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Antonis ConstantinouDirector, Rural Development Programmes IIDG Agriculture and Rural Development, European Commission
BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY
UNDER THE CAP
Seminar on “Consolidation of the balance between rural and urban areas to ensure an integrating system”
Merida, Spain, 19 January 2011
CONSTANTINOU 2
CONTENT
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE:What is the situation today?
• Is there really a rural-urban divide?A look from a different angle:
• Results of clustering and case study analysis2. SOME LESSONS FOR THE FUTURE • Rural-urban linkages and sustainable development• Fund coordination: from demarcation to strategic integration under
EU 2020• Local development and participative approaches• Agriculture and the wider rural economy3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD
AFTER 2013
CONSTANTINOU 3
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (1)
IMPORTANCE OF RURAL AREAS
• OECD definition: 92% of EU territory in predominantly or significantly rural areas representing:
45% of Gross Value Added 53% of employment
NEW DG AGRI/REGIO definition:
area population Predominantly rural 56,0% 24,1% Intermediate 34,9% 35,6% Predominantly urban 9,1% 40,3%
CONSTANTINOU 4
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (2)
IS THERE REALLY A RURAL-URBAN DIVIDE?• Since 2001 higher growth rate of
GDP/capita in rural than in urban areas• In 1999-2008 unemployment rates
declined in rural regions• Many “accessible” rural regions
experience counter urbanization (commuters; new enterprises; pensioners)
HOWEVER:• Gap in per capita income continues to
widen • Employment rates generally remain lower
in rural rather than in urban ones• Across much of Southern Europe and in
many remote and mountainous regions depopulation remains the dominant demographic trend
CONSTANTINOU 5
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (3)A LOOK FROM A DIFFERENT ANGLE
RESULTS OF CLUSTERINGAND CASE STUDY ANALYSIS
Of 13 identified clusters: only 3 are purely urban (global and European cities and cities not aggregated with their surroundings)
All 10 “rural” clusters encompass all types of regions from pre-dominantly urban topre-dominantly rural
BUT The Southern and Northern European
periphery can generally be titled as rural(especially Ireland, Portugal, Greece, great parts of Spain, Scandinavia and the Baltic States, excluding capital agglomerations)
Great parts of Eastern and South-EasternEuropean countries are pre-dominantly rural
CONSTANTINOU 6
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (4)A LOOK FROM A DIFFERENT ANGLE
RESULTS OF CLUSTERING
AND CASE STUDY ANALYSIS Most rural areas are multi-functional with
the mix of economic activities mostly determined by the regional context territorial regional finger print
Economic activities are spatially more and more equally distributed
higher diversity of rural areas In terms of growth and employment, there
is no “typical rural region” but different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity
Structurally, many rural regions (e.g. clusters V, X, XV in the map) perform better than urban ones (e.g. for change in economically active population, %♀ in workforce; share of commuters etc.)
CONSTANTINOU 7
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (5)A LOOK FROM A DIFFERENT ANGLE
CONCLUSIONS OF
CLUSTERING ANALYSIS:
Great diversity of rural areas: one size does not fit all; regional context and territorial circumstances matter
Variety of economic activities: regions succeeding in tapping on the synergies among economic sectors are likely to perform better
Mix of “urban” and “rural”: rural-urban relationships and linkages are important
CONSTANTINOU 8
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (6)A LOOK FROM A DIFFERENT ANGLE
CONCLUSIONS OFCASE STUDY ANALYSIS:
DRIVERS OF GROWTH
Natural resources and environmental quality Infrastructure and accessibility Quality of life and cultural capital “Wide” sectoral structure
BARRIERS TO GROWTH
Negative demography (loss of young people and ageing) Remoteness: Poor accessibility, infrastructure and communications Narrow sectoral structure
CONSTANTINOU 9
2. SOME LESSONS FOR THE FUTURE (1)RURAL-URBAN LINKAGES AND SUSTAINABLE DEVELOPMENT
In the age of climate change, renewable energy and green growth, integrated policies and effective rural-urban partnerships are required to tackle the issue of sustainable development. urban sprawl and the need to avoid the loss of productive land for food
and renewables water management: reconciling the needs of farmers, cities and tourist
resorts; reducing the impact of floods energy supply and the cost of transport/commuting importance of rural areas and farmers as providers of public goods and
of recreational environmental and ecosystem services local markets and local products
STRATEGIC INTEGRATION; FUND COORDINATION;
PLACED-BASED STRATEGIES
CONSTANTINOU 10
2. SOME LESSONS FOR THE FUTURE (2)FUND COORDINATION: FROM DEMARCATION TO STRATEGIC INTEGRATION UNDER EU 2020
EU2020 STRATEGY FOR SMART SUSTAINABLE AND INCLUSIVE GROWTH
Proposed:COMMON EU STRATEGIC FRAMEWORK FOR ALL FUNDS
Corollary: COMMON NATIONAL STRATEGIC FRAMEWORK FOR ALL FUNDS
LAGS: IMPLEMENTATION OF INTEGRATED LOCAL DEVELOPMENT STRATEGIES (“LEADING” FUND? CROSS-FINANCING?)
