1. Ratinger, Gay - IAMO-Forum 29 June 2006 1 The Diversity of the Rural Development Priorities in Europe Tomas Ratinger and Stephan Hubertus Gay JRC-IPTS, European Commission (Seville, Spain)

2. Ratinger, Gay - IAMO-Forum 29 June 2006 2 In the presentation we are using results and graphics of The IPTS/SAFH research projectsThe IPTS/SAFH research projects The research conducted in the other JRC institutes (PSC and IES) The research conducted in the other JRC institutes (PSC and IES) DG-AGRI baseline indicatorsDG-AGRI baseline indicators Study on Rural Employment (SERA)Study on Rural Employment (SERA) ESPON studiesESPON studies And many other studiesAnd many other studies Authors opinions – not necessarily reflect opinions of the Commission Thanks to our current and former colleagues of the SAFH unit for their contribution to our presentation.

3. Ratinger, Gay - IAMO-Forum 29 June 2006 3 Rural development research is a new area of IPTSRural development research is a new area of IPTS The research agenda defined with DG AgriThe research agenda defined with DG Agri Focused onFocused on –what kind of rural regions we have –how they function (economically, socially) –how to govern their sustainable development

4. Ratinger, Gay - IAMO-Forum 29 June 2006 4Structure Definition of RURAL – does it matter?Definition of RURAL – does it matter? Development and diversity of rural areasDevelopment and diversity of rural areas Diversity of issues and prioritiesDiversity of issues and priorities (Future research)(Future research) Objective: to discuss Objective: to discuss –Common features –Common issues –Common perspectives for an EU level policyfor an EU level policy

5. Ratinger, Gay - IAMO-Forum 29 June 2006 5 Delimitation of rural areas At community levelAt community level –If population density is below a certain level (OECD 150 inhab/km 2 )(OECD 150 inhab/km 2 ) –Population size of the community is below a certain threshold –A combination of both (IE) 1500 inhab., 150 inhab./km 2(IE) 1500 inhab., 150 inhab./km 2 –A combination of both + other criteria (sparsity, integration with urban areas) (UK)(UK) Aggregated to higher levelAggregated to higher level –OECD – regions are said to be urban, significantly and predominantly rural if the share of rural communes is 50%

6. Ratinger, Gay - IAMO-Forum 29 June 2006 6 Englands New Rural Definition Settlement morphology [sites<10000 inhab., village, town, disperse]Settlement morphology [sites<10000 inhab., village, town, disperse] How sparsely the site is populatedHow sparsely the site is populated Sparsity: average densities of households across areas of radius 10, 20 and 30 km is below a certain levelsSparsity: average densities of households across areas of radius 10, 20 and 30 km is below a certain levels Source: DEFRA

7. Ratinger, Gay - IAMO-Forum 29 June 2006 7 Source: Pros: Objective and easy to applyPros: Objective and easy to apply Cons:Cons: –Does not take into account spatial structure of settlements –Further information lost when up-scaled to upper levels NUTS3 level –Inappropriate classification, some strange results –Does not take into account socio-economic variables –Obviously MS are not happy with it for a practical rural policy Pros and cons of the OECD definition

8. Ratinger, Gay - IAMO-Forum 29 June 2006 8 Drawbacks of the OECD definition Miss classification of rural and urban communesMiss classification of rural and urban communes Arable agriculture allocated similarly to rural and urban areasArable agriculture allocated similarly to rural and urban areas Communes in Extramadura Inhab. Area km 2 Density Aldea de Trujilo 4390.351254 Valle de Santa Anna 1 338 3.8356 Zafra 14 266 63228 Badajos 122 225 153480 Large rural cities CommunePopulationDensity Jerez 183 000 130 Uppsala 167 508 68 Albacete 130 023 105 Share of arable land on the total area Country Rural communes Urban communes BE25%26% ES25%27% IT25%33% EU1521%29% Source: JRC/IPSC Clearly Rural Classified as Urban

9. Ratinger, Gay - IAMO-Forum 29 June 2006 9 A non-population density definition An attempt of DG-AGRI and JRC/IPSCAn attempt of DG-AGRI and JRC/IPSC Area is Rural if more than X% of the territory belongs to Rural Land Cover Classes (Forest, Agricultural and Natural Land)Area is Rural if more than X% of the territory belongs to Rural Land Cover Classes (Forest, Agricultural and Natural Land) Calculations based on CORINE Land CoverCalculations based on CORINE Land Cover Unexpected resultsUnexpected results –Example if X=30% Rural Communes PopulationRoma 3 millions Valencia 847 000 Szczecin 430 000 Source: JRC/IPSC

10. Ratinger, Gay - IAMO-Forum 29 June 2006 10 Problems with definitions It defines the subject/target/recipient of the policyIt defines the subject/target/recipient of the policy –Get information a respective statistical unit –Need for governing the policy a respective economically, socially environmentally autonomous unit Clearly –density is continuous thus rural-urban continuumClearly –density is continuous thus rural-urban continuum –Where the threshold(s) come from? –Can the borderline be independent of a problem and thus of a policy? Thus, if problems vary across regions the definitions should vary accordingly?Thus, if problems vary across regions the definitions should vary accordingly?

