Implementation Of Regional Policy Research Articles

The Implementation of Regional Policies Related to Sharia Financial Institutions in Lhokseumawe

One of the advantages of the Province of Nanggroe Aceh Darussalam is the Shari'a legal framework included in Law No. 11 of 2006 governing Aceh's administration. This study examines the role of the Indonesian Islamic Bank Lhokseumawe Area in the implementation of Qanun Number 11 of 2018 concerning Islamic Financial Institutions. Bank Syariah Indonesia (BSI) Lhokseumawe Area contributed to applying the Qanun for Islamic Financial Institutions starting from account migration, socialization of sharia products, sharia services and also signing of cooperation agreements with partners to use products from sharia banking. One of the focuses of BSI Lhokseumawe Area in the process of integrating service operational systems in the Aceh region is the customer migration process from the original bank to Bank Syariah Indonesia. This migration process can be done online through BSI Mobile or face-to-face. ATM cards, mobile and internet banking. In this process, the convenience and security of customer data are prioritized. The implementation of the qanun does not necessarily go well, there are obstacles faced in the process of implementing the qanun. Implementing Islamic financial services requires the attention and hard work of all parties and not only the bank. Stakeholders and citizens can continue to be patient and continue to encourage, and provide support to these financial institutions in correcting the weaknesses that occur so that with the presence of the Indonesian Sharia Bank, they can improve sharia economic growth and also for the benefit of the people.

Implementation of Regulatory Policy in Government Agency

Legal reform is a necessity. Regulatory arrangement is one aspect of the legal reform program within the framework of national legal development. Regulation is the solution and foundation of law enforcement and government policies, thereby creating legal certainty and order and providing benefits to the community. However, regulation is an obstacle to development due to overlapping regulations, hyper regulations, conflicts of interest and authority. It can be seen that there is a judicial review of existing laws in the Constitutional Court and 1,765 regional regulations have been canceled. The legal reform program is carried out based on the Regulation of the Minister of Administrative and Bureaucratic Reform concerning the Road Map for Bureaucratic Reform 2020-2024. The regulation mandates the need to create a Legal Reform Index to measure the success of Legal Reform. This research was conducted to provide an overview of regulations and the formation of regulations as well as the implementation of regulatory policies for Government Agencies. This research is juridical-empirical and used a qualitative approach. From the results of this study, it was found that there are regulations in Indonesia that require amalgamation, simplification, and revocation. Considering this situation, legal reform is needed. This determination is seen from the Legal Reform Index. Policy Measurement of the legal reform index is useful for ensuring the quality of good laws and regulations following the principles, rules and objectives of the ideal formation and arrangement of laws and regulations.

Ukrainian Reform of Decentralization Processes Consolidating the Sustainable Development: Environmental and Legal Aspects

The strategic vision of sustainable development for Ukraine is based on ensuring national interests and accomplishing international commitments proceeding to sustainable development. Sustainable development involves decentralization and implementation of regional policy, which is based on a harmonious combination of national and regional interests regarding ecology. This article aims to identify and analyze environmental and legal components of the decentralization of power in Ukraine as a means to sustainable development provisions. The main focus of ecological decentralization is placed on land resources. This is due to the peculiarities of the national system of environmental law (natural resource and environmental regulations) of Ukraine. The article highlights the main and additional areas of environmental decentralization. It analyzes the legislation and the practice of its implementation in the sphere of natural resources reallocation, territorial communities’ demarcation, and their planning process. The roles of cadasters, registers, and electronic databases in maintaining natural resources for the successful decentralization of power are analyzed. The legal perspectives for the decentralization of environmental control are also outlined. The status of financial and ecological resources redistribution in the process of decentralization is highlighted along with the ways of its subsequent improvement. The conclusion suggests the ways for the improvement of legislation and the practice of its implementation to accomplish successful decentralization reform.

