The theory of territorial development or Governance and production

1. The theory of territorialdevelopment or Governance andproduction the two engines of territorialdevelopment André TORRE UniversityParis-Saclay INRA,Agroparistech torre@agroparistech.fr Tsukuba University 25th January2019

2. The question of development is atstake • Revival of analytical concern about development analysis (previously reserved to developing, non developing, under developed…countries) • Due to the globalcrisis: • Recognition of spatial inequalities (between countries orregions) • Reflections about renewed development indices (different than GDP; OECD, 2014;Bhutan…) • Development of new spatial and regional policies (In Europe, smart specialization and smart development, Foray, 2015; but also everywhere in theworld • These changes plead in favor of a differentiated development and of a specialization of spaces, including intra-regional development processes (territoriallevel) • We observe a profusion of joint actions, initiatives and new practices coming from the territories, which draw the forms of new modes of development(territorial)

3. Presentation • Questions • What are the expressions of these new territorial development processes? • Can we described them? What is the rationalebehind? • What are the main engines of territorialdevelopment? • Plan of the presentation • Territorial development: therationale • Territorial development: a question of innovation? • Territorial development: a question of governance aswell • Production and Governance. The two engines of territorialdevelopment • Conclusion • Possible bonustrack

4. Territorialdevelopment therationale

5. From regional developmenttheories… • The main economic development theories… find an echo at the regionallevel • 1) In search of balanced growth developmentprocesses • Traditional approach : homothetic growth of capital and labor, then of knowledge and R&D investments (Solow, 2000) ; Convergence ofgrowth • rates and levels of wealth of the regions, possible disappearance of interregional disparities in the longterm • Export base theory (Alexander, 1954) : domestic sector (local consumption). Basic sector (exportation) is at the origin of development processes; Keynesian multiplier on the regional economy, by capturing external incomes and subsequent increase of local wages, followed by an increase of consumption at the local level and the development of the domestic production sector

6. … to pioneers of territorialdevelopment • 2) Development processes which can contribute to deepen disparities (often hardly reducible) betweenRegions • New Economic Geography (Krugman, 1991) : spatial concentration processes can benefit to one region at the expenses of the others (competition and path dependency) • Residential Economy (Davezies, 2008) : several regions, which do not have enough production capacities to develop, can beneficiate from external incomes (tourism, retiredpeople…) • 3) Pioneers of territorialdevelopment • Clusters and districts : co-operation relations and joint projectsbetween • local production actors (Becattini, 1991 ; Porter, 1985) + milieus (Camagni,1995) • Local development linked with innovation or creation processes (Feldman,1994) • Evolutionary Geography (Frenken & Boschma, 2007) : entrepreneurship dynamics buildterritories

7. What is territorialdevelopment? • Geographical areas of a reduced size (localdevelopment) • Territory: • Biophysical or institutional reality (a water catchment area or amunicipality) • But most of all: an inescapable reality and a social construction, based on the actors’ actions (Jean, 2008), a living space (Di Méo,1998) • Three main breaking lines with regards to regional development • not reduced to productive actors and institutions in charge of development policies. Other stakeholders: local or territorial collectivities, local Public services, agencies, local governance structures and organizations,associations… • integration of co-operation and social construction processes. New social and institutional practices (territorial innovation), will of local networks of actors to manage their developmentprojects • introduction of scarcity and competition over land, land use planning, landgrabbing • and soilsabrasion

8. Territorialdevelopment A question of production andinnovation?

9. Innovation interritories • Idea that innovation plays a key role in development processes(Schumpeter, • 1911) • At the regional or the territory level aswell: • Clusters, innovative milieus, and local systems of production and innovation (including SYAL?) (Porter, 1990; Camagni,1993) • Geography of innovation (Feldman, 1993): knowledge traverses streets and corridors easily than continents andoceans • Creative classes (Florida, 2002), in thecities • Evolutionary geography economy (Boschma, 2010); proximity and related variety • These approaches gave birth to a huge number of local and territorial technological policies (mainly cluster analysis, and smartcities…) • They mostly refer to urban areas or densely populatedones

10. Traditional forms ofinnovation • These traditional statements are mainly based upon one type ofinnovation: • technologicalinnovation • Innovation and creativity are mostly related to peculiar places : urban areas (obvious for creative classes, but most clusters are linked with urban areas aswell) • They are only consistent with a few places in the world (few cities in few regions in fewcountries) • This definitionexcludes: • non technologicalinnovation • most places in theworld • But most of all, it is not well adapted to peripheral or ruralareas