11. Ratinger, Gay - IAMO-Forum 29 June 2006 11 The diversity of EU regions Using a neutral definition (such as OECD) rural regions differ inUsing a neutral definition (such as OECD) rural regions differ in Resource endowmentResource endowment –Demographic structures, human capital –Natural resources –Natural values and environmental sensitivity Infrastructure/structureInfrastructure/structure –Social –Business Drivers (social capital, external economy performance)Drivers (social capital, external economy performance) PerformancePerformance –Income, employment, growth –Social inclusion of inhabitants, migration in and out –Environmental pollution/conservation

12. Ratinger, Gay - IAMO-Forum 29 June 2006 12 Potential Accessibility Multimodal Based on calculation of the generalised travel cost c ij =-λ -1 ln( m exp(- λc ijm )) Generalised cost c ijm between places i and j, m – mode of travel Pictured as percentage of the average accessibilty Transport accessibility Poor accessibility Average accessibility

13. Ratinger, Gay - IAMO-Forum 29 June 2006 13 ICT technologies - Broadband The spread of new ICT technologies in rural areas behind the urban zonesThe spread of new ICT technologies in rural areas behind the urban zones 90% of urban population have access to broad band while it is only 60% in rural regions. 90% of urban population have access to broad band while it is only 60% in rural regions. ICT are deemed to be crucial for competitiveness of RAICT are deemed to be crucial for competitiveness of RA NMS are behind in general, the more in rural areas.NMS are behind in general, the more in rural areas. More detailed information neededMore detailed information needed Source: A-Bard

14. Ratinger, Gay - IAMO-Forum 29 June 2006 14Performance Economic (e.g. GDP)Economic (e.g. GDP) Social (e.g. Employment)Social (e.g. Employment) EnvironmentalEnvironmental InstitutionalInstitutional

15. Ratinger, Gay - IAMO-Forum 29 June 2006 15 Employment structure Back to agriculture Strong agricultural base Strong tertiary Strong secondary

16. Ratinger, Gay - IAMO-Forum 29 June 2006 16 Predominantly rural Significantly rural Urban CountryPrimary Secon dary TertiaryPrimary TertiaryPrimary Tertiary si16%43%41%6%38%56% pl31%26%43%25%28%47%2%31%67% cz11%46%44%4%43%53%0%20%80% ee18%32%50%9%30%61%3%49%49% at24%25%51%8%25%67%2%24%73% pt23%26%51%15%33%52%5%40%55% lv24%24%51%21%24%55%1%27%72% hu9%37%54%6%40%54%1%23%76% es17%29%55%8%31%61%2%28%70% sk8%34%59%5%38%57%1%25%74% de6%32%61%4%32%63%1%28%71% it9%26%65%7%29%64%4%32%64% se4%26%70%2%19%79% uk9%19%72%4%24%74%1%22%78% be7%19%74%5%22%73%3%26%71% Employment structure Source: Eurostat, Regio, Own Calculation

17. Ratinger, Gay - IAMO-Forum 29 June 2006 17Performance Rural regions weakerRural regions weaker In RA social performance satisfactory under medium economic performanceIn RA social performance satisfactory under medium economic performance Social performance is less dependent on economic in RA.Social performance is less dependent on economic in RA. Significantly rural Predominantly rural Urban High022501625176 Medium1510713414811143178125 Poor734933665534131610 PoorMediumHighPoorMediumHighPoorMediumHigh Social performance Social performance (Unemployment, reciprocal) Economic performance Economic performance (GDP_PPS per capita) GDP clusters: Poor <75% of the EU avg Poor <75% of the EU avg High >125% of the EU avg High >125% of the EU avg Social Performance: Poor Unemployment < 7% Poor Unemployment < 7% High Unemployment >13 % High Unemployment >13 % Source: Eurostat, Regio, Own Calculation

18. Ratinger, Gay - IAMO-Forum 29 June 2006 18 Performance: GDP and transport Although the variance is high the relationship is obviousAlthough the variance is high the relationship is obvious Location theoryLocation theory –Garcia Pires (2006) using Krugman Geographical Model on Spanish regional data for 1981-1995 Estimated the effect of distance from a market on wagesEstimated the effect of distance from a market on wages Distance makes markets imperfectDistance makes markets imperfect Transport cost matter agglomerationsTransport cost matter agglomerations Source: ESPON

