73rd EAAE Ancona, 2001 1

7373rdrd EAAE Seminar EAAE SeminarAncona, 28-30 June 2001Ancona, 28-30 June 2001

7373rdrd EAAE Seminar EAAE SeminarAncona, 28-30 June 2001Ancona, 28-30 June 2001

Franco SotteDipartimento di EconomiaUniversità di AnconaPiazza Martelli, 860121 AnconaSotte@dea.unian.it

Rural Development Rural Development PolicyPolicyin a Diversified Europe:in a Diversified Europe:Some Notes for a Research Some Notes for a Research AgendaAgenda

73rd EAAE Ancona, 2001

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Why this Why this SeminarSeminar on on RD PolicyRD Policy??

Evaluation of RDP experiences (especially CAP) Structural policy, Leader, Sapard, Regional development plans Ag2k But also other experiences of RDP: parks, border regions, remote areas

Tools and Methods Instruments for evaluation

ex ante in itinere ex-post

Data and statistical information Institutional solutions

Definition of RDP What is rurality ? What is rural development ? What is Rural Development Policy then ?

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What is What is RuralRural??

The definition evolves (and corresponding indicators are needed) “Agrarian rurality”

Rurality = Agriculture Unit of measurement: rate of employment in agriculture

“Industrial rurality” Other economic sectors (industry) prevail Unit of measurement: population density (OECD)

“Post-industrial rurality” (dispersion, small scale, common goods) Polymorphism

Natural capital, Social capital, Human capital, Artificial capital

Economic complexity and diversity Integration among services, industry and agriculture Agriculture: new quality oriented market demand, multifunctional roles

Which unit(s) of measurement for the level of rurality?

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LocalLocal Specific Specific Rurality Issues? Rurality Issues?

Peri-urban model Integration with metropolitan area: residence, local demand

High natural and tourist values Prevalence of common goods and services

Commodity oriented agriculture Competition in the international markets

High quality agriculture Agricultural and agro-food districts

Severe natural constraint areas Dry areas

Very remote rural areas Isolation, lack of integration

Specific cases of disaster areas War and ethnic cleansing: Croatia, Yugoslavia; Earthquake: the Italian Apennines

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The The 4 types of 4 types of Capital Capital inin Rurality Rurality

Rurality

SocialCapital

HumanCapital

NaturalCapital

ArtificialCapital

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The Risk of The Risk of losing the losing the BalanceBalance

WeakenedRurality

ArtificialCapital

Waste ofSocial Capital

Waste ofHuman Capital

Waste of Natural Capital

Less artificialCapital

Less artificialCapital

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What Is Rural What Is Rural DevelopmentDevelopment ? ?

Balance between Human-Social-Natural-Artificial capital Preserve the complexity Maximise the resilience

Integration between economic sectors Provide non agricultural functions and employment Foster the exchange of resources

Co-evolution between rural and urban Improve the quality of life

Food security Rural services (tourism & leisure, culture, health, environment, etc.)

Increase the overall competitivity Maintain flexibility Conserve uniqueness and identity

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What is What is RDRD PolicyPolicy??

An integrated vision of territorial development Between sectorial economic policies Between economic & social, environmental, territorial planning

policies With development policies of other territories

A related distribution of responsibilities Centre - Periphery Bottom-up and Top-down approaches Government vs. Governance (Formal-Informal) Public and Private

A cumulative construction Learning by doing / trial and error processes Based on consistent monitoring and evaluation feedback Overall analysis of policy impact

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Rural versus agricultural Rural versus agricultural development development

Agriculturaldevelopment

Ruraldevelopment

Ruraldevelopment

Agriculturaldevelopment

Agrarian rurality

Post-industrial rurality

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How does RDP How does RDP ChangeChange ??

Rural development

policyAgricultural policy

Agriculturalpolicy

Environ.talpolicies

Infrastructural

policies

Healthpolicies

Tertiarypolicies

Industrialpolicies

Educationpolicies

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Why Why the present the present Cap does not SuitCap does not Suit RD?RD?

Sectorial definition No integration with other structural policies RD regional programs basically only for agriculture

Uneven budget distribution 1st Pillar (price support + direct payments) = 90% 2nd Pillar (RDP) = only 10% + mixed collection of measures Final effect oriented by prevailing coupled push No comparable support to multifunctional functions

Results Distribution of benefits unchanged (mainly rent) No significant support to new/young entrepreneurs Territorial RD reduced to be 10% of a sectorial policy Obstacle to enlargement and WTO negotiations

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de factorural policyin the EU

Rural policy in the Rural policy in the Agenda 2000Agenda 2000 scenarioscenario

CAP

LeaderPlusPrice support

&direct payments

1st pillar Obj. 1-2structural

policy

Ag2k RDP2nd Pillar

Lack of other basic policies

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Which Which AgriculturalAgricultural Policy Policy corresponds best with RDP?corresponds best with RDP?

Moving from CAP to CARPE Market stabilisation Environmental and cultural landscape payments Rural development incentives Transitional adjustment assistance

An integrated vision of agricultural policy EU + National + Regional Expenditure + tax and social security exemption

Targeted towards the entrepreneurs Finalised to a positive turnover (a central role for young farmers) Restore a business and marketing perspective Ag. policy oriented to create a services network

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RDP: a RDP: a ChallengeChallenge for Ag-Econs? for Ag-Econs?

RD: a new experiment in governing in Europe Cooperation between policy makers and researchers Interaction with other economic disciplines, as well as with

social and territorial sciences A new leading role of agricultural economists

in sustainable development definition and in the corresponding design of suitable policies

Thank you