2. Making the most of urban-rural partnerships in Poland

Poland’s urban and rural areas are linked together in many different ways: through commuting flows, the provision of services, shared natural resources, social and cultural connections and, increasingly, digital connections. As laid out in Chapter 1, Poland is highly suburbanised, with only 28% of people living in cities, compared with an OECD average of 50%. As of 2020, 55.8% of the population lived in Poland’s 58 functional urban areas (FUAs) – urban cores and their commuting zones – but more than one-third of FUA residents live in municipalities that can be classified as towns and semi-dense areas or rural areas. A key take-away of Chapter 1 was that Poland’s polycentric structure offers untapped potential to use urban-rural linkages to foster inclusive, sustainable development across Poland, improving well-being across entire regions.

Urban and rural areas have complementary strengths, and they already benefit, at least to some extent, from existing linkages. Without active co-ordination and partnerships, however, beneficial interactions may not be sustained over time, and resources may not be used as efficiently as they could be. Moreover, while some municipalities are closely linked and interdependent, such as through commuting flows and exchanged services, and can identify and pursue common goals, others may only be loosely connected.

This chapter examines how urban-rural partnerships can be used to manage urban-rural linkages more effectively to achieve shared objectives, improve well-being, and ensure sustainable relationships. Urban-rural partnerships are formal mechanisms for co-operation, either for a single purpose (e.g. management of shared water resources), or across multiple sectors and initiatives (e.g. a package of economic policies), which can be linked to broader regional or local strategies (OECD, 2013[1]). A distinctive characteristic of partnerships is that stakeholders from both urban and rural places are directly involved in the process to define the common set of objectives.

Urban-rural partnerships start from existing linkages between urban and rural areas, but can reveal existing and potential complementarities that had not yet been recognised. This can enable the partners to achieve more together than they could have in isolation. In order to succeed, partnerships need a structure or organisation, which can take different forms – from new institutions, to more informal groupings. The actors involved can all be in the public or the private sector, or include a mix of public, private and other actors.

As discussed in Chapter 1, Poland faces several important challenges, including demographic decline, the impact of the COVID-19 pandemic, the need for a just transition to a decarbonised economy and, due to Russia’s war on Ukraine, a massive influx of refugees which, by late May 2022, had effectively increased Poland’s population by 10% (UNHCR, 2022[2]), straining cities in particular. Urban-rural partnerships can help municipalities develop joint solutions that reduce the cost of interventions and increase their impact. Some partnerships are already bringing benefits, but overall, across Poland, there is far less co-operation among subnational governments than there could be.

The chapter delves deeper into why it is important to move from urban-rural linkages to partnerships across Poland. Then, it then examines the role of national and subnational policy frameworks in fostering urban-rural partnerships – including gaps that need to be addressed. The chapter also analyses the strengths and challenges of existing urban-rural partnerships in Poland across economic, social and environmental dimensions. Finally, it concludes with recommendations for a more strategic approach to urban-rural partnerships in Poland.

The analysis in Chapter 1 showed that Poland’s population is more dispersed than in most OECD countries, andthat large numbers of workers commute into Polish cities not only from within the 58 FUAs, but also from surrounding areas that are overwhelmingly rural. Workers also commute within suburban areas and, to a small extent, into rural areas.

However, there are large differences in the attractiveness of FUAs to commuters. While 90% of larger FUAs have positive commuting balances, two-thirds of Poland’s 37 FUAs with fewer than 250 000 residents have negative commuting balances. The Polish government has also identified 139 medium-sized cities, mainly outside of FUAs, that are losing their socio-economic functions (Ministry of Development Funds and Regional Policy, n.d.[3]). In 2018, Poland ranked fifth in the OECD for the level of income disparities across regions (OECD, 2021[4]).

Urban-rural partnerships can help reduce regional disparities and boost overall well-being. Promoting them could have broad benefits for Poland, as about 80% of the population lives either in an FUA or in an FUA catchment area. The large commuting flows across urban and rural areas and the many other interactions that already occur – such as the exchange or shared provision of services – provide a natural foundation for deeper and more organised co-operation that leverages the strengths of different municipalities.

Urban-rural partnerships are essential to help Polish communities grapple with major trends, such as climate change, digitalisation, globalisation, and the ageing and decline of the country’s population. In an increasingly interconnected world, actions in isolation rarely succeed in overcoming structural challenges, as those challenges transcend administrative boundaries. Collaboration across territories is therefore crucial, in order to co-ordinate policy actions, achieve cost-effective solutions and help implement national and supranational development agendas. For example, accelerating the transition to a net-zero carbon economy is only possible through co-operation between the rural municipalities that have the bulk of natural resources and the urban municipalities process and consume a majority of those resources.

Partnerships can lead to greater income and well-being, so they can help local governments attain desirable futures (OECD, 2013[1]). In general, places where rural and urban areas are integrated, such as through good transport services, and where institutions are more cohesive, perform better than others in terms of population growth and gross domestic product (GDP) per capita. Urban and rural municipalities that co-ordinate their labour markets can improve the matching between labour supply and demand and create exchanges of information, which boost innovation processes and unlock new job opportunities.

In Poland, however, urban-rural partnerships are still a relatively new phenomenon, and their uptake remains slow. Jańczuk (2020[5]) analysed a sample of 147 municipalities (81 rural and 66 urban) in 2019 and found that collaborations or partnerships among them were not common. Less than half the municipalities surveyed shared tasks to avoid overlap or achieve efficiencies. Partnering with the private sector to provide public services was even rarer (just 8 out 147). Two-thirds of the municipalities that did report co-operating did so around transport and/or water and sewage management projects.

Similarly, a European Investment Bank study on infrastructure investment found that only 7 of 30 Polish municipalities surveyed (23%) co-ordinated their investment projects with neighbouring municipalities (compared with 37% on average in the EU), and only 17% co-ordinated with a network of municipalities – the smallest share among EU countries covered by the study (EIB, 2017[6]).

Nevertheless, many Polish counties and municipalities surveyed for this report already see urban-rural partnerships as key to boosting development and quality of life around a wide range of areas (Table 2.1). The most common reason to form urban-rural partnerships reported by local governments is to address specific problems through joint actions that help attain economies of scale and cost-effective solutions. Most common targets for co-operation are transport connectivity, provision of high-quality services, increasing attractiveness for tourism and business, and managing environmental amenities.

Some expected benefits from urban-rural partnerships identified during OECD interviews and questionnaires to local governments in Poland include:

  • Increasing growth opportunities thanks to better co-ordination among economic agents and efficiencies from a greater scale.

  • Enhancing well-being of local communities thanks to better access to quality services.

  • Improving regional governance and social cohesion.

  • Building regional resilience.

  • Boosting access to national and international funding.

Moving away from an isolated territorial policy approach – one that pursues urban or rural policies without taking into account interlinkages – is not an easy task. In Poland, as in other OECD countries, it requires political will, a clear framework for action, and time, human and financial resources. This, in turn, is only possible if local stakeholders understand the benefits of co-operation. Local actors in Poland can benefit from the fact that urban-rural partnerships are drawing growing attention on global agendas and from international organisations and governments at different levels (Box 2.1). The insights and guidance that they are generating can facilitate the development of urban-rural partnerships in Poland.

Urban-rural partnerships are likelier to happen – and to be successful – if they are incentivised and supported by national and regional policy frameworks. Across the European Union, supranational policies and incentives play a major role in shaping regional development policies (OECD, 2018[9]). That is true in Poland as well, where a combination of strategic documents at the EU, national, regional (voivodeship) and municipal levels guides the implementation of development plans. This means that there are four entry points for incentivising urban-rural partnerships: i) supranational (EU) policies, ii) national urban and rural strategies, iii) regional development plans and iv) municipal development plans.

Europe and Poland’s regional policy frameworks both envision integrated regional development that goes beyond the urban-rural dichotomy and favours a functional approach to investment and development. This means recognising that communities across the urban-rural continuum are interlinked, each playing different, complementary roles: residential, employment hubs, public service hubs, food producers, providers of environmental services, recreational areas, etc. Both EU and national policies also include targeted support to mobilise local assets and boost growth in lagging regions or marginalised areas.

Urban-rural partnerships in Poland have mainly been triggered by the EU Cohesion Policy 2014-2020 and its place-based approach. As discussed further in Chapter 3, this EU policy – particularly its implementing instruments, such as the Integrated Territorial Investments (ITIs) and Community-Led Local Development (CLLD) – is recognised as the strongest driver of integrated planning and management in Poland’s FUAs. It has also led to joint projects across urban and rural municipalities in Poland. ITIs have played a particularly large role due, because they offer important financial support to joint projects.

