Dr. Shkelzen Marku

IFAD NEN RETREAT 20103-5 November 2010, Hotel Villa Ricci, Chianciano Terme, Tuscany, Italy

Introduction to presentation

1. Background to rural and mountain areas in Albania;

2. MADA’s territorial approach and interventions for development of rural mountain areas;

3. Lessons learned and constrains to local partnership

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Background to rural and mountain areas in Albania

Population: 3.2 million; Rural areas: more than 80% territory: Hilly and mountain area:

2/3 of the territory; 1/3 of the population; 50% of agriculture land.

59% engaged in agriculture, forestry and fishing

Average farm size: 1.2 ha >84% of farms <2ha Poor infrastructure >36% of people living in the rural and

mountain areas below the poverty line Considerable migration/aging rural population

MADA approach to development support

MADA’s development approach

Pillar 1:

Building the capacity of local governments,

local institutions and local

communities

Pillar 2:

Promoting an enabling institutional

and financial framework for private sector development

Pillar 3:

Promoting adequate allocations of Public funds for social and

economic infrastructure and

environment conservation

Cross-cutting foundation:Strengthening the advocacy, participation of and partnership between

key stakeholders in the mountain areas4

MADA Financing Sources

Albanian Rural Development Programme 2011-2013 under finalization (IPARD – EU)

Programmes/projects Financiers1 Programme for Sustainable

Development of Rural Mountain Areas (SDRMA), 2007-2012

IFAD, OFID, Government of Albania, Beneficiaries

2 Mountain to Market Programme (MMP),2009-2013

IFAD, Government of Albania, Beneficiaries

3 Public/Private Partnership for the Integrated Development of Agri-business Value Chains (ADRI-Links ), 2008-2010

EU (Adriatic New Neighbourhood Programme INTERREG/CARD-PHARE)

4 Conservation and valorization of biodiversity : sustainable rural development of Balkan mountains (sustainable agricultural and pastoral development, identification and valorization of biodiversity and territorial products), 2011-2013

French Fund for World Environment (FFEM)

Pillar 1: Building the capacity of local governments, local institutions and local communities:

Building the capacity of LGUs and communities to prepare participatory local action plans and develop partnerships for local development:

Specialised trainings and study tours; Promotion, facilitation and support to participatory planning, Development of LAPs and partnerships between local actors; Development of strategic investment programmes for

priority value-chains and products; Promoting development funds to complement local

public investment with the establishment of transparent priorities and competitive application rules

Development and implementation of a competitive matching grant scheme for development of small-scale economic infrastructure.

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Pillar 2: Promoting an enabling financial and technical framework for private sector development

Strengthening and multiplying opportunities for access to financial services:

Implementation of a Joint Grant&Loan financing scheme; Development of Credit Support Facility (being introduced)

Promoting development funds to support private investment with the establishment of transparent priorities and competitive application rules

Implementation of a technology innovation &demonstration grant scheme; Implementation of a small matching-grants scheme for investments in

improved technologies in production, processing and marketing of agriculture products and diversification of rural economy (especially in rural tourism);

Providing training and capacity building to private businesses and promotion of products:

Organization and facilitation of specialised trainings, study tours for selected business;

Organization and facilitation of promotion of various mountain products; Workforce-capacity building;

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Pillar 3: Promoting an enabling policy and institutional framework for allocations of additional public funds

Providing support to MoAFCP and MoETE on policy issues related to specific value-chains, rural and regional development matters of importance for mountain areas;

Provision of technical assistance and facilitation to formulation and introduction of policies and government supported schemes;

Promoting consultation of government policies with representatives of LGs and business communities of mountain areas;

Strengthening the capacity of agriculture and rural business advisory advisory services,

Specialised training to and joint activities with PAS; Support to organization and facilitation of various

lobbying initiatives on various matters of importance for mountain areas communities;

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Cross-Cutting: Strengthening the advocacy, participation and partnership of key stakeholders

