rural development policies in bulgaria

RURAL DEVELOPMENT RURAL DEVELOPMENT POLICIES IN BULGARIAPOLICIES IN BULGARIA

Nedka IvanovaNedka Ivanova

UNWE, Sofia, BulgariaUNWE, Sofia, Bulgaria

Rural development policies and CAP: more integrated strategies for a global development of rural Rural development policies and CAP: more integrated strategies for a global development of rural areas areas

17-18 December, 2007 Palermo17-18 December, 2007 Palermo

OUTLINE OF OUTLINE OF PRESENTATIONPRESENTATION

Some information about administrative Some information about administrative structurestructure

National definition of rural areaNational definition of rural area Scope of the rural regionScope of the rural region Some demographic and economic Some demographic and economic

characteristicscharacteristics Strategic objectives of NRDPStrategic objectives of NRDP Allocation of fundsAllocation of funds Measures starting from 2007Measures starting from 2007 Some conclusionsSome conclusions



Administrative Administrative structurestructure

Territory – 111 thousand square metersTerritory – 111 thousand square meters Population – 7.8 millionPopulation – 7.8 million 6 NATS 2 regions6 NATS 2 regions 28 NUTS 3 regions28 NUTS 3 regions 264 municipalities – LAU 1 (EU qualification264 municipalities – LAU 1 (EU qualification)) Municipalities – one or more villagesMunicipalities – one or more villages



National definition of rural National definition of rural areaarea

Municipality (LAU 1)Municipality (LAU 1), in which no , in which no settlement has a population over 30 settlement has a population over 30 000 people000 people

231 from the total 264 LAU 1 regions are 231 from the total 264 LAU 1 regions are rural regionsrural regions

81% of the territory and 42% of population81% of the territory and 42% of population Comparison with OECD definitionComparison with OECD definition

– Predominantly rural – 20 NUTS 3 regionsPredominantly rural – 20 NUTS 3 regions– Predominantly urban – 1 NUTS 3 region (Sofia)Predominantly urban – 1 NUTS 3 region (Sofia)– 98,8% of the territory and 84,3% of population98,8% of the territory and 84,3% of population



Rural areasRural areas



Demographic characteristics of rural Demographic characteristics of rural areasareas

Population - 3.2 millionPopulation - 3.2 million Population density Population density –– 35.8/m 35.8/m22 (twice lower (twice lower

the national average, 69.9/mthe national average, 69.9/m22)) 13% of the municipalities – less than 5 13% of the municipalities – less than 5

thousand people with 14% of the villages thousand people with 14% of the villages with less than 500 peoplewith less than 500 people

And 40% And 40% –– with less than 10 thousand with less than 10 thousand 23,9% of the population – minorities:23,9% of the population – minorities:

– 14,8% 14,8% –– Turkish speaking Turkish speaking– 7% 7% –– Roma Roma



Demographic characteristics …Demographic characteristics …

Strongly declining trend in population -Strongly declining trend in population -10,510,5‰ against 2,1‰ in towns‰ against 2,1‰ in towns– Substantially higher death rate – 16,8 ‰Substantially higher death rate – 16,8 ‰– Migration to towns – 2,3 ‰Migration to towns – 2,3 ‰

Unfavourable age structure – 27,2% of Unfavourable age structure – 27,2% of population above working age and only population above working age and only 16% less than 1516% less than 15– Migration among young peopleMigration among young people

Educational status of the rural Educational status of the rural population is significantly lowerpopulation is significantly lower



Economic characteristics of rural Economic characteristics of rural areasareas

Lower GDP growth - 4,5% against 6% Lower GDP growth - 4,5% against 6% national averagenational average

Agriculture is the main economic Agriculture is the main economic activityactivity

Labour productivity – twice lowerLabour productivity – twice lower– Lower qualification of labour forceLower qualification of labour force

Employment – 42% of labour forceEmployment – 42% of labour force– 9-10% lower for female9-10% lower for female



Economic characteristics …Economic characteristics …

Rate of unemployment – 19,2% (twice Rate of unemployment – 19,2% (twice higher than the average)higher than the average)– No job opportunityNo job opportunity– Unfavourable unemployment structureUnfavourable unemployment structure

Long term unemploymentLong term unemployment Higher unemployment among young peopleHigher unemployment among young people

Result Result – Low income with main source – pensions and Low income with main source – pensions and

social paymentssocial payments– Large share of subsistence and semi-Large share of subsistence and semi-

subsistence farms – operated by jobless peoplesubsistence farms – operated by jobless people– Poverty problemPoverty problem



Strategic objectives of NRDPStrategic objectives of NRDP

To develop a competitive and innovation To develop a competitive and innovation based agriculture, forestry sector and food based agriculture, forestry sector and food processing industryprocessing 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



Strategic objectives ….Strategic objectives ….

