BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY UNDER THE CAP

1. Seminar on “Consolidation of the balance between rural and urban areas to ensure an integrating system” Merida, Spain, 19January 2011 BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY UNDER THE CAP Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission

2. CONTENT • 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: • What is the situation today? • Is there really a rural-urban divide? • A look from a different angle: • Results of clustering and case study analysis • 2. SOME LESSONS FOR THE FUTURE • Rural-urban linkages and sustainable development • Fund coordination: from demarcation to strategic integration under EU 2020 • Local development and participative approaches • Agriculture and the wider rural economy • 3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW • 4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013

3. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (1) • IMPORTANCE • OF RURAL AREAS • OECD definition: • 92% of EU territory in predominantly or significantly rural areas representing: • 45% of Gross Value Added • 53% of employment • NEW DG AGRI/REGIO definition: areapopulation • Predominantly rural 56,0% 24,1% • Intermediate 34,9% 35,6% • Predominantly urban 9,1% 40,3%

4. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (2) • IS THERE REALLY • A RURAL-URBAN DIVIDE? • Since 2001 higher growth rate of GDP/capita in rural than in urban areas • In 1999-2008 unemployment rates declined in rural regions • Many “accessible” rural regions experience counter urbanization (commuters; new enterprises; pensioners) • HOWEVER: • Gap in per capita income continues to widen • Employment rates generally remain lower in rural rather than in urban ones • Across much of Southern Europe and in many remote and mountainous regions depopulation remains the dominant demographic trend

5. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (3)A LOOK FROM A DIFFERENT ANGLE RESULTS OF CLUSTERING AND CASE STUDY ANALYSIS • Of 13 identified clusters: only 3 are purely urban (global and European cities and cities not aggregated with their surroundings) • All 10 “rural” clusters encompass all types of regions from pre-dominantly urban to pre-dominantly rural BUT • The Southern and Northern European periphery can generally be titled as rural (especially Ireland, Portugal, Greece, great parts of Spain, Scandinavia and the Baltic States, excluding capital agglomerations) • Great parts of Eastern and South-Eastern European countries are pre-dominantly rural

6. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (4)A LOOK FROM A DIFFERENT ANGLE RESULTS OF CLUSTERING AND CASE STUDY ANALYSIS • Most rural areas are multi-functional with the mix of economic activities mostly determined by the regional context  territorial regional finger print • Economic activities are spatially more and more equally distributed  higher diversity of rural areas • In terms of growth and employment, there is no “typical rural region” but different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity • Structurally, many rural regions (e.g. clusters V, X, XV in the map) perform better than urban ones (e.g. for change in economically active population, %♀ in workforce; share of commuters etc.)

7. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (5)A LOOK FROM A DIFFERENT ANGLE CONCLUSIONS OF CLUSTERING ANALYSIS: • Great diversity of rural areas: one size does not fit all; regional context and territorial circumstances matter • Variety of economic activities: regions succeeding in tapping on the synergies among economic sectors are likely to perform better • Mix of “urban” and “rural”: rural-urban relationships and linkages are important

8. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (6)A LOOK FROM A DIFFERENT ANGLE CONCLUSIONS OF CASE STUDY ANALYSIS:

9. 2. SOME LESSONS FOR THE FUTURE (1)RURAL-URBAN LINKAGES AND SUSTAINABLE DEVELOPMENT • In the age of climate change, renewable energy and green growth, integrated policies and effective rural-urban partnerships are required to tackle the issue of sustainable development. • urban sprawl and the need to avoid the loss of productive land for food and renewables • water management: reconciling the needs of farmers, cities and tourist resorts; reducing the impact of floods • energy supply and the cost of transport/commuting • importance of rural areas and farmers as providers of public goods and of recreational environmental and ecosystem services • local markets and local products STRATEGIC INTEGRATION; FUND COORDINATION; PLACED-BASED STRATEGIES

10. 2. SOME LESSONS FOR THE FUTURE (2)FUND COORDINATION: FROM DEMARCATION TO STRATEGIC INTEGRATION UNDER EU 2020 • Reduce/eliminate the need for complex demarcations between EU funds in the rural space; improve strategic coordination EU2020 STRATEGY FOR SMART SUSTAINABLE AND INCLUSIVE GROWTH Proposed: Corollary:

11. 2. SOME LESSONS FOR THE FUTURE (3) LOCAL DEVELOPMENT AND PARTICIPATIVE APPROACHES • The ambition: unlock local potential; utilize territorial capital; mobilize social capital; foster rural-urban relationships • The means: multi-level governance; empower/connect local actors • inclusive and participative approaches at all levels • cooperation, networking, exchange of good practices • Public-Private Partnerships and Local Action Groups • integrated area-based development strategies • The challenge (1): reconcile bottom-up approaches with the rigors of sound financial management • setting measurable objectives and monitor/evaluate their achievement • transparent, objective and properly documented decision making and project selection • avoidance of conflict of interest • The challenge (2): safeguard representativeness and public-private nature of bottom-up approaches • no undue interference by public authorities • approved strategies binding for all • no discrimination in terms of national co-financing

12. 2. SOME LESSONS FOR THE FUTURE (4) AGRICULTURE AND THE WIDER RURAL ECONOMY • Important to integrate the economic, environmental and social dimensions of rural areas into a common policy providing a strong link between agriculture and the wider rural economy • Agriculture is important for rural areas because: • Management of natural resources and shaping of countryside • Agriculture and forestry represent 78% of land use and deliver the majority of ecosystem services related to biodiversity, water and soil • Multiple links with the economy as the basis for other activities and amenities • The agri-food sector represents 19 million jobs mostly in rural areas • Rural areas are important for agriculture because: • Economic and social conditions to enable sustainable agriculture • Accompany agricultural restructuring (modernization and diversification) • 36% of farmers had another gainful activity in EU-27 in 2005

13. 3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW • COMPETITIVE • AGRICULTURE • promote innovation • and restructuring • do more with less • play to the strengths • of the diversity of • EU agriculture • SUSTAINABLE • MANAGEMENT OF • NATURAL RESOURCES • take care of the • environment and • countryside • maintain the • production capacity • of the land SUSTAINABLE RURAL DEVELOPMENT BALANCED TERRITORIAL DEVELOPMENT OF RURAL AREAS THROUGHOUT THE EU • While the three strategic objectives, adapted for new challenges, remain valid, • it is important to: • Avoid the rigidities associated with the 3-axes-structure and, with respect to LEADER, the role of pre-defined measures and the geography/type and source of financing of activities (towns up to 30.000 only?) • Provide more flexibility through strengthened strategic targeting and priority-led programming • Acknowledge the cross-cutting nature of innovation and climate change under EU2020

14. 4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013 INTEGRATED GUIDING CONSIDERATIONS:INNOVATION, CLIMATE CHANGE & ENVIRONMENT

15. Thank you for your attention!