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Regional Management for Regional Rural Development Toolbox for Trainers based on the InWEnt Programme “EU Integration of South Eastern Europe”
Imprint
Regional Management for Regional Rural Development
Toolbox for Trainers
Published by:
InWEnt
Internationale Weiterbildung
und Entwicklung gGmbH
Friedrich-Ebert-Allee 40
53113 Bonn
Fon +49 228 4460-0
Fax +49 228 4460-1766
www.inwent.org
Responsible:
Henriette Stange
Concept:
Uwe Krappitz
Text:
Georg Bokeloh
Uwe Krappitz
Hans Rosenbeck
Angelika Thomas
Thomas Wehinger
Gero Wieschollek
Editing:
Angela Marx, Gundula Kreis
Reproduction:
This manual may be reproduced in whole or in part in
any form for educational purposes with prior permission
from the copyright holder.
For more information contact:
InWEnt – Capacity Building International, Germany
Lindenstrasse 41, 04519 Rackwitz / Zschortau, Germany
Layout and Fotos:
Nicole Fritsch, Leipzig, Germany
Icons:
Daniela Veit, Dresden, Germany
Printing:
Thomas Druck, Leipzig, Germany
December 2010
Regional Management for Regional Rural Development Toolbox for Trainers based on the InWEnt Programme “EU Integration of South Eastern Europe”
Compiled contributions from the team of trainers
Georg BokelohUwe KrappitzHans RosenbeckAngelika ThomasThomas WehingerGero Wieschollek
4
5
Contents
List of Abbreviations ...................................................................................................................................................................................6
Preface ............................................................................................................................................................................................................7
Orientation - how to use this toolbox? ................................................................................................................................................8
Module 1. Why Regional Rural Development? ...................................................................................................................................9
Module 2. Regional Management: Functions, Structure and Budget .......................................................................................19
Module 3. European Union and National Policy Frame: Funds, Programmes, IPA ................................................................31
Module 4. Elaboration of Local Development Strategies/Regional Development Concepts and Action Plans ........... 43
Module 5. Inward and Outward Regional Marketing ..................................................................................................................... 59
Module 6. Local and Regional Economic Promotion ..................................................................................................................... 69
Module 7. Project Cycle Management and Logical Framework Approach .............................................................................. 79
Module 8. Project Budgeting and Funding: Co-finance, Private Public Partnership ............................................................ 93
Module 9. Network Management ......................................................................................................................................................105
Module 10. Information and Communication Management ......................................................................................................115
Module 11. Capacity Building - Becoming a Learning Region ................................................................................................... 125
Module 12. Monitoring & Evaluation of Regional Development Processes ........................................................................... 135
6
List of Abbreviations
BMVEL Federal Ministry of Food, Agriculture and Consumer Protection
BMZ Federal Ministry for Economic Co-operation and Development
CAP Common Agricultural Policy
CARDS Community Assistance for Reconstruction, Development and Stabilisation
CB Capacity Building
CBC Cross-Border Cooperation
CF Cohesion Fund
EAFRD European Agricultural Fund for Rural Development
EAGF European Agricultural Guarante Fund
EC Europaen Commission
EFRD European Fund for Regional Development
ENPI European Neighbourhood and Partnership Instrument
ESF European Social Fund
EU European Union
GI Geographical Indication
GTZ Deutsche Gesellschaft für Technische Zusammenarbeit GmbH
InWEnt InWEnt, Capacity Building Interrnational, Germany
IPA Integrated Instrument for Pre-Accession Assistance
ISPA Instrument for Structural Policies for Pre-Accession
LAG Local Action Group
LDS Local Development Strategies
LEADER Liasion entre actions de développment de l´économie rurale
LED Local Economic Development
LFA Logical Framework Approach
M&E Monitoring and Evaluation
NGO Non-Governmental Organization
NUTS Nomenclature des unités territoriales statistiques
OECD Organisation for Economic Co-operation and Development
PACA Participatory Appraisal of Competitive Advantage
PCM Project Cycle Management
PDO Protected Designation of Origin
PGI Proteced Geographical Indication
PPM Project Planning Matrix
PPP Public-Private Partnership
RDC Regional Development Concept
RDS Regional Development Strategy
RED Regional Economic Development
REGINA Regional Innovation Agency District of Neumarkt i.d.OPf.
RM Regional Management
RRD Regional Rural Development
SAPARD Special Accession Programme for Agriculture and Rural Development
SWOT Strengths Weaknesses Opportunities Threats
TSG Traditional speciality guaranteed
UAP Unique advertising proposition
USP Unique selling proposition
7
Preface
The “region” as a territory below the national level has come
more and more to the focus of policy and society as the driver for
social and economic development in the last decades. Regions are
considered as the spatial basis for competitiveness and increasing
the quality of life of their inhabitants. However, no blueprint can
be applied but the consideration of the specifics and character-
istics of the particular region is essential in steering its endog-
enous development potentials. Consequently, rural development
can be understood as a regional development process in areas
which are mainly rural in their characteristics.
In the South Eastern European Countries, which are on their
way towards the accession to the EU, there is an explicit need to
foster development processes in rural areas in order to improve
the living conditions of the rural population. Although overall
economic development has taken place in South Eastern Europe
(SEE), rural and peripheral regions profit rarely. Instead, dispari-
ties rather grow compared to urban areas. Agriculture dominates
the economic and social development in rural regions, but its sig-
nificance steadily decreases and further structural changes will
affect rural livelihoods in the future. Already losses in income,
decreasing employment, depopulation and an ageing population
occur in many rural areas.
Development initiatives are needed to react to these chal-
lenges and foster diversification and a viable rural economy. More
than a decade of intensive discussions, the implementation of
regional and rural development initiatives and the support of
the EU to set-up structures for such development initiatives on
a local level have come up with economic and social changes and
experiences. Nevertheless, there is still a substantial need for pro-
fessional analysis, planning and management for rural regions
considering not only economic but also social, institutional and
ecological dimensions. This process requires political support
and the strengthening of human capacities of those, who organ-
ise and handle such change pro-cesses.
On behalf of the German Federal Ministry for Economic
Co-operation and Development (BMZ) InWEnt, Capacity build-
ing international, focuses on the development of rural economic
areas in SEE since many years. The approach taken is that of
an integrated regional rural development based on the under-
standing of regional and local development being a crosscut-
ting and multidimensional issue. In other words, Regional Rural
Development constitutes a unity combining the “regional” and
“rural” policies and programmes into one territorial develop-
ment approach.
InWEnt’s strategic Regional Rural Development approach
targets firstly at the strengthening of the political dialogue. Sec-
ondly, InWEnt implements trainings which aim at strengthen-
ing the human capacities on the regional/local level to stir the
endogenous development potentials. If this is supposed to be a
comprehensive process, rather diverse stakeholders of a region
with their different interests, available resources and attitudes
need to be encouraged to cooperate and motivated to support
each other. These requirements are met by the instrument of
“innovative regional management” - a tool that has been increas-
ingly applied in the European Union for 20 years in manifold
ways. A third pillar of the approach has included the close coop-
eration with the German Technical Cooperation (GTZ) in order
to qualify the people from implementing structures and projects
on the national, regional and local level.
This toolbox for Trainers comprises the experience collected
in many years of trainings on Regional Management for Regional
Rural Development in South Eastern Europe. Certainly it does
not claim to be exhaustive however, its set-up and contents have
proved to serve its purpose in practice very well.
We are thankful to all the people who have contributed to
the development and implementation of the Integrated Regional
Rural Development Approach in SEE. Particularly we would like
to thank the Standing Working Group for Regional Rural Devel-
opment in South Eastern Europe (SWG RRD), Jens Adler, Dr.
Detlev Boettcher, Angela Marx and the team of trainers and facil-
itators, first and foremost Uwe Krappitz.
Dr. Henriette Stange
Senior Project Manager
Zschortau, December 2010
8
Orientation - how to use this toolbox?
This toolbox is the outcome and the summary of different mod-
ules and events implemented by InWEnt in the topic of Inno-
vative Regional Management for Regional Rural Development.
Throughout the last decade hundreds of professionals from
all SEE countries participated in these trainings. All those col-
leagues from SEE who participated in this journey are somehow
co-authors because they all contributed to the pool of knowledge
and skills which is the substance of this tool-box.
Many of them are themselves in a trainer position or situa-
tion where they try to forward their knowledge and share their
experience among their institutions, colleagues or students. In
some countries like Macedonia these multiplying efforts have
already been started systematically through a training of train-
ers´ cycle in 2010.
Along the years, however, the request to have substantial
written material grew. The result is this toolbox, which fulfils
a double purpose:
It provides basic introductory texts to the relevant elements
of Regional Rural Development to be used in dialogue and
training situations.
At the same time trainers in this field receive instruments
and methods how to transform these contents into practice
oriented training.
While the first two modules provide the conceptual framework
of Regional Rural Development and the role of an Innovative
Regional Management in this process, the other ten modules
describe in detail the main tasks and functions Regional Man-
agement has to fulfil in order to establish and guide regional
development processes.
The chosen order of these topics does not imply a chronologi-
cal implementation of these elements. The whole portfolio has
to be looked at as a connected system of intervention options.
According to the specific dynamics and needs in a given terri-
tory, the adequate mix of instruments in a regional rural devel-
opment process has to be composed.
Those elements which are considered to be basic to all other
interventions are put first in the row. Nevertheless a reader may
easily jump several chapters and enter a specific issue if inter-
est, e.g. “Regional Marketing”.
All modules are self-consistent and structured in a similar way
in five sub-chapters:
1 Objectives, content, time
Content: What should be learnt in this module and how long
does it take?
2 Introductory presentations
Content: What are the frame and the essential information
for this module?
3 Group work and exercises
Content: How can the knowledge be transferred?
4 Self-test
Content: Has the message of the module arrived?
5 Reference material
Content: Where to find more information, details and docu-
ments?
We hope that all the readers and trainers find the toolbox a help-
ful instrument. Please contact InWEnt or the authors whenever
doubts or questions arise.
This toolbox does not pretend to be the ultimate standard
work but it reflects the state-of-the-art, resumes the experiences
gathered in dozens of events and hopefully can be used in many
ways and many different situations. Therefore all contributions
to improve and add information are welcome!
9
Module 1
Why Regional Rural Development?
Overview of this module page
Objectives, content, time Territorial development approach
Re-discovery of the “Regional”
Local and regional governance
Subsidiarity
Sustainability
10
Introductory presentations Historical review on rural development in Europe
Characteristics, objectives and approach of RRD
Conceptual frame – the 4 dimensions of RRD
11
Group work and exercises Presentation of participants working context:
individual/group/information market
Group work: Guiding Visions for
RRD in participants’ countries
16
Self-test Roots of RRD
Challenges, characteristics and objectives of RRD
The situation in your country
18
Reference material • “The new rural paradigm” OECD 2006
• “Actively Shaping Rural Development“,
BMELF, 2007
• www.rz.uni-karlsruhe.de/
• www.gtz.de/en/themen
18
10
1.1 Objectives, content, time
Through this module participants will
become aware of the different roots of RRD in the context of European integration
and development policies
get a historical review of Rural Development as part of the Common Agricultural
Policy – CAP during the past 60 years
understand objectives, characteristics and the approach of RRD
be able to apply a systemic approach to explore and interpret given situations, design
and verify the best intervention strategy as well as implement the action plans effi-
ciently
discuss and present guiding visions, development programmes and instruments
to strengthen RRD in their respective countries
reflect the own working context as a possible contribution to RRD and exchange
these information with the other participants
Guiding questions for this module are:
There are many sector policies and programmes – but there is only one territory:
by what means can this dilemma be handled?
Why Regional Rural Development?
Module 1
During this first module awareness will be created why Regional
Rural Development constitutes a unity combining the “regional”
and “rural” policies and programmes into one territorial develop-
ment approach. Without neglecting the social and environmental
development dimensions (see in the next module the “integrative
nature of RM”), these two policies are predominantly aiming at
strengthening the Local/Regional Economic Development.
Objectives
Guiding questions
Module 1 | Why Regional Rural Development
11Tool Box for Trainers
From local to regional: How can the regional level, when best suited for certain types
of intervention, be re-structured after decades of a disregard through centralized
political systems? Where does “local” end and “regional” start?
How can the counter-balance of bottom-up and top-down be effectively and effi-
ciently designed to contribute to a “Good Regional Governance”?
Minimum time required for this module, which sets up the context and frame for the
whole training, is one full day without the exchange of experiences on the participants’
individual working context. If this is additionally organized in a three step sequence –
individual elaboration, short presentation in country groups and finally exhibition in
an information market, another 1 – 1.5 days are required.
1.2 Introductory presentations
Time
Regional and Rural Development are like the two faces of the same coin. Whenever
we turn it around, we will face the same reality.
Integrating sector policies, harmoniz-
ing divergent interests, minimizing possi-
ble trade-offs and creating the famous syn-
ergies can be transformed into practical
intervention only at local/regional level.
Trying to combine different sector per-
spectives, Regional Rural Development
has been nourished through four main
roots, which have provided quite different
nutrients and which until today sometimes
do not yet bring about a harmonic nutri-
tion for the region.
1.2.1 Landscape and nature protection (the environmental perspective)
Landscape preservation and nature protection has had for quite a long time a strong
conservation perspective towards the exploration of resources in environmentally sen-
sitive areas. The focus has been on the protection of special biotopes and the preven-
tion of human intervention. Although this approach may still prevail in special cases,
the widening and further differentiation of environmental preservation categories
led at the same time to a broadening also of the spatial perspective.
The “nature parks” or “biosphere reserves” have mainly integrated a construc-
tive view on human intervention in their concept, being aware that certain activities
would contribute to the preservation of unique landscapes or special natural assets.
The commercialisation of “regional products” – meant as output of productive activ-
ities in harmony with environmental requirements – is one of the most important
R R D through Regional Management
Regional Rural Development
1
12
accelerators for the promotion of the idea of landscape preservation. Nature parks have
operational units which clearly execute Regional Management tasks, for example as
responsible bodies for the LAG (Local Action Group – see module 3) management.
In many places “regional brands” were or are being created in order to highlight
the special quality and the related origin of mostly agricultural products and food-
stuff. But also traditional handicraft can often be found in the product basket of the
brands. Recently, these so-called “regional initiatives or movements” joined for exam-
ple in Germany in form of a legal umbrella association, which is currently requesting
the introduction of a German-wide “regional umbrella brand” in order to prevent the
misuse of this environmental character of regional products. Because of its specific
objectives, this movement still exhibits a critical and reserved position towards the
more economically oriented portfolio of Regional Managements.
1.2.2 Economic promotion
The shift from a more locally oriented perspective, regarding the instruments for eco-
nomic promotion (location marketing, b2b, business incubators etc.) towards a much
broader regional approach (horizontal and vertical clusters, value chains, regional mar-
keting etc.) created the need for respective operational units. Already in the mid nine-
ties, economic-oriented Regional Management units were established in the former
socialist parts of Germany – not so much with a rural scope but serving larger regions
with strong urban and industrial sectors. As urban-rural linkages were increasing in
importance and were put on the development agenda, many of these management units
enlarged their portfolio towards the rural areas in their regions.
Ideally classical economic promotion instruments are combined with measures
from rural development programmes under one institutional roof, thus being ade-
quately coordinated and creating additional value through win-win situations.
1.2.3 Spatial planning
A third origin for innovative Regional Management originates was an important shift
of emphasis in spatial planning and development.
Comprehensive land-use or regional planning mainly used to be a regulatory
instrument setting frames through master plans and giving orientation for the spa-
tial structure of a territory. Thus it was lacking the implementation oriented dimen-
sion of development. Recognizing this gap, the comprehensive spatial planning was
the first way to introduce “Regional Management” as a complementary “soft” instru-
ment to support the so called “hard” instruments as land-use plans, regional plans or
the formal regional planning procedures.
In a simultaneous process, the formal planning system, quite strongly regulated
through legal procedures, was increasingly challenged by new and innovative forms
of “informal” planning initiatives. Local and Regional Agenda 21, Municipal Devel-
opment Programmes, Local Development Strategies (LEADER) or Regional Develop-
ment Concepts are new forms of creating an implementation oriented planning base
for development intervention.
The integration of both planning systems – formal and informal – is yet far from
being achieved. Regional Rural development through innovative Regional Manage-
Module 1 | Why Regional Rural Development
13Tool Box for Trainers
ment is probably the most promising way to intensify this necessary combination
through its area-based, bottom-up and implementation-focussed nature.
The above described “roots” of Regional Management also add a new dimension
to the classical rural development policies and programmes as described in the fol-
lowing section.
1.2.4 Rural development
Rural development as an important pillar in the process of European integration is
not new at all. More than half of the population of the EU lives in rural areas and
more than 2/3 of the total area of the EU is considered rural. The EU, as well as
national governments provide a great number of various support programmes and
subsidies. Most of these programmes are top-down and sector-oriented. A large por-
tion of them exclusively support farmers and the agrifood sector, which, though still
being of great importance for rural areas, is no longer the main driving force nor
employment source.
History of RRD:
Beginning globalization in
the early nineties promoted
the emerging of the “regional”
dimension with a somehow inte-
grated and territorial approach.
Rural regions are not yet ade-
quately represented in Europe.
New challenges (worldwide mar-
kets, increasing competition,
changing job requirements and
unemployment, as well as demo-
graphic changes) show the need
for an integrated and multidi-
mensional concept adapted to the
needs of each region.
1
14
Looking at this history of Rural Development more in-depth, we may note that the
“regional” dimension with an integrated and territorial approach only emerged in the
late eighties, beginning of the nineties, when market globalisation became more and
more evident. Since then, a small part of the EU funds has been dedicated to integrated
RRD projects, e.g. through the LEADER approach (see module 3).
One reason for this “discrimination” might be that “rural regions” in Europe are not
adequately represented. They have not been heard in Brussels and the Member States for
a long time – different from those who mainly benefit from the first pillar of the CAP.
The most challenging trends ahead – increasing competition on worldwide prod-
uct markets, lack of qualified jobs and the heavy demographic change, to mention just
some of them – do not get answers through sector policies any more but require an
integrated and multidimensional concept adapted to the specific needs of each region.
1.2.5 The four dimensions of RRD
The understanding of a given reality in rural regions can be largely improved by dis-
tinguishing four main dimensions. To check on them will help not to overlook impor-
tant aspects and crucial potentials.
These four dimensions can be taken as a tool as well as a checklist when analysing ter-
ritories or looking for relevant questions in assessing the holistic nature of “rural realities”.
The four dimensions of RRD are helpful to:
explore and interprete given sit-
uations
design and verify the best inter-
vention strategy
set up efficient action plans and
assess whether the intended
changes occurred according to
our intentions.
Module 1 | Why Regional Rural Development
15Tool Box for Trainers
1
They represent a systemic approach:
to explore and interprete given situations
design and verify the best intervention strategy
set up efficient action plans and
assess whether the intended changes occurred according to our intentions.
Some of the main challenges for Central European regions in each of the four dimen-
sions are presented on this board to exemplify how this conceptual frame can be prac-
tically used.
1.2.6 Characteristics, objectives and approach of RRD
RRD is an integrated and multidimensional concept for development interventions in a
predominantly rural area. Appropriate solutions are usually not transferable from one
region to another but must be developed in or adjusted to the region itself.
lasting improvement of living conditions in rural regions
The objective of RRD is ...
sustainability!
cohesion!
RRD is focused on people
RRD is a multisectoral concept
RRD is a concept for regional development in a mainly rural area
bottom-up approach
integrated approach
regional approach
Characteristic
s and
objective o
f RRD Capacity building of people...
... so that they can seize opportunities as they arise
Identification of the opportunities...
... supported by new economic and institutional frame conditions and region
specific characteristics and resources
Capacity building of service delivery through institutional reforms
... so that demand-driven and marketable services are available
Approach
Strategy
RRD addresses ...
local self- government
regional and local government
decision makers
civil society organisations, NGOs
national departments
private sector
international development coop.
organisations
research and education system
consultants
16
In order to achieve a lasting improvement of living conditions in rural regions (which
integrates the concepts of sustainability and cohesion), RRD is characterized by three
main elements:
* RRD is focussed on people and based on the bottom-up principle.
* RRD is a cross-cutting, multi-sector concept which requires an integrated approach.
* RRD is mainly targeting the regional level (as complementary to all necessary local
interventions) of rural areas.
This requires first of all a continuous capacity building of people living in the region
so that they can seize opportunities as they arise. Additionally, own (under-utilized)
potentials and opportunities have to be identified supported by new institutional and
economic frame conditions. These again have to be provided by a demand-driven and
efficient service delivery of public and private institutions. Also this permanent adapta-
tion towards marketable services requires an ongoing capacity building process.
This finally means that RRD addresses all relevant stakeholders – regional and local
government decision makers, national structures, as well as the whole set of civil soci-
ety and private sector organisations and representatives.
1.3 Group work and exercises
Step 1: Individual reflection of the own
working situation
Step 3: Information market – the country
groups present their boards to each other
Step 2: Presentation in country groups
Module 1 | Why Regional Rural Development
17Tool Box for Trainers
1
If time allows, an intensive exchange of participants´ experiences on RRD at the very
beginning of a capacity building event will be quite useful.
First of all, everybody is required to reflect on the own working situation, extract
the relevant issues, work with mobile visualisation and produce a meaningful board
to be shared with all other participants. The country groups can additionally enrich
their boards with leaflets, photos, maps or even samples of typical regional products.
This makes the “market” more interesting and the “stand” more attractive for possible
“buyers” of the information.
In a second step, these products are briefly presented in country groups to receive
a first feed-back, give opportunity for corrections and allow to draw a common intro-
ductory board for the own country.
The third and most intensive part is an “Information Market” where all boards from
one country (or 2 to 3 countries, if the number of participants is limited) are exposed
and all other participants actively “demand” the information from their colleagues.
After a certain time, the next group exhibits and so forth. For a group with 25 partici-
pants one should plan for at least 4 sessions (plus some additional individual work in
the evening) or better 5 to 6.
If time does not allow, at least the following group work should give participants
the chance to reflect on the actual situation in their countries and learn from the expe-
riences and knowledge of their compatriots.
An example from Bosnia and Herze-
govina: The Agro-Business Centre in
Rogatica
18
1.4 Self-test
What are the main roots of Regional Rural Development? What current trends can
be identified?
What have been the most important features along the time-line of Rural Develop-
ment in the EU?
What are the main challenges regarding the four dimensions of RRD in your
country?
What are the main characteristics and objective of RRD? Who are the addressees?
In the working context of your organisation/institution: What are the main barri-
ers to RRD and what contributions do you provide to overcome these barriers?
What are guiding visions for RRD in your country and by what instruments do you
try to implement these visions?
What skills would you specially like to improve through this training measure?
1.5 Reference material
Most of the sources are on the general reference list. Quite some information is avail-
able in German, material in English is still scarce or currently being developed.
Theo Rauch, Matthias Bartels, Albert Engel
Regional Rural Development - A regional response to rural poverty
GTZ, 2001, ISBN 3-88085-532-3
“The new rural paradigm”, OECD 2006
“Actively Shaping Rural Development”, BMELF, 2007
www.rz.uni-karlsruhe.de/
www.gtz.de/en/themen
In a first group work, which is normally organised in country groups, participants are
asked to exchange their specific experiences and level their information while answer-
ing two guiding questions:
1. What are the actual guiding visions for RRD in your country?
2. Describe and specify important instruments to implement the guiding vision.
The combination of both group tasks is even better and creates a good base for the com-
ing dialogues between trainers and participants regarding the specific topics, which
will be described in the coming modules.
Module 1 | Why Regional Rural Development
19
Module 2
Regional Management: Functions, Structure and Budget
Overview of this module page
Objectives, content, time Cross-cutting concept of RM
Transforming bottom-up approaches into action
Sustainable organisational and financial set-up
Implementation oriented: from Regional Planning
to Regional Management
20
Introductory presentations The integrative nature of RM
Central Functions of RM
Organisation and legal forms of RM
Potential financial resources of RM
21
Group work and exercises How will your RM organisation
look like in five years?