Poland’s national policy framework on regional development recognises local co-operation as a necessary mechanism to implement and achieve national policy objectives, though it does not explicitly mention urban-rural partnerships. All the key national policies in Poland that support regional development include a goal on local co-operation or integrated local development to mobilise development strategies. Moreover, most of these policies identify horizontal co-operation among local actors (e.g. local self-governments and associations) as a relevant action to improve efficiency and achieve economies of scale, as well as to improve the performance of public services (Table 2.2).

The different national development strategies adopt an integrated approach for regional development that recognises the relevance of inter-municipal collaboration as a means to attaining greater well-being. In line with the OECD Principles on Urban and Rural Policy, Poland’s national policy framework recognises the need to leverage the spatial continuity and functional relationships between rural and urban areas to adapt public investment and programme design. These sets of policies have a number of factors that could facilitate the formation of urban-rural partnerships.

National policies also recognise the value of co-operation at the local level. For example, principle 3 of the the Strategy for Responsible Development for the period up to 2020 was “Poland’s strength to be based on co-operation” – among government entities, with businesses, as well as with citizens (Ministry of Development Funds and Regional Policy, 2017[10]). Poland’s government has also recognised the relevance of co-operation for improving the management capacities of local governments. For instance, the National Regional Development Strategy 2030 emphasised local co-operation for that purpose, as well as for implementing regionally oriented policies. This policy called for taking into account the functional links across administrative boundaries of local governments in planning processes and improving instruments that enable the policy territorialisation to support an efficient policy management in local governments.

The Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030, meanwhile, aims to foster stable and balanced economic growth by, among other things, promoting dynamic development of rural areas in co-operation with cities.

The proposed National Urban Policy 2030, set to be published in 2022, calling for an integrated territorial approach (Box 2.2). It stresses the relevance of inter-municipal co-ordination as a necessary condition to increase development potential, build competitive advantages and minimise costs through economies of scale and a more efficient use of available resources (Ministry of Development Funds and Regional Policy, 2022[11]).

The new urban policy also find that lack of co-operation within FUAs hinders the ability to deal with development issues. This problem is partly due to local governments’ limited experience with intergovernmental co-operation. Legal instruments to support such co-operation are also weak, and there is little trust both in social relations and between citizens and public institutions. The policy further notes that lack of clarity on systems for co-operation within FUAs, even with regard to the implementation of the ITIs, is another barrier.

The National Urban Policy 2030 proposes four solutions to address those issues: First, leveraging the co-ordinating role of regional governments and regional assemblies to raise awareness among local governments. Second, creating systemic solutions for areas requiring close co-operation, in particular metropolitan areas – for example, with a statutory systemic regulation for metropolitan area. Third, developing legal solutions adjusted to the specifics of smaller urban areas, outside metropolitan areas. Fourth, clarifying the role of the county in creating joint development strategies.

Poland’s policy framework also acknowledges that co-operation outside large FUAs is the area that requires more attention. The Strategy for Responsible Development (SRD) highlights that deficits in supporting development policies through the involvement of various public and private actors “are revealed both at the national and local level, but are especially present in rural areas and small towns” (Ministry of Development Funds and Regional Policy, 2017[10]). This deficit is associated with several factors, including limited budgets that are largely dependent on EU funds, insufficient complementarity across policies, low social participation in the creation of a strategic vision, as well as shortages of specialised staff. Improving co-operation in these areas is particularly needed to revitalise the areas at risk of marginalisation, which are of particular importance among the actions for the rural development and small cities.

The different national policies propose a number of actions to promote inter-municipal co-operation, which could lead to urban-rural partnerships. The SDR highlights the need to reinforce co-ordination mechanisms between levels of government to foster inter-municipal partnerships, through, for instance, territorial contracts, Regional Social Dialogue Councils, or a Joint Committee of National Government and Local Self-Government. The NSDR promotes the inclusion of local governments’ in decision-making processes at the regional level as a way to foster co-operation. It also proposes the use of an advisory project to support local governments’ in implementing their tasks (e.g. the Advisory Support Centre), as well as the revision of the municipal tasks to adjust responsibilities for income generation.

Overall, these policies include several points that are aligned with the OECD framework:

  • Clear identification of the potential of inter-municipal co-operation for national goals and different dimensions of well-being, including greater economies of scale, efficiency in service delivery and environmental management.

  • Identification of factors that hinder inter-municipal co-operation, including financial incentives, human and organisational capacity, and lack of complementarities among local strategies.

  • Recognition of the relevance of partnerships for efficient interdependencies within FUAs.

National strategies related to regional development refer to municipal co-operation in general terms, without explicitly mentioning urban-rural partnerships. A clearer recognition of the barriers to and benefits of unlocking synergies between urban and rural areas could promote more co-operation and help solve regional challenges.

Moreover, Poland’s regional policy framework does not map or identify urban-rural linkages at the local level across the different dimensions of well-being (economic, social and environmental). National policies related to regional development have scope to improve the understanding of urban-rural linkages across the country. Identifying urban-rural linkages and how municipalities complement one another can help adapt support policies to mobilise partnerships. The main indicator of functionality remains commuting flows, but other interactions are less explored (e.g. business interactions, management of natural resources). On top of this, linkages among FUAs and municipalities within their catchment area seem under-explored. A better identification of the interactions of these municipalities with functional areas can lead to potential partnerships – for instance, in service delivery or environmental management.

Other OECD countries, such as Spain, have explicitly set urban-rural partnerships as one of the main guiding objectives to attain national goals (Box 2.3). Japan explicitly identifies urban-rural linkages as a tool to achieve the objectives of its national environmental plan (Mitra et al., 2021[13]).

Turkey has sought to better identify and understand urban-rural linkages. The 2021 project “Linkages of Rural and Urban Economies in Turkey” aimed to develop a conceptual framework on rural-urban linkages to facilitate identification and incentives to move from urban-rural interactions to partnerships (Box 2.4). Poland, too, could benefit from a deeper understanding of urban-rural linkages. A key need in this regard is to produce better data at the appropriate spatial level to map different urban-rural dynamics and the extent of their interdependencies. Presenting a country map of urban-rural linkages can also help increase awareness of territorial opportunities and the potential benefits of co-operation.

At the same time, Poland would benefit from delving deeper into the barriers to co-operation (see also Chapter 3). In response to an OECD questionnaire for this report, some local policy makers in Poland said that meeting administrative standards imposes high transaction costs on partnerships. Lack of trust among municipalities has been identified as a particular obstacle to co-operation in Poland (Potkanski, 2016[15]), especially between small rural governments and cities. With little history of co-operation, rural governments tend to fear being dominated by city governments, which have greater staff capacity, resources and political weight. As noted, this is an issue recognised by the proposed new National Urban Policy 2030.

Given the growing depopulation trend in Poland, it is understandable that competition among municipalities to attract or retain people also becomes an obstacle when entering into partnerships that might encourage greater commuting and sharing provision of key public services. The national government thus needs to actively focus on building trust. The experience of other OECD countries, such as Portugal and Austria, indicates that promoting partnerships among municipalities of different capacities (rural and urban) can itself help build a culture of co-operation and trust (OECD, 2013[1]).

Other strategies to build trust include (OECD, 2013[1]):

  • Developing formal spaces for dialogue to agree on short term win-win strategies that show the benefits of partnerships.

  • Building partnership structures with equal voice and vote among all partners, regardless of size and financial capacity. For example, partnerships in the Metropolitan Region of Nuremberg, Germany, and Geelong, Australia, implemented “one voice, one vote” schemes, giving each municipality an equal vote, no matter what its contribution. While most of the funding was provided by the core city, the scheme helped allay other partners’ concerns.

  • Promoting a local leader (e.g. a local government or agency) to focus on building trust and co-operation. For example, in Metropolitan Region of Nuremberg, Germany, the leader leveraged relationships to persuade municipalities to join the partnership (Box 2.5).

Polish national strategies related to regional development could also do more to improve municipal staff capacity to enter into local partnerships – need that most already recognise. Organisational and advisory incentives across the different policies need to be aligned to support capacity-building and networking across urban and rural municipalities. For example, the strategic project Advisory Support Centre (Centrum Wsparcia Doradczego), implemented by the Ministry of Funds and Regional Policy, could aim to increase awareness among local decision-makers of the benefits of urban-rural partnerships and support interactions to better co-ordinate service delivery. A project called Advisory Support Centre Plus aims to expand the geographic coverage (e.g. additional municipalities) to deliver capacity-building support.

