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The area-based development approach Challenges for implementation in rural cross-border areas

The area-based development approach Challenges for implementation in rural cross-border areas G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unit.

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The area-based development approach Challenges for implementation in rural cross-border areas

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  1. The area-based development approach Challenges for implementation in rural cross-border areas G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unit

  2. The Institute for Prospective Technological Studies (IPTS) a directorate of the JRC provides customer-driven support to EU policy making aims at policy challenges that have a socio-economic and science & technology dimension

  3. The AGRILIFE unit within IPTS SUSTAG / AGRITRADE / AGRITECH

  4. Target area: Drina-Tara The Western Balkans project • General objective • To facilitate local development in the Western Balkans (focus on rural) • Specific objectives • To apply the ABD approach in a selected rural cross-border area in the Western Balkans • Disseminate the ABD strategy and action plan to potential donors • Develop a method using the ABD approach for other rural areas in the Western Balkans, where ABD intervention may be appropriate

  5. Target area – Drina river / Tara mountain • Features • 13 municipalities, • all border with one exception • 380.000 inhabitants • 7.860 km²

  6. Area-based development (ABD) approach • Need for approach able to address • particular, specific • complex • in a holistic manner • Main characteristics • area-specific (versus country) • integrated (across sectors) • inclusive (communities) • participatory (bottom-up) • flexible (responsive to changes) }development problems

  7. Instruments for economic diversification in rural areas EU policy 2007-13 Pre-accession assistance Priority axes rural development Axis 1 Improving market efficiency and implementation of Community standards Axis 2 Preparatory actions for implementation of the agri-environmental measures and Leader Axis 3 Development of the rural economy Source: Schiessl (2009) Source: Directorate-General for Agriculture and Rural Development (2006)

  8. The cart before the horse???

  9. Investments Source: Millenium Project report (2005) Capital stock and economic growth

  10. Overcoming poverty • Key capital stock/investments in • Infrastructure • Public administration • Human capital • = foundations for self-sustaining economic development and private sector growth • Overarching areas of investment • Upgrading public management systems • Extensive capacity building at local level • Scientific capacity • Cross-border investments

  11. Essential regional goods to reduce poverty • • Cross-borderinfrastructure • transport, energy, water management, accessible land • • Cross-border economic cooperation • institutions coordinate and harmonise • promote intra-regional trade (movement of goods and people): • e.g. reduced transit fees, automated customs procedures • • Cross-borderpolitical cooperation • strengthen institutions • strengthen policies and promote good governance • regional dialogue and consensus building • Cross-border environmental coordination • manage trans-boundary issues • concerted responses Public investment – crucial to attract private investment

  12. Experiences of cross-border cooperation (CBC) • INTERREG-A • Factors for successful and effective CBC: • legal framework for CBC, quality of partnerships, degree of institutionalisation

  13. Recommendations for ABD implementation ABD intervention – design Focus intervention on needs and prioritiesof the area Assess capacity to participate & ensure unbiased participation Promote early involvement of stakeholders & donors Match time & budget with objectives - avoid false expectations Guarantee coherence ABD programme with macro-situation Incorporate positive aspects of existing initiatives Include issues withpotential shared positive impact ABD in ruralcross-border areas I • ABD intervention – management • Coordinateactivities (also across donors) • Monitor and evaluate regularly • Reduce transaction costs • Foresee exit strategy

  14. ABD in ruralcross-border areas II • Conditions for successful implementation • Key capital stock (infrastructure, public institutional capital, human capital) • – in place, or investment needs? • Essential mechanisms for provision of regionalgoods (cross-border infrastructure, and economic, political and environmental coordination) • – in place? • – if not, which needs and which public funds available? • Private investments • – particular needs cross-border, land-locked areas?

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