rural development in a knowledge economy
TRANSCRIPT
Sustainable Rural Economies in a Knowledge Economy
A model for post-industrial sustainable rural economic development
Dr James MacAskill
Bucharest, October 2010
A sustainable rural economic model
• Avoiding FDI generated discontinuities
• Relevance of knowledge and accessing it
• Impact of urbanisation and knowledge clusters
• Harnessing human capital
• Trust and Value chain development
• Making it happen
Avoiding FDI discontinuitiesCountry 2007 Share 2007 2008 Share 2008 Trend
United Kingdom 24,186 14% 20,196 14% -16%
Poland 18,399 10% 15,512 10% -16%
France 14,488 8% 12,933 9% -11%
Russia 14,934 8% 12,900 9% -14%
Hungary 11,104 6% 11,659 8% 5%
Romania 12,464 7% 11,403 8% -9%
Germany 5,972 3% 11,397 8% 91%
Bulgaria 3,096 2% 6,709 5% 117%
Ireland 4,052 2% 6,335 4% 56%
Czech Republic 15,102 9% 5,626 4% -63%
Spain 7,335 4% 5,038 3% -31%
Slovenia 8,479 5% 3,660 2% -57%
Portugal 4,045 2% 3,448 2% -15%
Belgium 4,379 2% 3,391 2% -23%
Serbia 5,484 3% 3,063 2% -44%
Other 23,032 13% 15,063 10% -35%
Total 176,551 100% 148,333 100% -16%
Trend in FDIFDI league table
-80%-60%-40%-20%
0%20%40%60%80%
100%120%140%
Unite
d Kin
gdom
Polan
d
Franc
e
Russia
Hunga
ry
Roman
ia
Ger
man
y
Bulga
ria
Irelan
d
Czech
Rep
ublic
Spain
Slove
nia
Portu
gal
Belgiu
m
Serbi
a
Oth
er
€ m
illi
on
s 2007
2008
Trend
Most attractive regions
Sources of knowledge Sources of knowledge
0
20
40
60
80
100
120
With
in th
eco
mpa
nyC
lient
s or
cust
omer
s
Supp
liers
K
now
ledg
e w
ithin
the
grou
p
Com
petit
ors
Hea
lth7
Safe
ty
Fair
s, e
xhib
ition
s
Tec
hnic
al/tr
ade
pres
s, c
ompu
ter
Tec
hnic
alst
anda
rds
orE
nvir
onm
enta
lst
anda
rds
and
Prof
essi
onal
conv
eren
ces,
Tra
de a
ssoc
iatio
ns
Con
sulta
nts
Oth
er p
ublic
sect
or, e
g B
usin
ess
Uni
vers
ities
/hig
her
educ
atio
nC
omm
erci
alla
bora
tori
es o
rG
over
nmen
tre
sear
chPr
ivat
e re
sear
chin
stitu
tes
%
UK
US
Howells defines knowledge as “a dynamic framework or structure from which information can be stored, processed and understood”
Pasteur’s Quadrant
EU 27 GDP
EU 27 overlay
0
20000
40000
60000
80000
100000
120000
1 4 7 10 13 16 19 22 25 28 31 34 37
1970 = 0yrs
GM
P p
er c
apia
t $
Belgium
France
Germany
Italy
Luxemburg
The Netherlands
United Kingdom
Ireland
Denmark
Greece
Austria
Sweden
Finland
Cyprus
Hungary
Poland
Slovak Republic
Estonia
Latvia
Lithuania
Slovenia
Czech Republic
Malta
Romania
Bulgaria
Portugal
Spain
Agricultural added value % GDP
0
5
10
15
20
2519
70
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
EU 6
EU 3
EU 1
EU 2
EU 3 (1995)
EU 10
EU 2 (2004)
Indexed GDP (1990)
GDP per capita current $
0
20
40
60
80
100
120
140
1 3 5 7 9 11 13 15 17 19
Year 0 = 1990
GD
P %
$
EU 1970
EU 1973
EU 1981
EU 1986
EU 1993
EU 2004
EU 2007
EU Enlargement
0
10000
20000
30000
40000
50000
60000
1 5 9 13 17 21 25 29 33 37
1970 = 0yrs
GM
P p
er c
apit
a $
1970 group
1973 group
1981 group
1986 group
1995 group
2004 group
2007 group
Expon. (1986 group)
Expon. (2004 group)
Expon. (1995 group)
Impact of accession
EU Enlargement
0
10000
20000
30000
40000
50000
60000
1 5 9 13 17 21 25 29 33 37
1970 = 0yrs
GM
P p
er c
apit
a $
1970 group
1973 group
1981 group
1986 group
1995 group
2004 group
2007 group
Expon. (1986 group)
Expon. (2004 group)
Expon. (1995 group)
Impact of accession
Growth of GDP per head 20002004 and GDP per head 2004
Cited in REFORMING EU COHESION POLICYA reappraisal of the performance of theStructural Funds, John Bachtler and Grzegorz Gorzelak Policy Studies, Vol. 28, No 4, 2007
The modelQ
uest
Discontinuity
Thank YouCurrently:
Dean, St James’s Business SchoolSt James’s House
23 King StreetSt James’s
London SW1Y 6QY