Regional economic disparities in Belgium and regional,national and supra‐national policies: an analysis of collective failure

Two kinds of regional disparities can be distinguished in Belgium. First there is the internationally well‐known dispute between Flanders and Wallonia. Secondly, there are large disparities within the regions. Three policy levels deal with these disparities: the (Flemish) regional level, the national government level and the EEC level. The purpose of this paper is to sketch the regional problems in Belgium, to analyse the policies that deal with them, to consider the co‐ordination problems between them and to shed some light on the public choice aspects of government interventions. It is concluded that regional policy in Belgium is a highly politicised affair. Furthermore public attention paid to regional policies has outgrown the importance of our regional disparities. Even other forms of micro‐economic policy are jeopardised by regional disparities and the resulting pressure.