RURAL DEVELOPMENT POLICIES IN BULGARIA Nedka Ivanova UNWE, Sofia, Bulgaria

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo OUTLINE OF PRESENTATION Some information about administrative structure Some information about administrative structure National definition of rural area National definition of rural area Scope of the rural region Scope of the rural region Some demographic and economic characteristics Some demographic and economic characteristics Strategic objectives of NRDP Strategic objectives of NRDP Allocation of funds Allocation of funds Measures starting from 2007 Measures starting from 2007 Some conclusions Some conclusions

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Administrative structure Territory – 111 thousand square meters Territory – 111 thousand square meters Population – 7.8 million Population – 7.8 million 6 NATS 2 regions 6 NATS 2 regions 28 NUTS 3 regions 28 NUTS 3 regions 264 municipalities – LAU 1 (EU qualification ) 264 municipalities – LAU 1 (EU qualification ) Municipalities – one or more villages Municipalities – one or more villages

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo National definition of rural area Municipality (LAU 1), in which no settlement has a population over people Municipality (LAU 1), in which no settlement has a population over people 231 from the total 264 LAU 1 regions are rural regions 231 from the total 264 LAU 1 regions are rural regions 81% of the territory and 42% of population 81% of the territory and 42% of population Comparison with OECD definition Comparison with OECD definition –Predominantly rural – 20 NUTS 3 regions –Predominantly urban – 1 NUTS 3 region (Sofia) –98,8% of the territory and 84,3% of population

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Rural areas

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Demographic characteristics of rural areas Population million Population million Population density – 35.8/m 2 (twice lower the national average, 69.9/m 2 ) Population density – 35.8/m 2 (twice lower the national average, 69.9/m 2 ) 13% of the municipalities – less than 5 thousand people with 14% of the villages with less than 500 people 13% of the municipalities – less than 5 thousand people with 14% of the villages with less than 500 people And 40% – with less than 10 thousand And 40% – with less than 10 thousand 23,9% of the population – minorities: 23,9% of the population – minorities: –14,8% – Turkish speaking –7% – Roma

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Demographic characteristics … Strongly declining trend in population -10,5‰ against 2,1‰ in towns Strongly declining trend in population -10,5‰ against 2,1‰ in towns –Substantially higher death rate – 16,8 ‰ –Migration to towns – 2,3 ‰ Unfavourable age structure – 27,2% of population above working age and only 16% less than 15 Unfavourable age structure – 27,2% of population above working age and only 16% less than 15 –Migration among young people Educational status of the rural population is significantly lower Educational status of the rural population is significantly lower

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Economic characteristics of rural areas Lower GDP growth - 4,5% against 6% national average Lower GDP growth - 4,5% against 6% national average Agriculture is the main economic activity Agriculture is the main economic activity Labour productivity – twice lower Labour productivity – twice lower –Lower qualification of labour force Employment – 42% of labour force Employment – 42% of labour force –9-10% lower for female

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Economic characteristics … Rate of unemployment – 19,2% (twice higher than the average) Rate of unemployment – 19,2% (twice higher than the average) –No job opportunity –Unfavourable unemployment structure  Long term unemployment  Higher unemployment among young people Result Result –Low income with main source – pensions and social payments –Large share of subsistence and semi-subsistence farms – operated by jobless people –Poverty problem

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Strategic objectives of NRDP To develop a competitive and innovation based agriculture, forestry sector and food processing industry To develop a competitive and innovation based agriculture, forestry sector and food processing industry – –To restructure and modernize physical potential and promote innovation – –To support adjustment of farming structures and support co-operation – –To promote knowledge and improve human potential

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Strategic objectives …. To protect the natural resources and environment of rural areas To protect the natural resources and environment of rural areas –Sustainable management of agricultural land  Conservation of biodiversity and high nature value of farmland  Organic farming development  Improvement of soil and water quality  Development of sustainable land management practices –To promote sustainable management of forestry

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Strategic objectives …. To improve the quality of life and diversify job opportunities in rural areas To improve the quality of life and diversify job opportunities in rural areas –Improving quality of life  Improvement of access to major services and infrastructure –Diversification of economic activity and job creation  Developing income generated activity outside agriculture

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Funding of NRDP (mill €) EUNationalTotal ,0659,46303, ,1482,03419, ,34106,22543, ,1096,61495, ,0696,36494, ,7096,27493, ,7095,79491,49 Total for the period 2 609,10 632, ,84

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Draft budget allocation among axes according to Regulation 1698/2005 (mill €) Axes % of total budget EU contribution From national budget Total Ос 1 40% 985,45 985,45246, , ,81 Ос 2 26% 640,54 640,54140,61 781,15 781,15 Ос 3 30% 739,09 739,09184,77 923,86 923,86 Ос 4** 2,5% 61,59 61,5915,40 76,99 76,99 Technical assistance 4% 98,55 98,5524,64 123,18 123,18 Measure& National Complementary Direct Payments” 145,47 145,47 36,37 36,37 181,84 181,84

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Measures - Measures - Axis 1 - Improving the competitiveness of the agricultural and forestry sector 111Training, information and diffusion of knowledge 112Setting up of young farmers 121Modernisation of agricultural holdings 122Improving the economic value of the forests 123Adding value to agricultural and forestry products 141Semi-subsistence farming 142Setting up producer groups 143 Provision of farm advisory and extension services in Bulgaria and Romania

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Measures - Measures - Axis 2 - Improving the environment and the countryside 211 Natural handicap payments to farmers in mountain areas 212 Payments to farmers in areas with handicaps, other than mountain areas 214Agri-environmental payments 223First afforestation of non-agricultural land 226 Restoring forestry potential and introducing prevention actions

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Measures -Axis 3 - Quality of life in rural areas and diversification of the rural economy 311Diversification into non-agricultural activities 312 Support for the creation and development of micro-enterprises 313Encouragement of tourism activities 321 Basic services for the economy and rural population 322Village renewal and development

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Axis 4 - Leader 41 Implementation of the local development strategies: 421Inter-territorial and trans-national cooperation 431Running costs, acquisition of skills and animation

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Other measures It is foreseen that 7 measures will start at later stage : It is foreseen that 7 measures will start at later stage : –4 measures under Axis 1 –2 measures under Axis 2 –1 measure under Axis 3 The main reasons for using the fazing in option are: The main reasons for using the fazing in option are: –Measure 143 is a transitional measure and should be replaced – advisory services still will be needed –There is a need of additional capacity for implementation of the measures –The areas under NATURA 2000 are not defined yet

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo Some conclusions Bulgaria has chosen the realistic approach to the measures included in the NRDP Bulgaria has chosen the realistic approach to the measures included in the NRDP The SAPARD experience helped a lot in preparation of the NRDP – fazing in approach will better serve the strategic objectives The SAPARD experience helped a lot in preparation of the NRDP – fazing in approach will better serve the strategic objectives Although the first step in setting up the National Rural Network has been done there still is a lot of work ahead before it starts operate properly Although the first step in setting up the National Rural Network has been done there still is a lot of work ahead before it starts operate properly

Rural development policies and CAP: more integrated strategies for a global development of rural areas December, 2007 Palermo THANK YOU FOR ATENTION