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The Diversity of the Rural Development Priorities in Europe Tomas Ratinger and Stephan Hubertus Gay JRC-IPTS, European C

The Diversity of the Rural Development Priorities in Europe Tomas Ratinger and Stephan Hubertus Gay JRC-IPTS, European Commission (Seville, Spain). Thanks to our current and former colleagues of the SAFH unit for their contribution to our presentation.

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The Diversity of the Rural Development Priorities in Europe Tomas Ratinger and Stephan Hubertus Gay JRC-IPTS, European C

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  1. The Diversity of the Rural Development Priorities in Europe Tomas Ratinger and Stephan Hubertus Gay JRC-IPTS, European Commission (Seville, Spain) Ratinger, Gay - IAMO-Forum 29 June 2006 1

  2. Thanks to our current and former colleagues of the SAFH unit for their contribution to our presentation. In the presentation we are using results and graphics of • The IPTS/SAFH research projects • The research conducted in the other JRC institutes (PSC and IES) • DG-AGRI baseline indicators • Study on Rural Employment (SERA) • ESPON studies • And many other studies Authors’ opinions – not necessarily reflect opinions of the Commission Ratinger, Gay - IAMO-Forum 29 June 2006 2

  3. Rural development research is a new area of IPTS • The research agenda defined with DG Agri • Focused on • what kind of rural regions we have • how they function (economically, socially) • how to govern their sustainable development Ratinger, Gay - IAMO-Forum 29 June 2006 3

  4. Structure • Definition of RURAL – does it matter? • Development and diversity of rural areas • Diversity of issues and priorities • (Future research) • Objective: to discuss • Common features • Common issues • Common perspectives • for an EU level policy Ratinger, Gay - IAMO-Forum 29 June 2006 4

  5. Delimitation of rural areas • At community level • If population density is below a certain level • (OECD 150 inhab/km2) • Population size of the community is below a certain threshold • A combination of both • (IE) ≤1500 inhab., ≤ 150 inhab./km2 • A combination of both + other criteria (sparsity, integration with urban areas) • (UK) • “Aggregated” to higher level • OECD – regions are said to be urban, significantly and predominantly rural if the share of rural communes is <15%, 15%-50%, >50% Ratinger, Gay - IAMO-Forum 29 June 2006 5

  6. England’s New Rural Definition • Settlement morphology [sites<10000 inhab., village, town, disperse] • How sparsely the site is populated • Sparsity: average densities of households across areas of radius 10, 20 and 30 km is below a certain levels Source: DEFRA Ratinger, Gay - IAMO-Forum 29 June 2006 6

  7. Pros and cons of the OECD definition • Pros: Objective and easy to apply • Cons: • Does not take into account spatial structure of settlements • Further information lost when up-scaled to upper levels NUTS3 level • Inappropriate classification, some “strange” results • Does not take into account socio-economic variables • Obviously MS are not happy with it for a practical rural policy Source: Ratinger, Gay - IAMO-Forum 29 June 2006 7

  8. Drawbacks of the OECD definition Classified as Urban Clearly Rural Source: JRC/IPSC • Miss classification of rural and urban communes • Arable agriculture allocated similarly to rural and urban areas Ratinger, Gay - IAMO-Forum 29 June 2006 8

  9. A non-population density definition Source: JRC/IPSC • An attempt of DG-AGRI and JRC/IPSC • Area is Rural if more than X% of the territory belongs to Rural Land Cover Classes (Forest, Agricultural and Natural Land) • Calculations based on CORINE Land Cover • Unexpected results • Example if X=30% Ratinger, Gay - IAMO-Forum 29 June 2006 9

  10. Problems with definitions • It defines the subject/target/recipient of the policy • Get information → a respective statistical unit • Need for governing the policy → a respective economically, socially environmentally autonomous unit • Clearly –density is continuous thus rural-urban continuum • Where the threshold(s) come from? • Can the borderline be independent of a problem and thus of a policy? • Thus, if problems vary across regions → the definitions should vary accordingly? Ratinger, Gay - IAMO-Forum 29 June 2006 10

  11. The diversity of EU regions • Using a neutral definition (such as OECD) rural regions differ in • Resource endowment • Demographic structures, human capital • Natural resources • Natural values and environmental sensitivity • Infrastructure/structure • Social • Business • Drivers (social capital, external economy performance) • Performance • Income, employment, growth • Social inclusion of inhabitants, migration in and out • Environmental pollution/conservation Ratinger, Gay - IAMO-Forum 29 June 2006 11

  12. Transport accessibility Average accessibility Poor accessibility • Potential Accessibility • Multimodal • Based on calculation of the generalised travel cost • cij=-λ-1 ln(∑m exp(- λcijm)) • Generalised cost cijm between places i and j, m – mode of travel • Pictured as percentage of the average accessibilty Ratinger, Gay - IAMO-Forum 29 June 2006 12

