ratinger, gay - iamo-forum 29 june 2006 1 the diversity of the rural development priorities in...

Ratinger, Gay - IAMO-Forum 29 June 2006 1

The Diversity of the Rural The Diversity of the Rural Development Priorities in Development Priorities in

EuropeEurope

Tomas Ratinger and Stephan Hubertus Tomas Ratinger and Stephan Hubertus GayGay

JRC-IPTS, European Commission (Seville, Spain)JRC-IPTS, European Commission (Seville, Spain)


In the presentation we In the presentation we are using results and are using results and graphics of graphics of •The IPTS/SAFH The IPTS/SAFH research projectsresearch projects• The research The research conducted in the other conducted in the other JRC institutes (PSC and JRC institutes (PSC and IES)IES)•DG-AGRI baseline DG-AGRI baseline indicators indicators •Study on Rural Study on Rural Employment (SERA)Employment (SERA)•ESPON studiesESPON studies•And many other And many other studiesstudies

Authors’ opinions – not Authors’ opinions – not necessarily reflect opinions of necessarily reflect opinions of the Commissionthe Commission

Thanks to our current and Thanks to our current and former colleagues of the former colleagues of the SAFH unit for their SAFH unit for their contribution to our contribution to our presentation.presentation.


• Rural development research is a new Rural development research is a new area of IPTS area of IPTS

• The research agenda defined with DG The research agenda defined with DG Agri Agri

• Focused onFocused on– what kind of rural regions we havewhat kind of rural regions we have– how they function (economically, socially)how they function (economically, socially)– how to govern their sustainable how to govern their sustainable

developmentdevelopment


StructureStructure

• Definition of RURAL – does it matter?Definition of RURAL – does it matter?• Development and diversity of rural Development and diversity of rural

areas areas • Diversity of issues and prioritiesDiversity of issues and priorities• (Future research)(Future research)

• Objective: to discuss Objective: to discuss – Common featuresCommon features– Common issuesCommon issues– Common perspectivesCommon perspectives

• for an EU level policyfor an EU level policy


Delimitation of rural areasDelimitation of rural areas

• At community levelAt community level– If population density is below a certain levelIf population density is below a certain level

• (OECD 150 inhab/km(OECD 150 inhab/km22))– Population size of the community is below a certain Population size of the community is below a certain

thresholdthreshold– A combination of both A combination of both

• (IE) ≤1500 inhab., ≤ 150 inhab./km(IE) ≤1500 inhab., ≤ 150 inhab./km22

– A combination of both + other criteria (sparsity, A combination of both + other criteria (sparsity, integration with urban areas)integration with urban areas)• (UK)(UK)

• ““Aggregated” to higher levelAggregated” to higher level– OECD – regions are said to be urban, significantly and OECD – regions are said to be urban, significantly and

predominantly rural if the share of rural communes is predominantly rural if the share of rural communes is <15%, 15%-50%, >50%<15%, 15%-50%, >50%


England’s New Rural England’s New Rural DefinitionDefinition

• Settlement morphology Settlement morphology [sites<10000 inhab., [sites<10000 inhab., village, town, disperse] village, town, disperse]

• How sparsely the site is How sparsely the site is populatedpopulated

• Sparsity: average Sparsity: average densities of households densities of households across areas of radius across areas of radius 10, 20 and 30 km is 10, 20 and 30 km is below a certain levelsbelow a certain levels

Source: DEFRA


Source:

• Pros: Objective and easy to applyPros: Objective and easy to apply• Cons: Cons:

– Does not take into account spatial structure of Does not take into account spatial structure of settlementssettlements

– Further information lost when up-scaled to upper Further information lost when up-scaled to upper levels NUTS3 levellevels NUTS3 level

– Inappropriate classification, some “strange” Inappropriate classification, some “strange” resultsresults

– Does not take into account socio-economic Does not take into account socio-economic variablesvariables

– Obviously MS are not happy with it for a practical Obviously MS are not happy with it for a practical rural policyrural policy

