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1/33

OECDRural

Policy

Reviews:

Whattheyprovideandhowthey

functionDavidFreshwater

2010RuralDevelopmentNetworkAnnualMeeting

Gatineau,Quebec

March2,2010


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PresentationOutline

TheOECD

What

is

it?

Howdoesitoperate?

howdoesruralpolicyfitin?

TheOECDRuralPolicyProgramme

The

New

Rural

Paradigm NationalPolicyReviews

OtherWork

ThemesfromtheQubecRuralPolicyReview

Policy

context

ideas SpecificideasfromtheQubecanalysis

WhatthismightmeanforRuralPolicyinCanada


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OrganizationforEconomic

Cooperationand

Development

Parisbased.Madeupof30industrializedcountries

democraticgovernment

and

alargely

market

oriented

economicsystem.

EvolvedoutofthepostWorldWarIIMarshallPlan.Canadahasbeenamembersincetheoriginin1961.

Providesaforumforinvestigatinganddiscussingeconomicdevelopmentamongmembers.Orientedtoimprovingpublicpolicyandenhancingtheroleand

efficiencyof

market.

Purelyadvisoryinnature,operatesonaconsensusbasis.


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OECDMember

Countries


5/33

OECDMission

Statement

Supportsustainableeconomicgrowth

Boostemployment

Raiselivingstandards

Maintainfinancial

stability

Assistothercountries'economicdevelopment

Contribute

to

growth

in

world

trade


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Operation ManagedbyaSecretaryGeneralwhoreportstoaCouncil

(permanentambassadorsfrom30membercountries).

Fundedbydirectmembershipfeesandvoluntarycontributions.

Secretariatisorganizedinto12themeorienteddirectorates Economics,Education,TradeandAgriculture(TAD),

Public

Governance

and

Territorial

Development

(GOV),etc.

Workisdrivenbytopicorientedworkingpartiescomprisedofdelegatesfrommembernational

governmentsthat

supervise

projects

carried

out

by

the

Secretariat,whichinturnprovidesitsowninternalanalysis,engagesconsultantsandrequestsspecificanalysisfrommembercountries.


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PART2:TheOECDRuralPolicy

Programme


9/33

Ruralat

the

OECD

Occursin2Directorates GOVandTAD

TADmainly

does

agriculturally

related

work

agricultureandruraldevelopment(CAPPillar2),parttimefarming,multifunctionality

GOV Regional

Competitiveness

and

Governance RuralPolicyProgrammemainlyexaminesgovernmentpolicyand

factorsthat

influence

rural

economic

development


10/33

TheRural

Policy

Programme

Foundationin1983toexaminehowruralis

different

from

agriculture

WhatFuture

for

Our

Countryside?

Initiallyfocusedonthematicwork amenities,ruralemployment,nichemarketsandrural

governance,but

subsequently

moved

into

more

spatiallyfocusedwork specificterritoriesandcountries.

Focuson

what

are

the

opportunities

and

constraintstosustainabledevelopment,andhowdoespolicyinfluencethem?


11/33

EvolutionoftheOECD

NewRural

Paradigm

(NRP)

ReflectsOECDruralworkfromthe1990s:issuebasedwork(employment,amenities,niche

markets,governance)

and

sub

national

territorial

reviews.

Inpartareactiontocommonperceptionsthat: ruralisjustnoturban, whichimplieshomogeneity,

ruralis

farming,

which

implies

asingle

dominant

sector,

and

ruralisdeclininganddependent.

OECDTerritorial Indicatorsprovidedevidence

that

while

some

rural

areas

are

lagging,

some

are

moreprosperousthanmanyurbanareas.


