1. Seminar on “Consolidation of the balance between rural and urban areas to ensure an integrating system”
Merida, Spain, 19 January 2011
BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY UNDER THE CAP
Sehr geehrter Herr Vorsitzender,
Sehr geehrte Damen und Herren,
Zunächst möchte ich mich herzlich bei Ihnen für die Einladung bedanken.
Gleichzeitig bitte ich meinen Direktor Herrn Constantinou zu entschuldigen, der ursprünglich zugesagt hatte aber im Endeffekt nicht kommen konnte, da anderer Termine dazwischen gekommen sind. Damit dies nicht wie die übliche Entschuldigung klingt, lassen Sie mich betonen, dass er sehr gerne gekommen wäre, aber Termine die direkt mit dem Vortragsthema zu tun haben dazwischen gekommen sind: In seinem Direktorat wird zur Zeit die Umsetzung der Programme für die ländliche Entwicklung in 11 Mitgliedstaaten der EU für die nächste Förderperiode vorbereitet und mit den Mitgliedstaaten diskutiert, weshalb es im Endeffekt zu einer Terminkollision gekommen ist.
Er bat mich seine Rolle zu übernehmen und ich komme dieser Bitte besonders gerne nach, da ich bis vor zwei Jahren noch in der Agrarforschung tätig war und auch heute noch als Privatdozent mit der Landwirtschaftlichen Fakultät der Uni Bonn eng verbunden bin.
Antonis Constantinou
Director, Rural Development Programmes II
DG Agriculture and Rural Development, European Commission

2. CONTENT 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE:
What is the situation today?
Is there really a rural-urban divide?
A look from a different angle:
Results of clustering and case study analysis
2. SOME LESSONS FOR THE FUTURE
Rural-urban linkages and sustainable development
Fund coordination: from demarcation to strategic integration under EU 2020
Local development and participative approaches
Agriculture and the wider rural economy
3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW
4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013
CONSTANTINOU

3. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today
IMPORTANCE
OF RURAL AREAS
OECD definition:
92% of EU territory in predominantly or significantly rural areas representing:
45% of Gross Value Added
53% of employment
NEW DG AGRI/REGIO definition:
area population
Predominantly rural 56,0% 24,1%
Intermediate 34,9% 35,6%
Predominantly urban 9,1% 40,3%
CONSTANTINOU

4. 1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today
IS THERE REALLY
A RURAL-URBAN DIVIDE?
Since 2001 higher growth rate of GDP/capita in rural than in urban areas
In unemployment rates declined in rural regions
Many “accessible” rural regions experience counter urbanization (commuters; new enterprises; pensioners)
HOWEVER:
Gap in per capita income continues to widen
Employment rates generally remain lower in rural rather than in urban ones
Across much of Southern Europe and in many remote and mountainous regions depopulation remains the dominant demographic trend
CONSTANTINOU

5. AND CASE STUDY ANALYSIS
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (3) A LOOK FROM A DIFFERENT ANGLE
RESULTS OF CLUSTERING
AND CASE STUDY ANALYSIS
Of 13 identified clusters: only 3 are purely
urban (global and European cities and cities not aggregated with their surroundings)
All 10 “rural” clusters encompass all types
of regions from pre-dominantly urban to
pre-dominantly rural
BUT
The Southern and Northern European
periphery can generally be titled as rural
(especially Ireland, Portugal, Greece,
great parts of Spain, Scandinavia and the Baltic States, excluding capital agglomerations)
Great parts of Eastern and South-Eastern
European countries are pre-dominantly rural
CONSTANTINOU

6. AND CASE STUDY ANALYSIS
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (4) A LOOK FROM A DIFFERENT ANGLE
RESULTS OF CLUSTERING
AND CASE STUDY ANALYSIS
Most rural areas are multi-functional with the mix of economic activities mostly determined by the regional context  territorial regional finger print
Economic activities are spatially more and more equally distributed 
higher diversity of rural areas
In terms of growth and employment, there is no “typical rural region” but different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity
Structurally, many rural regions (e.g. clusters V, X, XV in the map) perform better than urban ones (e.g. for change in economically active population, %♀ in workforce; share of commuters etc.)
CONSTANTINOU

7. CONCLUSIONS OF CLUSTERING ANALYSIS:
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (5) A LOOK FROM A DIFFERENT ANGLE
CONCLUSIONS OF
CLUSTERING ANALYSIS:
Great diversity of rural areas: one size does not fit all; regional context and territorial circumstances matter
Variety of economic activities: regions succeeding in tapping on the synergies among economic sectors are likely to perform better
Mix of “urban” and “rural”: rural-urban relationships and linkages are important
CONSTANTINOU

8. CONCLUSIONS OF CASE STUDY ANALYSIS:
1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (6) A LOOK FROM A DIFFERENT ANGLE
CONCLUSIONS OF
CASE STUDY ANALYSIS:
DRIVERS OF GROWTH
Natural resources and
environmental quality
Infrastructure and accessibility
Quality of life and cultural capital
“Wide” sectoral structure
BARRIERS TO GROWTH
Negative demography
(loss of young people and ageing)
Remoteness: Poor accessibility,
infrastructure and communications
Narrow sectoral structure
CONSTANTINOU