The Spatial Correlation Effect of Real-Estate Financial Risk in China: A Social Network Analysis

In this paper, we draw on real-estate finance data from 31 provinces in China over the period between 2006 and 2018 in order to develop a comprehensive index of real-estate finance risk. Our principal innovation lies in our use of the social network analysis method to portray the spatial correlation characteristics of real-estate financial risk dynamically. We find that (1) the spatial correlation effect of real-estate financial risks in China is increasing and exhibits multiple superposition characteristics and spatial spillover effects; (2) current trends in real-estate financial risk suggest that the eastern region has a strong contagion potential, that the middle region is highly vulnerable, and that the level of risk in the northwest is high; (3) the spatial network of real-estate financial risks in China can be divided into four functional blocks, namely a strong net-spillover block, a weak net-spillover block, a broker block, and a main damaged block. There is significant gradient transmission between them. The network structure of real-estate financial risks poses serious challenges to the formulation and implementation of regulatory policies. However, it creates favorable conditions for the construction of cross-regional risk prevention mechanisms as well as a practical basis for preventing systemic risks in the new era. (4) Meanwhile, the formation of a spillover network of real-estate financial risks is driven by the high dependence of local fiscal resources on land finance, not by local GDP growth.

Антикризисная политика южнороссийских регионов в условиях пандемии COVID-19

Introduction. This study analyzes the anti-crisis policy of the southern Russian regions during the three waves of the pandemic, and also assesses the nature of its change as the corona crisis develops. It was important to identify how the regional anti-crisis policy determines the choice of mechanisms and tools for solving the problems of socio-economic development of regions. Methodology and methods. The analysis was carried out in accordance with the methodology proposed by G. Buckert, in the following areas of anti-crisis management: monitoring, training, decision-making, coordination, communication, leadership and recovery potential. The following methods were used to conduct the study: context analysis – a qualitative analysis of documents adopted by regional authorities; quantitative analysis – analysis of socio-economic indicators that reflect the reactions of the economy to decisions made by regional authorities. Analysis. The study showed that regardless of the strength of the impact of the corona crisis and the extent of the damage caused, the content of the policy of the regional authorities can be characterized as “following the center”, which is largely due to the desire to avoid responsibility for the consequences of decisions made. At the first stages of the development of the corona crisis, the goals of containing the spread of coronavirus and state support for the most affected sectors of the economy from the introduction of restrictive measures were the priority. Starting from the second and subsequent waves of the pandemic, the introduction of various measures related to the mass vaccination of the population has become a key area of regional policy. Results. The key problem of the implementation of regional policy measures is identified – inefficient information work of regional authorities, which led to information asymmetry with the increased influence of the media on the social moods of citizens. It is concluded that in order to increase the efficiency of regional policy implementation measures in order to increase the sustainability of regional development, it is important that the ongoing coordination interactions between the authorities at different levels of government have clear goals for restoring the regional economy, and restorative measures should be prioritized with the supply maintenance policy.

Barrier analysis for carbon regulatory environmental policies implementation in manufacturing supply chains to achieve zero carbon

Many pressing challenges that perennially affect countries today are those related to environmental sustainability. As major entities, business organizations play a primal role in boosting the economy, stakeholders are increasingly under pressure to achieve net zero emissions. However, in emerging economies, these entities are scarcely inclined towards implementation of newer environmental policies as they're oblivious to perils of excessive carbon emissions and its consequences. Therefore, it is essential to look for sustainability measures to secure a system that reduces the carbon footprint and ultimately reaches a zero-carbon future. This research proposes a method to identify and assess the barriers of carbon regulatory policies (CRPs) so that advancements in carbon emission reduction practices can be pursued; we present a specific focus on developing nations. An integrated multi-criteria decision-making approach is proposed to achieve environmental sustainability. Initially, the Best Worst Method is used to determine the relative importance of the barriers in the implementation of regulatory policies. Subsequently, we utilize Decision Making Trial and Evaluation Laboratory to establish interrelationships among the barriers of carbon policies. To elucidate the application of the proposed novel framework, a case considering multiple manufacturing firms with multiple stakeholders in India is examined.

The Role of the Regional Development Planning Agency in the Preparation of the Medan City Medium Term Development Plan

The purpose of this research is to identify and describe the role of the Regional Development Planning Agency in the preparation of the mid-term development plan for the city of Medan. and to find out how the preparation of the RPJMD for the city of Medan. This research is located at BAPPEDA PEMKO MEDAN. This research uses descriptive research. Sources of data collection carried out with primary data and secondary data through in-depth interviews with the head of BAPPED. As well as using data collection methods through observation and documentation. BAPPEDA is a supporting element of the mayor, which is led by a head of the Agency which is located under and responsible to the mayor of Medan, BAPPEDA has the task of carrying out the preparation and implementation of regional policies in the field of urban development planning. The Regional Medium Term Development Plan (RPJMD) is one part of development planning. After the inauguration of the new Mayor of Medan with a new vision and mission, a new RPJMD was drawn up. And in the preparation of the RPJMD, it is an elaboration of the vision and mission of the Regional Head. As well as in the preparation of the RPJMD, the most important coordination is with BAPPEDA. The results of this study indicate that the role of BAPPEDA in the preparation of the Medan City RPJMD is as follows: Harmonizing the schedule for implementing agency activities, integrating similar and related activities, evaluating planning and providing guidance in guidance.