What will be the functional structure and
how to generate a sustainable financing?
29
Self-test Cross-cutting and integrative approach
Functions and tasks: sequence or system?
Organisational structure and self-finance
30
Reference material The integrative nature of RM
From Regional Planning to Regional Management
30
20
2.1 Objectives, content, time
Through this module participants
are able to conceptualize the integrative and cross-cutting nature of an innovative
Regional Management (based on the general introduction in module 1)
get an overview on the spectrum of functions performed by RM (which will be dis-
cussed in depth in the following modules)
apply a systemic approach to explore and interpret given situations, design and ver-
ify the best intervention strategy as well as implement action plans efficiently
analyse features, advantages and weaknesses of different organisational forms to
implement RM
discuss possible financial sources to sustain an effective and innovative RM inde-
pendent of short-term promotion programmes
develop a vision and outlook for the functional and financial development of the
own organisation in the context of RRD
Three challenging questions for this module are:
How to implement an “integrative and cross-cutting” concept without getting lost
in an ocean of possible activities and fields of intervention?
How to institutionalize RM without loosing creativity, flexibility and the ability to
innovate (i.e. how not to become bureaucratic)?
How to establish a healthy financial mix without depending permanently on new
promotion programmes to subsidize the basic performance of RM?
Regional Management: Functions, Structure and Budget?
Module 2
This chapter introduces the concept of Regional Management as a
necessary instrument (means) to promote Regional Rural Develop-
ment (end).
Objectives
Guiding questions
Module 2 | Regional Management: Functions, structure and budget
21Tool Box for Trainers
2
Minimum time required for this module, which discusses the self-understanding and
management of RM, is one full day. Organisation and financing of RM as well as the
development of an own organisational vision may as well be placed at a different (later)
stage of a training workshop, what would mean another full day to cover the whole
spectrum
The need for Regional Management emerged in Europe in the 1980s. The reason
was the growing concern that development planning (spatial and sector) was not suf-
ficiently being translated into implementation. The emergence of the issue of Rural
Development as the second pillar of the European Common Agrarian Policy (CAP)
brought up the need for more localised interventions and change management on a
regional level. It was slowly introduced as a measure to promote the development of
rural peripheral areas.
Meanwhile, Regional Management has become a fully accepted instrument for ini-
tiating and promoting change being considered as a necessary pre-condition for suc-
cessful Regional Rural Development (RRD).
Regional Management can be seen as an integrated approach to initiate and sup-
port sustainable development of a region by using its endogenous potential, which can
be mobilised through the concerted effort of stakeholders from the political/admin-
istrative arena, civil society and private business. The main operational functions of
Regional Management will be described further down.
“Regions” in this context can be defined by different criteria (geographical, natu-
ral, political-administrative, economic, functional) representing a huge scale or sizes
varying from some 20,000 to several million inhabitants. The classical understand-
ing of Regional Planning as a spatial development tool has been enlarged by functional
approaches beyond formal political-administrative limits.
The integration process towards EU membership as well as their own political
reform process is forcing South East European countries to develop a new regional
level as functional integrative link between national development policies and com-
munal self-administration.
However, local and regional action competence is still underdeveloped as decision-
makers and administrations hardly explore the existing potentials and opportunities.
This refers equally to the public as well as to the private sector. Central institutions fre-
quently criticise the insufficient capacity of regional/local structures to respond to all
kind of national promotion programmes and initiatives. Additionally, the urban-rural
links and relationships are far from being adequately understood and used for develop-
ment purpose within a region. Short-sighted competition is normal reality.
Regional Rural Development through Regional Management therefore requires
a broad capacity building process accompanying the ongoing political-administrative
reform process and socio-economic development programmes (many of them sup-
ported by EU funds). The vision of “Learning Regions” is becoming a guiding princi-
ple for sustainable development.
2.2 Introductory presentations
Time
Regional Management is nowadays
an accepted instrument for the
initiation and promotion of
change
a necessary precondition for suc-
cessful RRD.
RM is possible through the con-
certed effort of all stakeholders com-
prising:
policy and administration
civil society and
private business.
22 Module 2 | Regional Management: Functions, structure and budget
2.2.1 The integrative nature of Regional Management
Livelihood in rural areas has to become (again) as attractive as in any urban setting.
The guiding development principle of “equity of living conditions” will decreasingly
have to be achieved by schemes of redistribution, but increasingly follow the “competi-
tion of regions” irrespective of national borders.
In this setting, agriculture looses its feature of being the unique focus, but still
remains with its up and downstream activities the most important socio-economic activ-
ity and main source of income for a significant part of the rural population. Neglect-
ing or denying the role of agriculture is even less justifiable in SEE, given the socio-
economic data about the primary sector.
For these reasons, rural areas have to break through the vicious circle of decreas-
ing income from agricultural activities, unemployment/underemployment, out-migra-
tion of the young, etc. and develop a positive approach and something like a “creative
milieu” instead.
Therefore, Regional Management approaches have to strengthen at the same time:
the economic development through diversification, mobilisation of under-utilised
resources, cluster-building etc.
the social coherence through rebuilding former (rural) mechanisms of social soli-
darity, complemented by a basic, but viable assurance system and
the environmental preservation through sustainable management of natural
resources and a pragmatic development-oriented land-use planning.
In its political dimension this requires a continuous strengthening of communal self-
administration, the integration of relevant stakeholders (decentralisation and partici-
pation) and adaptation to the inter-sector approach of EU development strategies, as
foreseen in the current promotion period from 2007 to 2013.
Without a strong conceptual and operational regional level, especially rural regions
will hardly have a positive development. Local authorities will have to accept this fact.
2.2.2 Central functions of Regional Management
There is a lasting academic debate about what Regional Management “really” means,
which activities it should comprise and which not, and how far it would have to be sep-
arated from other related professional fields. This debate will surely continue – but
20 years of experience have produced a practical profile of those functions which have
proven to be necessary for successful Regional Rural Development. It is the cross-cut-
ting and integrative nature of Regional Management that makes the difference to the
individual performance of the following functions. Hereby it is important to stress, that
there is no logical sequence or order of priority for these following intervention fields.
Using a pragmatic approach considering political priorities, existing promotion pro-
grammes and available co-finance, engagement of stakeholders and other important
factors of influence, there will always be a need for a combination of these interven-
tions (somehow comparable with a successful marketing mix), which requires constant
efforts of reviewing and adaptation.
The integrative nature of Regional Management
social
coherence
economic
growth
environmental
protection
civil society
business public sector
processes
projects programmes
23Tool Box for Trainers
2
24 Module 2 | Regional Management: Functions, structure and budget
2.2.2.1 EU and national policy frame: funds, programmes, IPA
In the frame of EU accession (which is the focus of the InWEnt programme “EU inte-
gration of SEE”) there is an urgent need to aquire a general understanding of how
the EU system of structural policies and funds as well as the first and second pillar
of the Common Agricultural Policy function. Based on this knowledge the design
of the components of IPA with the definition of the respective measures and institu-
tional structures is a huge challenge for the different implementation levels in each
country – starting with the Managing Authority and the Paying Agency, but also
including those regional and local actors who are supposed to spend the money in
a meaningful way!
2.2.2.2 Setting up Regional Development Concepts and action plans (“bottom-up” planning)
Although Regional Management is mainly implementation-oriented, it is part of its
preparation and follow-up, to develop a common planning document fixing the man-
date for its performance.
Apart from existing sector programmes or spatial plans, there is a need for develop-
ing integrated “Regional Development Concepts – RDCs” or “Local Development Strate-
gies – LDS” (if using the official LEADER terminology). Defining a common orientation
(visions/objectives) and action programme (projects/resources), the RDCs represent a
living basis for implementation: unbureaucratic, creative and flexible.
The initially informal character of these planning processes and documents means
a big chance to break through sector barriers and political power structures. Never-
theless, for long-term relevance there is need for formal legitimacy through existing
parliaments, which have to adopt the RDCs as their own political guiding instrument.
There shouldn’t be a parallel process in the long run (many Local Agenda 21 processes
have failed because of this parallelism).
2.2.2.3 Regional Marketing
There are two important dimensions of regional marketing and both of them have to
be developed simultaneously: an inward awareness building and outside public rela-
tions and location marketing.
The inside dimension has very much to do with the function below. Without being
able to create a strong information flow and identity within the region “We are we and
we are from here” you will not be able to sell your product/service to outsiders. Two
things make life complicated: the incongruence between “grown” regions and admin-
istrative borders and the inflation of local/regional brands. These are popping up like
mushrooms all over Europe. But the right sizing of brands, a sound communication
strategy and the close linkage with brands in other fields makes it a central and very
critical issue for regional identity and marketing.
Finding the right solution through an intensive stakeholder dialogue is one more
central function for Regional Management.
Module III
Module IV
Module V
25Tool Box for Trainers
2
2.2.2.4 Local and regional economic promotion: mobilising inward investments
We use the picture of “BMW will not go to your Region” to stress the importance of
looking to the small/medium business opportunities within the region, to care for the
development of the existing enterprises (also the small and medium ones), instead of
chasing phantoms. There is a huge box of economic promotion tools which can be used
and which are not detailed at this point.
2.2.2.5 Project management capacity: PCM/Log-frame/Impact chains
Probably there is no need to stress this intervention instrument too much. But let us be
frank: If it is not a donor “inviting” us to do so, how many projects (also big and com-
plex ones) are beining handled without a proper log-frame, without even knowing, if
we are doing the right thing regarding the objectives we set in the beginning? Or do
we ever verify if these objectives are really clear and change-oriented? Or how do we
intend to measure the impact at the end? A stringent project planning and implementa-
tion on municipal or regional level is lacking too many times, wasting scarce resources.
2.2.2.6 Project budgeting and funding
Goal-oriented project implementation or egoistic administration of the own scarce
resources? Lighthouse projects or broad application? In any case, the development of
a financial framework is difficult by nature – even more in the poor rural settings we
are looking at. Project financing cannot consist of the attempt to ask the mayor for a
share of his/her budget but should rather be a continuous search for new models of
financing between private and public sectors. Who has got the most stimulating and
mobilising ideas, who is willing and able to develop these models facing general scar-
city of financial resources on the communal/regional level?
2.2.2.7 Network Management: Organising stakeholders participation (PPP, citizens participation)
This is probably the key function for regional development. If stakeholder participation
is not organised within a continuous, efficient and serious process, the aim of mobilis-
ing the own potentials and resources as a lasting effort will not be achieved. The time
of charity, welfare and caring or the enforcement of law and order being the guiding
principles of public administration is over. Today the comparative advantage is that of
an enabling public sector towards a strong civil society.
2.2.2.8 Information management and communication strategy: Knowing the region and sharpening its profile
The Regional Management unit is not the statistical office for the regional administra-
tion. Based on a good general knowledge, the main focus should combine the official
data with all the “unpublished” or “inofficial” information, which are in the mind of
Module VI
Module VII
Module VIII
Module IX
Module X
26 Module 2 | Regional Management: Functions, structure and budget
key stakeholders (private and public). This requires acceptance and confidentiality, but
it is a pre-condition for developing and sharpening the right regional profile: Why are
we unique? What are our special strengths? What makes us attractive to people/com-
panies/ institutions? And this knowledge has to be present – immediately, if required.
There is a saying regarding a huge company: “If SIEMENS knew what SIEMENS
knows …”. There are many underused skills, experiences and know-how in a region.
How can we extract this knowledge and make it available? Through which channels
do we get the right information to the right person and at the right time? Becoming
an “information society” is not a technical issue. It means sharing power through the
sharing of information.
2.2.2.9 Capacity Building: becoming a learning region through training, participation, organisation
“Life-long learning” or “Learning organisations” (see especially Peter Senge) are central
concepts for the 21st century. Without actually knowing, still looking for answers, what
makes up a “learning region”, one thing is for sure: it is not only the formal education
of youth and adults in schools, universities, enterprises or in evening seminars – but
also the stakeholder participation, networking, exchange and information processes,
that make the ideal platform for “regional learning”.
2.2.2.10 Monitoring and Evaluation as ongoing learning process
Last, but not least: M&E has to be designed and organised in a way that it is not the
“control function” for outsiders, but the “learning from observation and experience” for
insiders that plays the decisive role. How many human and financial resources could be
saved or better utilised, if the necessary mistakes in a development process would not
have to be hidden to evaluators through thousands of mechanisms. Real case studies
to extract lessons learnt and common agreements on how to improve would represent
a know-how supply as continuous input to the ongoing Regional Development process.
2.2.2.11 Two additional tasks
The first one may also be accomplished by other stakeholders, although practical expe-
rience shows that regional management units are frequently involved in cooperation
activities, a special emphasis also from the EU perspective.
The second one, also being subject of this Module, is a matter of “self-preservation”:
who is living and acting permanently on a two-year project base may use and lose a
lot of energy and resources to guarantee the institutional continuity instead of imple-
menting interventions.
Establishing inter-regional and trans-national partnerships
Look and act beyond boundaries! Whether they are administrative, political, economic,
ethnical, religious, etc., one thing is for sure: there are too many of them. Internal net-
working is a necessary but not sufficient condition for development. In a global economy
our partners have to be anywhere, but why not start with the next neighbours. There
Module XI
Module XII
27Tool Box for Trainers
2
are some very promising examples for cross-border co-operation between regions –
although incipient, they may become major development areas, possibly also because
of their special treatment by EU programmes.
Institutional set-up: functions, organisations and financing of Regional Management
There is no standard solution to the organisational issues, nor will there be. Different
options have to be analysed in the specific regional situation. The crucial challenge is
to find the balance between establishing an administrative routine mentality in a safe
employment harbour or creating a high risk job where you will get good staff only by
extraordinary payment. Spending half of the time looking for money to pay the man-
ager’s own salary does not make Regional Management an efficient tool.
2.2.3 Organisation and legal forms of Regional Management
This topic together with the financing of Regional Management (not projects,
which will be addressed in module 8) may be considered and addressed as an own
module and also addressed at a later stage, e.g. in function of the requirements of
implementing the RDC/LDS. But although structure follows function, the perma-
nent dependency on voluntary contributions or top-down promotion programmes
(EU, national) may end up in a complete ineffective regional development effort.
Before choosing the most adequate organisational structure to support regional
development dynamics, several guiding questions will have to be answered.
Organization and Legal Form of RM Objectives and tasks of RM determine the organizational and legal form
Clear definition of purpose and tasks
clarify fields of work
Identify gaps in the market
Avoid rivalries in the market
Organizational and legal structure should follow the principle of practice
Later adaptation should be possible
1
2
3
Who will be member of
the decision making body?
Legal regulations and
administrative mandate
Associations
Integration of RM in
public administration
New organization for RM?
Implementation of
own projects
Limited liability company
Regional (Development)
Forum
Who will finance RM?
Economic goals or non-profit
making organization?
Informal cooperation /
networking
Integration of RM in
chambers / associations
RM within existing
organization?
Only support of external
project groups?
Foundation
Others …
Guiding questions
Possible legal forms
28 Module 2 | Regional Management: Functions, structure and budget
2.2.4 Potential financial resources for Regional Management
In this section we do not discuss sources for RRD projects, but the self-maintenance
of an effective operational RM unit. In many cases there is a political demand for
“self-financed RM” at least after some initial subsidized years. Looking at the poten-
tial sources to finance RM, a broad variety of options can be activated. Most frequent
are membership fees or the proportional distribution of costs to the participating
stakeholders. Also income generation from services is a common source although
with two inherent critical issues: profit-orientation vs. non-profit mission of RM and
becoming an unfair competitor with private companies and consultancies.
More and more, the participation in national and international contests is becom-
ing a good complementary source of income, but still sponsoring and mainly the
financing through EU and national programmes is the main source of revenue of
many RM units.
Possible financial sources of RM: Membership fees
Proportional distribution
of costs to stakeholders
Income generation from
the delivery of services
Participation in contests
Potential financial resources for RM
Membership fee
(fix amount)
Municipalities District / county Associations Chambers Private members
Proportionate dis-
tribution of costs
According to
financial strength
According to
number of
inhabitants
Commission on
acquired funds
Income gener-
ated from services
Consulting fee Payments for
studies /
investigations
Fees for project
management
Fees for elabo-
ration of busi-
ness plans
Fees for modera-
tion services
Property
management
License fees Commission for
use of registerred
brands
Commission on
selling of regis-
tered products
Sponsoring By regional banks Through
associations
Support for
specific projects
Through regional
enterprises
Selling of
(regional) shares
Contests and
awards
National /
regional contests
From foundations
Public promo-
tion programmes
EU funds National pro-
grammes
Revolving funds Limited in time
and declining
Often
sector-oriented
Never get dependent on only one source
29Tool Box for Trainers
2
2.3 Group work and exercises
While the integrative nature (as frame) and the central functions of RM (as overview)
are most often delivered through an interactive visualised presentation, organisational
set-up and financing of RM can be easily connected to participants working context.
Both topics can be combined in a group work analysing some few selected real cases
from the participants and developing a perspective towards the a mid-term future:
How will your organisation look like in five years?
➞ Future organisational structure (staff, partners, participation of civil society, …)
➞ Sustainable financing (type of expenditure, sources of revenue/income, eg. in %)
It makes sense not to use this exercise at the beginning of the training as there should be
an established atmosphere of trust and openness, which is necessary to frankly discuss
also difficult and tricky financial questions of a normally still very young organisation.
Group work on organisation and financing of Regional Management
How will your organisation look like
in five years?
1 Future organisational structure
(staff, partners, participation of
civil society, ...)
2 Sustainable financing
(type of expenditure, sources of
revenue/income e.g. in %)
An example from Southern Serbia
30 Module 2 | Regional Management: Functions, structure and budget
2.4 Self-test
What elements define the integrative nature of Regional Management?
In order to understand what Regional Management in practice means: What are
the central functions of RM?
Could you give a short description of each of these functions/tasks? Which of them
are most relevant in your own working context?
Are there arguments to start with a specific function (sequential order) or is there
a need for simultaneous intervention?
What strategies are needed in order to avoid the overburdening of RM with too
many tasks and functions?
What are the appropriate guiding questions to identify the most adequate organi-
zational structure and legal status for the Regional Management?
What are the potential sources for the financing of the self-maintenance of an effec-
tive and sustainable RM unit?
2.5 Reference material
Quite some information is available in German, material in English is still scarce
or currently being developed.
Powerpoint presentations on the CD:
➞ Koch, Regierung der Oberpfalz – “Regional Management in the Free State of
Bavaria”
➞ Becker, Krappitz, Parvex at the Trinational Dialogue on RM 2009 in Lindau –
giving an overview on RM in Austria, Germany and Switzerland.
European Network for Rural Development: http://enrd.ec.europa.eu/
31
Module 3
European Union and National Policy Frame: Funds, Programmes, IPA
Overview of this module page
Objectives, content, time Community strategic guidelines for cohesion
Priorities and general principles of EU
Cohesion Policy
Overview on the EU funding system, relevant for RRD
Differentiation between programs for member states
and IPA
32
Introductory presentations Community Strategic Guidelines for Cohesion 2007 – 2013
Overview about European funds 2007-2013
EAFRD - European Agricultural Fund for Rural
Development
IPA – Integrated Instrument for Pre-Accession Assistance
Cross-border co-operation programmes
Terms and general knowledge
33
Group work and exercises Brainstorming for the introduction into the subject
of EU policy and programmes
Group work and presentation on different funds
Visualized discussion on cross-border-cooperation ideas
Expert talks/field trips to ministries, EU experts, lobbyists
Rounds for reflection and conclusions
41
Self-test Main objectives and guiding principles for EU cohesion
policy 2007 – 2013
Important funds for RRD
Recent developments in CAP for RD and LEADER
Components if IPA and relevance for RRD
EU cooperation programmes: Interregional and CBC
42
Reference material Further reading material and websites are listed on page 42 42
3
32 Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
3.1 Objectives, content, time
Through this module participants:
are aware of the communities’ strategic guidelines for cohesion
know priorities, general principles and major developments of EU cohesion policy
understand the EU funding system/different funds with their implication on RRD
differentiate between programmes for member states and IPA.
European Union and National Policy Frame: Funds, Programmes, IPA
Module 3
The activities for Regional Rural Development in EU member
states, candidate and potential candidate countries base on various
EU programmes, which are meant to enhance a sustainable devel-
opment and the political stability in Europe. Regional Rural Devel-
opment as an integrated approach is mainly inf luenced by the two
EU policy areas ‘Regional and local development’ and ‘Agriculture,
fisheries and food’. Actors in Regional Rural Development need to
understand the present EU policies and the requirements and pos-
sibilities for funding. This builds up on the knowledge on the his-
torical background of Rural Development in the EU and the guid-
ing principles that are presented in module 1.
Objectives
33Tool Box for Trainers
The contents of the topic contain the following parts:
Introduction and overview presentations
Exchange of participants’ expectations, e.g. towards the EU
Community Strategic Guidelines for cohesion 2007 - 2013
Overview about European funds 2007 - 2013
Rural Development Policy
EAFRD - European Agricultural Fund for Rural Development
Area-based approaches
LEADER 2007 - 2013, including area-based local development strategies
Pre-Accession Assistance and European Territorial Co-operation
IPA – Integrated Instrument for Pre-Accession Assistance
Interreg and cross-border co-operation at the EU external borders
Terms and general knowledge
Basic principles of the Nomenclature of Territorial Units for Statistics (NUTS) and
the German example of political and administrative structure
EU terms – common abbreviations
Depending on the time, these contents may be presented as an overview and with dif-
ferent emphasis on different EU programmes. During courses that also focus on skills
development the topics can be combined with team work activities and presentations of
participants. They can also be organized as facilitated expert meetings.
The unit will take 1-3 days or even more, depending on the field trips to be undertaken.
Getting an overview and a first exchange of experience needs one day. For the use of
interactive methods and the presentations of the participants, another two days should
be reserved. Additionally, there should be sufficient time for the exchange with experts
during the field trip. This should be taken into account when planning the excursions.
3.2.1 Community Strategic Guidelines for cohesion 2007 – 2013
The Commission communicates its ‘Cohesion Policy in Support of Growth and Jobs,
the Community Strategic Guidelines, 2007-2013’ for the reasons that are stated as fol-
3.2 Introductory presentations
Contents
Time
3
34
lowed: “Europe must renew the basis of its competitiveness, increase its growth poten-
tial and its productivity and strengthen social cohesion, placing the main emphasis on
knowledge, innovation and the optimisation of human capital.” (Brussels, 05.07.2005,
COM(2005) 0299).
The recent enlargement of the Union has dramatically increased disparity levels
across the EU. The renewed Lisbon strategy sets out that the actions supported with
the limited resources available to cohesion policy should be concentrated on promoting
sustainable growth, competitiveness and employment to foster real convergence. Macr-
oeconomic stability and structural reforms are stated as a precondition for the success
of cohesion policy along with a range of other conditions, which favour investment.
The framework for Cohesion Policy 2007 - 2013 is based on the following principles:
Concentration on the level of programmes and projects by including only those
elements that can contribute to the growth and jobs agenda. The Commission will
bring to bear this governing principle when negotiating the different national and
regional programmes
Convergence to reduce disparities in the enlarged Union. Key objective is to stim-
ulate growth potential to maintain and achieve high growth rates for regions and
member states eligible for cohesion policy support
Regional competitiveness and employment aim at anticipating and promoting eco-
nomic change by improving the competitiveness and attractiveness of EU regions
through investments in the knowledge economy, entrepreneurship, research, uni-
versity-enterprise co-operation and innovation, through access to transport and
telecommunication infrastructure, energy, and health, environment and risk pre-
vention, through supporting the adaptability of workers and enterprises, reinforc-
ing participation in the labour market, and promoting social inclusion and sus-
tainable communities.