Pros and cons of the OECD Pros and cons of the OECD definitiondefinition


Drawbacks of the OECD Drawbacks of the OECD definitiondefinition

• Miss classification of Miss classification of rural and urban rural and urban communescommunes

• Arable agriculture Arable agriculture allocated similarly to allocated similarly to rural and urban areasrural and urban areas

Communes Communes in in ExtramaduraExtramadura

Inhab.Inhab. Area Area kmkm22

DensityDensity

Aldea de Aldea de TrujiloTrujilo

439439 0.350.35 12541254

Valle de Valle de Santa AnnaSanta Anna

1 3381 338 3.83.8 356356

ZafraZafra 14 26614 266 6363 228228

BadajosBadajos 122 122 225225

15341534 8080

Large rural citiesLarge rural cities

CommuneCommune PopulationPopulation DensityDensity

JerezJerez 183 000183 000 130130

UppsalaUppsala 167 508167 508 6868

AlbaceteAlbacete 130 023130 023 105105

Share of arable land on the total areaShare of arable land on the total area

CountryCountry Rural Rural communescommunes

Urban Urban communescommunes

BEBE 25%25% 26%26%

ESES 25%25% 27%27%

ITIT 25%25% 33%33%

EU15EU15 21%21% 29%29%

Source: JRC/IPSC

Clearly Rural

Classified as Urban


A non-population density A non-population density definitiondefinition

• An attempt of DG-AGRI and An attempt of DG-AGRI and JRC/IPSCJRC/IPSC

• Area is Rural if more than XArea is Rural if more than X% of the territory belongs to % of the territory belongs to Rural Land Cover Classes Rural Land Cover Classes (Forest, Agricultural and (Forest, Agricultural and Natural Land)Natural Land)

• Calculations based on Calculations based on CORINE Land Cover CORINE Land Cover

• Unexpected resultsUnexpected results– Example if X=30%Example if X=30%

Rural Rural CommunesCommunes

PopulationPopulation

RomaRoma 3 millions3 millions

ValenciaValencia 847 000847 000

SzczecinSzczecin 430 000430 000

Source: JRC/IPSC


Problems with definitionsProblems with definitions

• It defines the subject/target/recipient of the It defines the subject/target/recipient of the policypolicy– Get information → a respective statistical unitGet information → a respective statistical unit– Need for governing the policy → a respective Need for governing the policy → a respective

economically, socially environmentally autonomous economically, socially environmentally autonomous unitunit

• Clearly –density is continuous thus rural-urban Clearly –density is continuous thus rural-urban continuumcontinuum– Where the threshold(s) come from? Where the threshold(s) come from? – Can the borderline be independent of a problem and Can the borderline be independent of a problem and

thus of a policy?thus of a policy?

• Thus, if problems vary across regions → the Thus, if problems vary across regions → the definitions should vary accordingly?definitions should vary accordingly?


The diversity of EU regionsThe diversity of EU regions

• Using a neutral definition (such as OECD) rural Using a neutral definition (such as OECD) rural regions differ inregions differ in

• Resource endowmentResource endowment– Demographic structures, human capitalDemographic structures, human capital– Natural resourcesNatural resources– Natural values and environmental sensitivityNatural values and environmental sensitivity

• Infrastructure/structureInfrastructure/structure– SocialSocial– BusinessBusiness

• Drivers (social capital, external economy Drivers (social capital, external economy performance)performance)

• PerformancePerformance– Income, employment, growthIncome, employment, growth– Social inclusion of inhabitants, migration in and outSocial inclusion of inhabitants, migration in and out– Environmental pollution/conservationEnvironmental pollution/conservation


Potential Accessibility

• Multimodal

• Based on calculation of the generalised travel cost

• cij=-λ-1 ln( ∑m exp(- λcijm))

• Generalised cost cijm between places i and j, m – mode of travel

• Pictured as percentage of the average accessibilty

Transport accessibilityTransport accessibility

Poor accessibility

Average accessibility


ICT technologies - ICT technologies - BroadbandBroadband

• The spread of new ICT The spread of new ICT technologies in rural areas technologies in rural areas behind the urban zonesbehind the urban zones

• 90% of urban population 90% of urban population have access to broad band have access to broad band while it is only 60% in rural while it is only 60% in rural regions. regions.

