Public sector Innovation in rural policy 1.Relevance of this event 2.Usefulness of TERA 3.A couple of open questions

Territorial disparities in OECD Countries (gdp per capita ) social, economic, political concerns

Economic Growth and Regional Disparities

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

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

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

1990 Center for the Study of Rural America, FRBKC

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

… and globalisation, EU enlargement, CAP reform…

…new migration trends

...increasing mobility: where does rural start? Leisure Living Shopping Key: Move house 13.5 miles Restaurant 8 miles Average commute 8.1 miles Theatre 12.6 miles Car Repairs 5.3 miles Furniture / carpet 8.9 miles Computer Equipment 8.5 miles Small Electrical 5.3 miles Clothes 8.8 miles Major Electrical 7.3 miles DIY / Garden items 5.2 miles Cinema 6.8 miles Groceries 3.5 miles HOME Look for new car 13.5 miles School* 3.1 miles Source: Future Foundation/Newspaper Society Average number of miles travelled (urban and rural people)

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

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

… simplistic, national view > SATERIALE, BIANCHI

Individual and territorial disparities > unaltered during strong growth period ( ) 32 % 70 % Mexico

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

Producer Support in % of Gross Farm Receipts (Source:OECD) EU USA OECD The limits of agricultural policy: 1,3 % of OECD GDP %PSE inefficient, ineffective, inequitable > Kilkenny, also Psaltopoulos&Balamou

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

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 … Towards a new rural policy paradigm: a lot of innovation… …some common principles…

The new rural paradigm 1.“place-tailored”, integrated vs. sectoral approach 2.emphasis on opportunities vs. disadvantage 3.investments vs. subsidies 4.knowledge and amenities vs. hard infrastructure 5.multiple actors a matter of governance/cooperation > Kilkenny, Giannattasio

Arezzo Grosseto EU Central Gov RegionProvince Local EU Central Gov RegionProvinceLocal actors Docup XxXx RDP XxxXxX LEADER PlusXxxxX Provincial PlanXx Territorial Pact xXxxxXxX Territorial Pact for AgricultureXxxxXxX Programming ContractXx Agenda 21Xx Mountain PlanxxXxxxxXxx PRUSSTXx Industrial DistrictsXx Rural DistrictXx PASLXxXx PISLXxxXxx Multiple actors…

Grosseto AutomaticAnnouncementNegotiation AutomaticAnnouncementNegotiation Docup XX RDP XX LEADER PlusXX Provincial LocalX Territorial PactXX Territorial Pact for AgricultureXX Programming ContractX Agenda21X Development Plan for the mountainXX PRUSST XX Industrial DistrictsX Rural DistrictX PASLXX PISLXX Sophisticated mechanisms…

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

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

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 !