ERDF in Andalusia

Monica Burch, Grupo Alba

Monica Burch & Paul Soto, Grupo Alba

Objective 1, largest Spanish region and one of the most rural

Largest recipient of Stuctural funds in Spain (€12 bn - 30% of Obj 1 budget)

Impressive natural and cultural resources 1995 – 2003 increase from 69.6% to 74.1% of

average EU GDP per capita Population of over 8 M – and growing…

Why Andalusia?

Strategic choices - Global competition Vs territorial cohesion…

– €7.8bn was assigned to Andalusia´s Integrated Operational Programme (IOP)

– 3 core objectives, 1 of which: “increase the efficiency of the territorial model of Andalusia to promote economic development and improve the quality of life”

Rural Andalusia

Reaching rural areas?

Huelva

Seville

CádizMálaga

Granada

Almería

Jaén

Córdoba

Absence of systematic data

No specific “rural objectives” in ERDF (or ESF)

How to measure?

Table 4. Estimates of the proportion of ERDF support during 2007-13

Type of area Total Public Expenditure ERDF contribution

Urban 4.975.772.119 3.456.184.317

Mountainous 1.083.831.551 752.832.228

Areas with a low density 1.675.012.396 1.163.467.988

Other rural areas 2.118.398.031 1.1471.444.808

All rural (non urban) 4.877.241.978 3.387.745.024

TOTAL 9.853.014.097 6.843.929.341

Source: ERDF Operational Programme for Andalusia 2007-13. Page 241.

• WP9: 6 provinces: “strong autonomous intermediate” (€1,012 per head)

• Córdoba: “strong rural” (1,104 per head)

• Jaén: “weak rural” (€895 per head)

And yet… clear importance of ERDF for rural areas

ERDF: €6bn – approx half spent on rural areas– 48% transport infrastructure– 28% environmental measures– 8% business units– 6% social infrastructure

ALL highly relevant for rural areas

EAGGF: €316M 2/3 on agriculture & food 1/3 diversification, start-ups, Leader type projects

ESF: €932M => human capital, employment, micro-businesses, self-

employment

ERDF 82.9% of EU funding (€500M) on business units.

Jaén (weak rural): €246.9 per head. Average: €156.3

Main source of funding for the Global Grant Certain criteria benefit rural areas. Two most rural provinces: 33% of GG, 18% of

population. 22% of companies receiving support were in rural

areas (<10,000 inhabitants)

0

50

100

150

200

250

Strong Intermediate Strong Rural Weak Rural Average

ERDF support for

businesses with growth potential

48% of ERDF expenditure (€3bn): transport infrastructure

High speed rail Madrid-Seville, Madrid-Malaga 90% of the population within 25mins from a motorway

or dual carriageway

6.6% spend on minor and rural roads.

Telecommunications: 1% of budget (€92M) Broadband to all towns of <10,000

0

50

100

150

200

250

300

350

Strong Intermediate Strong Rural Weak Rural Average

ERDF contribution to accessibility of rural areas

Transport infrastructure

ERDF: support to R&D and innovation in rural areas

Relatively low spending on R&D, but increasing…

At NUTS 3 level, similar spending in the strong intermediate and strong rural provinces. Weak rural province lagging.

Interviews insist on positive role of ERDF on R&D spending in rural areas

– Research centres located in rural areas– Research centres of relevance to rural concerns

0

10

20

30

40

50

60

70

80

90

100

Strong Intermediate Strong Rural Weak Rural Average

ERDF: supporting the environmental and social conditions for development

28% of ERDF investment related to the environment

Environmental compartments and water treatment

Social infrastructure: 6% of ERDF investment, spent particularly in rural areas.

0

10

20

30

40

50

60

Strong Intermediate Strong Rural Weak Rural AverageSocial & health infrastructure

CONCLUSIONS

The ERDF has played a fundamental role in the development of rural areas in Andalusia

To support and measure rural policy, the following are necessary:

A finer classification of rurality Geographically referenced projects Needs of different types of areas integrated into planning

objectives and project selection criteria Better coordination between different funds to achieve

specified territorial objectives.

With these conditions the ERDF has enormous potential to do even more in rural areas…

Thank you!

Monicaburch@grupoalba.es