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The role of the state in ensuring quality of life in peripheral areas – efficiency versus responsibility

February 4, 2025

The question of whether the state should invest in peripheral areas where economic returns are lower, or focus on the efficient use of resources in areas with higher concentrations of population and economic activity, has long been a subject of debate.

This issue reflects the broader dilemma between the principles of efficiency and responsibility that the state has towards its citizens.

According to the Constitution of the Czech Republic and the Municipalities Act, the main role of the state and local governments is to ensure basic living conditions for all citizens regardless of their place of residence. This includes access to education, healthcare, transportation, public services, and cultural activities. At the same time, however, pressure on limited budgets, the partial economic education of politicians, and experiences transferred from the private sector often place an emphasis on efficiency—that is, concentrating public investment where it brings the greatest benefit.

Inequalities between the center and the periphery

Peripheral areas face structural disadvantages, such as limited job opportunities, demographic decline, lower levels of education, social problems, and weaker infrastructure. If the state allocates resources purely on the basis of efficiency, these regions remain in a "vicious circle" where low quality of life causes further outflow of population and capital. This process then causes growing inequalities between regions, which has negative social and political consequences. It is appropriate to ask what the final outcome will be. Is the intention that no one will live in these areas and that ghettos will be created?

The responsibility of the state as administrator of the public interest

Ensuring quality of life in all parts of the country is not only a matter of solidarity, but also of stability. Uneven regional development undermines citizens' trust in democratic institutions and leads to increased social tension. After all, the symptoms of a "free market approach in the public sphere" are already visible throughout the Western world. It is therefore worth remembering that the state should prioritize responsibility over purely economic efficiency. This does not mean ignoring the principles of effective management, but introducing investment models that enable sustainable development even in peripheral areas.

An intelligent approach to investment

Modern technology and data analysis make it possible to plan investments more effectively, even in less developed areas. The principle of evidence-based policy in regional development has been discussed for a long time, but in fact nothing is being done. The impacts of interventions are not monitored, and the real causes of problems are not known. Yet it has long been possible to analyze data, make predictions, and create simulations and development scenarios—this is not just a "new topic" in the emerging field of artificial intelligence. Locally targeted "smart solutions" in transportation, energy, social services, and education can increase the efficiency of public services even in regions with low population density.

Balance between efficiency and responsibility

The state must strike a balance between efficiency and responsibility. Targeted investments in infrastructure, education, or digitization in peripheral areas can not only improve the quality of life for local residents, but also bring long-term economic benefits. It is important to view peripheral areas not as a burden but as an opportunity—for example, in the areas of renewable energy, sustainable agriculture, and rural tourism development. At the same time, this will relieve pressure on crowded, rapidly growing areas that face a number of other problems, such as virtually unaffordable housing.

This approach requires not only political courage, but also a deeper understanding of modern management models, data analysis, and innovative technologies. A state that prioritizes responsibility towards all its citizens builds a stable and cohesive society, which is ultimately also economically advantageous.

Conclusion

Investing in peripheral areas is not a waste, but a long-term strategy that fulfills the fundamental mission of the state. Instead of a purely economic perspective, we should view these areas as an integral part of our society that deserves attention and support, regardless of whether the return on investment is immediate or future.

Photo: Envato/simbiothy


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