European territorial cooperation to promote stronger integration of the territory of
the Union in all its dimensions. Cohesion policy supports the balanced and sustain-
able development of the territory of the Union at the level of its macro-regions and
reduces the “barrier effects” through cross-border co-operation and the exchange
of best practices.
Governance concerns first a set of characteristics of public organisations related to
the performance and the success of public policies. Secondly it includes measures
and actions that are specifically needed in order to improve the capacity of mem-
ber states in managing and implementing the cohesion policy. Another important
factor is to enhance and ensure the quality of the partnership between all stake-
holders, including those at regional and local level, in the preparation and imple-
mentation of programmes.
The powerpoint presentation on the Community Strategic Guidelines includes the two
principle objectives and guidelines according to the Lisbon agenda - a strategy and a
broad range of objectives and policy tools with the aim of making the European Union
more dynamic and competitive.
Objectives of the Community Strategic
Strategic dimension of cohesion pol-
icy strengthened to ensure commu-
nity priorities are better integrated
in national and regional develop-
ment programmes
Efforts to ensure greater ownership
of cohesion policy on the ground
reinforced dialogue between
commission, MS and the regions
clear, more decentralised shar-
ing of responsibilities such as
financial management and con-
trol while promoting PPPs
Priorities according to the Lisbon agenda
Making Europe and its regions
a more attractive place to invest
and work
Improving knowledge and inno-
vation for growth
More and better jobs
Territorial cohesion and coop-
eration
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
35Tool Box for Trainers
3.2.2 Overview about European funds 2007-2013
The financial instruments at the disposal of Cohesion Policy are the structural funds,
the European Regional Development Fund (ERDF), the European Social Fund (ESF)
and the Cohesion Fund (CF).
Besides, the instruments of the Common Agricultural Policy (CAP), especially the
European Agricultural Fund for Rural Development (EAFRD) play an important role
with respect to Regional Rural Development.
As shown in module 1, integrated rural development is a rather new area of focus.
Shifts in CAP and the EAFRD, which are important to know for the target group of
the training measure, are therefore explained in more detail, as well as the Integrated
Instrument for Pre-Accession Assistance (IPA)
3
36
3.2.3 EAFRD - European Agricultural Fund for Rural Development
The Common Agricultural Policy bases on two pillars.
Pillar 1: the European Agricultural Guarantee Fund (EAGF) includes intervention
measures to regulate agricultural markets and direct payments to farmers.
Pillar 2: the European Agricultural Fund for Rural Development (EAFRD) supports
rural development and may be of higher interest for the participants.
Although the second pillar was introduced progressively since the 1970s and institu-
tionalised in 1997 with Agenda 2000, it was after the reforms of the CAP of June 2003
and April 2004 that EAFRD was introduced in 2005 as a financial instrument and a
single programme. This instrument aims at strengthening the EU’s Rural Develop-
ment Policy and simplifying its implementation.
To implement EAFRD, each member state draws up a national strategy plan in line
with the strategic guidelines adopted by the Community. The national strategy plans
for 2007 to 2013 are submitted to the Commission before member states present their
rural development plans.
The EARDF has been allocated a budget of EUR 96.3 billion for the period 2007-
2013, or 20% of the funds dedicated to the CAP.
The national strategic plans are implemented through Rural Development Pro-
grammes containing a package of measures grouped around four axes. The three main
axes are according to the objectives of the EAFRD
the competitiveness of agriculture and forestry
the environment and the countryside
the quality of life and the management of economic activity in rural areas.
Additionally, the LEADER axis relates to the implementation of local development strat-
egies through public-private partnerships.
Main axes of the EAFRD:
Competitiveness of agriculture
and forestry
The environment and the coun-
tryside
The quality of life and the man-
agement of the economic activi-
ties in the rural areas
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
37Tool Box for Trainers
For the presentation of the EAFRD the measures under axis 1 to 4 are visualized.
EAFRD 2007-2013: Measures Axis 1-4
Rural Development 2007 - 2013
« LEADER » Axis
Axis 1competitiveness
in agriculture and
forestry
Axis 2environment and
land management
Axis 3quality of life and
economic
diversification
Single set of programming, financing, monitoring and auditing rules
Single Rural Development Fund
Rural Development Policy 2007-2013: Foundations
Axis 1: improving competitiveness
Improving human
potential
Vocational train-
ing and infor-
mation actions
Setting up of young
farmers groups
Early retirement Use of advisory
services (includ-
ing for meeting
skills)
Setting up of
farm manage-
ment, relief and
advisory services
Restructuring physical
potential
Investments to
improve pro-
duction
Processing and
marketing (infra)
structures
Agricultural /
forestry infra-
structure
Restoring agri-
cultural produc-
tion potential
Improving the quality of
agricultural production
and products
Meeting stan-
dards tempo-
rary support
Food quality incen-
tive scheme
Food quality
promotion
Transnational measures
for the new MS
(until 2009)
Semi-sub-
sistence
Setting up producer
groups
Axis 2: environment / land management
Sustainable use of
agricultural land
Mountain LFA
(less favoured
areas)
Other areas with
handicaps
Natura 2000
agricultural areas
Agri-environ-
ment and ani-
mal welfare
Support for
non-productive
investments
Sustainable use of
forestry land
First affor-
estation
First establishment
of agro-forestry
systems
Natura 2000
forest areas
Forest envi-
ronment
Restoring for-
estry produc-
tion potential
Introducing pre-
vention actions
Support for non-pro-
ductive investments
3
EAFRD 2007-2013
38
As mentioned before, EAFRD unites several measures in one single programme.
LEADER as one of them dates back to 1991. It was launched in 1991 with the aim of
improving the development potential of rural areas by drawing on local initiative and
skills, promoting the acquisition of know-how on local integrated development, and
disseminating this know-how to other rural areas (see module 4).
3.2.4 IPA – Integrated Instrument for Pre-Accession Assistance
The Instrument for Pre-Accession Assistance (IPA) is the financial instrument for the
European Union (EU) pre-accession process for the period 2007-2013. Assistance is
provided to two categories of beneficiary countries depending on their status as either
candidate countries under the accession process or potential candidates under the sta-
bilisation and association process.
What is IPA?
Replaces five different programmes/instruments: Phare, ISPA, SAPARD, CARDS
and Turkey pre-accession instruments
Flexible and integrated pre-accession instrument allowing a higher level of coher-
ence and co-ordination of EU assistance
Assists potential candidate countries and candidate countries according to their
needs
Better preparation for structural, cohesion and rural development funds through
progressive emulation of EU fund rules
financial envelope for the period 2007-2013: 11.500 million €
Axis 3: diversification and quality of life
Diversification of the rural
economy
Diversification of
non-agricultural
activities
Support for micro
enterprises
Encouragement of
tourism activities
Presentation and
management of the
natural heritage
Improvement of the quality
of life
Basic services for
the rural economy
and population
Renovation and devel-
opment of villages
Training and capacity
building
Vocational training Capacity building
for local develop-
ment strategies
Implementation
preferably through
local development
strategies
Overlapping with
structural funds
(ex ante choice)
Axis 4: the LEADER approach
Implementation of local development strategies through a LEADER approach to contribute to the
achievement of the objectives of one or several of the three thematic areas
Inter-territorial and trans-national cooperation between LAGs
Capacity building and functioning of LAGs
L Liaison Link
E Entre Between
A Action de Actions to
D Developpe-
ment de
Develop
E L’Economie Rural
R Rural Economy
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
39Tool Box for Trainers
IPA comprises five components, whereby the first two components concern all ben-
eficiary countries, and the other three the candidate countries only. Two components
should be highlighted as they comprise essential measures to boost the development
in rural areas.
C2 “Cross-border Co-operation” aims at supporting the beneficiary countries in the
area of co-operation between themselves, with the EU member states or within the
framework of cross-border or inter-regional actions.
C5 “Rural Development” concerns with the preparation to the Common Agricul-
tural Policy and related policies and to the European Agricultural Fund for Rural
Development (EAFRD).
3
IPA: Integrated Instrument for Pre-Accession Assistance
“Bridging function” to prepare for the time after accession
Medium-term perspective
2007 - 2013
Beneficiaries
Components of IPA
Potential candidate countries
Bosnia & Herze-govina
Serbia
Kosovo
Monte-negro
AlbaniaCandidate countries
Turkey
Mace-donia
Croatia
C1 C2 C3 C4 C5
Transition assistance & institution building
Cross- border co-operation
Regional develop-
ment
Human resources develop-
ment
Rural develop-
ment
Focus on institution building
CBC EU MS
Candidate/pot. candidate
Emulation of ERDF and Cohesion Fund
Provides preparation
for use of cohsion policy
Finance rural development-type measures
Potential candidate countries
Potential candidate countries
Potential candidate countries
Prepare for post- accession EU-funded
rural development programmes
3 priority axes
9 measures
Transition assistance for can-
didate countries
“catch all” components
Rapid reaction and adaptation to
changing needs
Preparation for participation in the structural fund
after accession
Finance, investment and technical
assistance
Finance ESF-type measures
Employment and social inclusion
Participation in transnational and interregional
coop.
40
3.2.5 Cross-border co-operation programmes
Cross-border co-operation is a strategic priority of the EU policy. All in all the follow-
ing three programmes play a role to enhance co-operation among EU member states
and with countries outside the EU:
The Instrument for Pre-Accession Assistance (IPA) supports both cross-border co-oper-
ation between member states and candidate / potential candidate countries on the one
hand, and among the candidate / potential candidate countries themselves on the other.
The European Neighbourhood and Partnership Instrument (ENPI) promotes co-
operation and economic integration between the EU and partner countries (among
them Armenia, Azerbaijan, Belarus, Georgia, Moldova, the Russian Federation,
Ukraine). Included are 14 cross-border co-operation programmes, which operate
along EU external borders.
The European Territorial Cooperation Objective in the period 2007-13 is one objec-
tive of EU cohesion policy. It is financed by the European Regional Development
Fund (ERDF) and supports cross-border, transnational and interregional co-oper-
ation programmes.
The European Territorial Co-operation Objective is the formerly INTERREG Commu-
nity Initiative, which was first launched in 1990. With INTERREG IV it became a full
Structural Fund Objective and is now financed by the European Regional Development
Fund (ERDF). The budget of € 8.7 billion for this objective accounts for 2.5% of the
total 2007-13 allocation to cohesion policy, including the allocation to member states to
participate in EU external border co-operation programmes supported by other instru-
ments (IPA and ENPI). It includes the following three strands:
INTERREG IVA - Cross-border programmes aim at bringing adjacent cross-border
regions closer together through the development of joint projects. Under these pro-
grammes, projects can be financed in a wide variety of themes e.g. culture, tour-
ism, economic development and transport.
INTERREG IVB - Transnational programmes aim at promoting a higher degree of
territorial integration, with a view to achieving sustainable, harmonious and bal-
anced development across the EU and better territorial integration with candidate
and other neighbouring countries. Key areas of focus include: innovation, environ-
ment, accessibility and sustainable urban environment.
INTERREG IVC - Interregional co-operation focuses on the identification, analysis
and dissemination of good practices by public authorities in order to improve the
effectiveness of regional and local policies. Co-operation projects are eligible across
all 27 EU states, plus Norway and Switzerland.
3.2.6 Terms and general knowledge
Preparing the study tours to German examples of EU funded Regional Rural Devel-
opment projects the political and administrative structure of the Federal Republic of
Germany can be explained, which also refers to the Nomenclature of Territorial Units
for Statistics (NUTS), EC No 1059/2003.
The NUTS was created by the European Office for Statistics (Eurostat) in order to
apply a common statistical standard across the European Union. It established a com-
mon classification of European regions.
Fom INTERREG III to EUROPEAN TERRITORIAL CO-OPERATION
Co-operation between MS and with
IPA and third countries based on
geographical features: borders, sea
basins, periphery, etc.
Structural Fund (ERDF) support
for activities which decrease the
negative impacts of borders or
enhances co-operation and inte-
gration among partners, who
share a “common space”
Under the new European Territo-
rial Cooperation Objective INTER-
REG IV programmes are divided
into three different strands:
cross-border co-operations
transnational co-operations
interregional co-operations
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
41Tool Box for Trainers
3.3 Group work and exercisesThe emphasis of this module is on the transfer of specific information and background
knowledge on EU measures. To connect to the background and previous experience of
the participants and to increase their active involvement, the following working meth-
ods can be foreseen.
3.3.1 Brainstorming for the introduction into the subject of EU policy and programmes
What are your expectations towards the EU?
What general or specific questions with regard to EU regional policies do you have?
Key word collections on these two questions can be followed by a presentation of the
Community Strategic Guidelines for Cohesion Policy.
3.3.2 Group work and presentation on different funds
With respect to the home countries of the participants, a work in teams can be con-
ducted to prepare a presentation, especially on IPA components in the different candi-
date or potential candidate countries. Documents, weblinks and useful handouts have
to be prepared in advance to facilitate the team work tasks.
Working tasks:
e.g.: Please give a general overview about IPA in Croatia (or Serbia, Albania …)
or: Describe the IPA Rural Development Component in ...? other funds/programmes
For this, please study the uploaded documents in Global Campus.
Prepare a pin board/powerpoint presentation of 10 minutes
This group work element can be combined with the subject of presentation skills, thus
collecting criteria for good presentations, introducing feedback rules and giving feed-
back to the presenting participants.
3.3.3 Visualized discussion on cross-border co-operation ideas
To complete background information on CBC, own ideas about co-operation projects
can be collected that might be worked on later.
3.3.4 Expert talks/study tours to ministries, EU experts, lobbyists
Participants are asked to prepare the study tours in teams of two or three persons by:
giving a short summary on the institution to be visited
gathering questions to be asked to the speakers
Findings after the visits:
What did I learn from the presentation xy about z?
My remarks/ideas about the …?
3
42
3.4 Self-test
What are the main objectives of the Community Strategic Guidelines for Cohesion
2007 - 2013?
What are the guiding principles for the Cohesion Policy 2007-2013?
Which European funds play a major role for Regional Rural Development in mem-
ber states and why?
What are the recent developments in the Common Agricultural Policy with respect
to Rural Development?
What do I know about the EAFRD, especially about LEADER?
Which components of IPA are of major importance for RRD, why?
Which EU co-operation programmes did I get to know that are or could be applica-
ble in my home country?
3.5 Reference material
Presentations
annex 1.1 EU guidelines_en_final.ppt
1_EU Funds and EAFRD_en_final_BS.ppt
2_EU IPA IPARD_en_final_BS.ppt
3_Interreg_en_final_BS.ppt
Websites
Summaries of EU legislation
http://europa.eu/legislation_summaries/index_en.htm
Community strategic guidelines:
http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/050706osc_en.pdf
The LEADER approach: a basic guide
http://ec.europa.eu/agriculture/rur/leaderplus/pdf/factsheet_en.pdf
3.3.5 Rounds for reflection and conclusions
The following methods can be used to enhance the reflection on the topic:
questions and answers after the presentations
findings and conclusions, e.g.:
➞ What information on EU policy has been most interesting for you?
➞ Which are the most interesting characteristics of EU policy for you?
➞ Other...
‘morning committees’: summaries and repetitions of participants
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA
43
Module 4
Elaboration of Local Development Strategies/ Regional Development Concepts and Action PlansOverview of this module page
Objectives, content, time Become familiar with the LEADER approach
Elaboration of a Regional Rural Development
Strategy
Exchange methods and tools
Management of a Local Action Group
Interregional and transnational cooperation
projects
44
Introductory presentations Conceptual framework of LDS/RDCs
Legal and administrative framework
Area-based LDS in the LEADER approach
Content and structure of LDS/RDCs
Process of elaboration
45
Group work and exercises Exchange of experience on LDS/RDC
Elaboration of an event management plan
LDS follow-up activities / next steps
56
Self-test Key-features of LEADER
Contents of RDC/LDS
Elaboration process
Basic structures of LAG Management
Advantages and disadvantages
57
Reference material Respective documents on the official EU-website
Shaping the future, BMVEL, 2006
Regional Development Concept 2007-2013,
LAG Regina Neumarkt
57
44 Module 4 | Elaboration of LDS/RDCs and Action Plans
4.1 Objectives, content, time
Different to the EAFRD, the European Fund for Regional Development (EFRD) mostly
follows an approach for economic development through infrastructure support and
investment aids for companies. There is a big difference regarding the process of the
elaboration of a LDS and the obligation regarding the setup of the organisational struc-
ture for the implementation of the two EU programmes. Whereas the LEADER approach
delegates the decision-making power for the allocation of the money to a public-pri-
vate partnership – the so-called “Local Action Group”, the administration of the EFRD
money is delegated to the responsible political and administrative units. The follow-
ing chapter therefore focuses on the LEADER approach of the area-based approach to
economic development.
The objectives for the training in the elaboration of a LDS are:
to be familiar with the LEADER approach as part of the European Agricultural
Policy for Rural Development
to be aware of the different aspects and the elaboration of a rural development
strategy
to exchange tools and methods of how to support the process of elaboration of LDS/
RDC in the region
Elaboration of LDS/ RDCs and Action Plans
Module 4
Within Axis 4 – the LEADER Axis of the European Agricultural
Fund for Rural Development (EAFRD) - the elaboration of “Local
Development Strategies” (LDS) is a precondition for the selection
of a rural area for funding. The LEADER approach developed into
a mainstream programme of the EAFRD in the period of 2007 to
2013 after having been a common initiative for three funding peri-
ods before.
Objectives
LEADER:frz.: Liaison entre actions de dével-
oppement de l’économie rurale
eng.: Connection between measures
to develop rural economy
45Tool Box for Trainers
to acquire the knowledge on how to organise and finance a Regional Management
(Management of a Local Action Group)
to be able to support the set up of transnational co-operation projects within rural
development activities.
A training on elaboration of a LDS/RDC should include the following contents:
Rural Development Policy of the EU and the EAFRD - European Agricultural
Fund for Rural Development as the political and administrative guidelines for the
LEADER approach
Mandate and justification for the elaboration of a LDS
Content of a LDS
Participatory elaboration of a LDS
Evaluation criteria for a LDS
Roles and tasks of experts and consultants during the elaboration and implemen-
tation of a LDS.
The duration depends very much on the number of field trips and the number of inter-
active elements and group work units a trainer intends to implement. Three days are
the minimum time frame, which can be extended up to six days.
Time
Contents
4.2.1 Legal and administrative framework for the elaboration of a LDS within LEADER
The contents on the legal and administrative framework for LEADER are described
in Module 3 on EU and National Policy Frame. There, one can find the relevant pow-
erpoint presentations (PPTs) and pin board presentations (PBPs) on the EU funding
system and especially the EAFRD – Axis 4/LEADER.
Within the frame of the European regulations and guidelines on the implementa-
tion of LEADER, the national programmes for rural development lay down the detailed
rules on the national level. Therefore, some very important decisions on LEADER
have to be made on the national level and can be influenced especially by setting the
selection criteria for the Local Action Groups and the assessment of the Local Devel-
opment Strategies.
The Council Regulation (EC) No 1698/2005 of 20th September 2005 on the sup-
port for rural development by the European Agricultural Fund for Rural Development
(EAFRD) with amending acts lays down the detailed rules on the implementation of
Axis 4/LEADER.
4.2 Introductory presentations
4
46
The 7 key principles of LEADER
LEADER (Liaison entre actions de développement de l’économie rurale) follows seven
key principles:
1 An area-based Local Development Strategy (LDS) - sometimes called Rural Develop-
ment Strategy (RDS) or Regional Development Strategies (RDS) - for a well-defined
sub-regional territory is the basis for the funding.
2 A local public-private partnership organized as a Local Action Group (LAG) has to
be formed.
3 The bottom-up approach delegates the responsibility for the elaboration and the
implementation of the LDS to the LAG.
4 A multi-sectoral design of the LDS should guarantee the interaction of actors and
projects of different sectors.
5 The actions should focus on the implementation of innovative approaches.
6 Interregional (between LAGs of a country) and/or transnational (between LAGs of
different countries) actions are obligatory.
7 The LAGs have to network with other LAGs within the Rural Network on the
national and the European level.
Module 4 | Elaboration of LDS/RDCs and Action Plans
47Tool Box for Trainers
Council Regulation 1698/2005
Art. 61: Definition, elements
a Area-based LDS for well-defined subre-gional rural territories
b Local public-private partnerships (Local Action Groups – LAG)
c Bottom-up approach with decision
making power for LAGs
Concerning elaboration and implementation of LDS
d Multi-sectoral design of the strategy Interaction between actors and projects of different sectors
e Impelementation of innovative approaches
f Implementation of cooperation projects
g Networking of local partnerships
Art. 62: Local Action Groups
1 LAG shall implement the partnered
local development:
They must propose an
integrated LDS based
at least on a)- d) + g)
They are responsible
for its implementation
2 Old groups (LII and L+) or new
groups
Partners from various locally
based socio-economic sectors
Or select an admin-
istrative and finan-
cial lead actor
Ability to define and
implement a LDS
Or come together in a legally
constituted common structure
Or select an administra-
tive and financial
lead actor
Ability to administer Guarantee the satisfactory
public funds operation
3 Area covered by the strategy
shall be coherent
Offer sufficient critical mass
in terms of human, finan-
cial and economic resources
4 LAGs choose the projects to be
financed under the strategy
They may also select
cooperation projects
Art. 63:Measures
Implement LDS as referred
to in Art. 62.1
To achieve the objectives of the
three other axes of the EAFRD
Implement cooperation projects
(involving the selected objectives
Run the LAG, acquire skills
and animate the territory
Art. 64: Implementing local strategies
If the operations under LDS correspond to measures defined in axes I-III, the relevant
conditions shall apply in accordance
Art. 65: Cooperation
Support shall be granted to inter-
territorial and transnational
cooperation projects
Inter-territorial: within a
member state
Transnational:
territories within several
member states
and with territories
in third countriesOnly expenditure relat-
ing to territories within EU
shall be eligible for support
Art. 64 also applies to
cooperation projects
4
48
The most important decisions regarding the bottom-up approach giving full respon-
sibilities to the LAGs for the administration of the financial resources etc. are taken
on the national level. The strength and the benefit of the LEADER approach for rural
areas depend very much on these decisions. Questions related to these decisions that
need to be raised could be:
What kind of legal status has the LAG?
To what extent is the management of a LAG independent of or connected to exist-
ing administrative structures?
Does the LAG really have decision-making power for the allocation of the LEADER
funds? This question is strongly linked to the availability of the co-financing.
Do the political power system and the administrative structure support the bottom-
up approach or do they hinder its implementation?
Are the necessary capacities and competences available and sufficient for the imple-
mentation of the LEADER approach and the administration of the public funds?
How much committed and experienced are the members of a LAG?
The EAFRD provides the basic guidelines for these questions. In the end, the concep-
tual framework for local/regional development is based on the process, which includes
the civil society, the private business and the public sector in the elaboration of a
programme (written document) focusing on sustainable projects with an innovative
approach on local, regional and transnational level (see pin board presentation).
Module 4 | Elaboration of LDS/RDCs and Action Plans
49Tool Box for Trainers
4.2.2 Content of a LDS
The content of a LDS is basically laid down in the EU guidelines for the implementa-
tion of LEADER. The following table gives an overview on the content of a LDS, which
again needs to be adjusted to the respective guidelines on the national level. Some man-
aging authorities provide a template for the document, which is more or less obliga-
tory to follow.