9. energy supply and the cost of transport/commuting
2. SOME LESSONS FOR THE FUTURE (1) RURAL-URBAN LINKAGES AND SUSTAINABLE DEVELOPMENT
In the age of climate change, renewable energy and green growth, integrated policies and effective rural-urban partnerships are required to tackle the issue of sustainable development.
urban sprawl and the need to avoid the loss of productive land for food and renewables
water management: reconciling the needs of farmers, cities and tourist resorts; reducing the impact of floods
energy supply and the cost of transport/commuting
importance of rural areas and farmers as providers of public goods and of recreational environmental and ecosystem services
local markets and local products
STRATEGIC INTEGRATION; FUND COORDINATION;
PLACED-BASED STRATEGIES
CONSTANTINOU

10. 2. SOME LESSONS FOR THE FUTURE (2) FUND COORDINATION: FROM DEMARCATION TO STRATEGIC INTEGRATION UNDER EU 2020
Reduce/eliminate the need for complex demarcations between EU funds in the rural space; improve strategic coordination
EU2020 STRATEGY FOR SMART SUSTAINABLE AND INCLUSIVE GROWTH
Proposed:
COMMON EU STRATEGIC FRAMEWORK FOR ALL FUNDS
Corollary:
COMMON NATIONAL STRATEGIC FRAMEWORK FOR ALL FUNDS
STRATEGICALLY COORDINATED AND COHERENT EU FUND INTERVENTIONS
LAGS: IMPLEMENTATION OF INTEGRATED
LOCAL DEVELOPMENT STRATEGIES (“LEADING” FUND? CROSS-FINANCING?)
CONSTANTINOU

11. 2. SOME LESSONS FOR THE FUTURE (3) LOCAL DEVELOPMENT AND PARTICIPATIVE APPROACHES
The ambition: unlock local potential; utilize territorial capital; mobilize social capital; foster rural-urban relationships
The means: multi-level governance; empower/connect local actors
inclusive and participative approaches at all levels
cooperation, networking, exchange of good practices
Public-Private Partnerships and Local Action Groups
integrated area-based development strategies
The challenge (1): reconcile bottom-up approaches with the rigors of sound financial management
setting measurable objectives and monitor/evaluate their achievement
transparent, objective and properly documented decision making and project selection
avoidance of conflict of interest
The challenge (2): safeguard representativeness and public-private nature of bottom-up approaches
no undue interference by public authorities
approved strategies binding for all
no discrimination in terms of national co-financing
CONSTANTINOU

12. Agriculture is important for rural areas because:
2. SOME LESSONS FOR THE FUTURE (4) AGRICULTURE AND THE WIDER RURAL ECONOMY
Important to integrate the economic, environmental and social dimensions of rural areas into a common policy providing a strong link between agriculture and the wider rural economy
Agriculture is important for rural areas because:
Management of natural resources and shaping of countryside
Agriculture and forestry represent 78% of land use and deliver the majority of ecosystem services related to biodiversity, water and soil
Multiple links with the economy as the basis for other activities and amenities
The agri-food sector represents 19 million jobs mostly in rural areas
Rural areas are important for agriculture because:
Economic and social conditions to enable sustainable agriculture
Accompany agricultural restructuring (modernization and diversification)
36% of farmers had another gainful activity in EU-27 in 2005
CONSTANTINOU

13. 3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW
COMPETITIVE
AGRICULTURE
promote innovation
and restructuring
do more with less
play to the strengths
of the diversity of
EU agriculture
SUSTAINABLE
MANAGEMENT OF
NATURAL RESOURCES
take care of the
environment and
countryside
maintain the
production capacity
of the land
SUSTAINABLE
RURAL
DEVELOPMENT
BALANCED TERRITORIAL
DEVELOPMENT
OF RURAL AREAS
THROUGHOUT THE EU
While the three strategic objectives, adapted for new challenges, remain valid,
it is important to:
Avoid the rigidities associated with the 3-axes-structure and, with respect to LEADER,
the role of pre-defined measures and the geography/type and source of financing of
activities (towns up to only?)
Provide more flexibility through strengthened strategic targeting and priority-led
programming
Acknowledge the cross-cutting nature of innovation and climate change under EU2020
CONSTANTINOU

14. Preserve natural resources, countryside
4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013
EU STRATEGIC
OBJECTIVES
EU PRIORITIES
Foster competitive
agricultural sector
Preserve natural resources, countryside
Develop rural areas
INTEGRATED GUIDING CONSIDERATIONS: INNOVATION, CLIMATE CHANGE & ENVIRONMENT
supporting farm viability (restructuring; food chain integration; farm risk management)
resource efficiency in agriculture (water; energy; farm-level adaptation to climate change)
production and use of renewable energy in agriculture and forestry
cutting GHG emissions from agriculture
protecting and enhancing ecosystems (biodiversity; landscapes; water; carbon storage; adaptation and resilience to climate change)
realizing the growth potential of rural areas (diversification / job creation; social inclusion/poverty reduction)
CONSTANTINOU

15. Thank you for your attention!
CONSTANTINOU