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Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY UNDER THE CAP Seminar on “Consolidation of the balance between rural and urban areas to ensure an integrating system” Merida, Spain, 19 January 2011
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Page 1: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

Antonis ConstantinouDirector, Rural Development Programmes IIDG Agriculture and Rural Development, European Commission

BALANCING TERRITORIAL DEVELOPMENT: THE ROLE OF RURAL DEVELOPMENT POLICY

UNDER THE CAP

Seminar on “Consolidation of the balance between rural and urban areas to ensure an integrating system”

Merida, Spain, 19 January 2011

Page 2: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 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 analysis2. 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 economy3. RURAL DEVELOPMENT OBJECTIVES: OLD AND NEW4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD

AFTER 2013

Page 3: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 3

1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (1)

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%

Page 4: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 4

1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (2)

IS THERE REALLY A RURAL-URBAN DIVIDE?• Since 2001 higher growth rate of

GDP/capita in rural than in urban areas• In 1999-2008 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

Page 5: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 5

1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (3)A LOOK FROM A DIFFERENT ANGLE

RESULTS OF CLUSTERINGAND 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 topre-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-EasternEuropean countries are pre-dominantly rural

Page 6: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 6

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.)

Page 7: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 7

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

Page 8: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 8

1. RURAL AREAS AND THE RURAL-URBAN DIVIDE: What is the situation today? (6)A LOOK FROM A DIFFERENT ANGLE

CONCLUSIONS OFCASE 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

Page 9: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 9

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

Page 10: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 10

2. SOME LESSONS FOR THE FUTURE (2)FUND COORDINATION: FROM DEMARCATION TO STRATEGIC INTEGRATION UNDER EU 2020

EU2020 STRATEGY FOR SMART SUSTAINABLE AND INCLUSIVE GROWTH

Proposed:COMMON EU STRATEGIC FRAMEWORK FOR ALL FUNDS

Corollary: COMMON NATIONAL STRATEGIC FRAMEWORK FOR ALL FUNDS

LAGS: IMPLEMENTATION OF INTEGRATED LOCAL DEVELOPMENT STRATEGIES (“LEADING” FUND? CROSS-FINANCING?)

STRATEGICALLY COORDINATED AND COHERENT EU FUND INTERVENTIONS

• Reduce/eliminate the need for complex demarcations between EU funds in the rural space; improve strategic coordination

Page 11: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

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

Page 12: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 12

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

Page 13: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

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 TERRITORIALDEVELOPMENT

OF RURAL AREASTHROUGHOUT 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 30.000 only?) Provide more flexibility through strengthened strategic targeting and priority-led programming Acknowledge the cross-cutting nature of innovation and climate change under EU2020

Page 14: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 14

EU STRATEGIC

OBJECTIVES

EU PRIORITIES 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)

4. A PRELIMINARY LIST OF RD PRIORITIES FOR THE PERIOD AFTER 2013

Foster competitive

agricultural sector

Preserve natural resources, countryside

Develop rural areas

INTEGRATED GUIDING CONSIDERATIONS:INNOVATION, CLIMATE CHANGE & ENVIRONMENT

Page 15: Antonis Constantinou Director, Rural Development Programmes II DG Agriculture and Rural Development, European Commission BALANCING TERRITORIAL DEVELOPMENT:

CONSTANTINOU 15

Thank you

for your attention!


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