BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience...

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BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Guido Van Huylenbroeck Rural development in Flanders: a scientific assessment

Transcript of BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience...

Page 1: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Guido Van Huylenbroeck

Rural development in Flanders: a scientific assessment

Page 2: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Content

• What does rural development means?• Role of agriculture• Strategies• Assessment of passed rural development

actions (general + Flanders)• Lessons for the future: a territorial approach • Conclusions

Page 3: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Definition of rural development• Hodge (1986) : “An overall improvement in the welfare of rural residents

and in the contribution which the rural resources make more generally to the welfare of the population as a whole”

• This emphasizes the new position of rural areas in European society: rural areas fulfil multiple functions essential for urbanised populations (yellow: production, green: nature and blue : residence services)

• Rural development is then about how rural areas can better perform their functions and so can not be seen independent from urban processes.

• So rural development is then not only about economic growth, but also about economic and social cohesion and integrity

• It has also a prospective dimension: the dynamics of rural areas in terms of possible and desired evolutions.

Page 4: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Role of agriculture in rural development• Agriculture produces both commodity and non-commodity

outputs (multifunctionality).

• The direct economic contribution of agriculture is declining, but the value/significance of other outputs increasing.

• This value can be

‣Direct: higher prices for houses in rural areas or increase in tourism activities or accommodation prices (Vanslembrouck et al))

‣ indirect: higher well-being and thus better performance of such regions

• Role of agriculture in the functioning of the rural system (systemic approach) should be analysed.

Page 5: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

• Following strategic stages can be distinguished in time:− 60 - 80: Modernisation of agricultural sector − 80 - 00: Integrated agricultural policies (agro-environmental

regulations, cross compliance)− 00 - ? : Territorial and bottom-up approaches

• This means a gradual shift from sector approaches to territorial approaches

• However for evaluation of the past, we should refer to the old paradigm as that was the leading paradigm for passed policies.

Strategies to rural development

Page 6: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Evaluation of rural development policies • In general it is not easy to measure the contribution of

rural development policies to local economic development

• Reasons:- Lack of good methodologies (regional I.O.- analysis not

yet well developed)- Lack of (adequate) data- Small contributions in comparison with general economic

conditions

Page 7: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

General evaluation results• In general scientific studies are not conclusive on the

contribution of EU Rural development policies.

• Most RD programmes evaluations only show a slight impact on economic dynamics of territories (Schmitt et al., 2003).

• The problem of non-focussing and lack of a coherent local framework is often mentioned.

• Most RD policies focus on offsetting weaknesses/ disadvantages (income, environmental or territories) and not on a dynamic economic development.

Page 8: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Evaluation of Flemish PDPO- Economic impact:

• Impact on employment and stabilisation of rural population: nihil to very small

• Impact on income in agriculture: limited positive but a positive incentive to diversification of incomes (AEMs, other diversification)

• Investment support gives higher survival possibilities for starting farms • No or very small chain and territorial competitiveness approaches (low

multiplier effects)

- Environmental impact: • Main focus on reduction of negative impacts• difficult to assess, • no clear objectives regarding role of nature and environmental

resources in territorial development

Page 9: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

- General impact• Low coordination among measures with as a result no or very low

synergy effects on both development of agriculture as local development (no chain approach and no local territorial approach).

• Low multiplier and spill over effects between sectors because of lack of coherence in vision and actions.

• Spatial and horizontal/vertical dimension is mostly lacking.• Still high dead weight payments (paying for status quo). This

questions benchmarking.

- Importance of PDPO (and other RD initiatives):• Mind shift• Small contribution to promoting new role of agriculture

Evaluation of Flemish PDPO

Page 10: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Lessons for a new RD-approach • In the midterm evaluation recommendations and also in the new

EU approach a more territorial approach is promoted.

• Leading principles of this approach should be:−Pursuing a policy of territorial economic development and not only

one of offsetting (environmental, income or territorial) disadvantages

−Policies based on existing linkages between rural and urban (certainly in our densely populated context)

−Differentiated approach according to role of a territory in the coming decades at regional and global level

• This requires a territorial approach focussing on strengths and opportunities for rural activities in a specific region (see Ramos, 2005)

Page 11: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

The territorial approach (1)

Page 12: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

The territorial approach (2)

Page 13: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

The territorial approach (3)

Page 14: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

The territorial approach (4)

Page 15: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

The territorial approach (5)

Page 16: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Can territorial approach work ?• Internationally some good examples such as Parmagiano region

(It), Produits terroires (Fr), Pata Negra in South Spain

• Own research in the peri-urban region around Brussels shows that local context can make difference in diversification and AEMs uptake

• Success requires good SWOT analysis at regional level

• Need of building social (confidence and capacity for collective action) and human (knowledge for leading processes and systems) capital

• Need for new institutions (reinforcing local policy level) and methods (e.g. discours approach)

Page 17: BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics Guido.

BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005Faculty of Bioscience Engineering – Department of Agricultural Economics

Conclusions• Rural development questions the role of agriculture in

society.

• Support to agriculture and rural areas/sectors will in future increasingly be motivated by their contribution to the whole (urban) population.

• RD-strategies should be able to strengthen this contribution and thus the economic development of regions (multiplier and spill over effects).

• Territorial approach can be basis of such (bottom-up) RD policy.