Rural Development Policy in a Diversified Europe: Some Notes for a Research Agenda

1. Rural Development Policyin a Diversified Europe:Some Notes for a Research Agenda Franco Sotte Dipartimento di Economia Università di Ancona Piazza Martelli, 8 60121 Ancona Sotte@dea.unian.it 73rd EAAE Ancona, 2001

2. Why this Seminar on RD Policy? • Evaluation of RDP experiences (especially CAP) • Structural policy, Leader, Sapard, Regional development plans Ag2k • But also other experiences of RDP: parks, border regions, remote areas • Tools and Methods • Instruments for evaluation • ex ante • in itinere • ex-post • Data and statistical information • Institutional solutions • Definition of RDP • What is rurality ? • What is rural development ? • What is Rural Development Policy then ? 73rd EAAE Ancona, 2001

3. What is Rural? • The definition evolves (and corresponding indicators are needed) • “Agrarian rurality” • Rurality = Agriculture • Unit of measurement: rate of employment in agriculture • “Industrial rurality” • Other economic sectors (industry) prevail • Unit of measurement: population density (OECD) • “Post-industrial rurality” (dispersion, small scale, common goods) • Polymorphism • Natural capital, Social capital, Human capital, Artificial capital • Economic complexity and diversity • Integration among services, industry and agriculture • Agriculture: new quality oriented market demand, multifunctional roles • Which unit(s) of measurement for the level of rurality? 73rd EAAE Ancona, 2001

4. Local Specific Rurality Issues? • Peri-urban model • Integration with metropolitan area: residence, local demand • High natural and tourist values • Prevalence of common goods and services • Commodity oriented agriculture • Competition in the international markets • High quality agriculture • Agricultural and agro-food districts • Severe natural constraint areas • Dry areas • Very remote rural areas • Isolation, lack of integration • Specific cases of disaster areas • War and ethnic cleansing: Croatia, Yugoslavia; • Earthquake: the Italian Apennines 73rd EAAE Ancona, 2001

5. Human Capital Natural Capital Social Capital Artificial Capital The 4 types of Capital in Rurality Rurality 73rd EAAE Ancona, 2001

6. Waste of Natural Capital Waste of Human Capital Waste of Social Capital The Risk of losing the Balance Weakened Rurality Artificial Capital Less artificial Capital Less artificial Capital 73rd EAAE Ancona, 2001

7. What Is Rural Development ? • Balance between Human-Social-Natural-Artificial capital • Preserve the complexity • Maximise the resilience • Integration between economic sectors • Provide non agricultural functions and employment • Foster the exchange of resources • Co-evolution between rural and urban • Improve the quality of life • Food security • Rural services (tourism & leisure, culture, health, environment, etc.) • Increase the overall competitivity • Maintain flexibility • Conserve uniqueness and identity 73rd EAAE Ancona, 2001

8. What is RDPolicy? • An integrated vision of territorial development • Between sectorial economic policies • Between economic & social, environmental, territorial planning policies • With development policies of other territories • A related distribution of responsibilities • Centre - Periphery • Bottom-up and Top-down approaches • Government vs. Governance (Formal-Informal) • Public and Private • A cumulative construction • Learning by doing / trial and error processes • Based on consistent monitoring and evaluation feedback • Overall analysis of policy impact 73rd EAAE Ancona, 2001

9. Rural versus agricultural development Agrarian rurality Agricultural development Rural development Post-industrial rurality Rural development Agricultural development 73rd EAAE Ancona, 2001

10. Agricultural policy How does RDP Change? Tertiary policies Industrial policies Health policies Agricultural policy Rural development policy Infrastructural policies Education policies Environ.tal policies 73rd EAAE Ancona, 2001

11. Why the present Cap does not Suit RD? • Sectorial definition • No integration with other structural policies • RD regional programs basically only for agriculture • Uneven budget distribution • 1st Pillar (price support + direct payments) = 90% • 2nd Pillar (RDP) = only 10% + mixed collection of measures • Final effect oriented by prevailing coupled push • No comparable support to multifunctional functions • Results • Distribution of benefits unchanged (mainly rent) • No significant support to new/young entrepreneurs • Territorial RD reduced to be 10% of a sectorial policy • Obstacle to enlargement and WTO negotiations 73rd EAAE Ancona, 2001

12. CAP Rural policy in the Agenda 2000 scenario Lack of other basic policies de facto rural policy in the EU Ag2k RDP 2nd Pillar Price support & direct payments 1st pillar Leader Plus Obj. 1-2 structural policy 73rd EAAE Ancona, 2001

13. Which Agricultural Policy corresponds best with RDP? • Moving from CAP to CARPE • Market stabilisation • Environmental and cultural landscape payments • Rural development incentives • Transitional adjustment assistance • An integrated vision of agricultural policy • EU + National + Regional • Expenditure + tax and social security exemption • Targeted towards the entrepreneurs • Finalised to a positive turnover (a central role for young farmers) • Restore a business and marketing perspective • Ag. policy oriented to create a services network 73rd EAAE Ancona, 2001

14. RDP: a Challenge for Ag-Econs? • RD: a new experiment in governing in Europe • Cooperation between policy makers and researchers • Interaction with other economic disciplines, as well as with social and territorial sciences • A new leading role of agricultural economists • in sustainable development definition • and in the corresponding design of suitable policies Thank you 73rd EAAE Ancona, 2001