Support establishment of local development partnerships between LGs and businesses/communities to enhance the access of local stakeholders to existing development resources;

21 local mountain Fora established; A National Mountain Development Forum established, with regional

coordination to ensure MA advocacy in relation to regional and national policies and resource allocation;

An ad-hoc Mountain Area Parliamentary Lobbying Groups established;

A competitive small grants scheme has been established to finance best Fora projects;

A wide range of types of initiatives have been financed and implemented by the Fora in the 3 last years (promotion of products and business opportunities, lobbying for allocation of public funds for social and economic infrastructure, promotion of the territory, provision of support and guidance to private sector, etc.).

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Example of territorial development support in Permet (South Albania)Pillar 1: Pillar 2: Pillar 3:

• 4-5 staffs/LGU and >80 community representatives attended trained in LAP development and participatory budgeting;

• 5 LGUs representatives attended international study tours;

• >15 community meetings/consultations on participatory planning &budgeting facilitated and 9 local working groups established and worked for LAPs development;

• 9 LAPs (all LGUs) and 2 SIPs developed (vineyard & dairy);

• 8 small scale economic infrastructure supported (1 rural road, 1 irrigation, 6 water points).

• Several TIGS & SGS for investments in improved technologies on grape, wine and dairy;

• > 50 farmers, wine & dairy producers attended specialised trainings and study tours;

• 3 annual local fairs for promotion of wine & dairy products supported;

• >12 local wine producers supported to attend national fairs;

• > 10 public advisors trained; on specific subjects;

• Local PAS staff supported in organization and implementation of demonstrations, trainings, promotion activities.

• Fora lobbying for MAFCP grants to support the protection and production of local grape varieties

Cross-cutting: a mountain Fora established and active (promotion & awareness raising on local development opportunities; support LAP and participatory budgeting; assess implementation of the NSSED at local level, support and advise farmers on grant applications; promotion and facilitation of public-private partnerships, etc.)

Lessons learned

Territorial development is a relatively new approach in Albania, most policies and strategies still being implemented largely based on sectorial approaches;

Territorial development is multidimensional approach, parts of which often fall under responsibilities of a wide range of actors (local, regional and national);

Need to further strengthen the integration of activities, focusing on a smaller number of priorities/areas with a higher intensity of support;

Agriculture, although important, may not ensure sustainable development of rural mountain areas alone - need for more support to diversification of rural economy in mountain areas;

Establishment of effective partnerships remain a key to sustained territorial development

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Constraints to successful local partnership

Differences in “modus operendi” between organizations: clashes of organizational culture, different working methods, accountabilities, objectives, timeframes, use of language and decision-making styles;

Hostile external context: political, social and economic;

Underestimation of the time and resources required to build and establish the partnership;

Lack of trust, mutual understanding and clarity in communication by partners of each other’s interests, goals, roles, responsibilities and external accountability;

Imbalances in levels of power or commitment between different partners, and imbalances in the levels of benefit;

Partnership:

what a difficult task

!

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Constraints …

Lack of the skills, motivation and competencies, within one or more of the partner organizations, that are needed to build effective partnerships: these can be managerial, technical and attitudinal;

Various actors (institutions, donor funded projects, business organizations and NGOs) work in Albania for development of various regions, territories and sectors;

Their level of cooperation and real partnership remains significantly low;

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Closing remark

I believe that a territorial approach to rural development linked with the empowerment of rural communities and the private sector can help maximize the impact of investments, as they: Increase synergy between actions (public and private); Improve human and physical capital at local level; Create a better environment for the emergence of

innovations and better exploitation of local opportunities and resources;

Increase self-reliance and self-development opportunities for rural communities.

Thus, restoring hope and creating a better livelihood for the rural communities;

Thank you for your attention

Dr. Shkelzen MarkuMountain Areas Development Agencysmarku@redeval.org www.redeval.orgwww.zenmarku.com

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