While EU funds has triggered different partnership around the country and thus revealed the potential of local co-operation, high reliance on these funds can undermine the formation of future partnerships. Currently, European programmes and funds are the main source of founding and incentive for urban-rural partnerships, in particular ITIs and CLLD. But these funds promote partnerships to only those regions eligible for the funds, and currently mostly focus in partnerships within FUAs. As Chapter 3 will explain, the government of Poland could develop additional financial incentives for urban-rural partnerships, and thus complement EU support programmes. Financial incentives from the government could focus in those areas that do not access EU funds, for example partnerships between small and medium size functional urban areas and rural areas outside of FUAs and promote co-operation on strategic or priority areas to accelerate development.

Poland’s development policy framework does not fully recognise the potential for partnerships among municipalities outside FUAs. The SRD does mention the importance of collaboration across municipalities outside FUAs – for example, by linking rural areas to the highway network – but it does not explicitly recognise the potential benefits of partnerships among such municipalities.

The identification of the potential of these partnerships is relevant to provide the right support or eliminate barriers. Even if municipalities are not physically close to one another, digitalisation may connect them. Strengthening partnerships outside FUAs could help regions mobilise the workforce potential of catchment areas, for example, and thus increase their attractiveness. It can also support marginalised areas or rural municipalities to benefit from economic opportunities from overall regional attractiveness (e.g. increased demand of agricultural products or tourism) and access health or education.

The SRD in the next programming period 2021-2027 will increase the focus on providing municipalities outside FUAs with the basic conditions to increase attractiveness and ensure well-being. The Ministry of Funds and Regional Development should benefit from this updating process to improve the identification of linkages among these two types of municipalities and include a clear mechanism to promote urban-rural partnerships with municipalities outside FUAs.

Co-operation culture and incentives for urban-rural collaboration can also come from a better integration of national urban and rural policies in Poland. The Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030 and the forthcoming National Urban Policy 2030 could build further complementarities by developing common or integrated goals and strategies. This can also help reduce the fragmentation of policy responsibilities that emerges when different ministries deal with specific competences for urban and rural areas – such as spatial planning and public transport on the urban side, and agriculture and natural parks on the rural side (OECD, 2013[1]).

The updated NUP is a unique opportunity to reinforce the role of urban-rural partnerships in territorial development, by clearly identifying common projects along with the Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030. Together, the two strategies can promote collaboration between the respective ministries to set joint objectives and implementation mechanisms that support the development of rural areas within FUAs and around them.

Finally, Polish national policies can also increase the promotion of ICT to encourage greater integration between urban and rural areas – especially remote ones – through better access to services, jobs and amenities. The COVID-19 pandemic has accelerated the adoption of digitalisation to work and access services. This aspect opens up new possibilities for collaboration among rural and urban municipalities, which includes working remotely from rural areas and rural residents virtually accessing education or health services provided by cities. This has the potential to revitalise rural economies and improving quality of life in rural municipalities that suffer from low access to services (OECD, 2020[16]).

Virtual interlinkages among rural and urban communities and economies are a recent phenomenon that still receives little attention in Poland’s policy framework, as in many OECD countries that are adapting to this new trend. The updating process of national development strategies in Poland can further explore mechanisms to promote remote working in marginalised areas or rural municipalities, as well as incentivise virtual access to services for rural population. For example, national policies could provide special support to facilitate partnerships where rural municipalities can provide places for remote working to private and public employees. The rural national rural policy of Ireland offers a good example to integrate incentives to remote working in national strategies (Box 2.6).

A combination of strategic development documents at the regional and local levels operationalise national strategies for development in Poland (OECD, 2021[4]). Poland’s different levels of subnational government – regions, counties and municipalities – set strategies that are aligned vertically and with the principles and goals of the national policy framework. Some policy strategies require actions across all three levels of subnational government, including socio-economic development strategy, a long-term investment programme, a waste management plan, and an environment protection plan (OECD, 2021[4]).

Polish subnational governments have a number of key responsibilities that they can deliver individually or jointly (Table 2.3). Regions (voivodeships) play a more strategic role and are in charge of important regional dimensions for well-being, including regional transport, environmental management, labour market policies and more specialised health services and post-secondary schools, among others. Since 2007, regions have been fully responsible for a big share of European cohesion funds (25%).

At the intermediate level, counties (powiats) are responsible for some specific local issues, including secondary education, social welfare, economic activity and job creation. under the Self-Government Act of 1990, municipalities are responsible for ensuring the well-being of their communities and are in charge of spatial planning, infrastructure development, utilities, municipal housing, social services, education, transport, environmental protection, basic health care, recreation and culture.

The Regional Development Strategies (RDS) created by regional governments identify the mission, development vision and strategic objectives for the development of the region, closely following the objectives and goals set by national regional policies. They also identify the functional areas in the region and thus the areas for strategic interventions.

These strategies recognise the relevance of local partnerships and networks. Some acknowledge the relevance of co-operation as a goal in itself to attain greater development in the region and as tool for sustainable implementation. For example, the Regional Development Strategy of the Lubelskie Voivodeship emphasises that multi-level co-operation is important for building lasting partnerships with regional impact (Box 2.7). Some RDS also see intraregional co-operation as a way to better distribute wealth across the region and reduce differences between the areas of dynamic development and those with less favourable conditions (e.g. the Regional Development Strategy of the Lubelskie Voivodeship 2030 and the 2020 Regional Development Strategy of Dolnośląskie Voivodeship). Podlaskie Voivodeship’s RDS includes the aim to become a partnership-based region, to makebetter use of existing and often dispersed resources through co-operation” (Podlaskie Voivodeship, 2020[19]).

Regional governments have a strategic role in promoting urban-rural partnerships by designating strategic priorities and improving local governments’ competencies to build partnerships. This includes providing advice to navigate regulatory frameworks and identifying support instruments at the national and regional levels. They can also offer training and consultation services (e.g. in interpreting EU and national regulations) to help identify proposals for integrated operations and joint action plans. In addition, they can present a dedicated system of preferences for co-operation to the European Funds, including to improve urban-rural functional links in the region.

Regional government could also play a more active role in matching municipalities of different types to make the most of their respective assets. They can serve as facilitators, supporting initiatives and projects that foster the exchange of good practices in building agreements. As part of this, they can raise awareness of the benefits of urban-rural partnerships, show how tasks can be optimised, and point to particular areas where these partnerships can help address common challenges. Regions also have a unique role to play in helping overcome distrust linked to differences in political power (OECD, 2021[4]).

Regional instruments of co-ordination, such as Regional Territorial Forums and Regional Territorial Observatories, can be used to identify common challenges and share examples of successful partnerships. Regional Territorial Forums can also serve as institutional platforms to build partnerships for the implementation of initiatives of supralocal importance. Regional Territorial Observatories, meanwhile, which are used by some regions (e.g. Lubelskie Voivodeship) as a unit to monitor and evaluate the implementation of the Regional Development Strategy, could serve as a repository of guidelines and information about the potential benefits of intraregional partnerships.

Regional governments have limited budgets for these kinds of activities. Many regional governments do not include any provisions on the possibility of entering into partnerships other than those provided in the law. This means they are likely to need to rely on EU funds as the main financial support for partnerships (OECD, 2021[23]). Helping co-finance urban-rural partnerships to complete short projects can be a concrete way to build an enabling environment for partnerships.

Counties (powiats) are in charge of ensuring the alignment of development strategies within the framework of the RDS. They can play a co-ordinating role in promoting urban-rural partnerships by participating in activities aimed at strengthening urban-rural connections – for example, through technical and organisational training assistance – as well as by involving non-governmental actors. In addition, they can serve as facilitators, highlighting the potential for collaboration among municipal governments.

As part of regional associations, counties could also undertake actions to level out differences among urban and rural municipalities, including creating strategic documents (e.g. a local development strategy), help obtaining common funds or taking joint actions for the benefit of the region. For example, they can directly be members of Local Action Groups, as the Nakielski County in the Local Action Group Association "Partnership for Krajny and Pałuki". However, in practice, counties do not yet play a significant role in the creation and co-ordination of urban-rural partnerships (Ministry of Development Funds and Regional Policy, 2022[12]).

Municipalities, the lowest government level in Poland, have the right to develop their own local development strategy (LDS). According to the Act on the Principles of Implementing Development Policy (2020), the strategy can be developed by a single municipality or jointly by a group of municipalities that create a supralocal development strategy in order to improve co-ordination (see Chapter 3 for further analysis on supralocal strategies). The municipality is responsible for all public matters of local importance in its territory, including local public transport, waterworks, health, education, housing, etc. The municipal office is headed by the mayor or president, who is elected by citizens.