Optimizing Bappeda Performance in the Development Planning Process in Medan City in 2021

The purpose of this study was to determine and describe the performance of Bappeda in the role of Regional Development Planning. and to find out how to optimize the performance of Bappeda in regional development. This research is located at BAPPEDA PEMKO MEDAN. This research uses descriptive research. Sources of data collection is done with primary data and secondary data through in-depth interviews. And using data collection methods through observation and documentation. BAPPEDA is a supporting element of the Mayor led by a Head of Agency who is under and responsible to the Mayor of Medan, BAPPEDA is in charge of implementing the implementation of regional policies in the field of urban planning. Bappeda as an element of state administrators has an obligation to carry out its main tasks and characteristics, one of which is manifested in the preparation of performance reports of government agencies that support the mayor's vision, namely "The realization of a blessed, advanced, and conducive society. The people of Medan City” are also supporters of Bappeda's Mission 3, namely the creation of clean fields. The results of this study indicate that the performance of Bappeda in planning the Performance of Bappeda for the City of Medan in 2021 Presenting the achievement of the 2016-2021 strategic targets shows good results. Although there are still realizations of several indicators that have not fully achieved the development planning targets.

Tidal mixing of estuarine and coastal waters in the western English Channel is a control on spatial and temporal variability in seawater CO<sub>2</sub>

Abstract. Surface ocean carbon dioxide (CO2) measurements are used to compute the oceanic air–sea CO2 flux. The CO2 flux component from rivers and estuaries is uncertain due to the high spatial and seasonal heterogeneity of CO2 in coastal waters. Existing high-quality CO2 instrumentation predominantly utilises showerhead and percolating style equilibrators optimised for open-ocean observations. The intervals between measurements made with such instrumentation make it difficult to resolve the fine-scale spatial variability of surface water CO2 at timescales relevant to the high frequency variability in estuarine and coastal environments. Here we present a novel dataset with unprecedented frequency and spatial resolution transects made at the Western Channel Observatory in the south-west of the UK from June to September 2016, using a fast-response seawater CO2 system. Novel observations were made along the estuarine–coastal continuum at different stages of the tide and reveal distinct spatial patterns in the surface water CO2 fugacity (fCO2) at different stages of the tidal cycle. Changes in salinity and fCO2 were closely correlated at all stages of the tidal cycle and suggest that the mixing of oceanic and riverine endmembers partially determines the variations in fCO2. The correlation between salinity and fCO2 was different in Cawsand Bay, which could be due to enhanced gas exchange or to enhanced biological activity in the region. The observations demonstrate the complex dynamics determining spatial and temporal patterns of salinity and fCO2 in the region. Spatial variations in observed surface salinity were used to validate the output of a regional high-resolution hydrodynamic model. The model enables a novel estimate of the air–sea CO2 flux in the estuarine–coastal zone. Air–sea CO2 flux variability in the estuarine–coastal boundary region is influenced by the state of the tide because of strong CO2 outgassing from the river plume. The observations and model output demonstrate that undersampling the complex tidal and mixing processes characteristic of estuarine and coastal environment biases quantification of air–sea CO2 fluxes in coastal waters. The results provide a mechanism to support critical national and regional policy implementation by reducing uncertainty in carbon budgets.

The costs of "blue sky": environmental regulation and employee income in China.

Strict environmental regulations may change the behavioral decisions of firms. Based on the exogenous impact of the Chinese Central Government's inclusion of environmental performance in the assessment targets of municipal officials in 2007, this study uses the difference-in-difference method to explore the impact of environmental regulations on employee income. We find that (1) environmental regulations will significantly reduce the average wage level of employees in polluting industries and have no significant impact in nonpolluting industries. (2) This effect is more pronounced in eastern China, where environmental regulations are more stringent, and in areas where political promotion incentives are stronger. (3) Mechanistic analysis finds that environmental regulations will affect employee income by increasing costs and constraining financing. (4) More importantly, we find that the decline in the average wage level of firms is mainly due to the decline in the average wage level of ordinary employees, and the average wage level of management has not decreased significantly, which means that environmental regulations have expanded the functional income distribution. Our findings contribute to a comprehensive understanding of the effectiveness of environmental regulatory policy implementation and associated economic cost issues.

