The area-based development approach Challenges for implementation in rural cross-border areas

Istanbul 13-14 October 2010: EastAgri Annual Meeting – RT4 – Investing across borders: The way forward for agriculture and rural development in the Balkan countries

The area-based development approach The area-based development approach Challenges for implementation in rural cross-border areasChallenges for implementation in rural cross-border areas

G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma

European Commission, Joint Research Centre, European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unitInstitute for Prospective Technological Studies – AGRILIFE unit


The Institute for Prospective The Institute for Prospective Technological Studies (IPTS)Technological Studies (IPTS)

• a directorate of the JRC

• provides customer-driven support to EU policy making

• aims at policy challenges that have a socio-economic and science & technology dimension


The AGRILIFE unit within IPTSThe AGRILIFE unit within IPTS

SUSTAG / AGRITRADE / AGRITECH


The Western Balkans project

General objective

To facilitate local development in the Western Balkans (focus on rural)

Specific objectives

1. To apply the ABD approach in a selected rural cross-border area in the Western Balkans

2. Disseminate the ABD strategy and action plan to potential donors

3. Develop a method using the ABD approach for other rural areas in the Western Balkans, where ABD intervention may be appropriate

Target area:Drina-Tara


Target area – Drina river / Tara mountain

Features

• 13 municipalities, all border with one exception

• 380.000 inhabitants

• 7.860 km²


Area-based development (ABD) approach

Main characteristics • area-specific (versus country)• integrated (across sectors)• inclusive (communities)• participatory (bottom-up)• flexible (responsive to changes)

Need for approach able to address• particular, specific• complex • in a holistic manner

} development problems


Instruments for economic diversification in rural areas

Source: Directorate-General for Agriculture and Rural Development (2006)

EU policy 2007-13 Pre-accession assistancePriority axes rural development

Axis 1Improving market efficiency and implementation of Community standards

Axis 2Preparatory actions for implementation ofthe agri-environmental measures and Leader

Axis 3Development of the rural economy

Source: Schiessl (2009)


The cart before the horse???


Capital stock and economic growth

Investments

Source: Millenium Project report (2005)


Overcoming poverty

Key capital stock/investments in• Infrastructure• Public administration• Human capital

= foundations for self-sustaining economic development and private sector growth

Overarching areas of investment• Upgrading public management systems• Extensive capacity building at local level• Scientific capacity• Cross-border investments


Essential regional goods to reduce poverty

• Cross-border infrastructure transport, energy, water management, accessible land

• Cross-border economic cooperationinstitutions coordinate and harmonise promote intra-regional trade (movement of goods and people):

e.g. reduced transit fees, automated customs procedures

• Cross-border political cooperation strengthen institutionsstrengthen policies and promote good governanceregional dialogue and consensus building

• Cross-border environmental coordination manage trans-boundary issues concerted responses

Public investment – crucial to attract private investment


INTERREG-A

Factors for successful and effective CBC:legal framework for CBC, quality of partnerships, degree of institutionalisation

Experiences of cross-border cooperation (CBC)


Recommendations for ABD implementation

ABD intervention – design- Focus intervention on needs and priorities of the area- Assess capacity to participate & ensure unbiased participation- Promote early involvement of stakeholders & donors- Match time & budget with objectives - avoid false expectations - Guarantee coherence ABD programme with macro-situation- Incorporate positive aspects of existing initiatives- Include issues with potential shared positive impact

ABD intervention – management- Coordinate activities (also across donors)- Monitor and evaluate regularly- Reduce transaction costs- Foresee exit strategy

ABD in rural cross-border areas I


ABD in rural cross-border areas II

Conditions for successful implementation• Key capital stock (infrastructure, public institutional capital, human capital)

– in place, or investment needs?

• Essential mechanisms for provision of regional goods (cross-border infrastructure, and economic, political and environmental coordination)

– in place?

– if not, which needs and which public funds available?

• Private investments

– particular needs cross-border, land-locked areas?


European Commission • Joint Research Centre

Institute for Prospective Technological Studies

Calle Inca Garcilaso 3 • 41092 Sevilla • Spain

T: +34 954 48 82 49 • F: +34 954 48 82 02

Email: [email protected]

The area-based development approach Challenges for implementation in rural cross-border areas

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