However, not all municipalities include in the LDS a reference to inter-municipal co-ordination across administrative units and policy sectors. In 2021, a survey conducted by the OECD (2021[4]) on better governance, planning and services across 47 municipalities in Poland found that 54% of responding municipalities did not have policy documents that focus on co-ordination in planning, service design and delivery across different policy sectors. The majority of municipalities that did have such policy co-ordination documents were located inside FUAs (OECD, 2021[4]).

Although there are positive examples of LDS explicitly stating the relevance of co-ordination to attain local goals (Box 2.8), acknowledging the mechanisms to partner with different local governments is not a common practice. Even less common is the explicit reference to urban-rural partnerships in LDS, as happens at the national and regional policy levels. Particular recognition of the potential and the instruments to facilitate urban-rural partnerships is scarce. Development strategies instead tend to focus on inter-municipal co-operation in general terms. Making mandatory the preparation of LDS and further clarifying Article 10a of the Act on the principles of development policy, with a minimum scope to conduct partnerships, would help create a common basis for co-operation and economies of scale.

Both regional and local governments could embed the benefits of urban-rural partnerships in the implementation principles of their development strategies. The success of those strategies depends in part on the level of commitment to the principles they have set to guide implementation by different administrative units. Including the principle of urban-rural co-operation or partnerships systemically could be the right approach to promote local partnerships.

The preparation of the LDS also requires substantial inter-governmental co-operation, but consultation among municipalities is voluntary and depends on the relationships among political leaders (OECD, 2021[4]). It also requires technical expertise, political commitment and funding, which represent important challenges for many Polish municipalities. To address this issue, some rural municipalities have partnered with universities or other entities, often based in cities, to develop the LDS. The possible involvement of universities or other partners in the development of LDS could be leveraged to promote co-ordination with neighbouring municipalities in the preparation of LDS (see Chapter 3 for a detailed discussion).

Finally, national and subnational policies facilitating inter-municipal co-operation are underpinned by laws and regulations (e.g. the Act on the Principles of Development Policy, the legal framework for urban-rural co-operation) that define various forms of association (e.g. inter-county associations, municipal associations, inter-municipal agreements). The different mechanisms for inter-municipal co-operation vary in terms of the objectives and the type of projects or services. Chapter 3 delves deeper into the strengths and challenges of these mechanisms in the context of urban-rural partnerships.

As discussed in Chapter 1, economic growth in Poland has mainly been concentrated in large FUAs, even though a majority of the population lives in small and mid-sized FUAs and rural areas. Urban-rural partnerships can be used to unlock growth opportunities around population hubs and to help spread the wealth of large FUAs. Local governments interviewed for this report saw potential for partnerships on transport, private investment, business support services, tourism and food value chains, among others.

In Poland, transport is a frequent thematic area of co-operation within FUAs. Transport is also one of the common areas of urban-rural co-operation across OECD countries (OECD, 2013[1]), as it is a pre-condition to access other services and foster urban-rural synergies. As cities in Poland draw commuters from large areas, including rural municipalities beyond the boundaries of their FUAs, co-ordination is increasingly important. While the most advanced integration in transport services is observed in the largest Polish FUAs (e.g. Warsaw), some small FUAs have also prioritised this sector and made progress in greater integration of public transport (e.g. Lublin, Bydgoszcz).

Most urban-rural partnerships in Poland that are implementing transport projects have done so through ITI instruments, targeting mobility across municipalities that are already linked by commuting flows. Common features of integrated transport systems in Poland include:

  • Direct connections to the urban core.

  • Integrated tariff schemes.

  • Access to suburban railways.

  • Integrated internet platforms.

  • Access to the closest airport within the local transportation system.

  • A metropolitan transport authority.

Improving infrastructure is a seminal and effective action to strengthen integration and unlock functionality in the region. Rather than size, urban infrastructure and institutional capacity are the most important determinants of an FUA’s ability to generate economic growth (Camagni, Capello and Caragliu, 2014[24]; Frick and Rodríguez-Pose, 2017[25]). Improving transport infrastructure enhances access to jobs, education and health care. The efficient movement of people across municipalities allows for greater exchange of knowledge and ideas, which may lead to greater innovation, social cohesion and regional identity.

Local governments in Poland have used different mechanisms to establish partnerships in transport. They include bilateral agreements between the core municipalities and the surrounding ones (e.g. Lublin, Warsaw, Jelenia Góra and Bydgoszcz) or municipal associations to revitalise the public transport system (e.g. Oławskie Przewozy Gminno- Powiatowe in Wrocław FUA). For example, in Bydgoszcz, the metropolitan association created programmes and frameworks for inter-governmental co-operation, which required separate agreements with the city and the surrounding municipalities. Box 2.9 describes a partnership in Lublin that succeeded through dialogue, the involvement of citizens, and organisational capacity-building in partner municipalities.

Often in these partnerships around transport in Poland, the core city takes the lead, handling the formal and legal regulations and co-ordinating dialogues with surrounding municipalities to enable the establishment of the partnership. While no single type of inter-municipal agreement is inherently better than others, those that involve the greatest number of municipalities that have commuting interdependencies and differentiates their financial and administrative capacity to create fair schemes of participation can attain more sustainable outcomes.

Urban-rural partnerships around transport can not only make commutes more efficient, but can also help reduction of air pollution, revitalise old infrastructure and build a stronger regional identity. For example, Wałbrzych Agglomeration implemented an ITI that included reducing greenhouse gas emissions from transport. Other example is the flagship project of the ITI of Wrocław, which involved the revitalisation of a railway route to make the most efficient use of existing assets and strengthen regional identity (Box 2.10).

Urban-rural partnerships on transport projects in Poland also need to be forward-looking. For instance, they need to be able to anticipate the effects of an increase in telework and the potential emergence of new technologies, such as autonomous vehicles and drones, that could change how people commute and goods are transported (OECD, 2021[26]). Adopting a flexible planning approach to include new technologies and information systems in the design and implementation of transport projects could help align currents projects with future changes in mobility

Attracting new businesses and supporting existing ones is a common concern for local governments. In Poland, municipalities outside FUAs report an average of 1.3% annual growth, while those within FUAs report, on average, 2.2% annual growth (OECD, 2021[4]).

Different factors can contribute to attracting business to a municipality, such as the cost and availability of land, access to quality services, the quality of the labour force, and connections to internal and external markets. In Poland, small and medium-size FUAs and rural municipalities can typically offer land for new investments at a lower price than large cities, which have limited undeveloped (greenfield) land. Respondents to the OECD questionnaire for this report also noted that investors are increasingly interested in redeveloping post-industrial areas, which tend to be located outside large cities.

To make the most of these assets, urban and rural municipalities would benefit from working together to promote their regions in a co-ordinated way – for example, by offering quality connectivity and labour. Alignment of new investments with local capacities and small and mid-size enterprises (SMEs) also requires co-operation among municipalities with different strengths.

Some urban-rural partnerships in Poland are already working to improve the business environment by hosting networking activities for local and foreign businesses and promoting local assets through a coherent territorial brand. For example, some FUAs, such as Wrocław and Bydgoszcz, have created agencies to co-ordinate with surrounding municipalities to promote their economic advantages and provide business support services (Box 2.11). Others are promoting the creation of privately run business associations that gather local firms and improve networking activities (e.g. FUA Grudziadz).

These type of co-ordination is relevant to actively involve the private sector and thus help improve the regional business environment. However, extra effort has to be made to ensure that business associations, which are normally based in cities, include rural businesses equitably. Sound co-operation among urban and rural private sector representatives can be the basis for lasting partnerships among urban and rural municipalities.

In Poland, innovation support bodies (business accelerators and public and private innovation/research centres) tend to be in cities, due to the agglomeration of firms and the location of other administrative centres. Many of the governments interviewed for this report stated that the city hall is the first information contact point for entrepreneurs who want to expand their business in neighbouring municipalities.

However, city halls often do not the knowledge or information needed to provide guidance about investing in rural municipalities. Businesses in rural municipalities tend to face more acute challenges to achieve economies of scale, reach external markets, and adjust to the digital transition and to a shrinking workforce. On the other hand, they have special knowledge in working with environmental assets and endogenous capacity of innovation. Therefore, such particularities require special attention in the way business support programmes are setting up networking activities and offering capacity building.