Regulatory policy in the context of effective public governance: evidence of Eastern European Countries

The purpose of the article is to study the regulatory policy of Eastern Europe in the context of effective public administration and to identify areas for ensuring its effectiveness in modern development conditions. The need for conceptual substantiation of the regulatory policy implementation directions, development of appropriate applied nature recommendations taking into account public administration system transformational processes has caused urgency of a theme. The methods of comparative analysis, statistical analysis, method of abstraction and formalization, grouping method, SWOT-analysis method were used as empirical research methods. It was substantiated that modern science considers this concept in the following aspects: complex, special, normative and globalization. In the context of the Good Government concept, regulatory policy was analyzed according to the transparency criterion. It was determined that the disadvantage for Ukraine is the lack of regulatory policy transparency, the lack of single database with draft regulatory acts and performance monitoring reports. It is proposed to use SWOT-analysis as a strategic tool for regulatory impact analysis. Conceptual bases of improvement of regulatory policy realization process have been developed in the following directions: economic development, improvement of internal business environment, harmonization of normative-legal regulation system, stimulation of partnership in the regulatory policy field.

Does voluntary cooperation in member state implementation require top‐down steering? The case of regional policy in Switzerland

AbstractThis article studies the institutional conditions that facilitate voluntary member state cooperation in the implementation of regional development policy in Switzerland. Cooperation is crucial for the implementation of regional development policies given that functional perimeters do generally not coincide with institutional borders. Research on the governance of horizontal interorganizational cooperation often focuses on local entities and institutionalized networks, we examine the voluntary cooperation of higher‐tier subnational entities. We apply the institutional collective action framework to the implementation of a regional policy in highly federalist Switzerland where subnational entities have considerable discretionary power. The empirical analysis of comprehensive data on implemented development projects and a survey of all responsible subnational actors show that cooperation between higher‐tier subnational entities faces strong institutional constraints. We conclude that more top‐down guidance is necessary when horizontal cooperation is a condition for policy success.

Regulatory impact assessment and responsibility assignment matrix

Regulatory policy, the purpose of which is to create an effective legal, economic and social environment implies the responsibility of making and implementing decisions. To ensure the effective implementation of regulatory policy, it is necessary to allocate decision-making and responsibility centers to ensure the coincidence of regulatory impact indicators and actual impact indicators. The object of the study is regulatory policy, the elements of which affect the social, economic and legal space. The subject of the study is the centers of responsibility in the implementation of regulatory policy and assessment of regulatory impact. The purpose of the study is to establish the elements of the responsibility assignment matrix in the mechanisms of predictive and retrospective assessment in the implementation of regulatory policy. Research objectives: 1. Theoretical analysis of international and domestic research results; 2. Economic, legal analysis of legislative, regulatory and legal acts; 3. Formalization of research results that have a scientific and objective form of expression. Research methodology – economic, legal and regulatory methods of scientific cognition. Results of the study: 1. The necessity of responsibility assignment in the development of legal projects due to the presence of bias in the assessment is substantiated; 2. The responsibility assignment matrices of parties involved in the implementation of regulatory policy in Russia are presented.

Система защиты зарубежных инвестиционных интересов китайских предприятий

China’s direct overseas investment policy shows a significant shift from the “going global” strategy to the “One Belt, One Road” initiative. The active promotion of the government and the breakthrough initiative of state-owned enterprises became the hallmark of China’s direct investments abroad. The main advantage of direct investments of Chinese companies is the government guidance and service. The Chinese government provides political guidance and certain services to companies that implement their needs for investments abroad, helping them to go out into the outside world and securing their interests abroad. This is where the special advantages of the country come out. This article analyses legal documents, policies and regulations adopted by the Chinese government since 2000 in order to provide the protection for overseas investment of the national state and private enterprises. Only through the combination of the four components of the system, such as the adoption of laws and regulations, the implementation of regulatory policies, the adoption of preventive measures, and the use of crisis response mechanisms, it is possible to ensure the situation when the overseas investment of Chinese companies will continue to grow, and it will be possible to prevent or even avoid the adverse effects of perceived political risks in the country of investment and achieve the goal of ensuring “safe and sustainable” foreign investment. The author formulates political recommendations for the nowadays implementation of the specific advantages of the state in order to fulfill a better protection for the overseas investment interests of Chinese enterprises.

