Rethinking Rural Development: Lessons for Serbia and Montenegro Belgrade, Serbia May 12-14, 2004

1. Rethinking Rural Development: Lessons for Serbia and Montenegro Belgrade, SerbiaMay 12-14, 2004

2. Structure of Presentation Evolving concept of rural development World Bank and Regional Experiences Lessons

3. Trends Driving the Evolving Concept of Rural Development - 1 Most farms will be predominantly commercial and continue to get larger; The great majority of rural people will not be landowners; Agriculture�s contribution to GDP will decline, in most cases to no more than 10% - 15%; Input and output marketing systems will be integrated, industrialized, and sophisticated;

4. Trends Driving the Evolving Concept of Rural Development - 2 A larger percent of world agricultural production will be traded on international markets; An increased portion of rural income will be non-agricultural in origin (though with linkages to agriculture in most cases; Agriculture�s contribution to total exports will decline, and be no higher than 10% - 15% of total exports; and Agriculture will become a net recipient of government revenue.

5. Evolving Concept of Rural Development European Union: Multi-functionality US: Rediscovering Rural Development World Bank: Focus on Poverty OECD: Holistic Approach with Focus on Rural Job Creation Developing Countries: Focus on Agricultural Within a Multi-Sectoral Framework

6. Contemporary Approach to Rural Development - 1 Sustainable rural development requires multi-disciplinary and pluralist approaches to address poverty and social and gender equity, local economic development for employment creation, natural resource management, and policies and governance. Sector-specific focus is necessary, but not sufficient for sustainable rural development. More integrated approaches are also needed � integrating hardware (infrastructure and agricultural technologies) with software (institutions and capacity building), with an increased focus on rural infrastructure.

7. Contemporary Approach to Rural Development - 2 Solutions in rural development must be based on community participation and empowerment must strengthen rural governance in accordance with the principle of subsidiarity, and must foster growth of the private sector and the use of market mechanisms. Developing the rural institutional frameworks and capacities requires long-term assistance through programs, not projects, and supporting specific areas and regions. Piloting and experimenting are desirable, but replicability (scalability) needs to be a design objective.

8. Rural Vision Rural residents enjoy a standard of living and a quality of life that is not significantly below that available to urban residents. Rural communities offer equitable economic opportunities for all of their residents regardless of income, status, or gender. Rural communities become vibrant, sustainable and attractive places to live and work. Rural areas contribute to the national development and the overall economy and are dynamically linked to small villages, larger towns, and urban areas. Rural areas adapt to on-going economic, social, cultural, environmental and technological change.

9. A Shift in Emphasis Fostering broad-based rural growth Addressing the entire rural space Focusing on income generating capacity of rural population Giving voice to the rural population, including the rural poor Forging alliances of all stakeholders � all elements of the rural population Addressing impact of global developments (trade, subsidies, climate change)

10. Current Strategic Priorities in Rural Development Fostering an enabling policy and institutional environment for broad-based and sustainable rural growth; Enhancing agricultural productivity and competitiveness; Encouraging non-farm economic growth; Improving social well-being, gender equity, managing risk, and reducing vulnerability; Enhancing sustainable management of natural resources.

11. CEE: Rural Population as Percentage of Total Population