Disintegration, the reason for policy failure – an analytical model of integrated rural

development

By: Gusztáv Nemes (Hungarian Academy of Sciences – Institute of Economics) Chris High (Open University – Systems Department)

Introduction Rural disadvantages - access and resources Two rural development systems – ‘central administrative’ and ‘local heuristic’ Integrated versus non-integrated rural development – two simple models

40 years’ of EU and domestic policies, positive discrimination

Everyday aspiration of local people to make rural life better

RESULTS:Environmental and social degradation, depopulation,

growing geographical disparities, etc.

WHY RURAL POLICIES DO NOT WORK WELL?HOW COULD WE DO BETTER?

RURAL DISADVANTAGES ACCESS AND RESOURCES

Rural areas have comparative disadvantages access-type disadvantages;

Results of underdevelopment of different infrastructures, resulting in limited communication of people, goods, capital and information; from and to backward rural areasphysical; economic; and political (or policy) access.

resource-type disadvantagesResults in the limited ability to produce goods and services, saleable on the global market;financial, human, and institutional resources

Core policies usually promote access type disadvantages

Access – two-way concept, without improved local resource base can cause damage

TWO RURAL DEVELOPMENT SYSTEMS

Europeanisation = improving access, diminishing traditional protections, exposing rural areas to global (unequal) competition.

Rural development is:

external (central) intervention - to protect the loss of rural values during Europeanisation through: rules, financial aid, rural policies in general

aspiration of local people - to improve their own lives through: unlocking local resources and attracting external ones, searching for ‘new futures’

TWO RURAL DEVELOPMENT SYSTEMS

1. Central-administrative system of rural development

Based on top-down intervention of the political centre Comprises of: EU and domestic policies, centrally redistributed

resources, strategic development plans, bureaucratic knowledge, central rules, high level interest groups, NGOs, etc.

Institutionalised character (with written procedures) External resources for intervention Narrow information Aimed at quantifiable results Can have high level, longer term objectives Central development logic (modernist paradigm) Main aim is to provide access and a ‘peaceful environment’ for

economic development for the economic centre Level: EU-domestic-regional (?)

TWO RURAL DEVELOPMENT SYSTEMS

2. Local-heuristic system

Based on endogenous bottom-up processes Comprises of: local actors and values; local development plans;

social networks and kinship relations; local authorities, innovative individuals, development associations and partnerships, etc.

Low level of institutionalisation Builds on local resources, but often needs external help Based on responsive local knowledge and wide information flows Main aim is to improve local life, giving flexible responses to

external challenges, keeping benefits for the locality Local development logic (new development paradigm) Level: sub-regional and bellow

Human actorsLocal heuristic system: Local leaders, entrepreneurs, etc. Their work effects their lives – they risk their own money Embeddedness – moral control Insightful knowledge on local matters, but often little understanding of

central rules Very committed and less objective Main concern is the betterment of rural life / non-quantifiable results

Central-administrative system Politicians, high level public servants, etc. Deal with others’ life, do not risk their own money High up in the system – broad vision, objectivity Under bureaucratic and political control Insightful knowledge of bureaucratic rules but low information on local Main concern is to comply with the political centre, accountability,

transparency Risk evasion

Integrated versus non-integrated rural

development – two simple models Central Administrative System of Rural Development –

characterised by top-down, exogenous interventions, high level of institutionalisation, bureaucratic control, written rules and procedures, the modernist technological regime and quantifiable targets;

Central Development Resources – financial resources in the central development budget, available for redistribution through the central system;

Local Heuristic System of Rural Development – characterised by bottom-up processes, heuristic aspiration of local people to improve their lives, flexible responses to challenges, social networks, diversity, multifunctionality, and synergistic effects;

Local Development Resources – rural values (natural, cultural, social), understood as resources, which often have to be unlocked or reconfigured if they are to be used for local economic development;

Access-type Disadvantages – limiting access (physical, economic, policy) and the free movement of goods, people and capital to and from backward areas;

Resource-type Disadvantages – (financial, human, institutional) limiting the ability of rural areas to produce goods and services saleable on the global market;

Result – the outcome of the development process: to a certain extent upgraded access and enhanced production capacity, resulting in either more balanced or biased environment for local economy and society.

Centra l Admin istra tive System

Acces-typeD isadvantages

LocalHeuristicSystem

Resource-typeD isadvantages

LocalDevelopment

Resources

Centra lDevelopment

Resources5

6

Improvement o f accessto the loca l economy

and markets

Improvementof loca l

economicperformance

Result

The non-integrated system of rural development

Centra l Admin istra tive System

Acces-typeD isadvantages

Local Heuristic System

Resource-typeD isadvantages

LocalDevelopment

Resources

Centra lDevelopment

Resources5

6

Improvement o faccess to the loca l

economy andmarkets

Improvement o floca l economic

performance

Result

The integrated system of rural development

Information flows in the non-integrated

development system

C entra l deve lopm ent system

Localdevelopm en

t systemLocal

developm entsystem

Localdevelopm ent

system

LI L IL I L I

L I L I L I

L IL I L I L I L I L I

L IL I = loca l in itia tives

Information flows in the integrated

development system

C entra l deve lopm ent system

Loca ldeve lopm ent

systemLoca l

deve lopm entsystem

Loca ldeve lopm ent

system

LI L IL I L I

L I L I L I

L IL I L I L I L I L I

L I

L I = loca l in itia tives

Thank You for your attention!