Structure and content of Regional Development Concept (following EU LEADER)
1 Boundaries and loca-
tion of the area/region
Administra-
tive boundaries
Population and coher-
ence of the territory
Human resources
and financial power
Critical mass
for efficiency
2 Description of the
actual situation
General data Political and legal
framework
Economic basics Economic devel-
opment trends
Energy and envi-
ronment
Tourism and local
recreation
Nature and landscape Social groups and
cultural offers
Education Agriculture, forestry
and fishery
Ethnic groups
3 SWOT Analysis to
a) develop strengths
further
b) reduce weaknesses
Adopted procedures Overview of identified
S+W
Level of services Transfer opportuni-
ties into strengths
Structural changes Image of the region (Social) infrastructure Different ways
of structuring
Demographical
development
Employment situation
4 Description of
regional structures
LAG and bottom-up
approach
Bottom-up approach Formation and com-
position of LAG
Links to administra-
tion and politics
Involvement of
business and
civil society
Operational structure
and decision-making
Definition of role
of stakeholders
Cooperation networks
5. Guiding vision
and objectives
for the region
Common vision Central motto Guiding and spe-
cific objectives
Reference to MDGs
“SMART” objectives Communication con-
cept and public relations
6. Key topics and
implementation
strategy
Concentrate on
key issues
Implementation
procedures
Organizational
structures
Continuous M&E
Management skills
and capacities
Cooperation with
other regions
7. Integration with
sectoral policies
and programmes
Environmental impact Reference to Natura
2000 and other
regulations
Protection of natural/
cultural heritageSustainability
Harmonization of
interventions
Women’s participation Youth participation Criteria and
justification
4
50
4.2.3 Elaboration procedure – What, how, when?
The process of the elaboration of a LDS or a RDC does not follow a standardised con-
cept but can be based on guidelines regarding the time frame and some of the steps
to be taken. Experience shows that the elaboration of a LDS or a RDS takes approxi-
mately 6 to 12 months.
During this time, three phases of the process can be defined. The first phase is
dedicated to the information of the stakeholders trying to get a clear mandate for the
elaboration of a LDS and convincing the political and the administrative level of the
benefits of the LEADER approach and enhancing the participation of the private sec-
tor and the civil society.
The second phase is dedicated to intensive consultation and discussion on the con-
tent of the strategy and the organisational setup for its implementation with the found-
ing of a Local Action Group.
The third phase addresses consultations on the written documents and gaining
agreement on the financial contributions of the stakeholders for the implementation
of the strategy.
8. Environmental
protectionDivide because it is
two different points
Consideration of existing
environmental plans
Careful use of
resources
Consideration
concerning sus-
tainabilitySustainability
9. Cooperation with
other regions
Possible partner
regions
Specific objectives
of the cooperation
Possible/planned
cooperation projects
Justification of
cooperation
10. Selection and
description of
key projects
Further contribution
to the reach the goals
Pilot character/
exemplary function
Correspondence
with guidelines
and regulations
Including budget
estimation
Estimates of grants
and own resources
Project responsibilities Brief log-frame of
key projects
Success as soon
as possible!
Module 4 | Elaboration of LDS/RDCs and Action Plans
51Tool Box for Trainers
The methodology for the process needs to be adjusted to the situation of each region
and depends very much on the experience of the stakeholders in co-operation and the
LEADER approach in general. It will be much easier to elaborate a LDS for an already
experienced and well established LAG than for a new LAG.
3
The process of elaboration of a RDC / LDS
Possibly parallel working groups
What? How?
Awareness raising for RDC/LDS
Set up a commu-nication strategy
Workshop (1-2 days) information on Rural
Development
Or: short meetings in the villages
Get key actors to sup-port the elaboration
Form and train a team of moderators
Negotiate area and boundaries
Stakeholder analy-sis with key actors
Formation of LAG Draft of constitution Basic decision by politi-cal bodies (councils)
Situation analysis Analysis of existing activities
Elaborate key issues Collect project ideas
Write draft of RDC/LDS
Set up budgets for key projects (priorities)
RDC/LDS draft distributed
Consider and integrate recommendations
Formulate the final version
Consensus on RDC/LDS
Final version distributed
Publish and distribute the LDS/RDC
Party
Excursion “Best Practice”
Consultations, training “on the job”
Workshop - 1 day in area + stakeholder
Screening of docu-ments, interviews
Formulation of basic elements (“bones”)
Workshop (1-2 days) on elaboration of a
RDC/LDS
Search for expertise if needed
A strategy is not an operational plan
Public meetings, hearings, councils
Integrative workshop if working groups
were formed
Workshop ½ day confirmation
Possibly “full” and “light” version
Decision in the council: document and budget
52
The LAG has decision-making power and sets up a professional management (Regional
Management), which links the institutional level with the participation level of the pri-
vate sector and the civil society.
4.2.4 The structure of a LAG
The structure of a LAG follows some basic rules laid down in the EU regulations. The
members of the public sector and the political level must not exceed 50%. Vice versa
the percentage of representatives of the civil society and the private sector needs to be
at least 50%. Usually the members of a LAG would represent interest groups or organ-
isations. The representatives would be legitimated by the interest group or the organi-
sation, they represent. Individuals are allowed to be members.
Example of a LAG composition:
Total Men Women Young people Elderly people Public sector Private sector
No 27 18 9 2 2 12 15
% 100.00% 66.67% 33.33% 7.41% 7.41% 44.44% 55.56%
53Tool Box for Trainers
Membership of a LAG:
Administrative/policy sector
< 50%
Civil society/private sector > 50%
The members represent interest
groups and/or organisations
(but can also be individuals)
The Regional Management is fully responsible to the LAG and acts as interface between
the public and the private sector. The management facilitates the meetings of the LAG
and provides the necessary organisational structures and supporting measures like
capacity building measures.
The LAG very often has a steering committee, which takes responsiblity for the
supervision of the LAG management and day to day decision-making. Thematic groups
are set up in order to be able to focus on some specific topics or fields of interventions.
These thematic groups would provide professional input to the implementation of the
strategy. On the level of the thematic groups participants without membership can take
part e.g. in the development of project ideas or the elaboration of the strategy.
The balance of power between formal institutions and informal structures is one
important aspect of the LEADER approach. The LAG “Regina” in Bavaria has estab-
lished “Innovation Fora” on different topics, which provide the thematic inputs for the
fields of intervention to the steering group of 29 members (decision-making body).
The management and supporting units are the Regina Ltd – Regional Innova-
tion Agency, the Department for Regional Development of the district administration
and the Bureau for Agriculture and Forestry. The District Council approves the RDC
(“Regional Development Concept” – Local Development Strategy). The Regina Ltd has
19 mayors and the district as shareholders.
4
54
The organisational set-up of the RM for the LAG can be quite diverse. In most cases the
LAG is established within the legal framework of a non-governmental organisation as
a public-private-partnership. The management of the LAG is part of the organisation
and very often organised within the public administration. Less often the management
is organised as managing level of the NGO or a limited company owned by the LAG.
Throughout the years of LEADER experience one of the most important factors of
success is the continuity of the organisational set-up, and strongly linked to this ques-
tion is the availability of financial resources for the LAG management. Due to the fact
that this funding is not available all the time, the LAG should think about additional
financial resources for the management and negotiate a fair contribution from the
members of the LAG. Apart from membership fees, the management could also gen-
erate income from services or license fees, try to find sponsors or apply for contests,
awards and public promotion programmes. It is wise not to depend on only one source.
4.2.5 Presentations on examples of LEADER and LAGs
For the outcome of a training on LEADER the presentation of examples from already
existing LAGs with practical application and description of projects is essential. For the
presentation of examples usually a powerpoint presentation would be used in order to
illustrate with pictures. Several examples can be found on the CD or through research
on websites of LAGs.
Advantages and disadvantages of different legal forms of RM
Advantages + Disadvantages -
RM integrated in
public administration
Qualified staff in various sectors Not neutral being one stakeholder
Political back-up and power Not necessarily the best professionals
Better access to budgets Efficiency?
RM as (registered)
association
Members from all sectors of
civil society can join
Responsibility?
Liability
Rather easy to establish Little political commitment
Objectivity – better chances to mobilize Easy to influence – long time for decision-making
Financial sustainability
RM as Ltd. – limited
liability company
Clearly known legal status Membership not as open as association
Financial flexibility Can be seen as consultancy with private interest
Focus on economic activity
economic efficiency
Tax burden and book keeping demands
Module 4 | Elaboration of LDS/RDCs and Action Plans
55Tool Box for Trainers
Photograph credits: Dr. S. Weizenegger
4
56
4.3 Group work and exercises
4.3.1 Exchange of experiences concerning the elaboration of a LDS/RDC
A good start for a training on LEADER is a group work on the experiences in LDS or
RDCs. Participants can exchange their experiences and at the same time get to know
each other in an early stage of the training.
Please, give an overview on the following elements:
1. Deliniation and short description of the area(s)/region
2. Mandate and justification for the elaboration of a LDS/RDC
origin/context
existing legal framework
existing plans, programmes, concepts
3. Stakeholder participation
decision-making structures
organisational set-up for elaboration
4. Process design and expected outputs
steps undertaken until now
main contents and issues
5. Assessment of the process undertaken so far (SWOT)
4.3.2 Elaboration of an event management plan
The LEADER approach does foster participative elements for the elaboration of a LDS
like information campaigns, group meetings, workshops, public hearings, etc. It is
essential for the LEADER approach to be familiar with the planning and implementing
of group events. A good interactive element for a LEADER training is the elaboration of
an event management plan, which properly illustrates all the details one has to look at.
1. What do you want to achieve during/until the end of the envisaged event/workshop?
2. What do you have to do before the event?
3. Please describe the time schedule of the workshop
Time schedule Topic/issue Detailed steps Who is responsible? Material/ equipment
10:00 Welcome
address
Welcome
Don’t forget
minister
Mladen Microphone,
desk
4. What has to be done after the workshops - LDS follow-up activities?
ToRs for the exchange of experiences on local/regional
development strategies/concepts
ToRs for the elaboration of an event management plan
Module 4 | Elaboration of LDS/RDCs and Action Plans
57Tool Box for Trainers
4.3.3 LDS follow-up activities – next steps
What are the next steps in the elaboration and/or implementation of your LDS/RDC?
Next activities Time frame Who is responsible? What support is needed?
4.4 Self-test
What are the seven key features of the LEADER approach?
How can a LDS/RDC be structured? What are the necessary contents?
What are the main elements of the elaboration process?
How would you describe the basic structures of RM in your region?
What are the advantages and disadvantages of different legal forms for LAGs
and their management?
4.5 Reference material
BMVEL (2004): Actively Shaping rural development. Guidelines for integrated
rural development. Federal Ministry for Consumer Protection, Food and Agricul-
ture, Federal Republic of Germany, Bonn.
DFID (2003): Tools for development – A handbook for those engaged in develop-
ment activity. Department for International Development (editor.). London. http://
webarchive.nationalarchives.gov.uk/+/http://www.dfid.gov.uk/Documents/publi-
cations/toolsfordevelopment.pdf, visited on 2010-12-18.
Dick B. (2001): Action research resources; http://www.scu.edu.au/schools/gcm/ar/
arhome.html, visited on 2010-12-18.
4
58
European Communities (2006): The LEADER APPROACH. A basic guide. Source:
http://ec.europa.eu/agriculture/rur/leaderplus/pdf/factsheet_en.pdf, visited on
2012-12-18
Manktelow R. (2003): Mindtools - Essential skills for an excellent career - Stake-
holder-Analysis. Source: http://www.mindtools.com, visited at 2010-12-18.
OECD (2006): The New Rural Paradigm - Policies and Governance. Organisation
for Economic Co-operation and Development, OECD Publishing. Source: http://
www.unisi.it/cipas/ref/OECD_2006_Rural_Paradigm.pdf, visited on 2010-12-18
OECD_2009_A_Guide to evaluation of local development strategies, Source: http://
www.oecd.org/dataoecd/27/5/42748793.pdf, visited on 2010-12-18
Shaping the future – Regionen Aktiv, BMVEL, 2006
Regional Development Concept 2007-2013, LAG Regina Neumarkt
Module 4 | Elaboration of LDS/RDCs and Action Plans
59
Module 5
Inward and Outward Regional Marketing
Overview of this module page
Objectives, content, time Mobilize stakeholders on the regional highlights
and special products
Understand the EU-Policy on Geographic
Designations: orgin, elements and instruments
How can regional products be marketed and
protected?
Time: 2-6 days
60
Introductory presentations Meaning of regional marketing
Branding of products and services
Regional profile
EU regulations on geographical indications
61
Group work and exercises Group work: Reflection on own experiences with
regional products and regions to be marketed
Display and reflection of real examples of
regional produtcs from various countries
Assessment and findings of real case examples
during a study trip
66
Self-test What are main elements for regional marketing?
What instruments can be used/are appropriate?
How can the protection of a regional product be
done?
What are the important features of the EU type
of branding?
68
Reference material ppt on geographical indications
Factsheet: “European policy for quality
agricultural products”
68
60
5.1 Objectives, content, time
The learning objectives for the participants are to:
understand the need for addressing people and stakeholders inside a given region
(“inward”) as well as outside a region (“outward”) for any touristic, investment or
product related type of marketing
understand the double meaning of regional marketing as a marketing of products
and of regions
understand the relevant EU Council Regulations (agricultural products, food-stuff)
and the registration procedures for the branding of regional products
experience and reflect on practical examples of regional branding in the Federal
Republic of Germany.
During a module participants should
exchange know-how on current experiences and on new initiatives of regional brand-
ing and marketing in South Eastern Europe
discuss the possibilities of networking between South East European countries in
the development of regional brands.
The contents of the topic should contain the following parts:
Introduction: meaning and understanding of regional marketing
Inward and Outward Regional Marketing
Module 5
Regional marketing is an important instrument for Regional Manage-
ment as it intends to combine economic objectives (adding value to the
region and its products) and social and institutional aims (building a
regional identity among inhabitants and organizational structures to
sustain it). There are two important dimensions of regional marketing
and both of them have to be developed simltaneously: an inward aware-
ness building and outside public relations and location marketing.
Learning objectives
Contents
Module 5 | Inward and Outward Regional Marketing
61Tool Box for Trainers
The origin and context of regional marketing
The main elements of regional marketing
The instruments commonly used in regional marketing
The branding of products for regional marketing in the EU: geographical indications
Only to introduce to the minimum information on the topic needs about 1 day. As an
interactive reflection of the content of regional marketing a groupwork should be done
to relate the topic to participants reality: 2 – 3 days should be foreseen.
The experience of real case examples adds a strong, convincing element to the
learning effect. Depending on the local situation a minimum of 2 – 3 days for visiting
regional marketing examples during an excursion have to be added to the calculated
time as experience has shown in Germany.
in German:
in English:
What is meant?
reference:
Regional- Regional- marketing vermarktung
regional marketing
marketing marketing of of regions regional products
mostly geogra- also freely defined phically defined “regional products”“land of miracles” but also:
EEC regulation on the protection of geo-graphical indications and designations of origin for agricultural products and foodstuff (509 + 510 2006)
Traditional speci-ality guaranteed
T.S.G.
Protected Geo-graphical Indica-
tion P.G.I.
Protected Desig-nation of Origin
P.D.O.
How to join forces?
5.2.1 Clarification of terms
Regional marketing has two different components. On one side it comprises
the marketing of a particular geographical region with its specific regional
profile (landscape, culture, economic characteristics, etc.). The marketing
of regions means to make a region known to outside investors as well as to
the people living in the region and thus, strengthening their regional iden-
tity. This is a major task in regional marketing.
The second meaning refers to the “marketing of regional products”,
whereby specific and as such “unique” characteristics of regional products
are defined, protected and by being appropriately marketed, also used for
the economic benefit of the regional stakeholders (producers, processors and
traders). In the German language there are even two terms to distinguish
these different meanings.
The challenge and task in regional marketing is to connect the two mean-
ings and the related instruments and ask the question: How to join forces
from either side for the benefit of the region?
The origin of regional marketing is to be found to a high degree in the
European economic unification process, which strives at a common and open
market for goods and services. Further background aspects are:
The parallel ongoing processes of globalisation and regionalisation in
Europe and elsewhere (including the EU cohesion policy, which has its
clear orientation in “working for regions“)
The increasing importance of issues of consumer protection and quality
control in the context of globalisation
The protection of regional assets and values, which is expressed in the
new EU regulation No. 509 and No. 510 of 2006 (formerly known as
2081/2082 of 1992). This can also be seen as a growing regional counter-
movement to face the mentioned globalisation and give it a more human,
social and cultural dimension.
5.2 Introductory presentations
Time
5
62
The question of defining a “region”
becomes even more relevant in the context
of regional marketing. Also the effort to
look for all the potentials existing in one
region and the need to involve all impor-
tant stakholders are questions to be asked
in the process.
In order to come to a sound regional marketing concept, 3-4 important elements have
to be included:
a well made “market analysis”
a clear definition of the target groups and the objectives
the development of the necessary instruments and their implementation
a constant controlling and redirecting if necessary
All the elements have their pitfalls and dangers, which should be named and scruti-
nised regularly.
In order to comply with the given trends, regional marketing concepts have to answer
a series of critical questions, also regarding the central question: “What do we really
define as our region?” It is very obvious, that political-administrative boundaries still
are important, but other criteria like socio-cultural traditions, natural and geographi-
cal criteria play an increasing role.
Module 5 | Inward and Outward Regional Marketing
63Tool Box for Trainers
Without a well prepared and sound delimitation of what is included (and excluded) by
designing the “region”, no (or any) instrumental marketing mix will be the right one
and the different options of organisational set-ups will be most probably only the sec-
ond or third best option.
The introduction into the “instruments” can be done in a very lifely and interac-
tive manner. Participants should be asked what instruments they already know or are
aware of. Card by card then this part should develop and additional explanations can
be given on each one if necessary. The list can always be extended if paraticpants come
up with new or different ideas of instruments they have heard about.
5.2.2 The branding of products in the EU: geographical indications
For the marketing of regional products a common instrument in use are the brands,
which indicate a company’s individual products. In additon, the protection of a geo-
graphical origin can be issued (on national and European level).
To address the question on what a geographical indication (GI) really is, the follow-
ing powerpoint presentation by terrafusca could be a helpful tool for presentation. It
shows different views on the GIs and shows some current examples, taken from Euro-
pean retailer and supermarket reality.
A “collection” of instruments for the pro-
motion of regional marketing is impor-
tant! But first the region itself has to be
properly defined!
5
64
Throughout Europe there is an enormous range of great food. However, when a product
acquires a reputation which extends beyond national borders, it will find itself products,
which are presented as the real genuine article and apply for the same name. This unfair
competition not only discourages producers but also misleads consumers. That is why,
in 1992, the European Union created systems known as PDO (Protected Designation of
Origin), PGI (Protected Geographical Indication) and TSG (Traditional Speciality Guar-
anteed) to promote and protect food products. The differences compared to brands are:
BrandCOMPANy ORIGIN
GIGEOGRAPHICAL ORIGIN
Place of production Not fixed Fixed
Risk of enterprise Risk is carried by the owner of the brand
Risk is carried by the whole group
Decision-making process Can be very simple Might be complex
Acquisitional potential Image of the brand needs high investment
Positive Image of a region or country reduces investment
Experience A lot of experts Few experts, so far
Brand vs. geographical origin
A PDO (Protected Designation
of Origin) is the term used to
describe foodstuffs, which
are produced, processed
and prepared in a given geo-
graphical area using recog-
nised know-how.
In the case of the PGI (Protected
Geographical Indication) the geo-
graphical link must occur in at
least one of the stages of produc-
tion, processing or preparation.
Furthermore, the product can
benefit from a good reputation.
A TSG (Traditional Speciality
Guaranteed) does not refer to
the origin but highlights tradi-
tional character, either in the
composition or by the means
of production.
The presentation as power point
is ready made (by terrafusca),
and can be used with all stated examples.
Important is to clarify the concepts/terms
“usp” (unique selling proposition), “uap”
(unique advertising proposition) and “ulp”
(unique local proposition) and also the
“geographical indication”.
In addition the three types of GI at European level need to be explained:
The UAP Consumer expects benefit
Product
USP UAP
ingredi-ences
tech-nology
use personal benefit
social benefit
objective benefit subjective benefit
market research
Sou
rce:
Th
ied
ig (2
00
7)
Module 5 | Inward and Outward Regional Marketing
65Tool Box for Trainers
The difference between the two first ones shows, that the designation of origin (PDO)
is a much stricter way of protection than the geographical indication (PGI). The sec-
ond one gives more flexibility to the applicant and is more widely found in Germany (at
present more than 35 food items: mainly mineral waters, beers, meat-based products,
cheeses, vegetables and bread). The PDO is more widely applied in France and Italy, as
these countries have historically an excellent reputation for good food!
Designation of origin Geographical indication
and / or
and / or
P.G.I.
production
processing
finishing
and
and
P.D.O.
The two types of GIs (according to 2081/92)
Why are European systems for developing and protecting food needed?
To encourage diverse agricultural production
To protect product names from misuse and imitation
To help consumers by giving them information concerning the specific character
of the products
The process to apply for such a protection is a rather long and tedious one
(and can become very expensive). As a moderator for such a process the
following steps need to be observed on the way to protection:
Gather the information for the group that intends to apply for the protection
If the results are positive:
Coordination of the process
Find the adequate opinion leaders and stakeholders to be involved
Organise a workshop for information dissemination and motivation
Decide whether an application should be done or not
Follow up the further process for the application
How do producers and processors proceed in the registration of a product’s name?
A group of producers has to define the product according to precise criteria for
specification.
5
66
5.3 Group work and exercises
5.3.1 Exchange of experiences on marketing of regions and regional products
In order to relate the presented contents to the particpants’ home context, a group work,
which allows the preparation, discussion and presentation of the regional marketing
situation in their countries or regions, is a good introduction to the topic. The idea is
simply to know more about the current situation regarding marketing of regions and
regional products in participants’ countries. Participants have to split in subgroups
according to their countries of origin. In groups they should work on the following tasks:
1. Give a brief overview on the current situation:
e.g. traditional, regional and product brands
legislative framework
major constraints, difficulties
promotion programmes, etc.
2. Describe one example of a regional marketing activity.
Protection and registration of a “brand”:
Protects producers and consum-
ers from misuse and imitation
Increases the publicity of the
region and the product
Promotes regional identity areas
The application, including the specifications, must be sent to the relevant national
authority...
... where it will be studied first and thereafter transmitted to the Commission.
Here the application will undergo a number of control procedures.
If it meets the requirements, a first publication in the Official Journal of the Euro-
pean Union will inform those in the Union who are interested.
If there are no objections, the European Commission publishes the protected prod-
uct name in the Official Journal of the European Union.
The specifications of the protected product are formulated and defined by the applicant
(who always needs to be a group of people) and should contain the following:
Specification (code of practise)
name
description
limitation of the geographical area
proof of the tradition
production
link with the region
control body
labelling
specific national legislation
From April 2006 on, applications for registration of PDOs and PGIs by producers in
third countries outside the EU and objections to applications by individuals in third
countries can be made directly to the Commission.
Module 5 | Inward and Outward Regional Marketing
67Tool Box for Trainers
5
The results of this group work are to be presented in plenary afterwards.
5.3.2 Field trip: Assessment and transfer to own working context
If there are days spent for visiting regional marketing examples e.g. in Germany, the
experiences made during an excursion have to be reflected and discussed.
The group work task could be presented in the following way:
Looking at the marketing efforts for regional products ...
Looking at the promotion efforts for the “Region” (like Spreewald)
Looking at the organisational set-up and the networking of many different stake-
holders.
1 What are the main findings/conclusions that are useful and applicable in your
own working context?
2 What open questions need further clarification?
3 What are your proposals for networking in Regional Branding and Marketing
in SEE?
68
5.4 Self-test
5.5 Reference material
Powerpoint presentation on geographical indications and its context in Europe
Factsheet: “European Policy for Quality Agricultural Products”, January 2007
What are main elements for regional marketing?
What instruments can be used/are appropriate?
How can the protection of a regional product be done?
What are the important features of the EU type of branding?
