1. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries The area-based development approach Challenges for implementation in rural cross-border areas G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unit

2. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries The Institute for Prospective Technological Studies (IPTS) a directorate of the JRC provides customer-driven support to EU policy making aims at policy challenges that have a socio-economic and science & technology dimension

3. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries The AGRILIFE unit within IPTS SUSTAG / AGRITRADE / AGRITECH

4. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries The Western Balkans project General objective To facilitate local development in the Western Balkans (focus on rural) Specific objectives 1.To apply the ABD approach in a selected rural cross-border area in the Western Balkans 2.Disseminate the ABD strategy and action plan to potential donors 3.Develop a method using the ABD approach for other rural areas in the Western Balkans, where ABD intervention may be appropriate Target area: Drina-Tara

5. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Target area – Drina river / Tara mountain Features 13 municipalities, all border with one exception 380.000 inhabitants 7.860 km²

6. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Area-based development (ABD) approach Main characteristics area-specific (versus country) integrated (across sectors) inclusive (communities) participatory (bottom-up) flexible (responsive to changes) Need for approach able to address particular, specific complex in a holistic manner } development problems

7. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Instruments for economic diversification in rural areas Source: Directorate-General for Agriculture and Rural Development (2006) EU policy 2007-13Pre-accession assistance Priority axes rural development Axis 1 Improving market efficiency and implementation of Community standards Axis 2 Preparatory actions for implementation of the agri-environmental measures and Leader Axis 3 Development of the rural economy Source: Schiessl (2009)

8. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries The cart before the horse???

9. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Capital stock and economic growth Investments Source: Millenium Project report (2005)

10. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Overcoming poverty Key capital stock/investments in Infrastructure Public administration Human capital = foundations for self-sustaining economic development and private sector growth Overarching areas of investment Upgrading public management systems Extensive capacity building at local level Scientific capacity Cross-border investments

11. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Essential regional goods to reduce poverty Cross-border infrastructure transport, energy, water management, accessible land Cross-border economic cooperation institutions coordinate and harmonise promote intra-regional trade (movement of goods and people): e.g. reduced transit fees, automated customs procedures Cross-border political cooperation strengthen institutions strengthen policies and promote good governance regional dialogue and consensus building Cross-border environmental coordination manage trans-boundary issues concerted responses Public investment – crucial to attract private investment

12. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries INTERREG-A Factors for successful and effective CBC: legal framework for CBC, quality of partnerships, degree of institutionalisation Experiences of cross-border cooperation (CBC)

13. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries Recommendations for ABD implementation ABD intervention – design - Focus intervention on needs and priorities of the area - Assess capacity to participate & ensure unbiased participation - Promote early involvement of stakeholders & donors - Match time & budget with objectives - avoid false expectations - Guarantee coherence ABD programme with macro-situation - Incorporate positive aspects of existing initiatives - Include issues with potential shared positive impact ABD intervention – management - Coordinate activities (also across donors) - Monitor and evaluate regularly - Reduce transaction costs - Foresee exit strategy ABD in rural cross-border areas I

14. Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries ABD in rural cross-border areas II Conditions for successful implementation Key capital stock (infrastructure, public institutional capital, human capital) – in place, or investment needs? Essential mechanisms for provision of regional goods (cross-border infrastructure, and economic, political and environmental coordination) – in place? – if not, which needs and which public funds available? Private investments – particular needs cross-border, land-locked areas?