11. Enlarged forms ofinnovation • Localized innovation systems (clusters, districts,milieus…): • technological and organizationalinnovation • But other forms of innovation as well (especially at the locallevel) • crowdfunding: collecting small amounts of proximity funds, community support initiatives or projects, loans between particular, local savings ... local currencies • crowdsourcing: laboratories of ideas, bringing together people around the development and implementation of joint projects, practicalsolutions • industrial and territorial ecology or circular economy: using scarce local resources in conjunction with environmental requirements,recycling • short value chains, and local food, for ex. in the foodsector • social co-operatives (ex: Mandragon in the Basquecountry) • etc.

12. For an integrated approach to innovations in the territories Collaborative economy (incl. crowdsourcing, crowdfunding) Local exchange systems andLocal currencies Partnership and opening ofindustrial processes Relations between economic andsocial players Geographical and relational proximity betweenconsumers Industrialand territorial ecology Short(food) valuechain andproducers Development of local resources and limitingflows Social economy and entrepreneurship Circularand functional economy Eco-efficiency involving the playersin the valuechain

13. Towards territorialinnovation Technological (and organizational) innovations Territorial Innovation • Innovation at the local level is not limited to technological and organizational facts • A large part of innovations is not linked with the production process, but with socialprocesses: • organizational innovation (Read, 2000; Lorenz,2005) • social innovation (Gershuny,1983) • institutional innovation (Ruttan & Hayami, 1984; Hargrave & Van de Ven,2006) • A way to go ahead: an integrative perspective for innovation in all its dimensions and to all kinds of territories: territorial innovation (Moulaert & Sekia, 2003; Morgan,2004)

14. Territorialdevelopment A question of governance aswell

15. TerritorialGovernance • Observations • Increased interest of local populations for development features andprocesses • Rise of the participativedemocracy • Local (and participative)initiatives • Rise of the level of education of localpopulation • Shift from the analysis of governmental and local authorities action to the notion of territorialgovernance • Three mainreasons: • increasing complexity of the actors in the territories: mosaic of stakeholders (goods and services companies, residents, tourists and visitors...) • involvement of local population who want to participate in decision-making and regional projects (associations, formal and informallobbies) • levels of governance: local level (or regional), national (federal) and European, with their train of decisions andregulations

16. Territorial governance : types of involvement to debates or decisionsprocesses • Co-operation(concertation) • Joint process of collection of elements for asolution • Negotiation • Joint decision buildingprocess • Dialogue • Horizontal interactions betweenactors • Consultation • To collect actors opinions, without any guarantee about theirconsideration • Information • To inform a group of persons about the intentions or thedecisions • Communication • To diffuse a message and to obtain the support of the population to aproposition

17. Territorial governance, engine of territorial development • The crucial point: how to act together in the territories, for an objective of territorial development (population is “in charge “ of the territory… and plan to go ahead) (Pierre, 2000,2002) • Projects and agreements between local stakeholders (public or local authorities, firms, inhabitants, public bodies,associations…) • Multi-level governance: local and global actors (laws, regulations, decisions, global policies) • The goals of territorialgovernance • Promote / define territorial developmentprojects • Coordinate various heterogeneousactors • Prevent players go away (desertification) • Avoid blockingclashes • Decide developmentpaths

18. One step beyond: Introducing the conflictdimension • Land use and landscarcity • Pollutionevents • Setting of newinfrastructures • Urbansprawl • Congestion Torre et al.,2014 Leeuwen,2010 Deininger & Castagnini,2006 … are at the core of contemporary development processes, especially in the most crowdedareas The competition between various land uses lead to opposition and local conflicts at the territoriallevel Large opposition mainly focuses on different styles and modes of territorial development

19. Conflicts andgovernance • About the very nature ofconflicts • Are there linked with negativeissues? • Are there bad to the society? Harmful to development processes? To territorial governance? • How to cope with land useconflicts • Stopthem? • Conflictresolution? • Management? • Let them live their ownlife?

