Abstract:

Scientific contributions on regional development rarely pay attention to small municipalities. Mostly, regional development for those with small territory and decreasing number of small population is attributable to financial support in a form of income transfers rather than for well-based choice in favour to certain type of policy-making. Although, emergence to make the choice finds evidence in spontaneous and fast movement of resources towards higher developed territories, thus contributing to continuous decreasing of poor municipalities. The paper contributes to the choice making. Authors present preliminary research results for testing two main policy types, as place- and people-based, in context of regional development process and result by using the example of lagging region in Latvia with prevalence of predominantly rural municipalities. The main challenge for research relates to mismatches between characteristics of small municipalities and main aims set for regional development. Application of regression’s log-log models allows authors to conclude that regional development at small municipalities’ level is diversified, but vulnerable with dominance of elements of place-based approach. Municipalities with low level of development process (development rates) and high level of development result (development level) mostly contributed there. This, in turn, emphasize unfavourable dominance of short-term stimuli in regional development at small municipalities’ level. Although, relatively high activity of regional resources provides positive effect.