IDARI Dissemination Event 1 Social Capital and Leadership: Rural Cooperation in Central and Eastern Europe Annette Hurrelmann, Catherine Murray and Volker Beckmann IDARI Dissemination Event June 2, 2006 in Dublin

IDARI Dissemination Event2 Motivation WP3 case studies: local leaders can play an import role for starting and maintaining rural cooperation Social Capital literature: cooperation happens “automatically” where enough SC is present  What is the role of leadership for rural cooperation in CEECs?  How are SC and leadership connected?  What policy advice can be drawn from this?

IDARI Dissemination Event3 Social Capital Theory (1) Starting point: argument of low social capital in CEECs due to historic experiences (distrust in authorities, enforced cooperation) Network definition of SC: “Social Capital inheres in the structures of relations between actors and among actors” (Coleman 2000) Trust as popular measurement Bonding (between actors with similar backgrounds) and bridging (between groups with different backgrounds) SC

IDARI Dissemination Event4 Social Capital Theory (2) “Social capital is expected in this reckoning to provide not just the glue (which binds community members together into collective action) but also the gear, which directs community members toward participating in democracy building” (Krishna 2001) Krishna (2001, 2002): SC holds communities together – but what motivates them to play an active role in collective action? SC provides the “glue” but a mediating agency may be necessary to provide the “gear” for cooperation The mediating agency can be an organisation, such as a political party, but also a particular individual

IDARI Dissemination Event5 Case Studies (1) Cooperation In the market In and between communities In environmentally protected areas (state) Case studies: Bulgaria: Land Market Hungary: Cooperatives PhD: Bulgaria: Land Market Poland: Producer Groups Case studies: Latvia: Rural Tourism Lithuania: Rural Tourism Poland: Local products Case studies: Poland: National Park Slovakia: National Park

IDARI Dissemination Event6 Case Studies (2) Hungary (Pillar A: cooperation in the market)  Old producer’s cooperative BEKE, new purchasing and marketing cooperative PMCHG  BEKE: president persuaded members to stay in cooperative by informing them of advantages and disadvantages, long history of cooperation  PMCHG: key players set up cooperation by informing farmers of benefits of collective action, cooperative took consecutive steps to increasing cooperation  Members trust each other and their leaders  Members realise the advantages of cooperation (better access to the market, lower transaction costs…)

IDARI Dissemination Event7 Case Studies (3) Latvia (Pillar B: Cooperation in and between communities)  Rauna Tourism Association unites farmers, a recreation centre and a church, initiated by one individual who runs a farm/rural tourism enterprise  Municipal government paid for office and coordinator in the first year, then funding stopped  Information, meetings, exchange etc. is organised by coordinator, members trust each other but are not very active, beginning frustration of coordinator  Members: we “could run business also without RTA”, few immediate benefits of cooperation

IDARI Dissemination Event8 Case Studies (4) Slovakia (Pillar C: Cooperation in protected areas)  Slovensky Raj National Park is under control of various administrative units and antagonistic actor groups  Park Administration has limited rights, is regarded critically by other actors as representing “authority”  Park Administration initiated application for PanPark scheme but no cooperation with other groups  Population regards SRNP as imposed on them and as obstacle to their economic activities

IDARI Dissemination Event9 Results (1) Theory:  Not necessarily low overall levels of SC in CEECs  Bonding social capital (= trust within the group) present  Lack of bridging social capital (= trust to other groups, especially trust in authorities)  Leaders as mediating agency to provide “gear”, bridge the gap Leadership problems:  Leadership is difficult where SC is low (“glue” is missing)  Leaders give high input but often do not profit accordingly  Free rider problem: leader’s action benefits all

IDARI Dissemination Event10 Results (2) Role of leaders:  Communicate advantages of cooperation, inform about realistic expectations  Cooperation more difficult where benefits are harder to recognise and/or materialise more slowly  Immediate benefits: In the market > in and between communities > in protected areas Policy advice:  Need to support leaders (technically and financially)  Need to identify leaders who are accepted by the whole community

IDARI Dissemination Event11 Thank you!