12/33

TheOld

and

New

Paradigms

OldParadigm Equalization

or

entitlementapproach,

focusedonfarmincome,

farm

competitiveness Sectorbased

Reliesonsubsidies

Mainactors

are

national

governmentandfarmers

NewParadigm Focus

on

enhancing

competitivenessofrural

areasusinglocalassets

Focus

is

all

aspects

of

the

localeconomy

Reliesoninvestments

Actorsare

firms,

all

levels

ofgovernmentandNGOs


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RuralPolicy

Within

the

NRP


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RuralPolicy

Reviews

Assessmentsoftheruralpolicyofmemberor

nonmember

countries

conducted

at

the

requestofthecountryandfundedbythat

country(voluntarycontribution).

Guidingprinciples

howwelldoesthecurrentpolicyconformtotheNRP.

howcanthecountrybetterfollowtheprinciplesofthe

NRP


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OECDRuralPolicyReviews


16/33

TheReview

Process

BackgroundReport thehostcountrycompletes

a

background

report

following

a

questionnaire

providedbytheOECD 3monthexercise.

Severalweeklongsitevisitsarearrangedwitha57memberOECDteam(Secretariat,Peer

Reviewersand

Experts).

Reportisprepared,reviewedandrevisedandthenpresentedtotheRuralWorkingPartyfor

acceptance. ReportisreleasedbythecountrywithOECD

participation.


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ReportStructure

Fairlystandard4chapterformat

RecommendationsandAssessment executivesummary Profile descriptionoftheruralconditionincluding,size

andnatureofrural,ruraldemography,ruraleconomyand

majoropportunitiesandissues

PolicyAssessment reviewofcurrentnationalruralpoliciesbothexplicitandimplicit,includingstrengthsand

weaknesses

PolicyRecommendations suggestionsforimprovementbasedupon:theNRP,expertandpeerreviewersuggestionsandrelevantbestpracticeinotherOECDcountries


18/33


19/33

TheQubec

Review:

The

Context

ScotlandandEnglandarenotsovereignstates,

butQubec

is

the

first

sub

national

part

of

afederalsystemtobereviewed.

Federal/provincialissuescameupinGermany

andin

Mexico

and

Italy,

but

were

not

as

central

asforQubec.

Firstexperienceinareviewwheretherewas

such

a

strong

commitment

to

first

building

social

capacityasafoundationforfutureeconomicdevelopment.


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Part3:

Themes

from

the

Qubec

Review


21/33

TheQubec

Review:

The

Context

RoleofMAMROTisunique:typicallygovernment

focuses

on

economic

development

and

only

gives

lip

servicetosocialdevelopment asaparallelcondition.

ThesecondPactRuralfocusesonsocialdevelopment,inpartbecauseofproblemsinthefirstpactwhen

socialand

economic

development

were

tried

simultaneously toolittlelocalcapacity.

Providesrealevidencethatcommunitycapacity

building

has

to

be

prior

to

local

economic

development.


22/33

TheQubec

Review:

The

Context

Confirmationofthelongtermdisruptionatthe

regionlevel

when

ahigher

level

of

government

unilaterallyreorganizeslocalgovernmentprimarilytofacilitatehighergovernmentobjectives(MRCsinQubec,regionsinEngland,administrative

boundaries

in

Spain

and

Mexico).

Importanceofunderstandingdemographyasawaytounderstandruraldevelopmentissuesandopportunities

(aging

population,

youth

outmigration,smallernumbers).


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24/33

The

Qubec

Review:

Lessons

from

the

Report

Qubechasawellconstructedandcoherent

ruraldevelopment

strategy

that

has

had

strong

multiyearsupportfromtheprovincial

government providesruralcommunitieswitha

senseit

is

worth

investing

in

participation.

MostofQubecsruralpolicyisconsistentwith

theideasoftheNRP placebased,bottomup,

investmentoriented

and

multi

sectoral.


25/33

The

Qubec

Review:

Lessons

from

the

Report

DespiteagoodruralpolicyQubecfacesmajor

challenges

in

achieving

its

goals

unfavorable

demographicsgoingforward,weakshorttomediumtermprospectsforresourcebasedindustry(16years),decliningfiscalbalancesattheprovinciallevel.Ittakes

morethan

good

policy.