19. Ratinger, Gay - IAMO-Forum 29 June 2006 19 Economic problems of rural areas Loosing competitiveness of the manufacturing sector (Freshwater, OECD, 2003, The future of Rural Policy)Loosing competitiveness of the manufacturing sector (Freshwater, OECD, 2003, The future of Rural Policy) Insufficient concentration; transport costs Insufficient concentration; transport costs Third type of industrial clusters – Social networks (McCann, Sheppard, 2003) might become increasingly importantThird type of industrial clusters – Social networks (McCann, Sheppard, 2003) might become increasingly important –Conversion from primary and secondary sectors to the tertiary –ICT diffusion might play an important role

20. Ratinger, Gay - IAMO-Forum 29 June 2006 20 Problems and priorities – Case studies England, Wales, IE, Spain (Andalusia)England, Wales, IE, Spain (Andalusia) –Targeting rural communities, –Social inclusion –SME (non-agricultural) PL, LT (BG, RO)PL, LT (BG, RO) –Overarching problem: subsistence farming and job opportunities, need for economic restructuring of large regions. CZCZ –Revitalisation of villages (particularly in Sudeten) – institutions of rural development –Land abandonment

21. Ratinger, Gay - IAMO-Forum 29 June 2006 21 Problems and priorities Economic development Social justice Enhancing rural environment High income Low share of agriculture Targeting areas of greater need. Tertiary sector Access to services [Migration in – affordable housing] Countryside stewardship should be rewarded High income High share of agriculture Conversion from agriculture into tertiary sector Access to services. Education. Conversion of farmers into country-side stewards Medium-low income Low share of agriculture From secondary into tertiary sector. Social networks. Revitalisation of villages. Education. Access to services. Ensuring a proper land management. Medium-low income High share of agriculture Economic restructuring of regions Alternative job opportunities Moderate impact of economic restructuring

22. Ratinger, Gay - IAMO-Forum 29 June 2006 22 Economic development of RA High Multifunctional agriculture, new industries and services Medium Productive agriculture and secondary sector Low Semi-subsistence farming, secondary sector Labour Social capital for subsistence TechnologyOrganisation Human capital Social capital for business Economic performance Income, competitiveness Factors

23. Ratinger, Gay - IAMO-Forum 29 June 2006 23 Economic development of RA High Multifunctional agriculture, new industries and services Medium Productive agriculture and secondary sector Low Semi-subsistence farming, secondary sector Local market National market Vertical integration Supporting industries Global and local market Social capital for business Economic performance Income, competitiveness Markets, coordination

24. Ratinger, Gay - IAMO-Forum 29 June 2006 24Summary Rural areas in different stages of economic developmentRural areas in different stages of economic development –Often depending on the development of larger regions The higher income other than economic issues dominateThe higher income other than economic issues dominate –Social inclusion –Rural environment Increasing need for targeting needs at lower level (community level)Increasing need for targeting needs at lower level (community level) –MS, regions conduct special surveys, provide specific typologies

25. Ratinger, Gay - IAMO-Forum 29 June 2006 25 Research issues Need for more detailed typology of rural areasNeed for more detailed typology of rural areas –Although it will likely not comprise all national, regional typologies it should relate to them, a bridge has to exist. Pan-European policy assessment has to take into account lower levels (than NUTS2 and NUTS3)Pan-European policy assessment has to take into account lower levels (than NUTS2 and NUTS3) How to down-scale, upscale information and methodologiesHow to down-scale, upscale information and methodologies

26. Ratinger, Gay - IAMO-Forum 29 June 2006 26 The Diversity of the Rural Development Priorities in Europe Thank you for your attention!

27. Ratinger, Gay - IAMO-Forum 29 June 2006 27 Use of transport The same phenomenon referring to two different rural types A detailed analysis needed

28. Ratinger, Gay - IAMO-Forum 29 June 2006 28 Performance: GDP and Unemployment GDP as % of the EU avg. EU15NMS PRSR Urban PRSR Urban mean GDP8591120415582 Std GDP202346113036 Source: Eurostat, Regio, Own Calculation

29. Ratinger, Gay - IAMO-Forum 29 June 2006 29 Rural definitions Rural society (Encyclopaedia Britannica):Rural society (Encyclopaedia Britannica): –a low ratio of inhabitants to open land –the most important economic activities are the production of foodstuffs, fibres, and raw materials. –difficult to pinpoint the boundaries of rural places. Other characteristics ?

30. Ratinger, Gay - IAMO-Forum 29 June 2006 30Performance Economic (GDP)Economic (GDP) Social (Employment)Social (Employment) EnvironmentalEnvironmental InstitutionalInstitutional