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Investment in Territory Development

Course developers

Prior knowledge

Ekon5089, Macroeconomics Analysis

Ekon5090, Microeconomics Analysis

Ekon5092, Regional Economy and Policy

Ekon5138, Territorial Sustainable Development

Course abstract

During the course, students gain an in-depth understanding of the policies implemented in the European Union (EU) (Cohesion Policy, Regional Policy, Common Agricultural Policy, etc.) that include investment in territory development and implementation in Latvia, the implementation of reforms and their role in the development of the state, subordinately implementing the principles of other EU policies. Students get an understanding of the causes and results of the implementation of these reforms, the theoretical and practical aspects of the support system in Latvia that are changing in each seven-year period of EU budgeting. During the course, students acquire a comprehensive knowledge of financial instruments of the policies and the principles of their implementation

Learning outcomes and their assessment

Students will be able to demonstrate:
Knowledge of
1. Types and sources of investment, the purposes and sustainability of investment;
2. Legal framework for EU financial instruments – funds (incl. the ERDF, the ESF, the CF, the EAFRD, the EAGF) – and the eligibility criteria;
3. Stages of investment project development;
Skills to
1. Apply the acquired theoretical knowledge to develop an investment project proposal;
2. Engage in discussions and argue matters on complicated EU policy aspects, select and apply proper financial instruments to implement investment project ideas with the aim of developing territories;
3. Prepare a presentation on the latest trends in the EU policies related to investment attraction;
4. Engage in group work and assume responsibility for the results of the group work;
Competences to
1. Responsibly define, plan, analyse and forecast development opportunities for an enterprise/local government/organisation, attracting investment from national and EU financial instruments for project implementation and applying the latest provisions of the legal framework;
2. Interpret, select and apply relevant EU policy guidelines in the context of local territorial development, demonstrate an understanding of potential trends in the EU policies and the effects on the society and the environment, represent an enterprise/organisation and cooperate with various stakeholders;

3. Build up and demonstrate presentation skills, choose the most effective verbal and nonverbal communication tools and adapt the presentation and speech to the particular audience, including a foreign one.

Course Content(Calendar)

Lectures (24 h)
1. Investment, its substance; the sources of finance for territorial development. (1 h)
2. Potential investment attraction instruments of EU policy for territorial development. (1 h)
3. EU Cohesion Policy (CP), Regional Policy (RP) and Common Agricultural Policy (CAP). (4 h)
4. Direct payments scheme for agriculture. (2 h)
5. Characteristics of financial instruments available for agricultural and rural development. (2 h)
6. Institutional environment of the EU Funds for investment attraction. (2 h)
7. Policy documents of Latvia for investment attraction. The legal frameworks of the EU and Latvia in the context of funding administration and investment project supervision. (1 h)
8. Development of investment project proposals. (1 h)
9. Investment project budgeting. Financial management and accounting for investment projects. (4 h)
10. Assessment and conditions for approval of investment projects (2 h)
11. Investment project supervision. (2 h)
12. Compliance with publicity requirements for investment projects. (2 h)

Practicals (24 h)
1. Analysis of opportunities for investment attraction in Latvia. (2 h)
2. Examination of financial instruments available from other programmes/grants for investment in territorial development. (2 h)
3. Role of investment in contributing to agriculture through territorial development. The kinds of EU direct payments and the key conditions of their introduction in Latvia. The Field Register and the practical use of it to receive support. (4 h)
4. Eligibility conditions for support measures for investment projects for rural development and their analysis in the context of competitiveness, environment and rural landscape enhancement and rural economy diversification. (4 h)
5. Guidelines, Cabinet regulations and assessment criteria for a support measure of a fund chosen. (2 h)

6. Preparation of an investment project proposal: an analysis of problems, identification of the project idea, definition of project goals, tasks, activities and expected outcomes; a detailed description and schedule of activities; project budgeting. (10 h)

Requirements for awarding credit points

The student has to pass a test and a written examination and complete all the assignments: the independent work Preparation of an investment project proposal, a presentation of the investment project proposal and a presentation of the latest trends in the EU policies

Description of the organization and tasks of students’ independent work

The student independently or in a group prepares an investment project proposal and submits it electronically to the lecturer within the specified time and makes a presentation of the project proposal to be presented in a class

Criteria for Evaluating Learning Outcomes

The final mark is based on the following pieces of assessment: the test (20%), the independent work (30%), the presentation of the project proposal (5%), the presentation of the latest trends in the EU policies (5%) and the written examination (40%)

Compulsory reading

1. Darbības programma “Izaugsme un nodarbinātība”, LR FM, 2014, http://esfondi.lv/upload/14-20_gads/Planosana/fmdp_03052016.pdf
2. Eiropas Savienības struktūrfondu un Kohēzijas fonda 2014.-2020.gada plānošanas perioda vadības likums, 11.07.2014., https://likumi.lv/doc.php?id=267471
3. LR Ministru kabineta 2015. gada 10. marta noteikumi ar grozījumiem Nr.126 “Tiešo maksājumu piešķiršanas kārtība lauksaimniekiem”, https://likumi.lv/doc.php?id=273050
4. Pārresoru koordinācijas centrs (2012). Latvijas Nacionālais attīstības plāns 2014.–2020. gadam. Apstiprināts ar 2012. gada 20. decembra Latvijas Republikas Saeimas lēmumu, Rīga, 88 lpp.
5. Zemkopības ministrija (2015) Lauku attīstības programma 2014 - 2020 (aktualizēts 18.04.2015.) ar grozījumiem. Pieejams: https://www.zm.gov.lv/lauku-attistiba/jaunumi/aktuala-informacija-par-lauku-attistibas-programmu-2014-2020-un-tiesma?id=4388

Further reading

1. Meredith J.R., Mantel S.J. (2010) Project Management. A managerial approach. Seven Edition. John&Sons., Inc., 587 pages, ISBN 978-0-40026-5.
2. Batchelor M. (2010) Project Management Secrets. HarperCollinsPulishers, 128 pages, ISBN 978-0-00-732810-9.
3. Trevors L. Jangs (2009) Kā vadīt projektu. Zvaigzne ABC, 152 lpp. ISBN 978-9934-0-0232-8.

4. Jankova L. (2011) Eiropas Savienības fondu izmantošana reģionos: promocijas darba kopsavilkums ekonomikas doktora (Dr. oec.) zinātniskā grāda iegūšanai. Latvijas Lauksaimniecības universitāte. Ekonomikas fakultāte, 127 lpp.

Periodicals and other sources

1. Projektu vadīšanas rokasgrāmata I un II daļa (2017). Rīga: Dienas Bizness (bez lappušu numerācijas).
2. Centrālā finanšu un līgumu aģentūra, http: //www.cfla.gov.lv
3. FM aktuālā informācija: http: //www.fm.gov.lv, http: // www.esfondi.lv
4. Lauku atbalsta dienesta aktuālā informācija: http://www.lad.gov.lv
ZM aktuālā informācija: http:// www.zm.gov.lv