Module 5 | Inward and Outward Regional Marketing
69
Module 6
Local and Regional Economic Promotion
Overview of this module page
Objectives, content, time To inform particpants/stakeholders of a region on
the important aspects of economic development
and the role of Regional Management therein
What is the history and origin? What are
the main tasks and the instruments?
Time: 0.5 - 2 days
70
Introductory presentations Background and context of LED/RED
Objectives and tasks
Instruments for LED/RED
Organisational structures
71
Group work and exercises Reflection on own experiences
with LED - RED (what is possible in what context?)
Comparison of advatantages/disadavatages of dif-
ferent instruments in various country situations
76
Self-test Main aspetcs of LED/RED
Instruments to be used
Organisational set-up for LED/RED
General, important features for starting LED/
RED in a Regional Manangement context?
77
Reference material GTZ-Publication on Regional/Local Economic
Development in SEE
http://www.mesopartner.com/
http://www.worldbank.org/urban/local/toolkit/
pages/home.htm
78
70
6.1 Objectives, content, time
The learning objectives for the participants are:
To understand the background and context (e.g. in Germany) for getting involved
in LED/RED
To know the main objectives and tasks for LED/RED
To get a first overview on major instruments commonly used for LED/RED
To reflect and exchange on known practical examples in LED/RED and compare
advantages and disadvantages
During a module participants should
exchange know-how on current experiences and on new initiatives of local and
regional economic development in South Eastern Europe (and elsewhere)
discuss the possibilities of networking between South East European countries in
the development and implementation of LED/RED initiatives.
Local and Regional Economic Promotion
Module 6
Local and Regional Economic Development (LED/RED) is an
important function in Regional Management as it intends to
improve the economic situation in the region creating employment
and adding value to the region.
We use the picture of “BMW will not come to your Region” to
stress the importance of looking to the small/medium business
opportunities within the region, to care for the development of the
existing enterprises (also the small and medium ones), instead of
chasing phantoms.
Objectives
Module 6 | Local and Regional Economic Promotion
71Tool Box for Trainers
The contents of the topic should contain the following parts:
Introduction: meaning and understanding of LED/RED in Regional Management
The origin and context of LED/RED
The main policy orientation in local and regional economic development
The instruments commonly used in LED/RED
Some general principles to be considered
In order to introduce to the information on the topic it needs about 0.5 days. To deepen
the given information in an interactive reflection of the content on LED/RED a group-
work can be done to relate the topic to participants reality: 1-1.5 days can be forseen then.
The experience of real case examples (instruments that particpants are familiar with
or have introduced themselves) adds a strong, convincing element to the learning effect.
A first necessary clarification deals with the terminology of “local and regional eco-
nomic development”. Many of the ideas and concepts in this topic arise from what is
called “local economic development” (LED) in literature. The definition of what is ‘local’
is not always very clear and can refer to one community only or to several communes or
even districts. In the context of Regional Management for rural areas it means explicitly
the attempt to cover several communities within a territory and to bundle resources in
rural areas and gain a wider outreach that way.
Literature and projects commonly use the term LED nowadays, but it would be
more complete if the term was extended to Local and Regional Economic Develop-
ment (LED/RED).
More important than the area covered in LED/RED is the involvement of various
stakeholders as it is already expressed in the definition given by the World Bank.
The aims of this process of local/regional economic development initiatives are
to stimulate growth of local/regional economies and create new job markets,
to make the best use of available local/regional resources,
to create space and opportunities to balance supply and demand, and
to develop new business opportunities for and with regional stakeholders.
6.2.1 What is the context in which LED/RED for rural areas (at least in Germany - and Central Europe) has to be seen?
The government obligation on the creation of “equivalent or comparable living condi-
tions“ (not the same!) in all parts of the country is laid down in the German constitu-
tion (Art 28).
The self-administration laws at communal level state the responsibilty for the regulation
of “all matters of the local community” (among them to strive for economic development).
6.2 Introductory presentations
Time
“LED is the process by which public,
business and nongovernmental part-
ners work collectively to create better
conditions for economic growth and
employment generation. The aim is
to improve the quality of life for all in
the community.”
World Bank
Contents
6
72
In that context also LED/RED should be seen as part of services of general interest: “pro-
vision of jobs” (like the basic needs as part of ‘Daseinsfürsorge’). In reality nowadays
there is a multitude of levels (village, city, municipalities, districts, etc.), approaches,
tasks and activities - and not a one way concept of how to go about it.
There is a noticable re-orientation from the establishing of new economic opportuni-
ties (new investments and compannies) towards a stronger focus on the safeguarding of
the existing enterprises in a rural area. In this context the so called “soft location factors”
(well trained labour force, good cultural and ecological environment, etc.) become more
important (besides the hard location factors – physical and technical infrastructure).
6.2.2 Which policies can give orientation where and how to go about LED/RED?
Growth-oriented policy – refers to regional value adding through the mobilisation
of unused potentials in the region (which may be identified in the Regional Devel-
opment Concept – see module 4)
Stability-oriented policy – the diversification of the economic structure (not to
depend on one sector, one crop or only one or two types of activities) will help to
make the regional economy more crisis-proof
Balance-oriented policy – based on the above given statement striving for “equiva-
lent or comparable living conditions” one should have a mission towards that and
also try to keep economic, social and ecological goals in balance
Sustainability (as a policy for LED/RED at local and regional level) – an improved
economic situation in a rural region should aim at strengthening the local and
regional financial power and base of the private enterprises as well as – indirectly
– the public authorities.
6.2.3 What are the objectives and tasks in and for LED/RED?
Improvement of basis of economic development (local infrastructure, knowledge
and motivation of people, ...)
Promotion of innovations and technology – through information, networking, study
tours
Securing of qualification and therefore also employment (training, adult education,
regional knowledge exchange, ...
Securing and developing of existing enterprises and institutions (supporting them
in different ways – e.g. information, technical and administrative support – as they
are based and bound in the region)
Promotion of the creation of new business and jobs (as far as potentials have been
identified and investors can be attracted)
Location marketing/image building (for outside investors - see before) – “selling”
the strong points of the region to the outside world and creating a positive picture
of the economic opportunities
Land provision and locational planning - as far as the legal system allows local and
regional authorities to plan, own, buy and sell, guide and decide over land resources
in their area, which are suitable for economic development
Administrative (internal) support of/for regional business interests – help and advice
in bureaucratic procedures, legal permits, etc.
What policies can support LED/RED?
Policies with an orientation on
growth
Policies with an orientation on
stability
Policies with an orientation on
economic balance
Policies aiming at sustainability
Module 6 | Local and Regional Economic Promotion
73Tool Box for Trainers
6.2.4 What instruments can be used / are known for LED/RED?
Having done the introductory part above, one could start with a brainstorming exer-
cise for the participants making them think about appropriate measures for LED/RED.
The introduction to the “instruments” can be done in a very lifely and interactive man-
ner. Participants should be asked what instruments they already know or are aware of.
This part is then developed card by card and additional explanations are given where
needed. As the system is flexible, the list of ideas can always be extended if the partici-
pants come up with more ideas on appropriate instruments.
6
74
Even outside the local/regional level, there might be additional important aspects hav-
ing a strong impact on a successful economic development – the most important frame
conditions can be named and discussed in this context as well:
Clear legislation
Politcal stability
Transparency in decision making
Anti corruption measures
The instruments can be grouped as above (additional clusters are possible).
Services provided by agencies
Land and infrastructure support
Module 6 | Local and Regional Economic Promotion
75Tool Box for Trainers
Linking and networking support – local co-operation
Education and qualification of people
Promotion of the region (regional marketing – see module 5)
Contests and competitions
Fiscal measures – tax facilitation and reduction (as far as possible)
Depending on the experience of the particpants, additional explanations may be given
about specific terms and instruments – without going into every detail of an instru-
ment. This topic could easily cover another seminar.
The combination of instruments (as an integrated approach) is in many situations pos-
sible and recommendable. Depending on the creativity of the regional management
body, there is a whole range of additional new instruments, which could arise depend-
ing on the creativity of the local and regional authorities, their decision making power
and their financial possibilities.
6.2.5 What organisation is suitable/possible for promoting LED/RED?
In different countries various legal forms for organising the economic development at
local and regional level do exist. Regional Management provides the ways and means
to include private stakeholders (individuals or companies) or other members of the
civil society (NGOs) in the LED/RED. Depending on the degree of self administra-
tion at regional level, the compentencies and responsibilities given to this level and
the financial and technical resources available, several organisational aspects should
be considered:
To have the promotion agency within the administration or as a ltd. company
depends on the above conditions (advantages – disadvantages). If it is located within
the regional administration it should be a cross sectorial task.
Experience shows that more and more public-private partnership models are chosen.
It is always important to integrate the political decison makers of the region into
the process and have them informed on promotion activities.
Sustainable financial solutions for the economic promotion activities are most
important in order to have a long term perspective for the support measures.
Nevertheless, the promotion should be project-oriented: this indicates that clear
objectives, time frame and target groups should be presented.
Done as an integrated approach, economic as well as social, environmental and/or
institutional aspects should be considered.
The latter requires teamwork within public administration, specially in co-opera-
tion with the private sector, where a lot of the expertise is to be found.
6.2.6 What principles (or general recommendations) can be drawn from experiences for promoting LED/RED?
The districts and municipalities hold (at least in Germany) a wide range of tools for
attracting investors, but these tools by themselves do not guarantee success. The human
factor, as expressed in the following six principles, does play an important and deci-
sive role.
Start-upnewly created business/enterprises;
newcomer; need special advice/sup-
port during start, in the beginning
(1-2 years) of business
One stop shopa place/office (in the administration)
where all the necessary papers/per-
mits for starting a business are taken
care of
One window / service doorproviding the needed services
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76
Specialised knowledge On economic and business understanding is necessary
for RM to find the right tone for the discussions with
different stakeholders and for the identification of the
needed support instruments.
Advisory competence Like above, skills in this field are not necessarily avail-
able in a public administration and sometimes have to
be hired from outside.
Decison-making
authority
When it comes to decision-making on promotion meas-
ures (especially if these are involving costs) the respon-
sible authority has to be clearly identified! This is rele-
vant for formal (e.g. district councils, chambers, ...) as
well as for informal groups (clubs, initiatives)
Seriousness People who become active in economic development
and promotion activities have to make this clear and
show it, in order to keep a good relationship and to be
taken serious as competent partners.
Flexibility Given the competencies, skills and traditions that
often characterise rural areas (positive or negative) the
“regional economic promoter” has to show flexibility
towards various aspects (time, availability, understand-
ing, motivation, etc.)
Partnership Being a basis for RM this principle becomes even more
relevant for RED/LED. As economic activities take place
almost exclusively in the private sector a serious part-
nership with people from public sector and civil-soci-
ety is essential.
6.3 Group work and exercises
6.3.1 Group work on the current situation in participants countries
The above given subject matter can be presented and dicussed as an input presenta-
tion in 0.5 to 1 day. In order to relate the presented contents to the participants‘ home
context a group work can/should be foreseen. The focus should be on the presentation
and discussion of the economic promotion possibilities at regional level and the present
situation of their regions’ economic development.
The intention is to know more about the current situation regarding local and
regional economic development within a region in the participants’ countries. Partici-
pants have to split in subgroups according to their countries of origin. In groups they
may work on the following tasks:
Module 6 | Local and Regional Economic Promotion
77Tool Box for Trainers
1. Give a brief overview on the current situation:
e.g. main characteristics of the economic situation and its trends
legislative framework for local and regional promotion efforts
major constraints, difficulties faced in your region
already existing economic development/promotion programmes
2. Describe one example of a local and regional economic development activity/
approach (instruments).
The results of this group work are to be presented in plenary afterwards.
If several days have been spent for visiting local and regional economic development
examples (e.g. promotion measures in Germany) the experiences made during the
excursion have to be reflected and discussed.
6.3.2 Group work: Assessment of field visits and transfer to own working situation
The group work task can look as follows:
Looking at the local and regional economic development examples ...
Which organisational set-up and type of networking of various stakeholders seems
to be promising? Why?
What are the main findings/conclusions that are useful and applicable in your own
working context?
What open questions need further clarification?
What are your proposals for information sharing and networking in local and
regional economic promotion/development in SEE?
6.4 Self-test
What are main aspetcs for LED/RED ?
What instruments can be used/are appropriate?
How can the organsiation for LED/RED look like ?
What are general, important features for starting LED/RED in a regional manange-
ment context?
6
78
6.5 Reference material
GTZ: Regional/Local Economic Development in SEE
http://www.mesopartner.com/
http://www.worldbank.org/urban/local/toolkit/pages/home.htm
a lot of useful information; not focused on rural areas or related to Regional Man-
agement
Local Economic Development (LED), a powerpoint presentation by PACA
based on experiences by GTZ in Indonesia: http://www.red.or.id/
Module 6 | Local and Regional Economic Promotion
79
Module 7
Project Cycle Management and Logical Framework Approach
Overview of this module page
Objectives, content, time Overview on the general concept, principles and
instruments of PCM
Formulation of realistic project objectives
PCM instruments for analysis and planning
LFA/PPM as main tool for project planning
Understanding of “EU” project management
language
80
Introductory presentations Key PCM principles and clarification of main terms
Elements of PCM
Logframe approach: analysis and planning phases
Stakeholder analysis
Problem and objective tree
PPM - Project Planning Matrix
Activity planning
81
Group work and exercises Experiences on failure and success in
project planning
Stakeholder analysis
Elaborate a sound project document:
group work in several steps
90
Self-test Commonly used terms in PCM, Logframe & PPM
Tools for analysis
Difficulties in implementing the PCM approach
How to formulate the own project proposal
92
Reference material Further reading material and websites are listed
on page 92
92
80 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
7.1 Objectives, content, time
The learning objectives for the participants are to:
get an overview on the general concept, objectives, principles and different phases
of the project cycle management
be able to formulate realistic project objectives according to the logic of PPM
Project Cycle Management and Logical Framework Approach
Module 7
A stringent project planning and implementation on municipal and
regional level is an important success factor, which can be influenced
by the project management. It is nowadays a requirement from most
of the donors to prove the ability and skills of sound planning and a
set of clear and realistic objectives, already in the first draft proposal
of a project. There are certainly also examples for successful projects,
which did not start from a solid planning base, but these cases are few
and most of such insufficiently planned projects either fail completely
or result in a big waste of time and money including unnecessary
learning loops of trial and error. Regional managers should have the
capacity to use the current project management tools and instruments
in a way that is most appropriate and supportive.
Objectives
81Tool Box for Trainers
know how to use PCM instruments for situation analysis, planning and imple-
mentation
reflect the appropriate use of management instruments and learn from the expe-
riences of others
have a consistent understanding of terms used by the EC.
A training on project management should include the following contents:
Introduction into Project Cycle Management background and principles
Introduction into the Logical Framework Approach
Presentation and group work on selected instruments for a sound problem and
stakeholder analysis
Elaboration of a Logical Framework Matrix and clarification of its vertical and hori-
zontal logical structure
Outlook on activity planning and scheduling
Presentation and discussion of practical examples that include best practice ideas
as well as possible pitfalls and issues for critical reflection.
If the objective is to give participants the chance to work on their own cases, four to
five days including group work, exchange of experience and the presentation of practi-
cal examples are required. Eight days can be reserved if field visits to several examples
are planned. Just to give an introduction and do some exercises, 2,5 days are required.
Project Cycle Management (PCM) was adopted by the EU (EC Europe aid) as a primary
set of project design and management tools. The European Commission developed
guidelines on PCM to enhance the quality of EC development assistance and to sup-
port good management practices and effective decision-making throughout the project
management cycle (EuropeAid Cooperation Office 2004). The Logical Framework
Approach (LFA) is a core tool used within Project Cycle Management. The EC gener-
ally requires the development of a Logframe Matrix/Project Planning Matrix (PPM) as
part of its project formulation procedures for external assistance.
Project managers in regional development should know the logic and the termi-
nology since the communication and proposal procedures are based on this common
understanding. Beside the formal requirements, the tools offer support for thinking,
analyzing and steering project stages and activities in a systematic way (EuropeAid
Cooperation Office 2004).
7.2.1 Project Cycle Management
Before presenting the project cycle, basic characteristics of projects highlight some chal-
lenges for the project management and steering. Usually projects in Regional Rural
Development are characterised by:
7.2 Introductory presentations
Time
Contents
7
82 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
complexity of objectives and tasks
interdisciplinary teamwork
no routine
no continuous process
high costs
interdependence of participants
Additionally, the clarification of commonly used terms my be helpful at the beginning.
Management, managing structuring social processes in order to achieve
pre-determined objectives (several functions
involved)
Project a process of providing inputs over a limited
period of time containing a group of actvities
Programme a series of projects, where all objectives con-
tribute to an overall common objective (linked
together in a sector, sub-sector, region)
Project Cycle Management is a term used to describe the management activities and
decision-making procedures during the life cycle of a project (including key tasks,
roles and responsibilities, key documents and decision options) (EuropeAid Coopera-
tion Office 2004, p. 17). It is a set of project design and management tools, which are
based on the Logical Framework Approach. As the international debate on aid effec-
tiveness is ongoing, one should know that the tools for project planning and man-
agement are also a constant issue for further development and improvement. From
the point of view of the EC it is important to understand the key principles of PCM.
1 Use of Logical Framework Approach
to analyse problems
work out solutions
2 Production of good quality key-documents for structured and well informed deci-
sion-making
3 Consulting and involving key stakeholders as much as possible
4 Keeping a clear focus on the project purpose
sustainable benefits for intended target group
5 Incorporation of key quality issues into the design from the beginning
To show this life cycle the following pin board can be used. The life cycle is based on
the classical management cycle starting from situation analysis and planning and
going to implementation and evaluation. Evaluation of results is not necessarily the
end of the process. The assessment of intermediate or final project results is again a
description of a new situation (Where are we now? How does the situation look like
now?) and could be the base for continued project planning. Also the steps are inter-
related. Problems in the implementation phase can occur because a wrong under-
standing of the situation existed.
Clarification of terminology
Key PCM-Principles
83Tool Box for Trainers
For a more detailed introduc-
tion into PCM including an
outlook on the tools used during the anal-
ysis, planning and implementation phase,
powerpoint presentations can be used.
References on Monitoring and Evaluation
are included as this is an inherent part
within the project life cycle and the stages
are interrelated. The topic on M&E in
Regional Rural Development projects is
deepened in module 12.
What does PCM aim at?
Projects respect and contribute to the overarching policy objectives of the donor organi-
sation and the beneficiary country as well as to cross-cutting issues.
Projects have to be relevant and propose a strategy, which is agreed upon among
the target groups/beneficiaries and has the potential to solve their real problems.
Projects have to be feasible, e.g. objectives can be realistically achieved within the
operating environment and the capabilities of the implementing institutions.
The benefits generated by the projects are sustainable.
7
84 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
PCM and Logical Framework Approach
Analysis
Evaluation Planning
Implementation
Analysis Phase Identify stakeholders
Identify problems
Derive objectives
Select strategy
Planning Phase Define the logical frame of
the project
Specify activity schedule,
milestones, responsibility
Specify resources from
the activity schedule
7.2.2 Logical Framework Approach
PCM is based on the Logical Framework Approach. A famous element but actually only
the result of an iterative discussion process is the logframe matrix. All in all the log-
frame approach includes various tasks within the analysis and planning stage (Euro-
peAid 2004, p 60):
ANALYSIS PHASE PLANNING PHASE
Stakeholder analysis - iden-
tifying and characterising
potential major stakehold-
ers; assessing their capacity
Developing Logical Framework
Matrix - defining project struc-
ture; testing its internal logic
and risks; formulating meas-
urable indicators of success
Problem analysis - identify-
ing key problems, constraints
and opportunities; determining
cause and effect relationships
Activity scheduling - determin-
ing the sequence and interde-
pendence of activities; estimat-
ing their duration, and assign-
ing tasks and responsibilities
Objective analysis - develop-
ing solutions from the iden-
tified problems; identifying
means to end relationships
Resource scheduling - from the
activity schedule, developing
input schedules and a budget
Strategy analysis - identifying differ-
ent strategies to achieve solutions;
selecting most appropriate strategy
85Tool Box for Trainers
For the practical use of LFA, the EC points out that it has to be intelligently applied in
order to be an effective analytical and management tool. This means that experience
and professional judgment cannot be substituted through guidelines. The LFA must
also be complemented by the application of other specific tools (such as Institutional
Capacity Assessment, Economic and Financial Analysis, Gender Analysis, and Envi-
ronmental Impact Assessment) and the application of working techniques that pro-
mote the effective participation of stakeholders (EuropeAid Cooperation Office 2004).
7.2.3 Stakeholder Analysis
Regional rural development projects are change processes that depend on the behav-
iour of the involved and concerned people. The projects intervene and take place in a
social environment, with a number of actors, who “form a mobile system of mutual
relationships and dependencies” and who “act on the basis of the roles and expecta-
tions ascribed to them, their influence and their resources and adopt a supportive or a
rejective attitude toward reform projects” (GTZ 2007, 75).
Within this context, the stakeholder analysis is an instrument for situation analy-
sis and project planning and can be conducted on a preparatory and preliminary or on
a detailed scale. It also includes preliminary institutional capacity assessment, gender
analysis and others.
Participants get a practical tool for undertaking a stakeholder analysis for a project
idea. While conducting a stakeholder analysis, doubts or new information about the
interest of important stakeholders, especially the target group and key players might
come up, what can lead to an adjustment of the defined objective(s).
The introduction to this instrument can be part of a Powerpoint presentation on
PCM followed by a pin board that shows a matrix to list the stakeholders with their atti-
tude towards the project idea and their possible influence. Once this scheme is intro-
duced it can also serve as base for a group work.
The questions that are related to the Stakeholder Analysis are:
Which people and organisations are concerned?
What interests and benefits do the stakeholders expect?
How strong/important are these interests and benefits?
How can the stakeholders contribute to the project?
How important is the contribution?
The stakeholder analysis is a widely used tool, nevertheless there are variations that
are not contradicting but might cause confusion by a slightly different usage of terms.
Attention should be therefore put on the clarification of stakeholder classifications.
Common terms are beneficiaries (target groups as well as final beneficiaries) and project
partners (EuropeAid 2004), but also ‘key stakeholders’, ‘veto players’ and primary and
secondary stakeholders’ (GTZ 2009).
7
86 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
7.2.4 Problem and objective analysis
A common tool to conduct a problem and objective analysis is the “problem tree” and
the resulting “objective tree”. The analysis altogether involves three main steps:
Definition of the framework and subject of analysis;
Identification of the major problems faced by target groups and beneficiaries; and
Visualisation of the problems in form of a problem tree or “hierarchy of problems”
to help analyse and clarify cause – effect relationships.
The analysis aims at identifying the real bottlenecks, which stakeholders attach high
priority to, and which they wish to overcome. A problem tree illustrates the cause and
effect relationship of problems using a hierarchical tree diagramme. It encourages team
members to explore the chain of events or causes by constantly asking “why?” Once com-
plete, the problem tree represents a summary picture of the existing negative situation.
The instrument of the problem tree is introduced with a Powerpoint presentation.
A written example on a pin board serves for a later group work. Participants understand
how the analysis of problems gives basic information to be transformed into objectives
in order to improve the situation.
Analyse - describe the problem
Analyse - describe the objectives
Effects
Causes
general
detail
general
detail
Decreasing income of artisanal fisherfolk
Decreasing fish stock
Low price received by artisanal fisherfolk in
the village
Destruction of coral and mangrove habitats
Illegal fishing
methods
Processed fish is of bad
quality
Limited access to market
Effects
Causes
general
detail
general
detail
Income of artisanal fisherfolk increases
Rate of decline in fish stock arrested
Price received by artisanal fisherfolk
increased
Coral and mangrove habitats
conserved
Incidents of illegal fishing
reduced
Quality of fish processing
improved
Access to markets
improved
87Tool Box for Trainers
7.2.5 Project planning matrix
The logframe matrix is the central step within the Logical Framework Approach that
summarizes previous steps and visualises the logic of intervention on the different
levels of objectives (EuropeAid 2004, p 73). The introduction into the logframe matrix
can be given with a pin board presentation or a Powerpoint presentation. The use of
both is possible as well, since the matrix illustrated on a pin board can support group
work on the elaboration of a hierarchy of project goals.
