Professor Milan Viturka has worked at the Faculty of Economics and Administration at Masaryk University for over three decades. In this interview, he reflects on the changing role of the academic, explains why regions should focus on their strengths, and why it is crucial to distinguish between efficiency and effectiveness in Czech public administration.
You have spent over 30 years at our faculty. How has the role of the academic changed during that time?
In particular, I see two main trends. The first is the much greater involvement of academics in addressing real-world social problems in practice. The second is intensive international cooperation, particularly within the framework of EU Interreg programme schemes. This interconnectedness with the world has increased the appeal of internships and placements abroad, which in turn is reflected in the quality of both research and teaching.
Looking back, what or who has influenced you most as an academic?
My long-term collaboration with the public sector has been fundamental for me. In particular, working on projects for ministries and local authorities, ranging from the South Moravian Region and Brno to Plzeň. I also feel that my guest lectures at the Vienna University of Economics and Business are worth mentioning.
In your new publication, you focus on regional development strategies. What is the know-how for the creation of modern regional development strategies?
The core of our methodology lies in the fact that we do not view regions as a single homogeneous entity. On the contrary, we base our approach on their internal diversity, which we have verified using data from all 206 Czech municipalities with extended powers.
The evaluation itself is based on our original theory of sustainable development, which assesses the quality of the business and social environment through 16 specific factors. These are systemic groups of business, labour and infrastructure factors but also groups of social and demographic factors – in other words, what life is actually like for people in the area.
In the book, you discuss the development potential of regions and the related concept of the “place-based approach”. When formulating a new strategy, what do you think is more important to focus on?
In my opinion, it is important to focus on supporting the strengths of individual regions. This is the basis of competitiveness in the spirit of the motto “think globally, act locally”. Illustrative examples include the successful Borská pole industrial zone in Plzeň, which is currently home to around 50 domestic and foreign companies. On the other hand, there is the marginal region of municipality with extended powers Slavkov u Brna, which has significantly increased its residential appeal thanks to the right choice of development strategy and its active implementation.
You also focus on evaluating the effectiveness of public investment. What is most lacking in this process in the Czech context?
Above all, I miss a scientifically grounded system for evaluating their effectiveness within the relevant programmes. In the Czech Republic, the terms “efficiency” and “effectiveness” are often confused. As Peter Drucker said: “Efficiency means doing things right, but effectiveness means doing the right things.” Whilst the private sector logically focuses on efficiency (costs vs. revenues), the public sector must focus precisely on effectiveness, i.e. whether the investment actually meets the development needs of the region in question. Regional strategies should be based on specific scenarios – economic or business, social and environmental – depending on what the region in question needs most.
As an expert in regional development, you view the landscape through a slightly different lens. In your view, how should “beauty” be properly combined with the economy in regional development?
The negative impacts of projects can never be completely eliminated, but they can be minimised. The way forward is the consistent application of the principle of “eco-efficiency” and the use of EIA (Environmental Impact Assessment) processes directly in spatial planning, with an emphasis on respecting local conditions and in the spirit of applying the aforementioned principle of “think globally, act locally”. Relevant innovations in teaching at economics-focused universities also play a significant role. That is why, back in the late 1990s, I introduced the subject of Environmental Economics at our faculty.