• ICT are deemed to be ICT are deemed to be crucial for competitiveness crucial for competitiveness of RAof RA

• NMS are behind in general, NMS are behind in general, the more in rural areas.the more in rural areas.

• More detailed information More detailed information neededneeded

Broadband penetration

0

1

2

3

4

5

6

7

8

9

2003 2004

gro

wth

rate

%

Urban Sub-urban Rural

Source: A-Bard


PerformancePerformance

• Economic (e.g. GDP)Economic (e.g. GDP)• Social (e.g. Employment)Social (e.g. Employment)• EnvironmentalEnvironmental• InstitutionalInstitutional


Employment structureEmployment structure

Back to Back to agricultureagriculture

Strong Strong agricultural baseagricultural base

Strong tertiaryStrong tertiaryStrong Strong secondarysecondary


Predominantly ruralPredominantly rural Significantly ruralSignificantly rural UrbanUrban

CountrCountryy

PrimarPrimaryy

SecondSecondaryary

TertiarTertiaryy

PrimarPrimaryy

SeconSecondarydary

TertiarTertiaryy

PrimarPrimaryy

SecondSecondaryary

TertiarTertiaryy

sisi 16%16% 43%43% 41%41% 6%6% 38%38% 56%56%

plpl 31%31% 26%26% 43%43% 25%25% 28%28% 47%47% 2%2% 31%31% 67%67%

czcz 11%11% 46%46% 44%44% 4%4% 43%43% 53%53% 0%0% 20%20% 80%80%

eeee 18%18% 32%32% 50%50% 9%9% 30%30% 61%61% 3%3% 49%49% 49%49%

atat 24%24% 25%25% 51%51% 8%8% 25%25% 67%67% 2%2% 24%24% 73%73%

ptpt 23%23% 26%26% 51%51% 15%15% 33%33% 52%52% 5%5% 40%40% 55%55%

lvlv 24%24% 24%24% 51%51% 21%21% 24%24% 55%55% 1%1% 27%27% 72%72%

huhu 9%9% 37%37% 54%54% 6%6% 40%40% 54%54% 1%1% 23%23% 76%76%

eses 17%17% 29%29% 55%55% 8%8% 31%31% 61%61% 2%2% 28%28% 70%70%

sksk 8%8% 34%34% 59%59% 5%5% 38%38% 57%57% 1%1% 25%25% 74%74%

dede 6%6% 32%32% 61%61% 4%4% 32%32% 63%63% 1%1% 28%28% 71%71%

itit 9%9% 26%26% 65%65% 7%7% 29%29% 64%64% 4%4% 32%32% 64%64%

sese 4%4% 26%26% 70%70% 2%2% 19%19% 79%79%

ukuk 9%9% 19%19% 72%72% 4%4% 24%24% 74%74% 1%1% 22%22% 78%78%

bebe 7%7% 19%19% 74%74% 5%5% 22%22% 73%73% 3%3% 26%26% 71%71%

Employment structureEmployment structure

Structural Difference Rural-Urban

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

it nl be uk de fr es pt ie dk sk ee at hu lv pl gr cz

Ind

ex

DifRural_Urban DifSR-Urban DifPR-urban

Source: Eurostat, Regio, Own Calculation



• Rural regions weakerRural regions weaker• In RA social performance satisfactory under medium In RA social performance satisfactory under medium

economic performance economic performance • Social performance is less dependent on economic in Social performance is less dependent on economic in

RA.RA.