Participants understand the hierarchy of objectives and clarify terms.
In addition to the interrelation of the different columns in the logframe, the need for
and use of assumptions are introduced to participants:
Assumptions are external factors that influence or even determine the success of
a project.
An intervention never covers all aspects of reality.
Pre-conditions must be fulfilled before activities can start.
7
Logical Framework or Project Planning Matrix - PPM Gives an executive overview on all necessary information regarding the why, the what, the where, when and how of a project
Project/programme strategy (logic of intervention)
IndicatorsHow can the achievements
of the project be measured?
Sources/means of verificationWhere can evidence be found
for the formulated indicators?
Important assumptionsWhat external condi-
tions are important for
the project’s success?
Development goalWhat impact will the
project have in the target
“group” situation?
Project purposeWhat immediate effects
will the project have on
the behavior of the target
group?
Outputs, resultsWhat is the project
going to achieve?
ActivitiesWhat is the project
going to do?
Means: inputs and costs
How much will the project cost?
88 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
Assumptions
What are they?
They are external factors that influence or even determine the success of the project.
Why are they required?
Intervention logic never covers all aspects of reality. External factors have an important
influence on the success and should be identified and taken into account.
What is a pre-condition?
A condition that must be fulfilled/met befor activities can start.
Logframe: An example
Intervention logic Objectively verifiable indicators Sources of verification
Assumptions
Overall objective
Income of artisan fishermen increased
The normal income of 75% of the 3600
fishermen members of the fish co-oper-
atives in region X has increased by 25%
at the end of the project. The number
of radios and motorcycles increased in
the area.
Enquiry
among mem-
bers of the
co-operatives
Project purpose
Prices received by artisan
fishermen increased
By the end of the project the prices for
one ton of processed fish paid to the
small fishermen organised in co-oper-
atives in region X has increased: for
mackerel by 20%, for sardines by 35%,
for salmon with 25%.
Statistics and
accountability
of the different
cooperatives
The production costs
will not increase faster
than the inflation.
Results
1. Quality of fish processing improved
The quantity of processed fish not
accepted by the market decreased by
10% after 1 year and by 50% at the end
of the project.
Records of the
co-operatives
The government
remains in favour of
the development of the
artisan fishery sector.
2. Access to markets
improved
Fish processed by the artisan fishermen
of region X can be found on all markets
and they can sell 25% of their products
on the international market in the capital.
Survey on
the markets;
records of the
co-operatives
Activities
1.1 Invest in processing units
1.2 Train the artisans in making good use
of the processing units
1.3 Install a cold chain for fish storage and
transport
2.1 Strengthen the bargaining power of the
co-operatives
2.2 Organise a representation of the co-
operatives in the national fishery board
2.3 Organise advertisements for the products
of the cooperatives
Means
5 processing units
4 training sessions (10 days) for 5 people
3 cold chains
10 leadership training
advertisement
Costs
150 000
40 000
300 000
50 000
total 540 000
88
89Tool Box for Trainers
Logframe and evaluation criteria
Logframe
Overall objective
Purpose
Results
Activities
Situation
Evaluation criteria
Impact
Effectiveness
Efficiency
Relevance
Sustainability
A good indicator should be ....
SMART
Specific to the objective it is supposed to measure
Measurable either quantitatively or qualitatively
Available at an accaptable cost
Relevant to the information needs of managers
Time bound so we know when we can expect the objective to be achieved
Key elements of good indicators
Quantity – how much?
Quality – how good?
Time – how long / When?
Location – Where?
Target group – with / by whom?
7.2.6 Activity planning
Activity planning is to show the link of project management to scheduling activities
and resources.
An activity schedule:
maintains objective-oriented approach of logframe
breaks activities down into operational details
clarifies sequence, duration and precedence of activities
identifies key milestones
assigns management responsibility, implementing responsibilities and should
include management tasks.
A recource schedule:
maintains objective-oriented approach of logframe
facilitates results-based budgeting and monitoring of cost-effectiveness
provides basis for planned mobilisation of resources (external & local)
identifies cost implications
› counterpart funding requirement
› post-project financial sustainability.
Activity scheduling
Resource scheduling
7
90 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
7.3 Group work and exercises
7.3.1 Brainstorming: Exchange of experience in the beginning
The introduction to PCM can start from the experiences of participants by collecting
and structuring common factors for failure and success in project planning experi-
enced by participants so far:
“What are failures and successes that you have experienced in project planning?”
Participants may write their own answers or a moderator visualizes continously.
7.3.2 Group work: Stakeholder analysis
The following group work helps participants to get familiar with the instrument of the
stakeholder analysis as a tool to further develop ideas and question possible ways for
involvement and participation of stakeholders.
91Tool Box for Trainers
Based on a given project idea of a group member, teams of 3 - 5 participants are asked
to elaborate an assessment of stakeholders involved:
list all possible stakeholders
describe their attitude towards the project
describe their potential power/influence to support or hinder the project
assign values for attitude and influence (--, -, 0, +, ++)
decide on an appropriate communication strategy.
Additionally, the group work can include the visualization of the stakeholders in a
matrix as presented during the introduction or as a Venn diagram.
7.3.3 Group work: Problem tree and objective tree
The instrument of the problem tree is introduced. Starting from a first brainstorming
participants are asked to develop a project tree:
develop a problem analysis for the project idea
collect all problems related to the project idea
cluster the problems
discuss and decide upon the hierarchy of the problems.
In a second step the problem tree is transformed into the objective tree, which repre-
sents the base for further discussion on the intervention strategy.
After the exercise, a possible discussion in plenary may be helpful to identify the les-
sons learned:
How to identify the problem description that is put into the central position?
How to transform problems into appropriate objectives?
Participants reflect on experiences and pitfalls with planning instruments in a visual-
ized group discussion.
7.3.4 Group work: formulating objectives and indicators on different levels
Participants learn to structure project ideas according to the content of the project
(problem and objective), stakeholder and organizational set-up for implementation.
They use a logical framework to structure the project idea and go into details about
the planning of activities.
During the training a group of participants concentrates on one project idea devel-
oping first a general idea and then going into details of the project.
Often the group work is split into 3 -4 group work sessions with intermediate pres-
entations. During the discussion of the group work, details of the project can be clari-
fied. The logic of the intervention needs to be proven.
7
92 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)
7.4 Self-test
Which are the most common terms used in the context of PCM and Logframe?
What are useful tools for the analysis of a project idea.
Describe the different stages of the PCM: What type of difficulties may arise in the
project cycle? How could a PPM look like for your own project?
What are parts of the Logframe?
7.5 Reference material
Beaumelou, F. (2009): Guidelines – Elaborating and managing a project within
IPA. Croatia.
European Commission (2004): Project Cycle Management Guidelines. Volume 1.
Brussels.
Available at: http://ec.europa.eu/europeaid/multimedia/publications/publications/
manuals-tools/t101_en.htm, visited on 2010-12-18
GTZ (2009): Capacity WORKS – The GTZ Management Model for Sustainable
Development. Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)
GmbH. Eschborn.
Spreckly F. (2006): Project Cycle Management. Herefordshire.
Available for download on http://www.locallivelihoods.com/Documents/Toolkit%20
2.1.pdf visited on 2010-12-18
Internet Sources
www.worldbank.org (search pcm)
www.undp.org (search pcm)
www.dfid.gov.uk
www.livelihoods.org
www.ifad.org (search pcm)
www.gtz.de/english (search pcm)
93
Module 8
Project Budgeting and Funding: Co-finance, Private Public Partnership
Overview of this module page
Objectives, content, time Set-up project budgets through creative
co-financing
Elaborate alternative sources of project funding
Combine different sources (public means,
sponsoring, donation, etc.)
Introduce concept and experiences of
regional funds
94
Introductory presentations Example of a financial mix for regional projects
Presentation: Principles of fundraising
Difference: Sponsoring - donation
Principles of regional funds
95
Group work and exercises Group work: Sponsoring concept
Group work: financing concept for a selected
project
103
Self-test Alternative means for financing regional projects
Steps to elaborate a financing strategy
Difference between sponsoring and donation
Advantages/disadvantages of PPP
103
Reference material Links to EU programmes
Aktives privates Kapital für die Region erschließen:
Instrumente und Beispiele (Hg. Bühler, 2009)
Leader-Forum 2/2005
104
94 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
8.1 Objectives, content, time
Through this module the participants will be able to:
make local/regional project owners and project managers think about creative
project financing
show alternative sources/ways of project funding,
motivate Regional Managers resp. regional stakeholders for the search of alterna-
tive financing means,
stimulate regional stakeholders for fundraising or sponsoring activities in their
current projects.
What is a useful alternative financing concept for my project?
Who can be a financing partner?
Where can (additional) means be found for the financing of my project?
Project Budgeting and Funding: Co-finance, Private Public Partnership
Module 8
Module 8 “Project budgeting and funding” shall give an overview
on different possible ways of financing a regional project. It may
also motivate interested stakeholders not only to rely on public
means but to search for individual project (co-)financing.
Key terms that will be introduced and discussed are donation, fun-
draising, sponsoring, in-kind contribution, Public-Private Partner-
ship (PPP), and Regional Fund.
Objectives
Guiding questions
95Tool Box for Trainers
Minimum time required for this module:
0.5 days for the presentation and discussion of alternative financing means
one full day with group work: development of a concept of project financing for an
current project.
8.2.1 Introductory example of a financial mix for regional projects
The financing of a regional project normally turns out to be a complex issue. Normally
the Regional Management does not have just one pot for 100% project financing but has
to mobilize different sources. These sources have special characteristics and therefore
the spending of money has to follow different regulations. It is the art to navigate in
this “financing jungle” and to find the best solutions possible for the project financing.
Project-financing with different partners needs some essential attributes:
an efficient project management,
an efficient administration (of the project owner),
an excellent communication between the project partners.
The following example of good practice shows, what positive changes a good financial
concept can bring:
8.2 Introductory presentations
Time
Project: Renovation of a public swimming
pool with latest ecological technology in a
rural community. Total costs: 490,000 €,
+ in-kind contribution by citizens of more
than 3000 working hours (implemented
in 2007, www.postbauer-heng.de)
8
96 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
The example shows different sources for the financing of the project:
European Union
Freestate of Bavaria (Province)
Municipalities
Donations of citizens
additionally 3,000 hrs of in-kind contribution by engaged citizens.
The kind of project financing has some important side effects, apart from the eco-
nomic perspective:
(financial) responsibility is on more than one shoulder
confidence among partners (esp. public and citizens) is strengthened
co-operation increases the commitment in the region.
8.2.2 Project budget and funding
Overview on different sources of project funding
Public Sources
Public financing sources are:
the European Union
the government
the province
the municipality.
European Union
Government
Province
District
Community / municipality
Enterprises/ companies
Private persons
In-kind contribution
Donation
Foundation
Fund raising
Sponsoring
Regional fund
Project budget
Public sources Private sources Mixed forms Public private partnership
97Tool Box for Trainers
EU-funds are often characterized by a 50% contribution, which has to be nationally
co-financed by other means.
Normally an EU-project has to be pre-financed by the project owner because the
contribution from EU will only be given after the expenditure. EU pays only after hav-
ing got receipts for the “real” money transfer from account to account. This can become
a problem because you need an amount of money which is possibly too much for your
co-financing partners at the beginning of a project. Wide and large control measures
are also characteristic for EU projects.
Besides the IPA programme there is a wide range of specified EU programmes
offered, for example for culture, education, environment etc. Also on national level
similar programmes have similar rules for financing.
Private sources and donations
The contribution to a project budget can also come from private sources. In this case
it is normally from enterprises, associations or citizens. If private sources co-finance
a project which gets subsidies (e. g. by the EU) this can mean, that the rate of subsi-
dies will be decreased according to EU regulations. In reality we often find a mixture
of private and public means.
Donations are given by private persons or companies. In contrary to sponsors, dona-
tors do not expect a service or product for their money (maybe only a receipt for their
tax declaration).
For a Regional Management initiative and its projects it has to be clarified whether
it is legally allowed to receive donations. In some countries it is not.
Fundraising
“Fundraising” can be defined generally as the sum of all efforts to get money for a
project. Others define it as a communication exercise: Fundraising means to elaborate
a communication strategy for the acquisition of financial means.
Fundraising is targeted to public and private donors for the promotion of very dif-
ferent purposes. It is a kind of “project-marketing”, which is very common in the USA
and which is used more and more in Europe.
The own service or product has to be promoted to potential clients (or: promotors)
in a way they can understand and to motivate them to support the project by financial
means.
Therefore a fundraising concept is important. The concept should answer all ques-
tions about the project, purpose, costs, use of means etc. As an orientation some “fun-
draising steps” can be identified:
Step 1. Situation analysis and goals
Clarify the questions:
Where are we?
What are trends in our working/business environment?
What activities could help us?
What are our goals for the next years?
8
98 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
Step 2. Project development
The starting point is a project idea or proposal. It has to be clearly formulated. There-
fore the following questions should be answered:
How could the project look like, what are sub-targets?
Who is our target group?
What activities are needed?
Who are (potential) project partners?
Step 3. Budget and market estimation
Find out what kind of a market it is and who the marketing partners are. Do possible
financing partners know about problems and needs of your project? Are they aware of
them? Maybe an information campaign could support the creation of more awareness
and understanding for the project and/or the product!
Step 4. Analysis, search and selection of available financing means and sources
What kinds of financing are possible? Is it enough? Which programmes from which
sources or donors fit to my project?
Step 5. Formulation of a fundraising strategy
What methods do we want to use?
How can we show the target group/promotors the value of their engagement?
What media do we want to use? What is the time frame?
Step 6: Acquisition of financing means
For the acquisition of means different methods are thinkable: for example individual
letters to organisations/institutions, presentations etc. according to the target group.
Monitoring and evaluation of the fundraising process, if necessary: changing of
fundraising strategy.
Sponsoring
Sponsoring is a two-way business, not just an idealistic or altruistic approach. The
idea should be:
a sponsor supports your project with money and/or infrastructure etc.
in return for his support you give the sponsors the possibility to prove to the pub-
lic, what good intentions he has: using his logo on the letters, with public relation
activities, press conferences etc.
Both sides are in charge of delivering either money or reputation. This is the main dif-
ference to donations.
In sponsoring one has to clarify/deliver:
What should be sold: what is the product/project?
The needs: is financial support needed or any other goods or services?
The target group: Who can be a sponsor? Important: Is he suitable for your project,
philosophy, approach?
The method: How can the sponsoring be implemented?
A calculation of personnel, time and financial resources is needed.
99Tool Box for Trainers
A sponsoring concept is needed:
How can possible sponsors be reached?
It should explain clearly and in brief to possible sponsors
what is needed,
why they should sponsor the project, and
what the added value for them could be.
Possible sponsors might have money but normally no time for long academic intro-
ductions and explanations. They have to be convinced very quickly about your idea or
project:
A good preparation and a well-prepared sponsoring folder with information about
your project (short, concise description; leaflet ...) which is presented in a smart
way to the possible sponsor will help open the doors.
Sponsoring needs a longer planning phase and one should try to think from the
donor’s perspective about “what is the added value for the sponsor”?
Sponsors normally plan their budgets in the second half of a fiscal year. Big companies
have clear internal sponsoring rules and often they focus on a specific action field like
culture, sport activities or social activities. That means: start early enough in order to
be in time for the sponsoring of the project. In the context of Regional Management
good experiences with regional banks can be stated. Regional banks
have their roots in the specific region,
have knowledge about the region’s situation,
are legally forced to invest money in the region,
can be motivated better for regional engagement as they have many personal con-
tacts to regional stakeholders.
Sponsoring
What is your product / project? Describe your project concisely
What do you need? Financial support?
Goods?
Services?
Who can be a sponsor? Select the sponsor properly –
does he suit your project?
What can you offer to the sponsor? Consider the value added
for the sponsor
How are your resources calculated
(personnel, time, money)?
What resources are needed?
Good preparation and planningSponsoring concept
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100 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
Foundations (of citizens)
Foundations are on regional level an exception for the financing of projects. But, like
fundraising, they are becoming more and more popular and that is why they are a part
of this chapter, especially so-called “foundations for citizens”.
Before the establishment of a foundation many questions have to be clarified. The
most important is whether there is enough basic capital for the foundation?
The basic capital of foundations is safe and may not be used for any other purposes than
the generating of interests of which the projects are financed. That means that quite
a big amount of money is needed to have a useful financing source. At the beginning
there are normally a few persons who initiate the foundation.
A foundation of citizens is neutral, independent and has the self-understanding
of being a part of a democratic and responsible society. It is independent in terms of
economy and politics and is neutral concerning confession or political parties. The
foundation is situated in a region, district or municipality.
A foundation of citizens continuously increases the amount of money. This can
come -besides interests- from different sources, like donations or additional founda-
tion capital from citizens.
A regional foundation of citizens can just promote initiatives or projects or is work-
ing operationally with own projects.
Transparency and public relations are very important for a foundation in order to
get money and to show the integrity of the work and projects. Therefore it has to have
clear criteria for the funding of projects, controlling and reporting.
Public Private Partnership (PPP)
Although a PPP is also a mixture of public and private money sources it is an extra
category of financing projects. It has very special legal aspects and is an own form of
business model.
The expression “Public Private Partnership” came up in the 90s, when governments
and municipalities started to sell public goods like railway systems or public services
to external private investors.
For the use by the public hand they paid a fee to the investors and had long-term
contracts with them. The advantage for the public hand is:
the immediate pay off of debits
no investment costs
up-to-date techniques
external competences, which can not be provided by public administration, can be used
political influence and decision-making is assured
risks (financial, technical, organizational ...) are shared among PPP partners
private actors take over more responsibility for the region.
On the other side not all PPP-projects were successful. Sometimes the disadvantages
for the public were bigger than the advantages:
many organizational and personnel resources are needed for preparation,
political influence is assured but not to 100 % (compared to other public projects),
101Tool Box for Trainers
some forms of PPP are only meaningful if they have a certain volume of investment,
dependency of a private contractor (30 years and longer),
high monthly costs (depending on the contract),
loss of public property to private sector.
Meanwhile governments and municipalities are quite critical concerning PPP, although
there are functioning models on small-scale level. A Regional Management can base on
a form of PPP: basis financing by the district and by generating own money by offering
special services like moderation services and others.
A new PPP approach on regional level is the initiation of a regional fund as explained
in the following chapter.
“XperCapital” - a regional fund established as PPP
1. Initiation of a regional holding company
In a rural area in Germany a lack of regional investment capital is identified, because
normally supra-regional investment companies are only focused on selected “high-
tech” branches
innovative ideas from regional SMEs can often not be developed or implemented
because of too few companies own capital or because of missing securities
the banks normally have problems to offer products, similar to own capital.
A rural region lives especially from the SMEs, which strengthen the region and offer
many workplaces. Innovative regional entrepreneurs often face the problem of getting
no credits from banks or investors who only invest in “high-tech sectors”. It is the inten-
tion of this fund to fill this financing gap. Not only rentability but also other economic
and social effects are assessed.
The region shall be explicitly promoted. Therefore shares are only given to compa-
nies which have their roots resp. headquarters in one of the communities in the region.
2. Structure of the fund
The “XperCapital GmbH & Co. KG” was founded in 2007 and has been working since
2008 as a so-called revolving regional development fund. The capital stock for this lim-
ited partership was collected in three signing phases:
350,000 Euros have been collected by regional banks of the districts Rottal-Inn and
Dingolfing-Landau
further 230,000 Euros have been invested by entrepreneurs and private persons
in the end of 2009 the stock had an amount of 580,000 Euros. This sum was
increased by means from the European Fund for Regional Development (EFRD/
GER: EFRE) with an amount of 395,789.02 Euros.
In total the sum in 2009 was 975,000 Euros. The future goal of the fund is a total sum
of 2,000.000 Euros.
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102 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
3. The control board
The control board was elected by the members of the shareholder assembly. It has the
task to approve the investment proposals by the management but has the right of veto
and proof the quarter reports. The board has eight members from communities and
companies.
4. Investment and investors
The profile of a “typical” investor in such a fund:
The investor
shows social responsibility
finds more sense in regional added value than in quick profit
wants to create new workplaces by investing in innovative companies
supports the regional companies with his expertise, experience and contacts
wants his engagement to be seen in public in a valuable way.
In XperCapital there are about 20 investors, regional banks, local companies and pri-
vate persons involved.
5. Strategy of investment
Who gets the investment from these non-active interests?
companies from the target region
innovative ideas
investment in companies with high grade of autonomy
entrepreneur must accept criticism
less than 50 workers
less than 10 Mio Euros turnover per annum.
Shareholders participate with an acceptable amount of own capital. In general there
are further investors (local banks, other investment companies) involved, one share
is between 20,000 and 200,000 Euros. Natural persons and the juridical persons or
owners have liability for their shares. Securities covered by assets are not demanded.
6. Conditions and period
Basic interest is 9% p. a.
Variable return on capital, dependent on success up to 4% p. a.
Variable final return on capital, dependent on success up to 5% p. a.
Period max. 10 years
Repayment in five constant annual rates starting from the 6th year
Extra repayment is possible
On demand: strategic and micro-economic accompanying.
7. Benefit for the region
Innovative companies
attract innovative people and other companies
give motivated people safe workplaces
promote the region
increase the quality of life in the region.
103Tool Box for Trainers
In-kind contribution
With in-kind contribution a project can decrease costs for example for the construc-
tion of a building. Engaged people work without payment to accomplish the building.
That means the project financing can concentrate on other important project elements.
In-kind contribution is only possible if it is clear that engaged local or regional peo-
ple have the will and motivation to spend their spare time in order to support a com-
mon project.
While planning the project it also has to be clarified that the donor will accept an
in-kind contribution as a co-financing for the project. This is not always the case.
8.3 Group work and exercises
8.3.1 Group work: Develop a sponsoring concept
Define a project and develop a sponsoring concept for it. Consider the following questions:
What are the objectives of the sponsoring?
Who should be sponsor and why?
From the perspective of the potential sponsor: What are the reasons why he should
sponsor your project?
8.3.2 Group work: Elaborate a financing concept for a selected project
Select a possible project from you region and try to set-up a raw financing concept by
concerning the following topics:
By what means should the project be financed?
Who/which organization could be a financing partner?
8
8.4 Self-test
What are alternative means for financing regional projects?
What are necessary steps to elaborate a sound financing strategy?
What is the difference between sponsoring and donations?
What are advantages and disadvantages of PPPs?
104 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership
8.5 Reference material
Documents: Most of the documents are in German language
Bühler, Josef: Finanzierungsquellen für Non-Profit-Organisationen, in:
Deutsche Vernetzungsstelle LEADER+ (Hg. 2003): Fördermittelakquise-
Alternativen zu LEADER, p. 29-40. Bonn.
Bühler, Josef: Aktives privates Kapital für die Region erschließen:
Instrumente und Beispiele. LAG Wirtschaftsraum Schraden e.V. und
LAG Märkische Seen e.V. (Hg. 2009). Elsterwerda, Strausberg.
Crole, Barbara: Profi-Handbuch Fundraising (2007). Regensburg, Berlin.
Leaderforum 2-2005, Deutsche Vernetzungsstelle LEADER+(Hg.2005),
Frankfurt am Main.