Agriculturecontinuestoplayperhapsatoolargerolebothintermsofpolicystructureandintermsofpolicyinfluence highcosttoconsumersandfreezeslandinfarms.

But

if

not

for

farmers,

where

would

rural

advocatescomefrom?


26/33

Part4:

Implications

for

Canada


27/33

WhatMight

This

Mean

in

Canada?

BasicHypothesis:Almostallruralregionsface

thesame

basic

set

of

problems.

Virtually

all

countriesapplypoliciesfromthesamesmall

set.Whatdiffersisthecontextinwhichthese

problemsexist

and

that

determines

which

policiesarebest.

Conclusion:

The

art

of

good

policy

lies

in

understandingthecontext.


28/33

WhatMightThisMeaninCanada?Tourism

as

ared

herring

Heavyemphasisonruraltourismtoreplace

traditionalsources

of

rural

income

and

employment.But,ruraltourismpaysless,isseasonalandishighlysensitivetoweather

andcustomer

tastes.

Toomanyfirmsineachruralplaceofferthesametouristexperience marketsaturation

Toomany

rural

places

offer

the

same

tourist

experience marketsaturation


29/33

WhatMightThisMeaninCanada?RenewableEnergy promisebutrisk

Virtuallyallrenewableenergygenerationwill

takeplace

in

rural

areas.

Butfortheshorttomediumtermweknow: NaturalgaswillbecheapinNorthAmerica

Climatechange

results

in

good

political

rhetoric,

but

little

willingnessbyconsumerstopay

Withoutmajorinvestmentsintransmissionmostnewgenerationwillbelockedin andearnlittle.

EveryCountry/Province

wants

to

be

aleader

in

renewables,includingexportingthetechnologywherearethemarketsandprofitmargins?


30/33

WhatMightThisMeaninCanada?How

will

immigration

change

the

game?

EssentiallyallnetpopulationgrowthinOECD

countriesnow

comes

from

immigrants

who

have

noattachmenttothehostcountrysruraltraditions.

As

immigrants

become

a

larger

share

of

the

populationwillurbanmulticultural societiescontinuetosupportpoliciesfortraditionalruralregions?Willtheyvisitruralplaces?Willthey

movethere

to

offset

declining

populations?

(Qubecasafocalcase).


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WhatMightThisMeaninCanada?Staying

the

course

in

policy

is

vital

The2PactsRuralconfirmthatsignificant

improvementrequires

multi

year

strategies

andfirmfinancialcommitmentstocommunities.Littledifferentthanthelessons

fromCommunity

Futures

(CF)

and

LEADER.

Highdegreeofconsistency,betweenCFand

thePactRural.Differentfocus,butverymuch

likethe

original

CF

committees

in

strategy.

Hastobemorethanbusinessdevelopment.


32/33

WhatMightThisMeaninCanada?The

Employment

Insurance

(EI)

Connection

TherearetwotypesofEIpolicy income

replacement(money

for

nothing)

and

Active

LabourMarketPolicy(moneyonlyifyouchange

behaviour).

CForiginated

as

aform

of

ALMP

in

the

1980s,

but

seasonalEIwasalsointroducedaboutthen.

CFhaschangedpeopleandcommunities,but

seasonalEI

has

provided

areason

not

to

change.


33/33

WhatMightThisMeaninCanada?fuzzy economic

thinking

continues

to

hamper

progress

Examples:

Thereare

no

differences

between

urban

and

rural

economicstructure.

Ruralishomogeneousandrequiressubsidies.

Because

productivity

is

lower

in

rural

areas

(due

to:industrymix,humancapital,sizeoffirms),weshouldfocusinvestmentsinurbanareas.

Therearenorealconflictsbetweeneconomicdevelopmentinruralareasandenvironmentalprotection.

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