Urban-rural partnerships that aim to improve the business environment would benefit from greater exchange of business information, programmes to transfer knowledge and talent capacity from cities to rural municipalities, and networking activities to support businesses and entrepreneurship. To this end, development agencies or business associations could consolidate regional information on skills and business across rural and urban municipalities. Business Joensuu in North Karelia, Finland, offers an example of an inter-municipal co-operation within an agency that not only manages common data, but also promotes co-ordinated investments (Box 2.12).

Local governments can also leverage infrastructure for entrepreneurs to target co-ordinated support to urban and rural entrepreneurs and create synergies among business from different areas. For example, municipalities can benefit from the 80 techno-parks currently in place across Poland, which were created to support entrepreneurs with fully equipped infrastructure to create businesses and provide assistance with legal consulting, accounting, promotion and marketing services. Co-ordination with business environment institutions like this is an efficient tool to improve business conditions and support enterprise innovation locally.

However, in Poland, national and regional business support programmes do not yet differentiate between urban and rural settings. This means they tend to favour urban firms, which have a greater capacity to access programs and present projects for funding. Adapting national and regional programmes and instruments to allow equal access and participation of rural businesses can help identify and harness complementarities across urban and rural municipalities. The example of Southern Ontario’s business support policy can provide an example for Poland (Box 2.13) of how to better promote entrepreneurship and innovation all along the urban-rural continuum.

Tourism is an important economic activity in Poland that requires co-ordination among urban and rural settings to create greater value for visitors and local economies. In 2018, tourism contributed an estimated 6.0% to Poland’s GDP, including direct and indirect benefits (OECD, 2020[29]). Rural areas provide different types of amenities, lodgings and attractions than urban ones, and tourism an important source of economic activity for them (OECD, 2013[1]).

Local governments interviewed for this report recognise the need for partnerships to better co-ordinate tourism, including accommodations, transport for touristic or gastronomic circuits across administrative borders, and inter-municipal management of parks and natural attractions (OECD, 2013[1]). Tourism can also gather municipalities around a common goal to improve regional attractiveness (e.g. the Jelenia Góra FUA), as this sector often relies on the interconnection of different amenities within a region to offer both diverse and unique experiences to attract visitors.

In Poland, partnerships have already been created to develop sustainable circuits and co-ordinate the management of natural assets, sometimes as part of a regional tourism strategy (e.g. “Lower Silesia: Green Valley of Food and Health”). As in other sectors, ITIs have been an engine to promote joint urban-rural projects on tourism, which are increasingly aligned with environmental protection and sustainability. For example, the tourism projects in Agglomeration Jelenia Góra reveal the capacity for join projects among municipalities that shared a common environmental asset. This example also suggests that in some cases, partnerships through ITIs are mainly conducted to kick off the project, but maintenance is done individually, missing opportunities of resource efficiency and sustainability in the co-operation (Box 2.14).

Poland’s Regional Tourism Organisations (RTOs) can be useful platforms to spark urban-rural partnerships. These are associations within which co-operation is conducted between subnational governments (particularly at the Voivodeship level) and the tourism industry, particularly in the field of consumer marketing and promotion. RTOs’ role typically includes supporting the operation and development of tourist information systems, as well as initiating, assessing and supporting tourism infrastructure development. At the subnational level, there are more than 120 local tourism organisations, which conduct tasks including the classification of local hotel facilities or the supervision and registration of companies and entrepreneurs operating (OECD, 2020[29]). Regional governments should further leverage these organisations to produce joint projects among different types of municipalities, with special focus on marginalised areas and municipalities outside FUAs.

The food supply is one of the most important links between urban and rural areas (OECD, 2013[1]). It is important to manage those connections well to avoid negative effects on food security and nutrition (Mitra et al., 2021[13]). Cities are the main consumers of food, and changes in urban food demand, such as through dietary trends, increasingly shape agricultural production (Bilewicz and Śpiewak, 2015[30]). At the same time, rural farms are key sources of food for people all along the urban-rural continuum.

Poland has different types of urban-rural linkages around food value chains that can be mobilised to ensure food security and also unlock new business opportunities in rural areas:

  • The country benefits from a growing network of food co-operatives and buying groups,1 which have established direct and regular contacts between consumers and food producers or local food processors. These co-operatives, which now exist in cities of all sizes (Bilewicz and Śpiewak, 2015[30]), reduce intermediation in the food chain, helping to lower the price of high-quality and organic food.

  • Local farmers’ markets also tighten linkages between urban and rural municipalities. For example, the Free Toruń Marketplace directly connects producers with urban consumers within a rather informal institutional structure across members (Goszczynski et al., 2019[31]). These interactions are also supported by EU strategic programmes, such as the Farm to Fork Strategy, which creates instruments supporting the formation of platforms of communication between rural and urban dwellers and local farmers’ markets in municipalities surrounding cities.

  • Food bank association gather different local actors – private and public – to save food from waste and distribute it the people who need it most. An example is the Grudziądzki Bank Żywności in the FUA of Grudziadz. This association was formed as the Union of Associations and Municipalities Grudziądzki Bank Żywności (in 1999), made up of non-governmental organisations and a number of urban and rural municipalities (e.g. Grudziądz, Wąpielsk, Książki and Wąpielsk, Mrocza, Brodnica and the Świecie). These type of urban-rural partnerships around food systems can be a good anchor to stimulate circular practices around food – for example, through short food chains and re-use of food waste (ROBUST, 2021[32]).

These partnerships are often bottom-up developed and led by non-governmental actors. Governments can provide organisational and promotional support to help them link with other economic activities and from there build an environment of co-operation. Key challenges in implementing such approaches include the physical distance between farms, lack of trust, and issues around quality and certifications (Goszczynski et al., 2019[31]; Bilewicz and Śpiewak, 2015[30]). Co-operatives in Poland also tend to work independently, with little collaboration with one another or with other institutions.

Existing rural-urban collaborations around food could be mobilised to add greater value in local economies. This can be done by coming together around a single goal of increasing productivity of adding greater value to food production. It can entail formal collaboration platforms to gather relevant stakeholders such as rural growers, manufacturing (e.g. packaging) and communication services companies along with universities, and agree on projects around agro-industry. For example, in Forlì-Cesena, Italy, universities in urban areas partnered with farmers and food producers to improve innovation in food production and marketing. An important outcome was a shift from mainly growing crops to making food products (OECD, 2013[1]).

As in most OECD countries, in Poland, delivering quality health, education and other basic services is a growing source of concern for urban and rural municipalities. Depopulation trends, rising public spending on both social services and health care due to ageing societies, and tight budgets in the aftermath of the 2008 financial crisis and the recent COVID-19 crisis all hinder public service delivery. This is particularly the case in rural municipalities across Poland (OECD, 2021[33]). As discussed in Chapter 1, demographic decline is in fact one of the main development challenges in Poland. Joint delivery of services (transport, social services and education) can help reduce costs.

The war in Ukraine, which drew more than 3.5 million refugees to Poland in its first three months (UNHCR, 2022[34]), makes those challenges even more urgent. Cities in particular are overwhelmed, so co-ordination among municipalities is crucial to meet the refugees’ needs as efficiently as possible. Looking beyond the immediate situation, working together can also reduce the cost of services while improving their quality and accessibility.

In Poland, municipalities outside large FUAs are facing the greatest challenges in service provision. A self-assessment of local authorities in medium-sized cities in 2019 revealed that health care, technical infrastructure and public transport were seen as the lowest-quality services, whereas access to broadband (but no high-speed), culture and art were perceived to be of better quality (Ministry of Investments and Development, 2019[35]). Municipalities outside FUAs lag behind those within FUAs in terms of enrolment in primary and secondary schools and the share of workers with post-secondary education (7.6% vs 8.9%) (OECD, 2021[4]).

As depopulation is likely to continue in the coming years, particularly affecting smaller urban areas and rural municipalities, local governments need to work together to adapt. This may mean collaborating to ensure continued access to quality services. Digital technologies could also improve access to services such as secondary and tertiary education or primary health care, but it requires good broadband and some technical skills.

Poland faces a persistent gap between high- and low-density areas in terms of access to education. Kindergarten and primary schools are the responsibility of municipalities, while secondary education is handled by counties and regions. While there are generally enough kindergarten seats to meet demand across all types of municipalities, the number of primary schools has decreased in municipalities outside FUAs. The availability of secondary and higher education also falls short of demand, both outside FUAs and in small and medium-sized FUAs. Table 2.4 shows the trends across different types of municipalities.

Across Poland, there is scope for increasing co-operation on education. Education provision in Poland is increasingly concentrated in core municipalities, which play a key role in providing services to surrounding rural municipalities. For example, for kindergarten, the number of spots available for children aged 3-5 years old is much lower in municipalities outside core FUAs.

