Development Agencies: Key to Regional Development or Extension of Central Government?

Abstract

Development Agencies are one of the important instruments developed by the European Union to reduce socio-economic disparities between regions and to promote sustainable development. As part of the EU accession process and harmonisation policies, Türkiye has been aiming to support regional development through the implementation of Development Agencies since 2006. However, Development Agencies in Turkiye face several difficulties due to their institutional structure, functioning and centralised management approach. The lack of coordination between the central and local governments, the lack of local capacity and the agencies' inability to act independently limit the effectiveness of these structures. In this study, the European Union's approach to Development Agencies and the implementation processes in Turkiye are compared and the current problems of Development Agencies are discussed. The role of Development Agencies in reducing interregional development differences, their effectiveness in attracting foreign capital and the deficiencies in local development strategies are analysed. In addition, the problems faced by the agencies in achieving key objectives such as human development, social equality and sustainability have been evaluated. In conclusion, it is emphasised that in order for Development Agencies in Turkiye to work more effectively, their institutional independence should be increased, a management model based on local dynamics should be adopted and strategies differentiated according to regional needs should be developed. In order for Turkiye to achieve its regional development targets, it is of great importance that Development Agencies are restructured with an understanding that takes into account not only economic growth but also social and environmental sustainability.