Ensuring Regional Development under Decentralization: French Experience for Ukraine

Goal – the article considers the issues of state regional policy formation in the French Republic, mechanisms of interregional disparities equalization and ensuring regional development under decentralization of power. Research methodology – the methodological basis of the paper includes comprehensive and interdisciplinary analysis of regional administration development in France. Synthesis, generalization, observation and comparison, as well as other general scientific methods were used while conducting research. Score/results – different regional development models available in the French Republic within the last century, their foundations, legislative basis, and other aspects were examined in the context of further implementation of the best foreign practices in Ukraine. Originality/value – based on the analysis of main problems within development and implementation of regional policy in the independent Ukraine and the best regional development practices of France, the possibilities of using the French experience in the context of decentralization and implementation of administrative-territorial reform are outlined. Therefore, the research remains relevant in the scientific and practical aspects.

DECENTRALIZATION, SUBREGIONAL LEVEL AND JUDICIAL DISTRICTS IN COUNTRIES OF THE WORLD: FROM NATIONALISM TO ULTRACENTRISM

In this article the author gives examples of functioning of administrative-territorial models in France, Spain and Italy, comparing them with Ukraine. The work highlights the features of the municipal, subregional, regional and central levels of government and self-government in these countries. According to the author, mentioned unitary countries of the European Union, known for their high level of decentralization, have a similar principle of administrative-territorial structure. The implementation of regional policy in Ukraine today is somewhat centralized and inefficient. The work reveals the main levers of influence on the effectiveness of management and self-government at different territorial levels. During the reading, the significance and functions of the subregional level (districts) of governance in Ukraine is being rethought. The work affects not only the functions of public administrations in Ukraine, but also the executive territorial and judicial authorities, the impact of administrative-territorial reform on their reorganization. The author suggests that the right to regional self-government and the status of regional communities (soft regionalization) should be recognized in Ukraine, which will directly affect the integration of citizens and the realization of their fundamental rights. The article proposes designs of territorial structure, which would allow to institutionally separate the functions of subregional and regional management and administration bodies in Ukraine, which is required by the unitary structure of the state enshrined in the Constitution. For the most part, few people understand the significance of Ukraine's subregional reform and the challenges and prospects it brings, so that is why this paper reveals the main mechanisms and differences in the functioning of administrative-territorial models in Europe. In general, the author develops ethnocentric positions. The article states that the vague definition of community status in the legislation leads to ambiguous judicial practice. The content of judicial districts is revealed as a rather complex, but also important component of administrative-territorial divisions in a unitary decentralized state. The author also gives an example of the Spanish experience of decentralization which affected the fact that the return to historical (monarchical) traditions in this state led to a powerful outpouring of decentralization of power.

Укрупнение регионов как инструмент эффективного управления единым экономическим пространством России

Subject/topic. The article is devoted to the study of the enlargement of regions and the governance of the country at the level of federal districts. Methodology. In the process of developing the article, general scientific methods (retrospective and chronological analysis, synthesis, induction, deduction) and special graphoanalytic methods were used. Results. Based on the results of the scientific research, an overview of modern approaches to the enlargement of regions and their management at the level of federal districts, methodological approaches to calculating the asymmetry of the development of federal districts were presented, the features of the territorial structure of the country were described, analysis and calculations on the asymmetry of the development of federal districts in terms of GRP (gross regional product) and fixed capital investment were carried out, and a graphical analysis of the average per capita monetary expenditures of the population of Russia Conclusions/significance was presented. It is established that as a result of cardinal transformations of the formation of federal districts (not 8 and 15, but maybe up to 50), to make the public administration system more stable and optimal from the point of view of public spending, reliable from the point of view of national and economic security of the country. At the same time, it makes sense to attribute the following to the criteria for the formation of a new system for the formation of federal districts: self-sufficient in order to ensure the average Russian budget security, and at the same time maintain a conditioned dependence on the federal center; the ability to maintain internal institutional unity within the framework of the single economic space of the country; to preserve the existing system of territorial and industrial management; to ensure overcoming asymmetries in the socio-economic development of the territory and the level and quality of life of the population as a whole. The results of the scientific research will be useful both in the development and implementation of regional policy, and to specialists, civil servants who plan to improve the territorial structure of the single economic space of Russia in the indefinite future.