20. Conflictinginnovations • Conflicts are good signals of innovations (especially land useconflicts): • Social, technical and economic evolutions, novelty,innovations • Changes lead to resistances andoppositions • Focus on majoroppositions • Conflicts are the test of the social acceptability ofinnovations • rejection ormodifications • Conflicts lead to territorial innovation. During and after conflictsappear • New forms ofgovernance • New types of actors (or groups of actors), newhierarchies • New technicalchoices • ExtendedSchumpeterian • approach to theterritory

21. Production andGovernance The two engines of territorialdevelopment

22. Types of territorialinnovations

23. Production and Governance, the twoengines • Production • Local systems of innovation and production / clusters: far from disappearing, they undergo a series of extensions and mutations: clusters, districts, milieus, techno poles, SYAL, APL, industrial ecosystems, industrial and territorial ecology, circular processes,bioeconomy… (Open innovation)… but also isolated innovators • Alternative modes of production at the local level(innovation) • Governance • Local population claim for an increased level of participation in public decision, leading toinnovation • co-operation between stakeholders, multiple collaborations, territorial governance of participativedemocracy • conflicts lead by opponents to public or privatedecisions

24. Hirschman’s style(1970) Territorial innovation and developmentpatterns Conflicts/voice Conflictual innovations Newprojects Development paths Co-operation/ Loyalty Cooperative innovations Governance

25. Territorial innovation and developmentpatterns Conflicts/voice Conflictual innovation Newprojects Development paths Co-operation/ Loyalty Cooperative innovations Territory Governance

26. Territorial innovation and developmentpatterns Spatialexit = nondevelopment Conflicts/voice Conflictual innovation Newprojects Development paths Co-operation/ Loyalty Cooperative innovations Territory Governance

27. Territorial innovation and developmentpatterns Relocation Competition Competitive innovations Inventions Development paths Co-operation Cooperative innovations Territory /cluster Production

28. Paths of territorial development: co-operative and conflictinginnovations t0, t1, ... : I1, I3, I5: C2, C4 : Periods Co-operative Innovations ConflictingInnovations S0, S1,... : Developmentfigures Development paths P0, P1,...: A peculiar developmentpath (dependency) New projector invention C2 I1 t4 t2 t1 t0 P0 I3 S5 P1 P5 P2 Trial anderrors t3 Governance

29. Paths of territorial development: co-operative and conflictinginnovations S1 I3 t0, t1, ... : I1, I3, I5: C2, C4 : Periods Co-operative Innovations ConflictingInnovations P3 S0, S1,... : Developmentfigures S3 Development paths P0, P1,...: P1 S4 P4 New projector invention C2 C4 I1 S0 t4 t2 t0 t1 t3 P0 S5 P5 I5 P2 Trial anderrors Governance S2

30. Feedbacks and nonlinearity…

31. Conclusion

32. Territorial development as a laboratory of innovation and development processes • Territorial development is induced byinnovations • Co-operativeinnovations • Conflictual or competitiveinnovations • Governance and production are the engines of territorialdevelopment • Local production systems + isolatedinnovators • Territorial governance involving various (groups of)stakeholders • Territorial development can be seen as a test for development processes, and for the rise of new innovations. If it works, it can be reproduced or diffusedelsewhere • The inherent complexity of innovation (production of services and their environment) requires the use of localexperimentations

33. Thanks forattention www.andre-torre@com

34. Somereferences • Torre A., Wallet F., 2016, Regional development in rural areas. Analytical tools and public policies, Springer Brief, Springer Verlag, N York &Heidelberg. • Torre A., 2015 Permanent and temporary proximities. Their role in the process of technological knowledge diffusion, Revista Brasileira de Gestão e Desenvolvimento Regional, 11, 4, 78 -100. • Torre A., Wallet F., 2015, Towards New Paths for Regional and Territorial Development in Rural Areas, European Planning Studies, 23:4, 650-677, DOI:10.1080/09654313.2014.945812 • Torre A., 2015, New Challenges for Rural Areas in a Fast Moving Environment, European Planning Studies, 23:4, 641-649, DOI:10.1080/09654313.2014.945811 • Magsi H., Torre A., 2015, Land use conflicts and human development nexus: proximity analysis, in Giri A.K. (ed.), New Horizons of Human Development, Studera Press,Delhi. • Torre A., Darly S., 2014, Land use and soils disposal: From competition to territorial governance (examples from land use conflicts in the greater Paris region), Renewable Agriculture and Food Systems, 29, 3, Sept., 206 – 217. DOI:http://dx.doi.org/10.1017/S1742170513000379 • Torre A., Melot R., Magsi H., Bossuet L., Cadoret A., Caron A., Darly S., Jeanneaux P., Kirat T., Pham H.V. and Kolokouris O., 2014, Identifying and measuring land-use and proximity conflicts: methods and identification, SpringerPlus, 3, 1,85.