Competition among municipalities to retain population, concern about losing political power, and the lack of clear mechanisms to develop win-win projects all hinder the emergence of urban-rural partnerships around education. For example, although the existing legal framework allows municipalities to pay other municipalities to provide kindergarten to their children, respondents to the OECD questionnaire for this report said that a number of constrains make such partnerships rare in practice:

  • Demand for kindergarten services in core municipalities is growing faster than their capacity to plan, which creates uncertainties to open possibilities to new students living in other municipalities.

  • Financial requirements to compensate for the provision of services – for example, with the payment of taxes in the municipalities that provide the services. As municipalities have discretion to set their own criteria for enrolment in kindergartens, some request a proof of residency in the area, such as payment of income tax by one or both parents in the municipality.

  • Low trust in national reimbursement processes and low capacity (time and staff) to handle it.

Municipalities could set up partnerships as needed to provide educational opportunities to their residents. However, municipalities interviewed for this project stressed that individual agreements require time and human resources due to the discretionary nature of the partner mechanism and the low use of national compensatory schemes.

Public-private co-operation is also a possible solution to provide education services, while reducing pressures on public budgets. This is especially the case for some educational services, nurseries, kindergartens, and primary schools. Sometimes, Polish municipalities entering into this type of partnerships offer incentives to private investors by increasing the share of municipal public funding (a practice mostly seen in private kindergartens).

At the tertiary and technical level there are no extended partnerships among urban and rural municipalities in Poland. In some European regions, for example, urban-rural partnerships have opted for focusing in improving skills and qualifications of the rural population by bringing branches of academic institutes to rural regions or facilitating the access of rural residents to high education or high-level training. A good example is the partnership between the urban district of Brandenburg an der Havel in Brandenburg and the rural county of Prignitz in Germany (Box 2.15).

As in most OECD countries, urban centres in Poland concentrate a relatively greater proportion of health care services and facilities, including hospitals, ambulance services, specialist and pharmacies (OECD, 2018[9]). While 63% of people in urban municipalities can access both universities and hospitals in less than a 30-minute drive, only 32% of residents of rural municipalities can do the same (OECD, 2018[9]). Long commutes to access a hospital are mainly an issue in marginalised and peripheral areas, such as the eastern parts of the Podlaskie and Lublin regions and border areas between provinces, including Kujawsko-Pomorskie and Wielkopolskie, Kujawsko-Pomorskie and Pomorskie.

These issues of accessibility, along with the prohibitive cost of bringing specialised health centres or doctors to every rural municipality, make it important to forge urban-rural partnerships to improve the efficiency and quality of health care across regions. Partnerships among rural and urban areas can lead to greater economies of scale and ensure people that all people can access high-quality care, regardless of where they live.

Moreover, a strong local network of health supply may improve the efficiency of the resilience of the entire system, as it helps share resources and reduce pressure on hospitals by transferring patients to other ones in neighbouring municipalities. The need for collaboration was evident during the COVID-19 pandemic, as hospitals and health care centres coped with the crisis by sharing both resources and patients.

As described in Box 2.16, urban-rural partnerships in Poland help improve the efficiency of health and social assistance provision include nursing homes with spare capacity receiving elders and people with disabilities from other municipalities (e.g. Grudziądz FUA); urban municipalities providing financial aid or shelter to homeless people from another municipality; and Metropolitan Senior Cards that allow people aged 60+ from across the area to benefit from special offers (e.g. Grudziądz FUA, Bydgoszcz FUA).

These partnerships are generally addressing the right issue to attain economies of scale and can be further expanded to link them with other services, such as education. The card programme also involves local business, which benefit people going from one municipality to another. This system could also help with access to training programmes offered by private institutions (e.g second language or IT).

Partnerships through Local Action Groups can help address social issues in strategic intervention areas and more remote muncipalities. For this, participation of non-govermental actors is essential; indeed, these structuers promote a diversity of partners and support for private local initiatives. Some have formed social enterprises to address pressing issues (Box 2.17).

An important challenge for Poland is to accelerate digitalisation to provide equal quality services to all inhabitants. Greater uptake and adoption of new technologies to deliver health (telemedicine) or care to elderly people (medical drones or primary care robots) requires an enabling infrastructure in place, including high-quality screens and imaging devices, among others (OECD, forthcoming[38]). This type of ICT infrastructure and technology is very expensive for a single municipality. Instead, partnering with urban municipalities, where agglomeration economies facilitate the investment of technologies, can help meet the future health demand of rural residents.

The COVID-19 crisis accelerated the adoption of virtual modes of working and accessing services, but also revealed the substantial urban and rural gap in the degree of quality digitalisation and digital skills to access services and benefit from digitalisation. According to (OECD, 2020[39]), in Poland, only 29% of rural areas (a subset of areas with a population density lower than 100 inhabitants per km2) have access to fast broadband (>30 Mbps). This means Poland has the third-largest urban-rural gap in household access to fast broadband across 26 OECD countries.

Some ITIs in Poland have included joint municipal projects to allow and improve deployment of e-services, including government services. For example, Jelenia Góra Agglomeration has implemented a project to strengthen municipal capacity to deliver public e-services by improving access to information and communication technologies, working with three urban-rural municipalities. Thanks to the partnership, the municipalities could implement public services available online through integration of data from various sources. The data connection allows municipalities to go through the entire process of dealing with a given request remotely, to adopt a more interactive approach of responding people’s requests and questions.

Accelerating technological adoption in Poland, beyond EU funds, could involve leveraging networks of service providers in urban settings to create partnerships that allow rural municipalities benefit from new technologies. This strategy has been used by other countries, for example in the case of Nuremberg, Germany, where municipalities join to not only improve quality of care service but also boost innovation and regional resilience (Box 2.18).

Meeting international climate goals and protecting the environment in Poland requires greater co-ordination at the local level. Local environmental actions have the capacity not only to improve local well-being in terms of the air that people breathe or the water they consume, but to affect national and global climate outcomes. Adopting green growth strategies can also create new job opportunities locally in circular and bio-economy activities.

Poland’s polycentric structure and industrial history explain many of the most acute environmental challenges that local communities outside large cities are facing. According to the information provided by government of Poland for this review, such challenges include:

  • Pollution from transport, mainly due to persistent deficits in public transport and the high share of private transport modes.

  • Pollution from industrial and residential activities, particularly in areas with coal power and heating plants; outside large cities, small/medium FUAs are rarely equipped with a complex central heating network, which leads to a relatively high number of deconcentrated emitters in relatively small areas; in some municipalities, private buildings use low-quality coal furnaces.

  • Greater water use per capita than in large cities and relative to the existing water supply infrastructure.

  • Degradation resulting in low quality of water.

  • Waste management systems running with old technologies and little recycling.

  • Deficiencies in land use management that have resulted in uncontrolled urbanisation, affecting protected natural areas and increasing impacts from natural risks (floods) on real estate projects.

Scaling up clean energy and improving energy efficiency requires urban-rural partnerships. Limited available space and the lack of natural resources in urban settings makes it difficult for cities alone to achieve their renewable energy targets (Mitra et al., 2021[13]). Second, accelerating the efficient use of energy in buildings requires co-ordinated actions to share resources and technologies to cover both urban and rural buildings. Some ITIs in Poland have piloted urban-rural partnerships to promote energy clusters with dedicated knowledge sharing events (e.g. Jeleniogorska Agglomeration), or to increase energy efficiency in housing, industry and the public sector (in the Lublin Functional Area)

Urban-rural partnerships in the management of water and waste collection have a long history in Poland, where often core municipalities end up serving as main providers of water and waste management, based on bilateral agreements with surrounding municipalities. This section focuses in these two angles of environmental linkages to understand the key drivers and barriers.

Water is a flow resource that moves across rural and urban spaces and requires co-ordination to protect the resource and avoid negative externalities. Urban areas depend on rural areas for water supplies and to protecting their residents from floods and droughts, yet some rural areas lack access to improved water sources (OECD, 2016[41]). At the same time, in Poland as in other OECD countries, industrial pollution and storm water runoff from cities can pollute water bodies, while upstream pollution (e.g. from a mining or manufacturing sites) can affect the quality of urban water supplies.

In Poland, the management of water supply and sewage disposal is one of the basic tasks of the municipal government. Municipalities in Poland tend to co-ordinate their water management through the establishment of a dedicated inter-municipal company, funded by an inter-municipal association or union.