МЕТОДИЧЕСКИЕ ОСНОВЫ ОЦЕНКИ ДИФФЕРЕНЦИАЦИИ УСТОЙЧИВОСТИ РАЗВИТИЯ НАИЛУЧШИХ ДОСТУПНЫХ ТЕХНОЛОГИЙ НА МЕЗОУРОВНЕ

The article is devoted to the issues of increasing the stability of the functioning of production systems at the meso-level in the transition to a balanced development economy. The necessity of developing new methods and tools to assess the level of development and balance of interests of the economic, social and environmental subsystems of society at different levels of management of economic systems is substantiated. In addition, taking into account the spatial, socio-economic and natural-geographical factors affecting the development of the subjects of the federation, the issue of studying regional differentiation in the context of subsystems of economic management, social and environmental spheres is acute. The purpose of this article is to develop methods and tools for assessing the balance of the development of the economic, social and environmental spheres at the regional level of management and their approbation on the example of the regions of the Russian Federation. Descriptive statistics, cluster and variance analysis were used as research methods in the article. Dynamic cluster analysis of the integral components of ESG revealed a change in the position of regions in the theoretical space, which was typical for more than a third of the subjects of the federation – 39%, which also confirms the thesis of changes in the implementation of ESG transformation at the regional level of economic systems management. The concept of the best available technologies is designed to stimulate the industry to modernize, introduce modern technologies characterized by high resource, environmental and economic efficiency. It is concluded that a competent determination of the benefits from the introduction of the best available technologies, including external environmental and social effects, will allow enterprises to reasonably consider themselves among the participants of the ESG movement, apply for state support measures and comply with the most modern international standards. The modeling results presented in the article and the conclusions drawn on their basis can be used by the state authorities of the regions in assessing the effectiveness of the implementation of regional policy, to identify the balance of development of all three integral components: management of the economic system, social policy and environmental friendliness of the regional economic system.

THE IMPACT OF THE COVID-19 PANDEMIC ON THE BANK'S LENDING AND INVESTMENT ACTIVITY IN UKRAINE

The paper deals with the theoretical, regulatory framework for the implementation of lending and investment activities of banks in Ukraine, in particular in the economic downturn caused by the COVID-19 pandemic. The purpose of the article is to reveal the features of bank lending and investing in 2019-2021 and to identify the impact of the COVID-19 pandemic on the implementation of lending and investment activities of banks in Ukraine. The authors' approach to determining the essence of lending and investment activities of banks is substantiated. An assessment of banks' lending and investment activities in 2019-2021 has shown, that 60% of banks' loan and investment portfolios are formed from loans and 40% from investments. The main share of banks credit agreements volume is occupied by loans granted to economic entities; the bank portfolios of securities are formed mainly of profitable and low-risk government bonds. Unprecedented restrictive measures imposed to overcome the pandemic have had an impact on the activities of banking institutions, including reduced income of potential borrowers and their ability to service debt, as well as the problems for banks that have not introduced remote customer service. Analysis of the dynamics and structure of the credit and investment portfolio of Ukrainian banks, investments in investment securities, and long-term investments made it possible to identify the main trends in lending and investment activities of banks in Ukraine. Potential directions of regulatory policy implementation on the banking sector in the context of overcoming the negative consequences of the pandemic should be aimed at creating equal and transparent rules of the game between traditional and new financial service providers. The authors focus the attention on opportunities for the development of lending and investment activities of banks that emerged in the financial market of Ukraine during 2020-2021. Most of these capabilities involve providing simple, intuitive, personalized services across digital platforms with an appropriate level of cybersecurity.

Reacting to the 2008 crisis: Competitiveness performances of Southern Italy and CEE regions

Abstract The 2008 Global Financial Crisis influenced geo-economic dynamics in the EU, triggering a repositioning of less developed regions. This analysis examines whether their competitiveness changed after 2008, and why some regions improved in performance. Using ERCI data, we compare EU lagging regions at NUTS2 level, finding that the Central and Eastern European (CEE) regions reacted to the crisis better than Southern Italian ones. We find that the divergence in their competitiveness pathways depends on the scale of their financial resources and on institutional endowments and legacy, which in turn directly affects the implementation of regional policies.