Differences in accessing Rrural Development Programme (RDP) funds. The impact of financial factors on the support level. The example of municipalities in the Wielkopolska region

Abstract

The objective of this paper is to assess the absorption level of funds disbursed under the 2007-2013 RDP to municipal government units and the impact of financial determinants on the amount of funds accessed. Intensive investment activities were have been taken in the Polish rural areas over the recent years. Many of them were implemented with the use of the EU subsidies, including those disbursed under the 2007-2013 RDP. The purpose of the RDP was to support transformation not only in the agriculture sector, but also on rural areas, especially as regards technical and socio-economic infrastructure. In the Wielkopolskie Voivodeship, a total of 463 projects were implemented, amounting to PLN 722 million. Environmental infrastructure projects represented the largest share in the total amount although socio-economic projects were much more numerous. The municipalities under consideration differed in levels of the EU funds accessed. This means the beneficiary’s financial autonomy is a crucial determinant, especially if the EU funds are disbursed as a refund. In less wealthy municipalities, that solution may effectively constrain access to large amounts of aid. Also, by allocating funds to other investments, the municipalities restrict their investment potential and often become unable to implement subsequent investment projects.