35. Some references(cont.) • Magsi H., Torre A., 2014, Proximity analysis of inefficient practices and socio-spatial negligence: Evidence, evaluations and recommendations drawn from the construction of Chotiari reservoir in Pakistan, Land Use Policy, 36, 567 –576. • Torre A., Wallet F. (eds), 2014, Regional development and proximity relations, New Horizons in regional Science, Edward Elgar, London,375p. • Darly S., Torre A., 2013, Conflicts over farmland uses and the dynamics of “agri-urban” localities in the greater Paris region, Land Use Policy, 33, July, 90 –99 • Darly S., Torre A., 2013, Land-use conflicts and the sharing of resources between urban and agricultural activities in the Greater Paris Region, in De Noronha Vaz T., van Leeuwen E., Nijkamp P., (eds), Towns in a Rural World, Ashgate, Farnham, 393p. • Kebir L., Torre A., 2012, Geographical proximity and new short supply food chains, in Lazzeretti L. (ed), Creative Industries and Innovation in Europe, Concepts, Measures, and Comparative Case Studies, Routledge, N. York, 328p. • Torre A., Traversac J.B. (eds), 2011, Territorial Governance. Local Development, Rural Areas and Agrofood Systems, Springer Verlag, Heidelberg & N.York.

36. Bonustrack Governance problems in the setting of big infrastructures The case of Diamer Basha dam inPakistan

37. Infrastructural Projects, Land Use Conflicts and governanceissues People protested for their livelihood incase of Pak Mun Dam ,Thailand as, it has affected over 20,000 people by preventing fish migration Three Gorges Dam inChina Protests for dam projects in future in Sarawak (Malaysian State) after completion of controversial Bakun Dam in2011 About10000 people in case ofBakun Dam, Malaysia have been displaced. People are suffering from adverse socioeconomicconditions

38. Case study Locationand AreaProfile

39. Case study: Diamer-BhashaDam • Very largeproject • Electricity generation (4500megawatts) • Irrigation water availability (6.5 million acre feet) • Prevention fromfloods • Specific Issues related to Diamer-BhashaDam • InfrastructuralProject Socioeconomic Impacts on AffectedPopulation Conflicts (Among differentactors) 40

40. Diamer-Basha Dam: Location and AreaProfile 41

41. Facts: Land Acquisition &Resettlement • Population displacement & landacquisition • Displacement of 4228households • Inundation of 1076 Hectares of agriculturalland • Acquisition of 15142 Hectares of land forproject • Compensation • On the basis of three land categories • 1. Cultivated 2.Cultivable 3.Barren • Resettlement • Three model villages as part of compensation (one kanal1 plot to each affected household will be provided) • ThakDas 2.HarpanDas 3. KinoDas • 1Kanal is a land measuring unit in Pakistan which is equivalent to approximately 5400 squarefeet. 42

42. Facts: Land Acquisition &Resettlement • Employment • Generation of employment opportunities during and afterconstruction • Capacity BuildingPrograms • To develop skills among local people for jobs at projectsite • Territory Issue between twoProvinces • Boundary issue between twoprovinces • Royalty issues between two provinces afterconstruction 9

43. Methodology

44. DataSources Interviews (Experts & Stakeholders) • LivingStandard • Compensations • Awareness toInvest • Displacement& Resettlement • Employment & CapacityBuilding • Corruption & Mismanagement Conflicts & Socioeconomic Issues National& Regional Dailies • Conflicts(among local people & Government) • Conflicts(among groups of local people)

45. Primary DataSource Interviews ofexperts

46. Different issues identified through Interviews • Livingstandard • Compensationamount • Awareness to use compensationamount • Resettlement plan • Impact onlivelihood/employment • Capacity buildingprograms • InformationDissemination • Publicparticipation

47. Different issues identified through Interviews • Corruption and mismanagement in projectactivities • Land use conflicts between affected people and Government • Land Measurement Conflict • Land CategoryConflict • Land use conflicts between different groups of local people • Conflict over common lands’ right among differentgroups • Boundary conflict between KPK &GB

48. Secondary DataSource Articles from National and RegionalDailies

49. Secondary DataSource Percentage number of articlesdiscussing different issues

50. Information about Ethnic Groups in ProjectArea