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Public sector Innovation in rural policy

Relevance of this event Usefulness of TERA A couple of open questions. Public sector Innovation in rural policy. Territorial disparities in OECD Countries (gdp per capita 94-2000). social, economic, political concerns. 4%. Czech Rep. 3%. Hungary. 2%. Australia. Finland. Denmark.

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Public sector Innovation in rural policy

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  1. Relevance of this event Usefulness of TERA A couple of open questions Public sector Innovation in rural policy

  2. Territorial disparities in OECD Countries (gdp per capita 94-2000) social, economic, political concerns

  3. 4% Czech Rep. 3% Hungary 2% Australia Finland Denmark Mexico 1% Norway Regional Disparity Italy Austria Spain 0% Portugal UK Slovak Rep. France Japan Belgium US -1% Netherlands Canada Greece -2% Germany -3% .5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Growth Economic Growth and Regional Disparities

  4. Low population density lack of critical mass for services and infrastructure (++ higher education) out-migration (+ageing) fewer employment opportunities lower business creation Economic performance of rural areas Rural per capita GDP = 64% of national averages, and declining

  5. Although… the fastest growing region in 1 out of 3 OECD Countries is rural “rural” not synonymous with “decline” (> H&I, > PHIMISTER)

  6. New rules of the game: changing profile of rural economies… 1950 Center for the Study of Rural America, FRBKC

  7. 1990 Center for the Study of Rural America, FRBKC

  8. …changing profile of rural economies Agriculture as an employer… Rural empl. 10 % Nat. GVA 2 %

  9. … and globalisation, EU enlargement, CAP reform…

  10. …new migration trends

  11. Key: Leisure Shopping Computer Equipment 8.5 miles Average commute 8.1 miles Living Cinema6.8 miles DIY /Garden items5.2 miles School*3.1 miles Furniture / carpet 8.9 miles Groceries3.5 miles CarRepairs5.3 miles Move house 13.5 miles Restaurant 8 miles SmallElectrical5.3 miles MajorElectrical7.3 miles Clothes 8.8 miles Theatre12.6 miles Lookfor new car 13.5 miles ...increasing mobility: where does rural start? Average number of miles travelled (urban and rural people) HOME 2 4 6 8 10 12 14 Source: Future Foundation/Newspaper Society

  12. ...devolution, calling for new planning capacity Changes in the share of subnational governments in total public revenues and spending (Percentage points, 1985-2000) Revenue Spending

  13. So there is diversity, complexity, rapid change… …and the governments ?

  14. 1971 1996 … simplistic, national view > SATERIALE, BIANCHI

  15. Mexico Individual and territorial disparities 32 % 70 % > unaltered during strong growth period (1992 - 2000)

  16. ChinaPatterns of Change of Provinces between 1990 and 2000  Several provinces are in a low income and slow growth trap (in red)

  17. The limits of agricultural policy: 1,3 % of OECD GDP Producer Support in % of Gross Farm Receipts (Source:OECD) 60 50 EU 40 %PSE 30 OECD 20 USA 10 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 inefficient, ineffective, inequitable > Kilkenny, also Psaltopoulos&Balamou

  18. Moving away from simplistic approaches: in search for coherence NEG, NEEG, SAMs... > Prof. Round, Marattin...

  19. Towards a new rural policy paradigm: a lot of innovation… In the OECD: LEADER, PITs, LSPs, Growth Agreements, Regionen Aktiv, Canadian community futures, Mexico’s PDRs and microregions… …and in developing Countries: India, Central and South America, China… At national…and local levels: Tuscany, Basque Country, Scotland, Quebec, Extremadura … …some common principles…

  20. The new rural paradigm “place-tailored”, integrated vs. sectoral approach emphasis on opportunitiesvs. disadvantage investments vs. subsidies knowledge and amenities vs. hard infrastructure multiple actors a matter of governance/cooperation > Kilkenny, Giannattasio

  21. Multiple actors…

  22. Sophisticated mechanisms…

  23. Challenge # 1: COMPLEXITY knowledge, research gaps > GALASSI overcrowded instit. settings: who coordinates what? transaction costs and additionality efficiency and effectiveness ? need to address: intellectual, institutional, administrative gaps

  24. Challenge #2: Political economy of reform... What place for rural policy ? > BIANCHI, THOMPSON? ‘niche’policy’ comprehensive regional policy

  25. Summing up The need for a new policy approach to RD is there The research challenge is also there This discussion and TERA are relevant and timely Thank you and good luck to TERA !

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