IDARI - Rural Development - Lecture Slides, Slides of Human Development

Download IDARI - Rural Development - Lecture Slides and more Slides Human Development in PDF only on Docsity! Rural Development IDARI Training Programme Docsity.com Module Objectives • Introduce theoretical concepts relating to rurality and rural development. • Highlight problems arising in rural areas of CEEC. • Aid students in the writing of a report on the existing conditions of rural CEEC. Docsity.com Theoretical Considerations (1) • Complexity of rural areas • ‘Rural’ – Spatial definitions (urban/rural divide) – Sectoral definitions (agriculture & traditional activities) – Rural idyll (conceptual) – Administrative definitions (OECD, NUTS) Docsity.com Eurostat NUTS Classification • Densely populated zones : a population density greater than 500 inhabitants/km2,and a total population for the zone of at least 50,000 inhabitants. • Intermediate zones : these are groups of municipalities, each with a density greater than 100 inhabitants/km2,not belonging to a densely populated zone. The zone’s total population must be at least 50,000 inhabitants, or it must be adjacent to a densely populated zone. • Sparsely populated zones : these are groups of municipalities not classified as either densely populated or intermediate. Docsity.com OECD classification • predominantly rural regions : over 50% of the population living in rural communities; • significantly rural regions : 15 to 50% of the population living in rural communities; • predominantly urban regions : less than 15% of the population living in rural communities. Also, according to their degree of integration with the national economy, rural areas can further be distinguished as:  Integrated rural area  Intermediate rural area  Remote rural areas Docsity.com Theoretical Considerations (3) • Rural Sustainable Development Recognition that any development process must be able to be maintained; continuity of process through time. Extending concept of rural development to include: – Economic considerations – Social considerations – Environmental considerations. Docsity.com Integrating Ideas on Rural Development Sustainable Rural Development I N Economic Efficiency T Ecological Integrity E Social Equity G Cultural Identity R A T I O N Socio-Economic Forces Environmental Impact Docsity.com Emerging Problems in Rural Areas • Demand and Supply side Problems • Resource Markets (General Market Failure) • Physical and Social Infrastructure • Social Capital and Cohesion • Sustainability Docsity.com Allocation through the Market • Neoclassical paradigm (strict) • Neoclassical paradigm (liberal) • Alternative – Institutional – Evolutionary Docsity.com Neo-classical Paradigm • General equilibrium • All markets in equilibrium • All markets cleared • Disruption of equilibrium • New equilibrium Docsity.com Labour Market Equilibrium W L Docsity.com New Market Failure »Absence of markets »Imperfect information Docsity.com Rural Issues 1 – Sectoral decline – Low income – Structural imbalance Docsity.com Rural Issues 2 • Market failure » Capital markets » Labour markets » Externalities » Information Docsity.com Social Capital and Cohesion • ‘Social capital refers to features of social organisation such as networks, norms and social trust that facilitate coordination and cooperation for mutual benefit’ - Robert Putnam, 1995 • Resources available to people due to their association or membership with society or a community. Investment required in social capital also. Docsity.com Sustainability • Issue due to conflicts over what sustainable goals are or should be. • "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs; not simply the use of resources at a rate which could be maintained without diminishing future levels, but development which also takes social implications into account". (Dictionary of Geography, Oxford university press). Docsity.com Institutions of Rural Development • Institutions defined as ‘the humanly devised constraints that shape human interactions’ (North, 1990 p.8). • ‘Rule configurations or prescriptions that are commonly used or known to order repetitive, interdependent relationships between individuals, sets of individuals (stakeholders, actors) and between individuals and actors’ (Gatzweiler et al 2001). • Institutions are the essence of social change - redefining relationships among people and their environment. Docsity.com Linking New Institutional Economic ideas and rural development Car-sharing for rural transport, overcome diseconomies of scale; Partnership building Conditions under which economic agents achieve successful cooperation in economic or political spheres Collective Action School Ownership of rural resouces; Market Structure in rural areas; Market Failure in rural areas; Legislation relating to rural areas. Institutional Environment Focus on power relations within instituions e.g. private property, market structure etc. Imperfect information affecting rural economy; e.g. within and about rural markets;Information used as a source of economic power - rent seeking Institutional Arrangement Focus on efficiency problems due to institutions - specifically imperfect information Transaction Cost School New Institutional Economics Docsity.com Institutions of rural development • There are many levels of rural institutions - here distinguish between two. • Formal - institutions based on existing legislation. Identifiable within the legal framework of the country/region. • Informal - institutions arising due to cultural factors or non-legal conventions between individuals. May be difficult to detect. Docsity.com Formal Institutions of R.D (1) • Rural Policy as an institution – Intervention in the rural economy is itself an institution - rather than taking a laissez-faire approach. • EU policy – Change in rural development policy markedly since the (1988) publication of ‘The Future of Rural Society’; the (1996) ‘Cork Declaration - a living countryside’; the (1999) ‘European Spatial Development Perspective’ – Focus on ‘bottom-up’ development rather than previous ‘top-down’ strategy. – Focus on local capacity building/empowerment of rural communities. Docsity.com Rural Markets in Urban Locations? Docsity.com illegal rural markets - dumping (® Docsity.com Policy to improve infrastructure TIPPERARY NORTH RIDING COUNTY COUNCIL UPGRADING OF ROSCREA SEWAGE TREATMENT WORKS Me eee aE Os a2) M.C. O'SULLIVAN & CO. LTD. em iar ele ices moe iT Tere) Ea ruction & Plant Lid. Jones Environmental (irl) Lid. SORENSEN CONSTRUCTION Pe eel ef ies) e)/¢2 [2 fabey. * faighe & Chiste Comhthathaithe « an Chomhphobail Eorpaigh i gcomhair an tionscadail seo « THIS PROJECT HAS RECEIVED * 85% FINANCIAL ASSISTANCE « FROM THE COHESION FUND OF Bete =ee ly meee tig Docsity.com Formal Institutions of govt. intervention - ‘farm improvement’ schemes QuickTime™ and a TIFF (Uncompressed) decompressor are needed to s ee this picture. Docsity.com Formal institution of government ownership of land/rural resources PAIRC FORAOISE PHORT OMNA PORTUMNA FOREST PARK ® Docsity.com State ownership - codified ‘rules’ over how to use resources. Docsity.com Customs of self sufficiency gardening - Berry Picking in Ireland Docsity.com Historical Tradition of burning heather -management conflicts QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Docsity.com Local Custom Tory Island - Institution of land distribution by ‘King’ of Island Docsity.com Institutions and innovation Docsity.com Institution affecting rural landscape -potato cultivation and consumption QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Docsity.com Local Organisation formation PTT & Safety | Docsity.com CEEC Institution Exercise • Group 1: Think of 5 formal institutions from different country. – Select one institution each (try to diversify institutions) – How do these institutions affect the rural economy/space. • Group 2: Think of 5 informal institutions from your own country. – Select one institution each (try to diversify institutions) – How do these institutions affect the rural development process (or formal institutions of rural development). Docsity.com Issues arising in CEE rural areas (1) • Rural Development (Sectoral/spatial) – Surplus labour – Distribution of urban centres – Entrepreneurial activity – Innovation and innovation systems – Access to global markets – Business services – Physical infrastructure – Social Services – Demographic problems Docsity.com Issues arising in CEE rural areas (2) • Institutional Issues – Control and support system (SAPARD funds not utilised in many CEECs) – Land ownership (restitution, abandonment) – Market system (instituting systems rather than letting them evolve) – Planning and implementation – Social capital Docsity.com