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2016/PPFS/019 Agenda Item: 3
Rural Policy in OECD
Purpose: Information Submitted by: OECD
Policy Partnership on Food Security MeetingPiura, Peru
23-25 September 2016
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APECJose Enrique Garcilazo, OECD (GOV)
Rural Policy 3.0
Piura, 24th September, 2016
1. Performance rural and urban regions• Research methods, data and definitions
• Trends and diagnosis
2. Policy considerations
3. Framework for action
Outline
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Rural Policy in OECD
Regional Development Policy Committee (RDPC)
WP Urban Policies WP Rural Policies WP Territorial Indicators
The OECD Working Party on Rural Policy is a unique committee that discusses rural development policies at an international level.
OECD Territorial Reviews:A series of case studies of regional policy
In OECD member countries :
20 National Territorial Reviews
8 Regional Territorial Reviews
5 Reviews on Regional Innovation Systems
23 Metropolitan Reviews
5 National Urban Policy Reviews
12 National Rural Policy Reviews
Alemania, Mexico (2006)Finlandia, Holanda, Escocia (2007)China, Italia, España (2008)Quebec, Canadá (2009)Inglaterra (2010)
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Thematic Reviews -- Rural
Factors of regional competitiveness
(1) Empirical evidence-- General trends
(2) Case studies– Field analysis– Questionnaires, – Peer reviewers, experts
• Policy implications:(3) ImplementationGovernance
Promoting growth in all regions (15)
RURAL-URBAN Partnerships (16)
Linking RE Energy to Rural Dev. (15)
The new Rural Paradigm
Service delivery in rural regions
Territorial Approach to FSN
Rural=non-urban
Urban
What is rural?
Traditional definitions
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OECD Regional Data-Base (RDB)
OECD regional typology – statistical definition (1994)
The RDB includes regional statistics on 5 major topics:– Demographic, Regional accounts, Labour , social and environmental indicators, Innovation
For comparability, regions are classified in 2 levels• TL2 Territorial Level 2 (337 regions)• TL3 Territorial Level 3 (1708 regions)
Defining rural
Recognising linkages between rural and urban Urban and rural areas have both growth potential and often complementary assets Urban and rural areas are increasingly integrated in functional regions (self-organising spaces) Integration between urban and rural areas is important for socio-economic performance
Definition Building blocks Types
OECD typology Rural communities PU, IN, PR
Extended OECD typology Rural communities PU, IN, PRC, PRR
FUA Grid cells FUA, and rest
Urban and rural regions are increasingly integrated
In OECD countries, 26% of population live in PR regions (297 million) 20% in rural regions close to an urban area (235 million) 6% in remote rural regions (62 million)
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Convergence forces in rural regions…
… driven primarily by rural close to cities.
Convergence forces in rural regions…
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Rural regions amongst the top performers
Amongst top performers 54% were rural (pre-crisis): 33% rural close to cities 21% rural remote
Declined to 41% (post crisis) 31% rural close to cites 9% rural remote
The Rural Paradox
The majority of rural regions close to cities and rural remote are not driven by the paradox: 69% of rural close to cities and 58% of rural remote experienced both employment and productivity growth
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What are the key drivers of productivity growth?
Tradable activities are key for rural close to cities and remote rural A minimum level of density is key for economies of scale/scope and delivery of
goods and services.