To protect the natural resources and To protect the natural resources and environment of rural areasenvironment of rural areas – Sustainable management of agricultural landSustainable management of agricultural land

Conservation of biodiversity and high nature Conservation of biodiversity and high nature value of farmlandvalue of farmland

Organic farming developmentOrganic farming development Improvement of soil and water qualityImprovement of soil and water quality Development of sustainable land Development of sustainable land

management practicesmanagement practices– To promote sustainable management of To promote sustainable management of

forestryforestry



Strategic objectives ….Strategic objectives ….

To improve the quality of life To improve the quality of life and diversify job opportunities and diversify job opportunities in rural areasin rural areas – Improving quality of lifeImproving quality of life

Improvement of access to major services Improvement of access to major services and infrastructureand infrastructure

– Diversification of economic activity and Diversification of economic activity and job creationjob creation Developing income generated activity Developing income generated activity

outside agricultureoutside agriculture



Funding of NRDPFunding of NRDP ( (mill mill €)€)

EUEU NationalNational TotalTotal

20072007 244,06244,06 59,4659,46 303,52303,52

20082008 337,14337,14 82,0382,03 419,18419,18

20092009 437,34437,34 106,22106,22 543,56543,56

20102010 399,10399,10 96,6196,61 495,71495,71

20112011 398,06398,06 96,3696,36 494,42494,42

20122012 397,70397,70 96,2796,27 493,97493,97

20132013 395,70395,70 95,7995,79 491,49491,49

Total for the Total for the periodperiod 2 609,102 609,10 632,75632,75 3 241,843 241,84



Draft budget allocation among axes according to Draft budget allocation among axes according to Regulation Regulation 1698/2005 (1698/2005 (mill mill €€))

AxesAxes% % of total of total

budgetbudgetEU EU

contributioncontributionFrom national From national

budgetbudgetTotalTotal

Ос 1Ос 1 40%40% 985,45 985,45 246,36246,36 1 231,81 1 231,81 Ос 2Ос 2 26%26% 640,54 640,54 140,61140,61 781,15 781,15 Ос 3Ос 3 30%30% 739,09 739,09 184,77184,77 923,86 923,86

Ос 4**Ос 4** 2,5% 2,5% 61,59 61,59 15,4015,40 76,99 76,99 Technical Technical assistanceassistance

4%4% 98,55 98,55 24,6424,64 123,18 123,18

Measure& National Measure& National Complementary Direct Complementary Direct

PaymentsPayments”” 145,47 145,47 36,37 36,37 181,84 181,84



Measures - Measures - Axis 1 - Improving the competitiveness of the agricultural and

forestry sector

111 Training, information and diffusion of knowledge

112 Setting up of young farmers

121 Modernisation of agricultural holdings

122 Improving the economic value of the forests

123 Adding value to agricultural and forestry products

141 Semi-subsistence farming

142 Setting up producer groups

143Provision of farm advisory and extension services

in Bulgaria and Romania



Measures - Measures - Axis 2 - Improving the environment and the countryside

211Natural handicap payments to farmers in mountain areas

212Payments to farmers in areas with handicaps, other than mountain areas

214 Agri-environmental payments

223 First afforestation of non-agricultural land

226Restoring forestry potential and introducing prevention actions



Measures -Measures -Axis 3 - Quality of life in rural Axis 3 - Quality of life in rural areas and diversification of the rural areas and diversification of the rural

economyeconomy

311 Diversification into non-agricultural activities

312Support for the creation and development of micro-enterprises

313 Encouragement of tourism activities

321Basic services for the economy and rural population

322 Village renewal and development



Axis 4 - Leader

41Implementation of the local development strategies:

421 Inter-territorial and trans-national cooperation

431 Running costs, acquisition of skills and animation



Other measuresOther measures

It is foreseen that 7 measures will start at It is foreseen that 7 measures will start at later stagelater stage::– 4 measures under Axis 14 measures under Axis 1– 2 measures under Axis 22 measures under Axis 2– 1 measure under Axis 31 measure under Axis 3

The main reasons for using the fazing in The main reasons for using the fazing in option are:option are:– Measure 143 is a transitional measure and should Measure 143 is a transitional measure and should

be replaced – advisory services still will be neededbe replaced – advisory services still will be needed– There is a need of additional capacity for There is a need of additional capacity for

implementation of the measuresimplementation of the measures– The areas under NATURA 2000 are not defined The areas under NATURA 2000 are not defined

yetyet



Some conclusionsSome conclusions

Bulgaria has chosen the realistic approach to Bulgaria has chosen the realistic approach to the measures included in the NRDPthe measures included in the NRDP

The SAPARD experience helped a lot in The SAPARD experience helped a lot in preparation of the NRDP – fazing in approach preparation of the NRDP – fazing in approach will better serve the strategic objectiveswill better serve the strategic objectives

Although the first step in setting up the Although the first step in setting up the National Rural Network has been done there National Rural Network has been done there still is a lot of work ahead before it starts still is a lot of work ahead before it starts operate properlyoperate properly



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