Significantly ruralSignificantly rural Predominantly ruralPredominantly rural Urban

High 00 22 2525 00 11 66 2 51 76

Medium 1515 107107 134134 1414 8181 114114 31 78 125

Poor 7373 4949 3333 6666 5555 3434 13 16 10

PoorPoor MediumMedium HighHigh PoorPoor MediumMedium HighHigh Poor Medium High

Social performanceSocial performance (Unemployment, reciprocal)

Eco

nom

ic p

erf

orm

ance

Eco

nom

ic p

erf

orm

ance

(G

DP_P

PS

per

capit

a)

GDP clusters: GDP clusters: • Poor <75% of the EU Poor <75% of the EU avgavg• High >125% of the EU High >125% of the EU avgavg

Social Performance: Social Performance: • Poor Unemployment < 7% Poor Unemployment < 7% • High Unemployment >13 %High Unemployment >13 %



Performance: GDP and Performance: GDP and transporttransport

• Although the variance Although the variance is high the is high the relationship is obviousrelationship is obvious

• Location theoryLocation theory– Garcia Pires (2006) Garcia Pires (2006)

using Krugman using Krugman Geographical Model Geographical Model on Spanish regional on Spanish regional data for 1981-1995 data for 1981-1995

• Estimated the effect of Estimated the effect of distance from a market distance from a market on wages on wages

• Distance makes Distance makes markets imperfectmarkets imperfect

• Transport cost matter Transport cost matter →agglomerations→agglomerations

Source: ESPON


Economic problems of rural Economic problems of rural areasareas

• Loosing competitiveness of the Loosing competitiveness of the manufacturing sector (Freshwater, OECD, manufacturing sector (Freshwater, OECD, 2003, The future of Rural Policy)2003, The future of Rural Policy)

• Insufficient concentration; transport Insufficient concentration; transport costscosts

• Third type of industrial clusters – Social Third type of industrial clusters – Social networks (McCann, Sheppard, 2003) networks (McCann, Sheppard, 2003) might become increasingly importantmight become increasingly important– Conversion from primary and secondary Conversion from primary and secondary

sectors to the tertiarysectors to the tertiary– ICT diffusion might play an important role ICT diffusion might play an important role


Problems and priorities – Case Problems and priorities – Case studiesstudies

• England, Wales, IE, Spain (Andalusia)England, Wales, IE, Spain (Andalusia)– Targeting rural communities, Targeting rural communities, – Social inclusionSocial inclusion– SME (non-agricultural)SME (non-agricultural)

• PL, LT (BG, RO)PL, LT (BG, RO)– Overarching problem: subsistence farming Overarching problem: subsistence farming

and job opportunities, need for economic and job opportunities, need for economic restructuring of large regions.restructuring of large regions.

• CZCZ– Revitalisation of villages (particularly in Revitalisation of villages (particularly in

Sudeten) – institutions of rural developmentSudeten) – institutions of rural development– Land abandonmentLand abandonment


Problems and prioritiesProblems and priorities

Economic Economic developmentdevelopment

Social justiceSocial justice Enhancing rural Enhancing rural environmentenvironment

High incomeHigh income

Low share of Low share of agricultureagriculture

Targeting areas of Targeting areas of greater need. greater need. Tertiary sectorTertiary sector

Access to services Access to services [Migration in – [Migration in – affordable affordable housing]housing]

Countryside Countryside stewardship stewardship should be should be rewardedrewarded

High incomeHigh income

High share of High share of agricultureagriculture

Conversion from Conversion from agriculture into agriculture into tertiary sectortertiary sector

Access to Access to services.services.

Education.Education.

Conversion of Conversion of farmers into farmers into country-side country-side stewardsstewards

Medium-low Medium-low incomeincome

Low share of Low share of agricultureagriculture

From secondary From secondary into tertiary into tertiary sector. Social sector. Social networks. networks.

Revitalisation of Revitalisation of villages. villages. Education. Access Education. Access to services. to services.

Ensuring a proper Ensuring a proper land land management.management.

