Building Up Border Regions: Exploring Municipal Service Delivery in the Baltics

The World Bank Catching-up Regions Initiative (CuRI) aims to accelerate sustainable development and economic investment in the Baltic regions bordering Russia and Belarus, which face challenges such as aging populations, depopulation, and constrained municipal budgets. The Capstone team assessed how municipal service delivery reforms in Latgale (Latvia), Utena+ (Lithuania), and South-East Estonia could support new development pathways, focusing on education program consolidation in Alūksne, Latvia, and the creation of an infrastructure and tourism functional area in Tauragė, Lithuania. Using case studies and interviews with municipal leaders, the team examined funding flows, political incentives, and policy implementation, producing a report with actionable frameworks to inform the expansion of CuRI across border regions while enhancing local service delivery capacity.