STRATEGICALLY COORDINATED AND COHERENT EU FUND INTERVENTIONS
• Reduce/eliminate the need for complex demarcations between EU funds in the rural space; improve strategic coordination
CONSTANTINOU 11
2. SOME LESSONS FOR THE FUTURE (3) LOCAL DEVELOPMENT AND PARTICIPATIVE APPROACHES
The ambition: unlock local potential; utilize territorial capital; mobilize social capital; foster rural-urban relationships
The means: multi-level governance; empower/connect local actors inclusive and participative approaches at all levels cooperation, networking, exchange of good practices Public-Private Partnerships and Local Action Groups integrated area-based development strategies
The challenge (1): reconcile bottom-up approaches with the rigors of sound financial management
setting measurable objectives and monitor/evaluate their achievement transparent, objective and properly documented decision making and project selection avoidance of conflict of interest
The challenge (2): safeguard representativeness and public-private nature of bottom-up approaches
no undue interference by public authorities approved strategies binding for all no discrimination in terms of national co-financing
CONSTANTINOU 12
2. SOME LESSONS FOR THE FUTURE (4) AGRICULTURE AND THE WIDER RURAL ECONOMY
Important to integrate the economic, environmental and social dimensions of rural areas into a common policy providing a strong link between agriculture and the wider rural economy
– Agriculture is important for rural areas because:• Management of natural resources and shaping of countryside
– Agriculture and forestry represent 78% of land use and deliver the majority of ecosystem services related to biodiversity, water and soil
• Multiple links with the economy as the basis for other activities and amenities
– The agri-food sector represents 19 million jobs mostly in rural areas
– Rural areas are important for agriculture because: • Economic and social conditions to enable sustainable agriculture • Accompany agricultural restructuring (modernization and diversification)
– 36% of farmers had another gainful activity in EU-27 in 2005
CONSTANTINOU 13
3. RURAL DEVELOPMENT OBJECTIVES:OLD AND NEW
COMPETITIVE AGRICULTURE
• promote innovation and restructuring• do more with less• play to the strengths of the diversity of EU agriculture
SUSTAINABLE MANAGEMENT OF NATURAL RESOURCES• take care of the environment and countryside• maintain the production capacity of the land
SUSTAINABLE RURAL
DEVELOPMENT
BALANCED TERRITORIALDEVELOPMENT
OF RURAL AREASTHROUGHOUT THE EU
• While the three strategic objectives, adapted for new challenges, remain valid, it is important to: Avoid the rigidities associated with the 3-axes-structure and, with respect to LEADER, the role of pre-defined measures and the geography/type and source of financing of activities (towns up to 30.000 only?) Provide more flexibility through strengthened strategic targeting and priority-led programming Acknowledge the cross-cutting nature of innovation and climate change under EU2020
CONSTANTINOU 14
EU STRATEGIC
OBJECTIVES
EU PRIORITIES supporting farm viability (restructuring; food chain integration; farm risk management)
resource efficiency in agriculture (water; energy; farm-level adaptation to climate change)
production and use of renewable energy in agriculture and forestry
cutting GHG emissions from agriculture
protecting and enhancing ecosystems (biodiversity; landscapes; water; carbon storage; adaptation and resilience to climate change)
realizing the growth potential of rural areas (diversification / job creation; social inclusion/poverty reduction)
4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013
Foster competitive
agricultural sector
Preserve natural resources, countryside
Develop rural areas
INTEGRATED GUIDING CONSIDERATIONS:INNOVATION, CLIMATE CHANGE & ENVIRONMENT
CONSTANTINOU 15
Thank you
for your attention!
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