Medium-low Medium-low incomeincome

High share of High share of agricultureagriculture

Economic Economic restructuring of restructuring of regionsregions

Alternative job Alternative job opportunitiesopportunities

Moderate impact Moderate impact of economic of economic restructuringrestructuring


Economic development of Economic development of RARA

HighHigh Multifunctional Multifunctional agriculture, new agriculture, new industries and industries and servicesservices

MediumMedium Productive Productive agriculture and agriculture and secondary secondary sectorsector

LowLow Semi-Semi-subsistence subsistence farming, farming, secondary secondary sectorsector

LabourLabour

Social capital for Social capital for subsistencesubsistence

TechnologyTechnology

OrganisationOrganisation

Human capitalHuman capital

Social capital for Social capital for businessbusiness

Eco

nom

ic p

erf

orm

ance

Eco

nom

ic p

erf

orm

ance

In

com

e, co

mpeti

tiveness

FactorsFactors


Economic development of Economic development of RARA

HighHigh Multifunctional Multifunctional agriculture, new agriculture, new industries and industries and servicesservices

MediumMedium Productive Productive agriculture and agriculture and secondary secondary sectorsector

LowLow Semi-Semi-subsistence subsistence farming, farming, secondary secondary sectorsector

Local marketLocal market National marketNational market

Vertical Vertical integrationintegration

Supporting Supporting industriesindustries

Global and local Global and local marketmarket

Social capital for Social capital for businessbusiness

Eco

nom

ic p

erf

orm

ance

Eco

nom

ic p

erf

orm

ance

In

com

e, co

mpeti

tiveness

Markets, coordinationMarkets, coordination


SummarySummary

• Rural areas in different stages of Rural areas in different stages of economic developmenteconomic development– Often depending on the development of Often depending on the development of

larger regionslarger regions

• The higher income other than economic The higher income other than economic issues dominateissues dominate– Social inclusionSocial inclusion– Rural environmentRural environment

• Increasing need for targeting needs at Increasing need for targeting needs at lower level (community level)lower level (community level)– MS, regions conduct special surveys, provide MS, regions conduct special surveys, provide

specific typologiesspecific typologies


Research issuesResearch issues

• Need for more detailed typology of rural Need for more detailed typology of rural areas areas – Although it will likely not comprise all Although it will likely not comprise all

national, regional typologies it should relate national, regional typologies it should relate to them, a bridge has to exist.to them, a bridge has to exist.

• Pan-European policy assessment has to Pan-European policy assessment has to take into account lower levels (than take into account lower levels (than NUTS2 and NUTS3)NUTS2 and NUTS3)

• How to down-scale, upscale information How to down-scale, upscale information and methodologiesand methodologies


The Diversity of the Rural The Diversity of the Rural Development Priorities in Development Priorities in EuropeEurope

Thank you for your attention!Thank you for your attention!


Use of transport Use of transport

The same phenomenon referring to two different rural types

A detailed analysis needed


Performance: GDP and Performance: GDP and UnemploymentUnemployment

GDP as % GDP as % of the EU of the EU avg.avg.

EU15 NMS

PR SR Urban PR SR Urban

mean GDP 85 91 120 41 55 82

Std GDP 20 23 46 11 30 36


GDP and Unemployment

0

100

200

300

400

500

600

0 5 10 15 20 25 30 35 40

Unemployment rate

% o

f E

U a

vera

ge

PR-EU15 SR-EU15 Urban-EU15 PR-NMS SR-NMS Urban-NMS

GDP and Unemployment EU-15

0

50

100

150

200

250

300

0 5 10 15 20 25 30 35 40

Unemployment rate

% o

f th

e E

U a

vera

ge

PR-EU15 SR-EU15 Urban-EU15

GDP and Unemployment NMS

0

50

100

150

200

250

300

0 5 10 15 20 25 30 35 40

Unemployment rate

% o

f E

U a

vera

ge

PR-NMS SR-NMS Urban-NMS


Rural definitionsRural definitions

• Rural society (Encyclopaedia Britannica): Rural society (Encyclopaedia Britannica): – a low ratio of inhabitants to open landa low ratio of inhabitants to open land– the most important economic activities are the most important economic activities are

the production of foodstuffs, fibres, and raw the production of foodstuffs, fibres, and raw materials. materials.

– difficult to pinpoint the boundaries of difficult to pinpoint the boundaries of ruralrural places. places.

Other Other

characteristics characteristics

??



• EconomicEconomic (GDP) (GDP)• SocialSocial (Employment) (Employment)• EnvironmentalEnvironmental• InstitutionalInstitutional

ratinger, gay - iamo-forum 29 june 2006 1 the diversity of the rural development priorities in...

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