Summary of trends
Rural regions display convergence trend: there is growth potential
No systematic evidence of rural paradox sustainability is possible
Rural close to cities particularly dynamic Against flat performance of rural remote
Tradable activities are key
Agglomeration benefits can occur at different scales
Demographic challenges and service provision
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Contributions to aggregate growth depend on few hub regions…
…the fat tail is equally important -- if not more -- to aggregate growth… 15
1. Performance rural and urban regions• Research methods, data and definitions
• Trends and diagnosis
2. Policy considerations
3. Framework for action
Outline
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Three Types of Rural Areas
Definitions can help better tailor policy responses Rural areas face different challenges, opportunities and policy responses Countries defining different types of rural regions (FI, FR, MX, SW) Context matters: different countries have different definitions
Capitalise on Rural Urban Linkages
• Labour market flows are key, but there are other crucial Rural-Urban interactions The spatial scale to consider depends on the purpose of the partnership The spatial scale of cooperation should be flexible
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Rural – Urban partnerships can help reach common development objectives
Matching …the appropriate scale
Engagement…including relevant stakeholder
Learning …to be more effective
Building effective and sustainable rural-urban partnerships: a strategy
1. Better understanding of Rural-Urban conditions and interactions
2. Addressing territorial challenges through a functional approach
3. Working towards a common agenda for urban and rural policy
4. Building an enabling environment for Rural-urban partnerships
5. Clarifying the partnership objectives and related measures
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The main governance approaches to rural-urban partnerships
Further Policy Considerations
1. Identifying drivers in rural areas– Tradables (manufacturing), renewable energy, natural resources,
services, fisheries, forestry, agriculture, tourism, natural amenities
– Finding the niche (smart specialisation)
2. How to add value in these domains– Policy focus on enabling factors: skills, accessibility, market
intelligence, institutions, innovation
3. Demographic trends and forward looking policies– Address long term cost enhancing efficiency in service provision
(planning, ICT)
– Mitigation and adaptation to climate change
4. Address spatial pockets of poverty in rural areas– Beyond transfers, identify bottlenecks of enabling factors, better
target national. Regional and local interventions
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Persistence of inequality
Infrastructureprovision
Leaking by linking
The policy headache: isolated sectoral action may have unintended outcomes.
Problem: lack of connectivity
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with labour mobility
Persistence of inequality
Policyresponses
Human capital formation
Brain drain
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The policy headache: isolated sectoral action may have unintended outcomes.
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Infrastructureprovision
Policyresponses
Human capital formation
Businessenvironment
Innovation
Regional growth and convergence
Towards a Multidimensional Response
At the regional scale
Many countries are reforming in this direction, but implementation is still difficult.
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-Horizontal evidence?-Policies ?-Institutions ?
OECD Key principles for place-based policies
I. Use of regional specific assets and smart specialisation (or to create absolute advantages to stimulate competition & experimentation across regions) tradables
II. Create complementarities among sectoralpolicies at the regional (or local) level
III. Use of multi-level governance mechanisms for aligning objectives & implementation
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An Evolving OECD Rural Paradigm
Old Paradigm
New Rural Paradigm (2006) Rural Policy 3.0
Objectives Equalization and a focus on farm income
Competitiveness of rural areas and expanding opportunities
Increase rural competitiveness and productivity in order to enhance the social, economic and environmental well-being of rural areas
Key target sectors Sector based
Holistic approach to include various sectors of rural economies
Low density economies with a focus on comparative and absolute advantages
Main tools Subsidies for firms
Investments Integrated investments and delivery of services that are adapted to the needs of rural areas and benefit from potential complementarities
Key actors National governments, farmers’ organisations
Multilevel-governance—horizontal and vertical coordination
Encourage vertical and horizontal coordination among governments (rural-urban and rural-rural partnerships) and bring new stakeholders into decision making (indigenous people, third sector, firms)
Approach Top down Bottom-up
Building capacity at the local level to encourage participation and bottom up development
Rural Policy Responses in OECD Countries
Narrow vs. broad policy responses
Europe: European Commission CAP pillar II (DG Agri), DGRegio (smart specialisation) and LEADER Urban rural linkages through ITI, CLLD
United States: USDA and White House Rural Council
Italy: Inner Area Strategy
Japan: National Spatial Strategy (compact and networked), rural revitalisation (multifunctionality, 6th industry, rural urban linkages)
Chile: building synergies amongst a wide range of national ministries => national rural policy