Websites: Many of them are available in English
http://ec.europa.eu/budget/index_en.htm
www.fundraising.co.uk
www.fundraising-ideas.org
www.fundraising-verband.de
PPP - Examples: www.gtz.de --> English --> Publications
http://en.wikipedia.org/wiki/Public%E2%80%93private_partnership
http://de.wikipedia.org/wiki/Sponsoring
www.sponsor-service.com/
www.xperregio.de
105
Module 9
Network Management
Overview of this module page
Objectives, content, time Clarify what a network is and why networks
are needed in Regional Development
Analyse different types of networks in the con-
text of Regional Development / Management
Stakeholder analysis
Key factors for successful networking and
role of Regional Management
106
Introductory presentations Definition of and reasons for networks
Types of networks in regional development
Interactive gathering of characteristics
for successful networking
Discussion on the role of Regional Management
107
Group work and exercises Knives and glasses exercise
Group work on stakeholder analy-
sis (participants’ practical examples)
Group work on networks from par-
ticipants’ context
111
Self-test Networks to promote RRD
Different types of networks & implications for RM
Relevant questions for a stakeholder Analysis
Key success factors
114
Reference material PPT on networking
Practical example: Networking in
Pielachtal/Austria
Different types of networks in the REGINA
context (steering network, LDC network,
energy plenary…)
Bayerisches Netzwerk Nachhaltige
Bürgerkommune NENA
www.nachhaltige-buergerkommune.de
114
106 Module 9 | Network Management
9.1 Objectives, content, time
Learning objectives are that participants will be able:
to understand the importance and benefits of networks and networking for a suc-
cessful Regional Management:
› Networks as a tool to disseminate ideas and objectives of Regional Development
in the region
› Networks as a tool to involve and integrate relevant stakeholders in the develop-
ment process
› Networks as a tool to promote knowledge exchange and the development of new
ideas and solutions
to understand the role of the Regional Management in networking
to be aware of success factors.
The contents of the topic should contain the following parts:
Introduction: What is a network and why do we need networks?
Types and examples of networks
Stakeholder analysis
The role of Regional Management and key factors for successful networks.
Network ManagementModule 9
In Regional Development and Regional Management, networks are
tools to achieve a sustainable and interdisciplinary regional develop-
ment by connecting relevant actors and activities (economy, capac-
ity building agencies, associations, administrations, communes …).
The creation of networks by itself is therefore a specific development
goal. Active networking (= linking actors with similar objectives and/
or activities fitting one into another) is consequently a central task of
Regional Management.
Objectives
Content
107Tool Box for Trainers
To give a general introduction in an interactive way into the topic (including the knives
& glasses exercise) at least half a day is required. In addition to that a stakeholder anal-
ysis related to real participants‘ examples (group work – ½ day) could be part of the
module (who are relevant stakeholders, what are their interests, how should they be
involved?) unless it is not done in the context of PCM (cf. module 7: Project Manage-
ment) For deepening a group work on participants’ examples could be added (½ day).
A network in regional development is a social structure made up of individuals or inde-
pendent organizations which are connected by one or more links such as common inter-
est, common project, knowledge, relationships of beliefs.
The co-operation between network members is for a specific purpose/specific pur-
poses and can apply to different areas. To become a continuous and sustainable relation-
ship the network must produce benefits to its members. These benefits are expected
by generating synergetic effects through the exchange of knowledge, the using of com-
plementary skills or by joining efforts. The realizing of networks potentials requires a
good and competent network management.
The quality and intensity of networking is also used to quantify social capital - the
value an individual or organization gets from a (social) network it is part of.
9.2.1 Why do we need networks?
Traditional institutionalized planning systems characterized as well by a sectoral and a
top-down approach are in many cases overwhelmed by the complexity of today’s envi-
ronmental, social and economic challenges. In many cases integrated and coordinated
planning approaches and co-operation are required. Relevant actors from different sec-
tors must be identified, informed and involved.
However, the management of co-operation and participation requires structures
that can be adapted to the individual needs that provide transparency and openness
and ensure the exchange of information and knowledge in different subject areas and
between sectors. Networks can meet all these requirements.
The regional level provides a good basis for an integrated network approach: hierar-
chies are flat and sectoral thinking is not as pronounced as on national level. Integrated
problem solving strategies also fit with the growing political weight of the regional
level e.g. in view of regional energy cycles, regional policies on demographic change,
regional marketing activities, etc.
The benefits through co-operation and innovation are limited not only to individual
projects. Networking offers to the Regional Management the opportunity to control a
regional development process, to initiate innovation and to facilitate the exchange of
knowledge in different subject areas and between sectors.
9.2 Introductory presentations
Time
9
Why do we need networks?
Boundaries of institutionalised
planning
Complex ecological, social and eco-
nomic problems
Growing relevance of regions
Lack of information and transpar-
ency
Need for coordination
Benefits through co-operation and
innovation
108 Module 9 | Network Management
9.2.2 Types and examples of networks
Steering
network
Local Action Group Basic decisions
for RM
Discussion and
decision about
projects and goals
Cross-cutting
network
Guiding vision
(“Leitbild”)
Integration of dif-
ferent sectoral
action fields
Project network Cooperation (and
financing?) to imple-
ment a project
Bundeling of
capital/human
resources
Network of
innovations
Exchange of know-
how in one branch
Develop new prod-
ucts, projects
Co-operation of
different levels/
sectors of a branch
Interregional/
international
network
Project co-operation Exchange of
information and
experiences
(To get extra funds
for co-operation)
In Regional Development/Management different types of networks are relevant: In the
EU-LEADER context by a steering network it is the Local Action Group (LAG).
In this body all relevant stakeholders of the Regional Development process are
represented. The composition of the group (min 50% civil society - max 50% politics
and administration) ensures the participatory approach (bottom-up) and promotes co-
operation.
The members of this network make the basic (strategic) decisions in the manage-
ment of the development process.
In this steering network project proposals are presented, discussed and modified.
The members decide also which projects should be funded.
Moreover, the members of the network have a lobbying function. The participa-
tion in the management and decision making body includes also the active support
of the objectives of the Regional Management in other political, administrative and
civil society areas.
Horizontal co-operation across sector boundaries is an original issue of network-
ing in Regional Management. A cross-cutting network is a prerequisite not only for all
local or Regional Development concepts or guiding visions (Leitbild). The coordination
between the different fields of action and intersectoral co-operation are rather permanent
tasks of Regional Management. The facilitation of thematic groups and the exchange of
information between the different thematic groups is therefore a central and permanent
task for the Regional Management. This includes also the involvement of already exist-
ing initiatives or local activities (e.g. marketing, tourism, social …). The implementation
of a crosscutting network also opens up the possibility of disseminating and spreading
the idea and objective of Regional Rural Development in the whole region.
Designing, managing and implementing a project requires usually the co-opera-
tion of different stakeholders, which can also be described as “project related network”
or project network. Already is it apparent from the name, that this network is created
Different types
Cross-cutting network
Project network
Steering network
109Tool Box for Trainers
only on the implementation of a project. It is therefore timely limited and is primarily
used to organize the co-operation of the stakeholders and to join forces.
Especially larger and complex projects that require long term commitment, sup-
port and financial contributions from different stakeholders will need an organizational
structure to manage the implementation. The task of the Regional Management will
be to bring the right partners together and to facilitate and organize the implementa-
tion of the project network.
Cross-sectoral networks are seen as a driving factor for mobilizing local potentials.
They are also an important instrument in capacity building. Innovation networks or
learning networks are therefore an important tool in regional development and regional
management. cf. modul 11: Capacity Building.
Although they are cross-cutting these networks usually have a main thematic focus.
An example for an innovation network is the mechatronics-network in the district
of Cham (Eastern Bavaria). The network links several innovative companies in the
region with universities for applied sciences in Eastern Bavaria, the East Bavarian
Technology Transfer Institute, the Department for Economic Development in the dis-
trict administration and the regional facilities for vocational training. Objectives are
the improvement of vocational training, of applied research and development and of
information on mechatronics. Moreover the creation of a mechatronics cluster in the
region is envisaged.
In the EU-LEADER context interregional/international networking is explicitly
encouraged and projects related to this type of co-operation get higher funding. From
an interregional and transnational co-operation a particularly fruitful exchange of infor-
mation and experience is expected due to different points of view, different mentality,
different types of resources, etc.
Especially in border regions as well as in case of neighboring Local Action Groups
the implementation of numerous projects requires a state border crossing or adminis-
trative boundary crossing co-operation.
In European projects with national/transnational elements the search for suitable
project or co-operation partners is usually facilitated through partnership fora either
web-based or during national/transnational meetings.
Because of a higher input in time, effort and money interregional and international
networking requires an accurate assessment on costs and expected benefits.
9.2.3 Stakeholder analysis
Who are the main stakeholders in relation to a development process or to a planned
(thematic) network (e.g. elaboration of a local development concept or set-up of a project
network)? A stakeholder analysis identifies all important actors as well as their inter-
ests and expected benefits. The analysis should also include the possible contributions
of the stakeholders to the project or process as well as their importance for a success-
ful outcome.
A thorough stakeholder analysis graph may give a clear picture how to involve stake-
holders in order to ensure success. The degree of involvement can be divided in three
levels: information, participation and co-operation. The analysis allows to recognize
the most important and powerful stakeholders, whose support and opinion is needed
to shape the network or project. The involvement of important backers may also help
to attract more support and a better funding.
Innovation networks / learning networks
Interregional / international networking
9
110 Module 9 | Network Management
Stakeholder Analysis Graph
Early and regular communication with interested parties can ensure that they under-
stand well what is going on and recognize the benefits. You can predict how people will
react to your project and assure their support with specific activities.
9.2.4 The role of network management and key factors for successful networks in Regional Rural Development
Networks need management, networks need a booster, network management is time
consuming. As the acceptance of the process and confidence in the coordinator are
important prerequisites, the Regional Manager personally must be part of the develop-
ment process. Nevertheless, the Regional Manager can only accept the network man-
agement itself in selected key areas (e.g. steering network, elaboration of local develop-
ment concept …). In most cases Regional Management will play a “midwife role”: ini-
tiation of networks, coordination of groups of actors, placement of potential partners,
organization of information exchange, filtering and distribution of central information,
prevention of duplication etc.
What are key factors for successful networks in RRD? The factors can be presented
with powerpoint or elaborated in an interactive manner:
Attitude and interest: members are aware of networks’ benefits
Common objectives: the objectives were developed in co-operation with members
Co-operation and common projects: common projects are planned and the network
is based on trust
Questions related to the stakeholder analysis
What people and organisations
are concerned?
What interests and benefits do the
stakeholders expect?
How strong/important are these
interests and benefits?
How can the stakeholder contrib-
ute to the process/project?
How important is the contribu-
tion?attitude/interest
B = participate A = cooperate
D = inform C = participate
high
low
influ
ence
/pow
er women
111Tool Box for Trainers
Cost-benefit ratio: is clear to all and accepted by all members
Information exchange: the exchange of knowledge and information works on a
reciprocal basis
Network identity: network has a CI and all members can identify with the network
Key actors: all key stakeholders are identified and participate actively in the network
PR is a central part of the communication concept
Tasks and roles of members, steering group and management are clearly defined
Planning and implementation: a realistic and specific project plan is available
Resources (time, money) of management and all members are sufficient
Qualification: all necessary skills are available or can be obtained
9.3 Group work and exercises
9.3.1 Exercise: Knifes and glasses
The exercise “Knives & Glasses” should sensitize participants for the important issue
of teambuilding and networking.
The task is quite simple: separated in 3 or 4 groups participants are instructed to
construct a platform made of knives on top of the glasses, which is strong enough to
support an additional glass full of water.
Task:
To build a platform using knives on top of glasses (glasses being upside down)
Rules:
All parts have to be used
None of the knives may touch the table
9
112 Module 9 | Network Management
The glasses stand at least the length of 1 knife apart (one additional knife to measure)
The platform is that stable to carry a full glass of water in its center
When you find the solution, please call the moderator for verification!
The evaluation focuses on the questions:
What did facilitate the finding of a solution in the group?
What made it difficult to find a solution in the group?
What factors are of importance for a productive teamwork?
The evaluation should make clear, that teamwork success is not automatic. Teams have
to be established, team member selection is very important, as is ensuring that the team
purpose is clear and agreed upon.
What facilitated the finding of a solution in the group?
Accept each other’s
skills
Help each other Need to have know-how
and manager
Not afraid to fail Analyse the situation
Each group member
has the chance to try
Confidence to achieve Competition Learning by doing Where are they?
Try many options Improve understanding
the rules
Follow the instruction
What made it difficult to find a solution in the group?
Understanding
of instruction
Starting without dis-
cussing the plan
No experience
What is of importance for a productive team work?
Respect each other’s
idea
Helping each other Understand each other Trust each other Patience
Commitment Encourage each other Common vision Believe it is achievable Good atmosphere
113Tool Box for Trainers
9.3.2 Group work: Network anaysis
For deepening, a group work on participants’ examples on “How regional networks
can be organized?” or an “Analysis of a network” from the participants’ context could
be added (½ day).
The assignment to the groups could include the following elements: visualized
description of a network from participants’ regional context with regard to:
type/organizational form
objectives
stakeholders
measures/activities/projects
facilitation/role of Regional Management.
9
114 Module 9 | Network Management
9.4 Self-test
Why do we need networks to promote Regional Rural Development?
What are different types of networks and what are the implications for Regional
Management?
What are relevant questions when performing a stakeholder analysis?
What are the key factors for successful networks in Regional Rural Development?
9.5 Reference material
Powerpoint on networking
Practical example: Networking in Pielachtal/Austria
Different types of networks in the REGINA context (steering network,
LDC network, energy plenary, etc.)
Bayerisches Netzwerk Nachhaltige Bürgerkommune NENA
www.nachhaltige-buergerkommune.de
115
Module 10
Information and Communication Management
Overview of this module page
Objectives, content, time Structuring the dissemination of target group
specific information
Organizing an efficient stakeholder participation
Perform moderated group events and
presentations
Elaborate awareness raising and promotion
strategies for the region
116
Introductory presentations Communication tasks of the Regional
Management
Planning and structuring of public relation work
Participatory communication and working
methods in group events
Introduction of the moderation cycle
117
Group work and exercises Self-assessment on personal experiences and skills
The Regional Managers’ skills, knowledge and
behaviour
Design of a communication strategy within
a RRD process
Planning of moderated group events
Analysis of press work
Design of an own press release
122
Self-test Assessment of own communication tasks
Different roles in a Regional Development Process
Objectives and instruments of public relation work
Improvement of communication in the own
working context
Steps of the moderation cycle
124
Reference material Please see the deatailed list of reference
material on page 124
124
116 Module 10 | Information and Communication Management
10.1 Objectives, content, time
The learning objective for the participants in this module is to deepen their skills in
terms of the strategic use of tools for:
› dissemination of target group specific information
› involvement of stakeholders, participation
› moderated group events and presentations
› awareness raising and promotion of regions.
Information and communication management for this module is not meant in the
sense of IT techniques and data management. The understanding is similar to that
of enterprises: to plan, design, steer and control information and communication to
reach the strategic objectives. This involves the collection and distribution/sharing of
information and considering those who have a stake in, or a right to that information.
Management of information refers to the organization of and control over the struc-
ture, processing and delivery of information (“through which channels do we get the
right information to the right person at the right time?”).
Since a channel has maximum two directions, communication in terms of dia-
logue and exploration of new ideas and insights adds additional dimensions. Informa-
tion and communication are the means to develop guiding visions, find problem solu-
tions, make decisions, share responsibility and enhance ownership and transparency
in a Regional Rural Development process.
Information and Communication Management
Module 10
As shown in the overview of module 2, there are many underused
skills, experiences and know-how in a region. Local and regional
development processes are change processes made by people. These
change and learning processes include interaction and communica-
tion - a central task of Regional Management.
Objectives
117Tool Box for Trainers
Compared to this broad subject, the selected training units focus on:
Relationship of actors in Regional Rural Development
Regional Managers’ skills, knowledge, behaviour
Roles and functions in a development process/capacity building process
Stakeholder analysis and communication strategy (“how to involve”)
Moderation cycle and planning of group events
Public relation and work with media.
1,5 days are required for the listed topics. That might not be in one row within a training,
e.g. if a stakeholder analysis is performed within the LEADER topic (module 4) or the
NETWORK MANAGEMENT topic (module 9).
Other related topics serve as a good basis, e.g. the communication process, four sides of
a message and the ‘iceberg’ model, self assessment of communication skills, as well as
presentation, moderation and visualization. Also more specific units or examples can
be added to deepen or specify certain aspects: the process of team building, or exam-
ples for an information strategy. To refer to this field of soft skills, a huge number of
publications is available.
10.2.1 Communication tasks of the Regional Management
Introductory ideas can be given with reference to the pin board ‘functions/tasks of
Regional Management’ (module 2, p. 23) or with reference to useful soft skills for
Regional Managers or coordinators involved in Rural Development projects. Thus one
possibility for starting the module could be a self assessment of communication skills
or a brainstorming on the Regional Managers‘ skills, knowledge, behaviour. The pin-
board presentation used in module 4, p. 52 on Regional Management can also be used
to focus on the tasks and roles at this interface between the political decision-makers
and the participation level. This picture shows the relationship between the various
actors on different levels and the need for differentiated ways of communication.
Being in an intermediate position, members within the Regional Management
need to clarify their roles, which might differ in different situations. Thus, the follow-
ing visualization is an input for discussion and self-clarification.
10.2 Introductory presentations
Time
10
118 Module 10 | Information and Communication Management
A direct link to different information and communication strategies is given with the
stakeholder analysis. This instrument helps to find out the parties to involve in a project,
to look from their perspective about interests and anticipated benefits and to get aware
of actors who can influence the project in a positive and negative way. It helps project
planners and leaders to avoid problems, and to elaborate sound communication strate-
gies based on the decisions who to involve, in which way and to what extent.
Module VII, Module IX
119Tool Box for Trainers
10.2.2 Public relation work
Public relation should be planned according to objectives, which can be:
to announce planned programmes and activities
to support a positive image of the programme/project
to sensitise for the overall goals of the project
to invite/mobilise actors to participate
to get the support of decision makers
to enhance the mutual trust between primary and secondary stakeholders
to inform about results
to enhance the sustainability of results by spreading them
to support ownership and broaden guiding visions within the region
to get recognition of results and success.
Besides the objectives, which have to be defined first, the characterisation of the target
groups as stated above and the availability of the resources/budget decide on possible
PR activities. Different means for PR work are:
the project website
press releases
press conferences
interviews with journalists, press inquiries
presentations and lectures
poster exhibitions
trade fairs
flyers and other print material
newsletters
public events.
To work with media means to work together with journalists and reporters and press
officers in districts and municiplaities, trying to establish a good co-operation. It is
necessary to understand how they work and what news, events and stories are of inter-
est to them.
The above listed means are often used in combination. If for example a public event
takes place within the process of the elaboration of a local development strategy, this is
announced with a press release and journalists would be invited to report the results.
Such events are for example large group events to present and discuss the results of a
SWOT analysis or even to do a SWOT analysis with representative from the different
stakeholder groups.
A short input about the work with media can be given as a Powerpoint and with a pin-
board or flipchart, that focuses on the elements and criteria for a good press release (see
text box). The ‘story’ should be told backwards, so that the length of a press release can
be adjusted, cutting the least important information from the bottom without compro-
mising the integrity of the most important information positioned at the top. This way
readers get the principle point of the story in a hurry. They can then make their own
determinations as to a press release’s importance or relevance and choose for them-
selves whether or not to read past the first paragraph.
Elements and criteria for a press release
headline
informative and compelling
most significant benefit for most
important readers
lead paragraph
should start with the current date
1-2 key sentences announcing the
end of a news first
should answer as many of the 5
Ws as possible: Who, what, where,
when, why and how (if appropriate)
succeeding paragraph
source of information, additional
facts
body of the press release
provide supporting information
underlying background
information
mark the end of the press release text
‘boilerplate’
standard, reusable contact informa-
tion for editorial follow-up (contact
person, address, phone, email, web
address)
boilerplates should maintain con-
sistency
10
120 Module 10 | Information and Communication Management
10.2.3 Participatory communication and working methods in group events
The way of communicating with project partners/involved stakeholders should be in
accordance to the ideas of a bottom-up or participatory approach. These basic thoughts
can be presented as followed:
Another basic overview to present is the ‘moderation cycle’ if this is not already known
through former training parts. The moderation cycle is composed of six steps.
1 Introduction and orientation - getting to know each other, expectations, objectives
2 Gathering and structuring topics – card collection, agenda, called-out responses,
brainstorming …
121Tool Box for Trainers
10
3 Selecting topics by setting priorities
4 Handling the topics in the order of their importance
5 Planning measures to be taken: action plan, assignment of responsibilities and
deadlines
6 Conclusion: looking back (“have our expectations been fulfilled?”), looking forward
(“how will we continue?”) and the official closure with a positive ending – hopefully!
For each of the steps a range of moderation tools can be taken into consideration. An
overview on different moderation and visualization techniques could be given here
with a second pinboard presentation.
The elements how to plan a group event including the objectives of the event, par-
ticipants/target group and activity plan (when, what, who, ...) are a topic to add here and
to be worked on in a group work.
122
10.3 Group work and exercises
10.3.1 Self-assessment in the beginning
In order to link to the personal experiences and training needs of the participants a self
assessment can be prepared as a matrix, answering the questions “I assess my experi-
ences/skills in the following topics as …”.
10.3.2 Brainstorming on the Regional Managers’ skills, knowledge and behaviour
In order to come closer to the understanding of “Regional Management” participants
brainstorm on the Regional Managers‘ skills, knowledge, behaviour, etc.: “In first place,
a Regional Manager should ...”.
123Tool Box for Trainers
10
10.3.3 Group work: Design of a communication strategy within a Regional Rural Development process
This group work can include the following questions for a decision on the appropriate
communication strategy. It is based on the topic of the stakeholder analysis:
a. Concerning the information about and involvement in the local/regional develop-
ment process: what interests would the identified stakeholder groups have?
b. What are your strategic information and communication objectives as the Regional
Management/ project team towards these stakeholder groups?
c. How would you accomplish these objectives/by what information and communica-
tion tools?
d. Considering limited resources for the communication management, which meas-
ures have highest priority, what are the ‘nice-to-have’ ones?
10.3.4 Group work: Planning of moderated group events
Participants are asked to plan an event, which could be undertaken within the proc-
ess of elaborating a local development strategy (see p.56) or within one of their ongoing
project examples:
1. What do you want to achieve during/until the end of the event/workshop?
2. What do you have to do before the event?
3. Please describe the script of the workshop
Time schedule Topic/issue Detailed steps Who is responsible? Material/ equipment
10:00 Welcome
address
Welcome
Don’t forget
minister
Mladen Microphone, desk
4. What has to be done after the workshop?
The group work can be extended with the following questions: Would you involve the
media? And if yes, to what point(s) and how?
10.3.5 Individual or group analysis: Assessment of press work
Participants are asked to evaluate a press release by reading a given example, which has
to be provided in advance. The check includes answers to the five Ws:
a. What happened/happens
b. Where
c. When
d. Who is involved
e. Why/how it happened (if possible or necessary)
Plus: what other information is given?
The group results are shared and discussed in plenary.
ToRs for planning a moderated event
124 Module 10 | Information and Communication Management
10.4 Self-test
What are my own tasks related to communication (what, why, how, with whom)?
What are different roles in the RRD process, which Regional Managers have to
perform?
What are possible objectives of public relation work and what instruments can be
used?
What do I want to do next within my team to improve internal and external com-
munication?
What are the steps of the moderation cycle?
10.3.6 Individual work: Design an own press release
Participants are asked to design a first draft for a press release for the own project. They do
not need to make complete phrases, but to brainstorm on the key elements and sequence
of the content.