  13. ICT technologies - Broadband • The spread of new ICT technologies in rural areas behind the urban zones • 90% of urban population have access to broad band while it is only 60% in rural regions. • ICT are deemed to be crucial for competitiveness of RA • NMS are behind in general, the more in rural areas. • More detailed information needed Source: A-Bard Ratinger, Gay - IAMO-Forum 29 June 2006 13

  14. Performance • Economic (e.g. GDP) • Social (e.g. Employment) • Environmental • Institutional Ratinger, Gay - IAMO-Forum 29 June 2006 14

  15. Employment structure Strong agricultural base Back to agriculture Strong tertiary Strong secondary Ratinger, Gay - IAMO-Forum 29 June 2006 15

  16. Employment structure Source: Eurostat, Regio, Own Calculation Ratinger, Gay - IAMO-Forum 29 June 2006 16

  17. Performance • Rural regions weaker • In RA social performance satisfactory under medium economic performance • Social performance is less dependent on economic in RA. Economic performance (GDP_PPS per capita) • GDP clusters: • Poor <75% of the EU avg • High >125% of the EU avg • Social Performance: • Poor Unemployment < 7% • High Unemployment >13 % Source: Eurostat, Regio, Own Calculation Ratinger, Gay - IAMO-Forum 29 June 2006 17

  18. Performance: GDP and transport Source: ESPON • Although the variance is high the relationship is obvious • Location theory • Garcia Pires (2006) using Krugman Geographical Model on Spanish regional data for 1981-1995 • Estimated the effect of distance from a market on wages • Distance makes markets imperfect • Transport cost matter →agglomerations Ratinger, Gay - IAMO-Forum 29 June 2006 18

  19. Economic problems of rural areas • Loosing competitiveness of the manufacturing sector (Freshwater, OECD, 2003, The future of Rural Policy) • Insufficient concentration; transport costs • Third type of industrial clusters – Social networks (McCann, Sheppard, 2003) might become increasingly important • Conversion from primary and secondary sectors to the tertiary • ICT diffusion might play an important role Ratinger, Gay - IAMO-Forum 29 June 2006 19

  20. Problems and priorities – Case studies • England, Wales, IE, Spain (Andalusia) • Targeting rural communities, • Social inclusion • SME (non-agricultural) • PL, LT (BG, RO) • Overarching problem: subsistence farming and job opportunities, need for economic restructuring of large regions. • CZ • Revitalisation of villages (particularly in Sudeten) – institutions of rural development • Land abandonment Ratinger, Gay - IAMO-Forum 29 June 2006 20

  21. Problems and priorities Ratinger, Gay - IAMO-Forum 29 June 2006 21

  22. Economic development of RA Economic performance Income, competitiveness Factors Ratinger, Gay - IAMO-Forum 29 June 2006 22

  23. Economic development of RA Economic performance Income, competitiveness Markets, coordination Ratinger, Gay - IAMO-Forum 29 June 2006 23

  24. Summary • Rural areas in different stages of economic development • Often depending on the development of larger regions • The higher income other than economic issues dominate • Social inclusion • Rural environment • Increasing need for targeting needs at lower level (community level) • MS, regions conduct special surveys, provide specific typologies Ratinger, Gay - IAMO-Forum 29 June 2006 24

  25. Research issues • Need for more detailed typology of rural areas • Although it will likely not comprise all national, regional typologies it should relate to them, a bridge has to exist. • Pan-European policy assessment has to take into account lower levels (than NUTS2 and NUTS3) • How to down-scale, upscale information and methodologies Ratinger, Gay - IAMO-Forum 29 June 2006 25

  26. The Diversity of the Rural Development Priorities in Europe Thank you for your attention! Ratinger, Gay - IAMO-Forum 29 June 2006 26

  27. Use of transport The same phenomenon referring to two different rural types A detailed analysis needed Ratinger, Gay - IAMO-Forum 29 June 2006 27

  28. Performance: GDP and Unemployment Source: Eurostat, Regio, Own Calculation Ratinger, Gay - IAMO-Forum 29 June 2006 28

  29. Rural definitions Other characteristics ? • Rural society (Encyclopaedia Britannica): • a low ratio of inhabitants to open land • the most important economic activities are the production of foodstuffs, fibres, and raw materials. • difficult to pinpoint the boundaries of rural places. Ratinger, Gay - IAMO-Forum 29 June 2006 29

  30. Performance • Economic (GDP) • Social (Employment) • Environmental • Institutional Ratinger, Gay - IAMO-Forum 29 June 2006 30

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