ECONOMICAL AND REGIONAL DEVELOPMENT - IRISH STATE DEVELOPMENT EXAMPLE FOR PERIPHERAL EUROPEAN UNION STATES

In Baltic States, since the 90’s of the last century, when was getting independent of state’s, attention is increasingly paid to country’s regional development and problematic of economical potential. Worldwide, in European Union and so in Latvia the features of ongoing socioeconomic crisis make draw attention to activization around decentralization and focus on questions of regional development more intensively, particularly on search of solutions for research and analysis of a more efficient economical potential and its use in regions and counties.Economical development is the goal not only in Estonia, Latvia and Lithuania, but also worldwide, in particular, in peripheries, in ulterior territories of countries – in regions. Economic growth of regions and municipalities depends on several factors. One of the most important core factors is reasonable use of the economical potential, using the opportunities of increasing financial capital, attraction of investments to the administrative territory of the municipality or increased economical potential. Regions and counties economic potential mostly depends on actions and activities of the certain county, how well organized, strategically far-reaching and reasonable the available nature, infrastructure , financial, social and other resources are used. Example of state Ireland verifies that approximately during the past 25 years the state has carried out very proper macroeconomical policy, remarking also the fact that many countries had the favourable conditions, but not all of them were able to use them. State of Ireland can be mentioned as a positive state economical and regional development example, as it is also located in remote part of Europe, nevertheless with help of a proper macroeconomic policy and ability to create favourable economical relations with other countries (also outside EU), it is one of the most developed countries in EU. In Ireland’s development period three main directions of economical policy can be marked: fiscal stabilization, open conditions of trade and investments, and industrial policy that also applies to attraction of foreign investments (especially in IT sphere). Irelands experience witnesses that participation in EU has given additional potentialities for economical and regional development. It ensured increase of investments and capital flow, new work places, greater stability and wherewith higher welfare. To great extent success of this state depended on the way it used the EU offered opportunities. Ireland is one of economically most developed, industrial and trade-oriented countries, which till now was able to use the EU structural funds resources most effective. The resources that were gained from EU support funds have considerably stimulated state’s economical growth. The stress has to be made on the ability to pass the projects successfully and to make the National development plan successfully, which is the core document to gain funding. Baltic States could learn from Ireland’s economical and regional development example how to develop its relations with other countries concerning economical issues.The experience of EU countries has proved – the stronger the municipality and regions, the bigger the chance of regional development. Effective municipality reforms stimulate regional development, however, each regional development policy has at least two aspects – economic and social. Statement question of regional development policy is on the base of choice of regional development instruments. State’s determined, chosen instruments outline and define the regional policy outlook of every certain state.