10.5 Reference material
Move Manual: Moderation and Visualization for Group Events, InWEnt 2003
Methods for Trainers, Lecturers and Facilitators, InWEnt 2010
example for press releases
http://www.aberdeenshireleader.org/,
e.g. www.aberdeenshireleader.org/News_and_Events/LEADER_Launch_
PR_260608.pdf
http://www.norfolkcoastaonb.org.uk/mediaps/pdfuploads/pd000768.pdf
http://www.dgcommunity.net/dgcommunity/MiniWeb.aspx?id=143&menuid=89
38&openid=8938
how to write a press release
http://www.wikihow.com/Write-a-Press-Release
http://www.prlog.org/tips/1016-how-to-write-a-press-release.html
communication toolkits
http://www.odi.org.uk/rapid/tools/toolkits/Communication/tools.html
www.odi.org.uk/rapid/tools/toolkits/Communication/Communications_strategy.
html
125
Module 11
Capacity Building -Becoming a Learning Region
Overview of this module page
Objectives, content, time Definition and explanation of the terms “Learning
Region” and “Capacity Building”
Motivation to initiate qualification/capacity
building offers
Role of capacity building in establishing a regional
development network
Capacity building as a means to promote trust
and confidence
126
Introductory presentations What is a “Learning Region” and why to become one?
Types of capacity building
Capacity building activities: Examples
127
Group work and exercises From your perspective: What is a Learning Region?
From your experience: What capacity building
activities are planned or have been implemented
in your region?
Analysis of the needs for capacity building in
a region. What offers do already exist? What
are the needs of the people in the region?
132
Self-test Transfer of “Learning Organisations” to RRD
How to become a Learning Region
Different types of capacity building
Main components of regional learning process
Contents for process moderators
133
Reference material PPT on curriculum of “training of process moderators”
http://www.gdrc.org/uem/capacity-define.html
www.mechatronik-cham.de
“The Fifth Discipline. The Art and Practice of the
Learning Organisation”, Peter M. Senge, 1990
133
126 Module 11 | Capacity Building - Becoming a Learning Region
11.1 Objectives, content, time
The learning objectives for the participants are to:
understand the meaning of the terms “Learning Region” and “Capacity Building”
become motivated for the initiation of qualification/capacity building opportunities
understand capacity building as an instrument to leverage endogenous potentials
impart the approaches of Regional Management and Rural Development, which
base mainly on citizens participation
Capacity Building -Becoming a Learning Region
Module 11
Life long learning has become a key feature for development in the 21st
century. Originated in business management, the concept of “learn-
ing organizations” was developed more than 20 years ago (see the out-
standing work from Peter M. Senge). In the last decade many attempts
were made to transfer this practice into the context of Regional Rural
Development. A large number of “Learning Regions” has emerged but
neither the concept nor the practice has reached a satisfactory quality.
Nevertheless all experts agree about the outstanding importance of
regional capacity building processes, either through the formal system
or via informal processes of participatory learning.
Objectives
127Tool Box for Trainers
The contents of the topic should contain the following parts:
Introduction: What is a Learning Region and why do we need to become one?
Types of capacity building
Capacity building activities: Examples
To give a general introduction in an interactive way into the topic at least 0.5 days
is required. For deepening, a group work on participants’ examples could be added
(+ 1 day).
11.2.1 The concept of “Learning Region”
The concept of the “Learning Region” may guide one to a certain misunderstanding.
Of course a region, mostly defined in a geographical way, is not able to “learn” as it is
not a living creature.
But it is about the human beings in the region, their organisations, institutions,
companies and interactive systems. Taking into account the interaction between these
regional actors or stakeholders it will always be a kind of learning from each other.
This process of “learning from each other” can lead to unsystematic and acciden-
tal learning opportunities, if left without control. But it is favourable to promote the
learning culture of a region in an organized way through regional initiatives, Regional
Management or politics, in order to:
increase the capacities in the region,
promote development,
induce innovation,
widen the competences,
attract people and companies and
increase the standard of living as well as
the quality of living in a region.
There is a close link between the terms “Capacity Building”, “Learning Region” and
“Regional Networks”. One can say, a Learning Region consists necessarily of one or
more regional networks but not the other way round. Networking is less relying on edu-
cative factors but more on exchange of experiences and on the operational level for the
implementation of projects. In brief our definition of a Learning Region is: A Learn-
ing Region is the sum of all systematic efforts of capacity building in a given region.
11.2 Introductory presentations
Contents
Time
11
128
Regions with a high learning ability adapt faster, more flexible and more successful to
changes. Changes in a globalized world force municipalities and regions to suit to the
circumstances in order to stay or become attractive for their people.
The concept of “Learning Regions” is closely connected with the idea of leveraging
and using a region’s endogenous potentials. Regional Development depends mainly
on this endogenous potential and it needs the support of regional institutions, stake-
holders and structures to encourage and support a sustainable Regional Development.
Not being just a question of personnel or financial resources, it is also an issue of
know-how and education. In consequence, a Learning Region requires capacity build-
ing as an educational task for Regional Management.
11.2.2 Capacity Building
The building of capacities in its three dimensions: knowledge, skills and social/emo-
tional competence, has been subject to numberless explorations and interpretations.
Common to most of them is the broad and integrated approach to human learning
processes. Two examples may exemplify this holistic perspective:
“Specifically, capacity building encompasses the country’s human, scientific, techno-
logical, organizational, institutional and resource capabilities. A fundamental goal of
capacity building is to enhance the ability to evaluate and address the crucial questions
related to policy choices and modes of implementation among development options,
based on an understanding of environment potentials and limits and of needs perceived
by the people of the country concerned”.
Capacity Building - Agenda 21’s definition (Chapter 37, UNCED, 1992.)
Or:
Capacity building is much more than training and includes the following dimensions:
Human resource development, the process of equipping individuals with the under-
standing, skills and access to information, knowledge and training that enables
them to perform effectively.
Organizational development, the elaboration of management structures, processes
and procedures, not only within organizations but also the management of relation-
ships between the different organizations and sectors (public, private and commu-
nity).
Institutional and legal framework development, making legal and regulatory
changes to enable organizations, institutions and agencies at all levels and in all
sectors to enhance their capacities.
(...)
The Urban Capacity Building Network
Module 11 | Capacity Building - Becoming a Learning Region
129Tool Box for Trainers
In the respective model above three types of Capacity Building (CB) can be distin-
guished:
CB by “Directive Communication”:
The communication direction is like in school:
It is one-way from the trainer (T) to the participant (P) and depends on the author-
ity of the teacher (trainer).
Used methods are, for example powerpoint presentations, speeches or lectures.
CB by “Analytic Communication”:
The communication way is two-way, like a dialogue: the trainer gives input and the
participants discuss. The method relies on the superior knowledge of the trainer.
CB by “Consultative Communication”:
The communication is also two-way organized but there is a difference compared to
“Analytic Communication”: The trainer and the participants are on one level. The
exchange relies on experiences, which can be contributed by everybody not only
experts.
The results of such a discussion are open and not yet fixed at the beginning. The
trainer has the function of a moderator, not expert.
Once a region decided to become a “Learning Region” the CB has to be embedded into
a certain learning system. The learning system has typically three main components:
types of learning
learning levels
learning dimensions.
11
130
First element in this system are the “types of learning” as described above.
The second one is called “learning levels”. As we are talking about Regional Rural
Development we have three different levels:
the regional rural development: strategic learning for the region, long-term oriented;
the organisational improvement: communication and interaction among stakehold-
ers, initiatives and organisations, and
the skills, knowledge and attitude of individuals, which bring the whole system to
life.
The third element concerns the different learning dimensions of individuals:
cognitive (knowledge)
practical (skills)
affective (attitude).
The description of theses three elements may show important factors, which influence
the creation or design of a Learning Region. This means that no learning region can
be directly compared (one to one) with another.
11.2.3 Capacity building: Examples
Every region is special, has individual needs and resources. Thus, there is no general
recommendation possible, when it comes to offering capacity building activities. In
order to present some ideas how capacity building activities could look like, a few exam-
ples have been collected.
Directive
Analytical Consultative
Types of learning
Learning dimensions
Learning levels
Knowledge
(cognitive)
Skills
(practical)
Attitude
(affective)
Individual skills, knowl-
edge & attitude
Organizational
improvement Regional Rural
Development
Module 11 | Capacity Building - Becoming a Learning Region
131Tool Box for Trainers
For the strengthening of the local and regional stakeholders and initiatives a modera-
tion/facilitation training can be offered. The following example was successfully imple-
mented and is able to be changed concerning the number of modules and the content
according to the specific needs in the respective region.
Process moderation training
Contents and Objectives of the training:
1. Learn useful competences for participative work in networks and for steering of
processes and projects (moderation, communication, processes and project
management).
2. Setting-up of a network of multipliers in your region
3. Dissemination of the same idea (picture) of rural development and of Regional Man-
agement in the whole of your region. Participants of the training become multipli-
ers and stakeholders of the development process and should therefore come from
all communes in your region.
4. Creation of personal relationships with relevant multipliers/stakeholders in your
region
Consequently the confidence in the region will grow and this is an important pre-
condition for transparency, collaboration, cooperation and innovation.
5. Basis for further qualifications.
Module 1: moderation and mobile visualization
moderation cycle
role of the moderator
mobile visualization: methods and techniques
planning of a moderated event
working in (small) groups
Modul 2: process planning and process management
development concepts
stakeholders, teambuilding and networking
planning and management of a development process
Modul 3: project management
project cycle
project planning
project management and implementation
Modul 4: communication
importance of good communication
task clarification
dealing with difficult situations and conflicts
exchange of experiences
11
132
Further conditions:
Participants come from all municipalities/communes in the district.
Participants are from civil society, administration, politics or others.
The course must be inexpensive and affordable for everybody.
Examples of learning activities initiated by Regional Management (see also module
9, networking):
Women’s Agenda 21
Initiate and moderate an Agenda 21 working group with the main topic of “empow-
erment/strengthening of women”. The participating people can concentrate on
women’s issues like equity.
Family-Network
Offering a series of seminars and workshops concerning relevant topics of famliy
life, e.g. concerning different phases of children’s education etc.
Bioenergy region
Advanced trainings and seminars for the implementation of regional energy cycles
and the use of renewable energies in rural areas
Mechatronics network
co-operation of several training institutions (University of Applied Science, voca-
tional training, training agencies, etc.)
Social network
Another effect of such a regional qualification offer is the fact that means which are
spent in trainings resp. qualification activities can be used equally by all people of a
region not just from those of one community.
11.3 Group work and exercises
11.3.1 Plenary discussion/brainstorming through guiding questions
From your perspective: What is a Learning Region?
From your experience: What capcaity building activities are planned or have been
implemented in your region? (also useful for group work)
11.3.2 Group work: Analyse the needs for capacity building in your region
What offers do already exist?
What are the needs of the people in the region?
Module 11 | Capacity Building - Becoming a Learning Region
133Tool Box for Trainers
11.4 Self-test
What does it mean transfering the concept and practice of “Learning Organisations”
to Regional Rural Development?
How to become a “Learning Region”?
What are different types of capacity building? What does it mean for Learning
Regions?
What are the main components of learning processes?
What would be the contents for a training of process moderators in your region?
11.5 Reference material
PPT on curriculum of “training of process moderators”
http://www.gdrc.org/uem/capacity-define.html
www.mechatronik-cham.de
“The Fifth Discipline. The Art and Practice of the Learning Organisation”,
Peter M. Senge, 1990
11
134 Module 11 | Capacity Building - Becoming a Learning Region
135
Module 12
Monitoring & Evaluation of Regional Development Processes Overview of this module page
Objectives, content, time Need for monitoring and evaluating the
process and the effects of measures/projects
at regional level
Integration of all stakeholders in monitoring
the processes and evaluating the successes of
their regional activities
Examples of integrating M&E in RM and
LAGs activities
Time: 0.5-2 days
136
Introductory presentations M&E in regional processes
Accountancy and transparency:
the REGINA example
Formulation of performance indicators
Local involvement: training for
moderation and M&E
137
Group work and exercises Group work:
Reflection on own examples and experiences
with M&E (procedures, forms, results)
145
Self-test Main steps in M&E in regional processes
Important aspects to keep in mind
and consider in the M&E steps
Formulation of performance indicators
Checklists for assessing a Regional
Management Process
145
Reference material EU Handbook for PCM
Managing for Impact in Rural Develop-
ment - A guide for project M&E; IFAD,
146
136 Module 12 | Monitoring & Evaluation of Regional Development Processes
12.1 Objectives, content, time
The learning objectives for participants are to:
understand the need for monitoring and evaluation of the process and the effects
of measures/projects at regional level
understand the integration of all stakeholders in monitoring the ongoing processes
and evaluating the successes (and failures) of their regional activities
show examples of integrating M&E in RM and LAGs activities and ways to train
people in M&E for the development of their regions.
The contents of the topic should contain the following parts:
Introduction: meaning and understanding of monitoring and evaluation in RM
Important considerations
An example from Neumarkt, Germany
How to set-up a learning unit for RRD/RM training
Monitoring & Evaluation of Regional Development Processes
Module 12
Monitoring and Evaluation are essential components of the Regional
Management approach. The terms themselves are normally well
known to participants and used in manifold circumstances. Here
the focus should be strongly on the role and importance of M&E
in Regional Management processes with a strong stakeholder partici-
pation.
Objectives
Contents
137Tool Box for Trainers
Only to introduce the minimum information on the topic needs about 0.5 days.
As an interactive reflection of the content of regional marketing a groupwork should
be done to relate the topic to the participants’ reality: 2-3 days can be calculated then.
12.2.1 M&E in regional processes
Monitoring and Evaluation (M&E) in Regional Management and Regional Development
projects/processes is a continuous process. The results will help to improve future pro-
gramme/project designs and the implementation.
Continuous M&E may help to:
ensure a better understanding of what works and what does not work;
systematically monitor the progress of processes or the implementation of projects;
improve process/project effectiveness;
enable improved donor reporting;
achieve a common understanding of monitoring and evaluation and reporting at
all levels.
In real life M&E is often misused as a control instrument. Instead of control instru-
ments M&E should be seen as a learning instrument for improvement.
The manifold issues of M&E in Regional Development processes contain the follow-
ing main steps:
12.2 Introductory presentations
Time
Defining the issues, contents
Controllingthe process and procedures
Reportingprocedures (to whom, what)
Assessingof results, findings
Re-directing based on the learn-ing experience
top-down
control
function
bottom-up
learning
function
M&E
12
138 Module 12 | Monitoring & Evaluation of Regional Development Processes
The important sources for M&E and relevant issues to be considerd are given in the
following chart.
defining controlling reporting assessing re- directing
higher level plans promotion
guidelines political pro-
grammes
implementation records and individual project accounts
regular meetings of project steering boards/committees
all kinds of plan reviews
Regional Development Concepts guiding visions objectives/
projects
regular invento-ries, field visits
financial audits on-site controls
intermediate or mid-term evaluations
Logframe for indi-vidual projects (indicators)
staff/team meet-ings (daily/weekly/monthly)
steering groups project progress
reports to all kinds of donors
performance/quality man-agement sys-tems (ISO ...?)
own surveys self-evaluation external evalua-
tions (resources and time)
research / Master or PhD-Thesis
multistake-holder views
“mirror” peer review
12.2.2 Example for accountancy and transparency: the REGINA process
In order to show an example of the above stated staff/team and steering group meetings
the accountancy system for a region in Neumarkt, Germany – the Regina GmbH – can
be shown.
The chart shows regular meetings, the involved persons and responsibilities: report-
ing towards stakeholders and shareholders, information sharing, approvals, audits and
internal tuning.
All these involvements contain a monotoring and evaluation moment and are
needed for a transparent process and in order to keep the Regina network running.
This amount of participatory activities can only be performed with a strong sup-
port of the stakeholders themselves. Therefore, Regina GmbH and the Agency for Vil-
lage and Rural Development/School of Good Governance developed a capacity build-
ing system for citizens how to organize and facilitate moderated meetings and working
groups. The details can be found in module 11.
M&E in Regional Processes
Curriculum for the training
139Tool Box for Trainers
12.2.3 Formulation of performance indicators
An important element in the M&E process is the formualtion of indicators that show
whether progress is been made in projects or the process as a whole. Practical exam-
ples from Bavaria and other parts of Europe show, the implementation of M&E in EU
LEADER projects is still ongoing. Nevertheless, EU is developing its M&E standards for
Rural Development processes and programmes. The EU Handbook for PCM includes
state of the art M&E requirements.
Examples of performance indicators found on the Bavarian LEADER+ Internet Platform
“LEADER Online” (LE-ON: http://le-on.org/internet/ministerium/):
Performance indicators for the priority field “New Technologies, Know-How”
Number of accomplished expertises
Number of implemented innovations
Number of newly founded enterprises, co-operations and other organisations
Created capacities with potential turnover expectations
› Expected turnover in Euro
› Capacity of facilities
Example of staff/team and steering
group meetings
12
140 Module 12 | Monitoring & Evaluation of Regional Development Processes
Number of trainings
› Number of participants
› Number of training time per participant (training hours per participant)
Number of created jobs
› Full-time jobs
› Part-time jobs
Number of secured jobs
Produced or saved energy
› Produced energy in MWh
› Saved energy in MWh
Use of services (consulting, coaching)
› number
Performance indicators for the priority field “Quality of Life”
Number of directly promoted citizens
Number of projects to improve inter-municipal networking
Number of established people-oriented institutions
Number of new events for citizens
› Number
› Number of profiting households
Number of supply facilities
› Number
› Number of profiting households
Number of disposal facilities
› Number
› Number of profiting households
Number of projects with ecological activities
› Number of conservation projects
› Number of energy projects
Figure of directly produced follow-up investments
› Amount in Euro
12.2.4 M&E checklist for Regional Management processes
As a practical example of M&E in Regional Management, the following checklist can
serve. It was developed by the University of Triesdorf (Prof. Seibert and Dr. Geißendör-
fer) and used to evaluate the Bavarian Regional Management and covers eight central
aspects of Regional Management:
Participation and involvement of regional actors;
Objectives and organisation;
Resources and financing;
Project planning and implementation;
Project impact;
Networking;
Knowledge management;
Stakeholders.
This checklist may be used for self-evaluation or the assessment through close part-
ners, like the RM team, the board of directors, steering groups, etc.
141Tool Box for Trainers
M&E checklist for Regional Management Processes
Aspect 1Participation and involvement of regional actors
Political decision-makers are well informed and take part in important decisions.
Regional chambers, associations and other interest groups are sufficiently involved.
Participation of the local/regional business community is fully realised, important key companies are involved.
Existing problems are being addressed and potentials/chances are being used as basis for joint initiatives.
Strong personalities in terms of integrative power, driving force or good ambassador are part of the game.
There is a balance between rational and systematic stakeholders and non-conventional, lateral thinkers.
Others …(to be added)
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Aspect 2Objectives and organisation
There is a constructive connection to existing institutions. New structures were only created when really necessary.
Basic definitions and decisions are being taken by consensus. Minoritiy votes are possible and taken serious.
Relevant stakeholders are able to agree on common objectives, even if individual interests are diverging.
Objectives are precise and operational. They can be described by measurable milestones or indicators.
Objectives and indicators are clearly communicated to decision-makers and higher level authorities or adminis-trative structures.
A systematic controlling at project and strategy level is established and pragmatically implemented.
Others … (to be added)
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142 Module 12 | Monitoring & Evaluation of Regional Development Processes
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Aspect 3Resources and financing
Human resources are sufficient to implement the necessary activities for the achievement of the objectives.
Basic financing is guaranteed at least for the implementa-tion of the ongoing projects.
The use of personnel and financial resources is transparent and comprehensible, necessary records are available.
Regional distribution of resources and resulting benefits is justifiable and accepted by relevant stakeholders.
Financial reserves are available to bridge financial bottlenecks. Dependency on single funding sources does not produce major risks.
Others …(to be added)
Aspect 4Project Planning and implementation
Project planning is participatory involving beneficiaries as well as possible opponents.
Project selection is transparent and embedded in the regional development strategy.
Projects are comprehensively structured and responsibili-ties clearly attributed.
Regional characteristics, customs and heritage receive special attention.
Project financing is making full use of own regional resources and external promotion funds.
Others …(to be added)
143Tool Box for Trainers
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Aspect 5Project impact
Project outcomes are tangible and produce high impact in public opinion.
Implemented projects produced spin-offs resulting in follow-up activities and new project proposals.
Projects contribute to the increase in regional economic value adding. Benefits stay in the region.
Even after the promotion phase, projects are likely to be economically sustainable.
Others …(to be added)
Aspect 6Networking
Regional Management is playing its role as moderator between different regional interests.
Regional Management is efficiently coordinating the participating regional stakeholders.
Regional Management is playing its role as “think-tank” for development processes (initiatives, innovative ideas, project proposals).
Functional intra-sectoral and inter-sectoral networks are established and develop an own dynamic.
Regional management is actively involved in and benefiting from interregional networks.
Others …(to be added)
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144 Module 12 | Monitoring & Evaluation of Regional Development Processes
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Full agreement
Partial agreement
Neutral Partial disagreement
Full disagreement
Aspect 7Knowledge management and promotion of innovations
Regional knowledge, skills and experiences are systemati-cally collected and broadly used by regional stakeholders.
Regional Management contributes to the formation of competence centres, research networks or business clusters.
Technical, organisational and social innovations are stimulated by participation in regional or national competitions.
Others …(to be added)
Aspect 8Attitude of regional stakeholders
Acceptance for long-term engagement into the regional development process could be created regarding relevant institutions and decision-making bodies.
Communal self-interests and internal competition are widely overcome within the region.
Communication and contact abilities have improved and are self-evident among regional actors.
Regional identity has become stronger, also in the business community which acts as conscious regional ambassador.
Sector boundaries have been increasingly overcome, integrated thinking is improving.
Participating stakeholders are willing to share their experiences actively joining into a regional learning culture.
Others …(to be added)
Adapted from: Handbuch Erfolgreiches Regionalmanagement – StMLU 2003
145Tool Box for Trainers
12.3 Group work and exercisesThe M&E topic can be presented and dicussed as a input presentation in a half day
session. If there is a special need to deepen certain aspects of M&E a group work can/
should be foreseen that puts elements of M&E in relation to the participants‘ home
context.
The focus should be on the practical handling of M&E with stakeholders at regional
level, self determined indicators and the requirements of M&E in a given situation.
12.3.1 Group work: M&E practice in participants’ countries
1. Give a brief overview on the current situation of networking and information shar-
ing among different stakeholders:
e.g. type and frequency of meetings, procedures;
M&E topics/issues that are under discussion
major constraints, difficulties faced in putting up a regular M&E system
already existing formats and forms that capture and report important results.
The results of this group work are to be presented in plenary afterwards.
12.3.2 Group work: Assessment of field visits and transfer to own working context
If there is time spent for visiting Regional Management examples (e.g. stakeholder
groups or an RM agency in Germany) the experiences made during an excursion have
to be reflected and discussed.
The group task could be presented as follows:
Looking at the kind and ways of M&E in the visited examples ...
What procedures and forms of various M&E for different stakeholders did you notice
and seem to be replicable, why?
What are the main findings/conclusions concerning M&E that are useful and appli-
cable in your own working context?
What unclear questions remain and need further clarification?
What are your ideas and proposals for M&E information collection and distribution
for RM in SEE?
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12.5 Reference material
EU-Handbook for PCM, 2005
http://ec.europa.eu/echo/files/about/actors/fpa/2003/guidelines/project_cycle_
mngmt_en.pdf
Managing for Impact in Rural Development - A guide for project M&E;
IFAD, 2002
http://www.ifad.org/evaluation/guide/index.htm
full of useful (partly academic) material, not focusd on Regional Management but
on projects; available in different languages
12.4 Self-test
What are the main steps to be aware of in M&E in regional processes?
What are the main aspects to keep in mind and consider in the M&E steps?
How to formulate performance indicators?
How can I work with checklists for assessing a Regional Management Process?
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