Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The area-based development approach The area-based development approach Challenges for implementation in rural cross-border areasChallenges for implementation in rural cross-border areas

G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma

European Commission, Joint Research Centre, European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unitInstitute for Prospective Technological Studies – AGRILIFE unit

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The Institute for Prospective The Institute for Prospective Technological Studies (IPTS)Technological Studies (IPTS)

• a directorate of the JRC

• provides customer-driven support to EU policy making

• aims at policy challenges that have a socio-economic and science & technology dimension

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The AGRILIFE unit within IPTSThe AGRILIFE unit within IPTS

SUSTAG / AGRITRADE / AGRITECH

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The Western Balkans project

General objective

To facilitate local development in the Western Balkans (focus on rural)

Specific objectives

1. To apply the ABD approach in a selected rural cross-border area in the Western Balkans

2. Disseminate the ABD strategy and action plan to potential donors

3. Develop a method using the ABD approach for other rural areas in the Western Balkans, where ABD intervention may be appropriate

Target area:Drina-Tara

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Target area – Drina river / Tara mountain

Features

• 13 municipalities, all border with one exception

• 380.000 inhabitants

• 7.860 km²

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Area-based development (ABD) approach

Main characteristics • area-specific (versus country)• integrated (across sectors)• inclusive (communities)• participatory (bottom-up)• flexible (responsive to changes)

Need for approach able to address• particular, specific• complex • in a holistic manner

} development problems

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Instruments for economic diversification in rural areas

Source: Directorate-General for Agriculture and Rural Development (2006)

EU policy 2007-13 Pre-accession assistancePriority axes rural development

Axis 1Improving market efficiency and implementation of Community standards

Axis 2Preparatory actions for implementation ofthe agri-environmental measures and Leader

Axis 3Development of the rural economy

Source: Schiessl (2009)

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The cart before the horse???

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Capital stock and economic growth

Investments

Source: Millenium Project report (2005)

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Overcoming poverty

Key capital stock/investments in• Infrastructure• Public administration• Human capital

= foundations for self-sustaining economic development and private sector growth

Overarching areas of investment• Upgrading public management systems• Extensive capacity building at local level• Scientific capacity• Cross-border investments

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Essential regional goods to reduce poverty

• Cross-border infrastructure transport, energy, water management, accessible land

• Cross-border economic cooperationinstitutions coordinate and harmonise promote intra-regional trade (movement of goods and people):

e.g. reduced transit fees, automated customs procedures

• Cross-border political cooperation strengthen institutionsstrengthen policies and promote good governanceregional dialogue and consensus building

• Cross-border environmental coordination manage trans-boundary issues concerted responses

Public investment – crucial to attract private investment

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

INTERREG-A

Factors for successful and effective CBC:legal framework for CBC, quality of partnerships, degree of institutionalisation

Experiences of cross-border cooperation (CBC)

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

Recommendations for ABD implementation

ABD intervention – design- Focus intervention on needs and priorities of the area- Assess capacity to participate & ensure unbiased participation- Promote early involvement of stakeholders & donors- Match time & budget with objectives - avoid false expectations - Guarantee coherence ABD programme with macro-situation- Incorporate positive aspects of existing initiatives- Include issues with potential shared positive impact

ABD intervention – management- Coordinate activities (also across donors)- Monitor and evaluate regularly- Reduce transaction costs- Foresee exit strategy

ABD in rural cross-border areas I

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

ABD in rural cross-border areas II

Conditions for successful implementation• Key capital stock (infrastructure, public institutional capital, human capital)

– in place, or investment needs?

• Essential mechanisms for provision of regional goods (cross-border infrastructure, and economic, political and environmental coordination)

– in place?

– if not, which needs and which public funds available?

• Private investments

– particular needs cross-border, land-locked areas?