Such partnerships are not without challenges. For example, some past cases of collective water management in Poland have shown that collective agreements can fail if member municipalities feel disadvantaged in the distribution of investments (Box 2.19). Decisions to unify tariffs can be a cause of conflict among municipalities, as some (particularly urban) might feel that they subsidise other municipalities or lose municipal autonomy in investment and quality decisions.

Some positive examples of municipalities that have succeeded in sustaining their inter-municipal water company reveal the importance of management stability and willingness to benefit from economies of scale. This is the case of the inter-municipal company Aquanet in Poznań, whose growth was attributed to its rapid expansion and diversification of activities (e.g. testing water), which allowed it to gradually cover the entire metropolitan area (Box 2.20). Other companies at a lower scale in small/medium sized FUAs in Poland could benefit from this experience and partner with neighbouring municipalities to increase their scope and expand the type of services offered.

Strengthening existing partnerships for water management and promoting new ones in Poland is crucial to ensuring water security in the future. The most common response to meet the growing urban water demand is water reallocation from rural to urban regions (OECD, 2016[41]). However, this might lead to growing conflicts between cities and their surrounding rural areas. Across the OECD, positive examples of urban-rural partnerships highlight that good governance is key (Box 2.21). Many of these examples show how compensation for water conservation from urban areas to farmers or water users in rural settings can create win-win situations for both type of municipalities.

In Poland, waste collection has revealed the potential efficiency gain from managing linkages on production and treatment of waste through inter-municipal co-ordination. Municipalities are in charge of waste collection, while regional governments designate the waste collection centres (RIPOKs, Regional Waste Treatment Installations). Inter-municipal co-operation for waste management has been a clear example of the benefits of EU membership. Increasing co-operation among Polish municipalities has been reinforced by a large stream of EU funds earmarked for waste management projects (Kołsut, 2016[42])

However, partnerships in waste management vary across Poland and depend on the active role of the region. According to Kołsut (2016[42]), the spatial distribution of inter-municipal bodies is uneven and clearly differs by type of region. For example, there is more co-operation in northern and western Poland than in the south and east. This reveals the significant and determinant role that the regions play in initiating and stimulating co-operative behaviour among municipalities.

Most of the partnerships on waste collection are conducted through bilateral agreements. The urban core municipality often provides waste management services and receives a fee from surrounding rural ones. Core municipalities usually sign agreements on waste collection with surrounding municipalities, based on market prices and for a determined timeframe. Once the duration of the agreement is over, municipalities can open a tender. The scope of some partnerships have been addressing the national challenge of outdated installations and technologies for waste treatments, resulting in better outcomes than could be achievable through individual actions (Box 2.22).

Co-ordinated activities around the circular economy are rather scarce or scattered in Poland (OECD, 2021[23]). In 2016, the Ministry of Development elaborated the Polish Road Map draft for the transformation towards a circular economy. In 2017, the Ministry of Environment has launched a small-scale "Pilot priority programme for the circular economy” that was conducted in five small municipalities, but these supporting initiatives were addressed to the business sector, with little government involvement.

Partnerships between urban and rural municipalities to manage waste can go one step further and include the usability of waste within different economic activities. For example, the experience of some OECD regions illustrates the potential to leverage organic waste separation in urban settings to deliver compost to farmers in surrounding rural areas (Box 2.23).

Most urban-rural partnerships in Poland are implicit, meaning that they are not only targeting co-operation among urban and rural municipalities, but rather among any type of municipalities. In many partnerships, the city centre or biggest urban municipality plays the co-ordinating role. This does not necessarily affect the effectiveness of the urban-rural partnership. However, it requires greater attention to ensure the interests and voices of rural municipalities are taken into account. It is also important to recognise the different assets of rural and urban municipalities and find ways to unlock synergies.

Most partnerships that have been set through EU instruments (ITIs and LAGs) are multiple-purpose, setting objectives on a wider scope of activities. However, because of legal instruments in Poland that prevent metropolitan association from taking over tasks of municipalities, in some partnerships (e.g. on transport), the core cities have to make individual agreements with municipalities that want to join the project. There are some single-purpose partnerships to address specific inter-municipal issues, such as on water and waste management, business support or education. Overall, urban-rural partnerships in Poland are present across different dimensions of well-being and with various level of integration of non-governmental actors.

Following the (OECD, 2013[1]) framework on effective urban-rural partnerships, several insights can be drawn from the case studies in Poland about what can facilitate urban-rural partnerships and what inhibits them. Factors that facilitate partnerships include:

  • A functional approach to build partnerships:

    • Partnerships trigger by ITIs are well set to look beyond city-centred embrace a wider set of rural-urban interactions (e.g. transport projects).

    • EU funds have also helped encourage territories to identify their strategies around functional geographies.

    • Structures to engage different levels of government and foster knowledge-sharing.

    • FUAs offices and regional governments have helped to reduce obstacles coming from economic and institutional differences between urban and rural municipalities.

    • Existing associations or regional institutions can be mobilised to share good practices of partnerships and identify new ones – for instance, Regional Tourism Organisations, Regional Territorial Forums and Regional Territorial Observatories.

  • Factors that create an enabling environment for partnerships:

    • Clear leadership in some partnerships within FUAs (e.g. transport Wrocław and Bydgoszcz or water management examples). Urban cores have stood out as co-ordinating leaders by helping other municipalities to deal with administrative processes and ensure the proper implementation of the project. A related factor in some partnerships is stable top management, which can help ensure long-term goals and create trust among partners.

    • Balancing the voices of large and small municipalities has been a success factor in many partnerships (ITIs in general). This is in fact a good practice to enhance trust and reduce fear of losing power. Some partnerships (e.g. revitalisation transport project in Wrocław FUA) have succeed at benefit from trust as a factor that facilitated the co-operation.

    • Non-governmental organisations and the private sector have been involved in a number of partnerships (e.g. in water management, social assistance) or as leaders in others (e.g. food value chain, associations of local firms). Facilitating and clarifying ways of involving non-public actors in partnerships is a tool to protect partnerships from political change and attain sustainable co-operation.

Factors that have hindered partnerships include:

  • Failure to identify existing partnerships and potential for co-operation:

    • The national government and the voivodeships lack a clear mapping of urban-rural interactions that happen outside the EU-promoted partnerships. More urban-rural interlinkages in the country could be identified, especially outside FUAs. A good understanding of particular challenges and assets across different types of areas, with data at the appropriate spatial level, can help identify interdependencies and incentivise partnerships around them.

    • No clear platform to examine urban-rural partnerships happening in the country, their achievements and lessons.

    • National urban and rural policies are still not aligned to identify common potentials and threats.

  • Administrative burden and lack of regulatory clarity:

    • There are no guidelines or good practices on developing urban-rural partnerships in Poland. This type of material can help identify good practices and shortcomings in forming an urban-rural partnership, which in turn incentivise and trigger further local collaboration.

    • Partnerships with several municipalities can involve heavy administrative burdens, as bilateral agreements are required to involve new municipalities, given that co-operation mechanisms such as metropolitan associations cannot legally take charge of services for all member municipalities (see example of partnerships for transport infrastructure).

    • There is a lack of national and regional instruments to target the specific integration of urban and rural areas through services provision, such as in education.

    • Local governments lack the personnel and time to implement urban-rural partnerships, especially in the case of rural municipalities (see cases of transport, or business support). Governance arrangements working at the urban-rural interface are often highly complex, characterised by horizontal and vertical co-ordination of numerous institutional public and private actors.

  • Narrow view of partnerships:

    • There is a lack of financial and institutional incentives from national and regional governments to help partnerships include rural municipalities outside FUAs. Given the asymmetric power relations between rural areas outside FUAs and those municipalities inside FUAs, regional governments should serve as intermediaries to promote connections and incentivise partnerships with initial short projects.

    • Partnerships still struggle to involve private or non-governmental actors as partners. Instead, some partnerships only see the private sector as the implementer of projects. For example, water or waste partnerships are materialised through inter-municipal companies, which could further involve private actors as active members of the partnerships. Education along with other public services could also be jointly delivery with private partnerships.

    • Narrow thinking on administrative boundaries across some self-governments is still affecting dialogue to build partnerships. Some of the self-governments interviewed for this report stated that initiating partnerships, especially with those municipalities with whom there is no frequent interaction, required thorough explanation of the benefits from working jointly with projects that cross boundaries (transport or tourism). The need for co-funding is one of the causes that might discouraged at first many rural municipalise, despite the long-term benefits from the partnership. Leadership to trigger co-operation and dissemination of benefit of partnering is greatly needed.

