miles and Prof Michael Smith for their support during the first two years of my research. Their questions and guidance have contributed towards shaping the distinct limits of my work. My doctoral research wouldn’t have materialised without a studentship from the Graduate School of Loughborough University to which I am grateful. Moreover, I would like to express my appreciation to the Raţiu Family Charitable Foundation for a research grant that helped fund part of my fieldwork in Bulgaria and Romania. Furthermore, it must be said that this PhD is the result of a collective contribution. I am indebted to the tens of people in Brussels, Bulgaria and Romania that have helped me throughout this period and who have agreed to be interviewed for my research. Fieldwork has been one of the most exciting periods of this process and understanding the perspectives of administrators, politicians, experts and beneficiaries dealing with ii EU funding has been highly rewarding. Most of their work and contribution often remains uncredited in the public eye and I remain indebted for their help. During my PhD, I have been a Visiting Scholar at the European Policies Research Centre (EPRC) at the University of Strathclyde in Glasgow. The time spent at the EPRC has helped shape the analysis of my evidence and has helped me ground my work more thoroughly. I am extremely grateful to Prof John Bachtler for this opportunity, as well as to Dr Martin Ferry, Dr Laura Polverari, Lynn Ogilvie and the rest of the team of the Centre. Presenting my work at various academic and policy conferences and trying to publish have been fulfilling episodes of my PhD. I am grateful to the editors and anonymous reviewers of Regional Studies, East European Politics and the Journal of Common Market Studies for comments on my work. A big thank you also goes to Dimitris Papadimitriou, Adrien Jahier, Stefan Roch, Stijn Van Kessel, Maaike Damen, Dorine Boumans, Alba Smeriglio, Eli Gateva, Dessislava Hristova and Paulo Rangel for various comments and discussions held during the last few years. A special thank you goes to the academics, staff and postgrads of the Politics, History and International Relations Department (PHIR) at Loughborough, for their thoughts and friendly interactions: Will Boisseau, Raimund Bauer, Michel Cornette, Pauline Dainty, Max Drephal, James Donaghey, Martin Farrell, Ruth Kinna, Robert Knight, Matt McCullock, Audrey Pridmore, Frances Seller, Meg Shepherd, Phil Sadler and Martha Worsching. Moreover, I want to express my thanks to my fellow PhD friends with whom I have spent several hours talking, debating politics or anguishing over research: Dorina Baltag, Cristian Niţoiu and Nikola Tomic. Last but not least, I would like to thank my family for their love and support: Viorica and Elena Şurubaru, Nina and Nicolae Ciobanu, Maria and Gheorghe Moga. This thesis wouldn’t have emerged without the continuous affection and encouragements of my partner, Adriana Duţă. This thesis is dedicated to the late memory of my father, Dumitru Şurubaru. iii TABLE OF CONTENTS ABSTRACT .................................................................................................................................... i ACKNOWLEDGEMENTS ......................................................................................................... ii TABLE OF CONTENTS ............................................................................................................ iv LIST OF FIGURES AND TABLES ........................................................................................ vii LIST OF ACRONYMS ............................................................................................................... ix Chapter 1: Introduction ........................................................................................................... 1 1.1 Cohesion Policy in old and new Europe ............................................................................... 1 1.2 Structural Funds absorption performance in CEECs - empirical puzzle and research questions ..................................................................................................................................... 4 1.3 Explanations and gap in the literature ...............................................................................
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