  • Lack of trust and long-term vision:

    • Many urban-rural partnerships triggered by EU funding are narrowly focused on attracting EU funds, which hampers long-term co-operation to address other local priorities.

    • Partnerships are not always forward-looking, and unexpected impacts on the project can hinder the partnership itself. For example, there is a need to grapple with the rise in telework.

    • There are no clear criteria for monitoring the effects of urban-rural partnerships. The evaluation of effects focuses on completion of projects and how they function, but fail to cover outcome indicators or well-being effect in the regions (e.g. regional attraction of investment, income, surveys of life satisfaction).

    • Competition between local governments to attract investment and people is an existing barrier for co-operation as municipalities face a growing depopulation and ageing trend. The political aim to ensure sustainably of the local community has nurtured an “individualistic” approach to solving problems and a weak culture of partnering.

For Poland, urban-rural partnerships represent an opportunity to reduce regional inequality and boost well-being. The country’s dispersed settlement patterns around a large number of small and medium-sized FUAs offer various linkages that can be further mobilised and strengthen through partnerships. Partnerships among urban-rural municipalities in Poland cover a diverse range of well-being dimensions and some involve non-governmental actors or are created directly by them (food or business associations).

Poland already has in place various elements to increase sustainable urban-rural partnerships. The country has a comprehensive policy framework that offers different guidelines and strategic support to conduct inter-municipal co-operation (e.g. institutional and staff support, planning instruments). Laws and regulations also allow for various types of associations.

Regional governments play a strategic role in identifying functional links in their regional development strategies and encouraging a culture of co-operation and partnerships, which are the basis to apply for EU funding and develop joint projects. At the local level, counties can undertake actions to level out differences among urban and rural municipalities, including creating strategic documents (e.g. a local development strategy), helping to obtain common funds or taking joint actions for the benefit of the region. Municipalities’ development strategies (LDS) can provide tools for inter-municipal co-ordination.

Still, urban–rural partnerships are a relatively new phenomenon in Poland, mainly triggered by the EU Cohesion Policy 2014-2020 and its place-based approach. National and subnational strategies support inter-municipal co-operation, but without specific differentiation of the challenges and advantages of urban-rural partnerships, which imply different type of co-ordination and balance of powers. There are several things Poland can do to reduce barriers and foster successful urban-rural partnerships.

National policy frameworks, with the leadership of Ministry of Development Funds and Regional Policy, should:

  • Clearly recognise the different characteristics and potential of urban-rural partnerships in national and legal framework. To this end, Poland should improve the understanding of the types of urban-rural linkages across the country with data at the appropriate spatial and better identify in national guidelines the particularities of urban-rural interactions, their barriers and potential benefits. This recognition should be mirrored by regional and local development strategies – for example, with a clear implementation principle that involves joint work by urban and rural municipalities. Poland could be guided by practices such as Spain’s national strategy, which explicitly recognises the relevance of urban-rural partnerships for attaining some development goals, or Turkey’s exercises to identify and create a framework of urban-rural linkages for the country.

  • Set institutional support and financial incentives to develop urban-rural partnerships within its national policy framework. For example, the SRD or the forthcoming NRDS could explicitly define capacity-building support or co-financing mechanisms for local governments aiming at entering into partnerships.

  • Increase the focus and support to partnerships between functional urban areas and rural municipalities outside those areas. To this end, the updating process of various regional development policies (e.g. the NUP or the NRDS) should better identify the potential benefits of urban-rural partnerships, with a clear financial and organisational mechanism to promote them. This support can involve targeted resources to co-finance urban-rural joint projects, especially those outside FUAs, and developing guidelines to help set a partnership.

  • Improve integration of national urban and rural policies in Poland to boost a culture and incentives for urban-rural collaboration. The forthcoming National Urban Policy 2030 and the Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030 have scope to set common or integrated goals, strategies and financial mechanism to promote the role urban-rural partnerships in territorial development.

  • Making mandatory the preparation of LDS and further clarifying the minimum guidelines to conduct partnerships in the Article 10a of the Act on the Principles of Development Policy. It would help create clear information, action lines and common basis for co-operation.

Both national and subnational governments should develop clear actions to address structural factors undermining urban and rural partnerships such as lack of trust or competition among communities. To this end, governments could:

  • Promote that the first action of partnerships, among municipalities without experience in co-operation, relate to win-win short term projects or strategies to make evident that co-operation can be effective. This type of projects should be low-cost and short-term.

  • Encourage partnership structures that offer equal voice and vote to all partners, regardless the size and financial capacity. This can be done with information on how to set this mechanism and examples of other partnerships doing that. It can follow the example of OECD regions like the Metropolitan Region of Nuremberg, Germany, or Geelong in Australia, which implemented partnerships with an egalitarian representational scheme of “one voice, one vote”.

  • Strengthen regional co-ordination platforms and instruments to trigger partnerships for the implementation of initiatives of supra-local importance. To this end, regional governments can leverage Regional Territorial Forums or the Regional Territorial Observatory to disseminate benefits from existing partnerships, identify possible new projects among municipalities and facilitate involvement of non-governmental organisations in partnership initiatives.

  • Further explore mechanisms to promote urban-rural partnerships through digital connectivity. Facilitating the possibilities for municipalities to benefit from virtual interactions, such as remote working or accessing e-services, could trigger partnerships in the country and boost well-being in rural regions, especially in marginalised areas or rural municipalities losing population. For example, the National Rural Policy of Ireland can be a guide for Poland to set incentives that facilitate (temporary or permanently) remote working in rural municipalities and strategies to make the most of it for local economies.

Both national and subnational governments should:

  • Create financial incentives to complement the funding from EU instruments. National and regional incentives could provide a greater appraisal for those partnerships that do not use EU funding and that include rural municipalities outside FUAs. To this end, the national government could assign a share of existing funds for local development and investments exclusively to joint projects.

  • Simplify administrative process and reduce red tape to conduct urban-rural partnerships. The need of multiple bilateral agreements for a project in metropolitan association imply important use of time and staff (e.g. partnerships around transport) for municipalities. Facilitating the administrative process of making partnerships with standard application formats and clear guidelines would help partnerships’ formation.

  • Enhance actions to strengthen municipal government capacity to join urban-rural partnerships. This can involve:

    • Strengthening ongoing projects to provide specific consulting and technical assistance programmes for local governments, especially rural ones (e.g. to navigate and implement EU instruments). This involves expanding existing advisory projects such as the Advisory Support Centre (Centrum Wsparcia Doradczego), which can contribute to increased administrative efficiency in local governments and more effective implementation of public policies.

    • Further promoting network activities and conducting a proactive intra-regional advisory assistance that reaches weaker municipal governments. To this end, regional and county governments have scope to play a more active role as facilitators for inter-municipal co-operation, which for some regional and county governments might require clear strategies and staff capacity focus to this matter.

    • Leveraging urban-rural partnerships to accelerate the adoption of new technologies. Local partnerships can help rural or marginalised communities adopt technological innovation through for example network of service providers as the case of Nuremberg, Germany.

Local governments should:

  • Identify complementarities across different types of municipalities (urban and rural) to help adapt policies to different local challenges. This can also help to spot unseen linkages in the territory and spark new type of partnerships.

  • Increase incentives to include non-governmental actors in urban-rural partnerships and upscale privately run partnerships (e.g. food or business associations). To this end, the promotion of partnerships from national and regional governments (e.g. in the application to ITIs) should give preference for funding support to those that involve non-governmental actors in the partnership structure. Moreover, specific strategies could be put in place to help privately run partnerships include members in rural municipalities that lack financial capacity or information to join. For example, they can cover subscription fees or connect businesses in rural areas or with low resources to privately run business associations.

  • Keep fostering local leadership to promote partnerships by for example identifying a person/team within the administrative staff of the regional government that is in charge of seeking co-operation opportunities with neighbouring governments. This person/team could actively identify opportunities for co-operation, monitor the partnership scheme and evaluate its results/outputs.

  • Define indicators to evaluate outcomes of urban-rural partnerships. This implies evaluating the long-term goal of the partnership (e.g. growth of local income or reduction of CO2 emissions) on top of output indicators that measure the direct effect of the joint project (e.g. number people using public transport in partnerships on transport).

Based on Poland’s urban-rural partnership analysed in this chapter and OECD experiences in other countries, Box 2.24 provides some guidelines to achieve sustainable urban-rural partnerships in Poland.

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Note

← 1. The difference between a buying group and a co-operative is that being a member of food coop requires dedicating time and contributing to a common fund and a varying degree of democracy in decision making.

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