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 Challenges for implementation in rural cross-border areas

G. Louwagie, F. Santini, S. Saravia Matus, S. Gomez y Paloma European Commission, Joint Research Centre, Institute for Prospective Technological Studies – AGRILIFE unit

The Institute for Prospective Technological Studies (IPTS)

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

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

SUSTAG / AGRITRADE / AGRITECH

The Western Balkans project

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

General objective

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

Specific objectives

1.

To apply the

ABD approach

the Western Balkans in a selected

rural cross-border

area in 2.

3.

Disseminate the ABD strategy and action plan to potential donors 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

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

Features

•

13 municipalities, all border with one exception

•

380.000 inhabitants

•

7.860 km²

Area-based development (ABD) approach

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

Need

for approach able to address •

particular, specific

•

complex

} development problems • in a holistic manner Main

characteristics

•

area-specific

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

Instruments for economic diversification in rural 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 EU policy 2007-13

Pre-accession assistance Priority axes rural development

Axis 1 Improving

market efficiency

and implementation of Community standards Axis 2 Preparatory actions for implementation of the

agri-environmental measures

and

Leader

Axis 3

Development of the rural economy

Source: Schiessl (2009) Source: Directorate-General for Agriculture and Rural Development (2006)

The cart before the horse???

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

Capital stock and economic growth

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

Investments

Source: Millenium Project report (2005)

Overcoming poverty

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

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

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

infrastructure

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

economic cooperation institutions

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

institutions

strengthen

policies

and promote

good governance

regional

dialogue and consensus building

• Cross-border

environmental coordination

manage

trans-boundary

issues

concerted responses Public

investment –

crucial to attract private

investment

Experiences of cross-border cooperation (CBC)

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

INTERREG-A

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

ABD in rural cross-border areas I

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

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 II

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

Conditions for successful implementation

•

Key capital stock

human capital) (infrastructure, public institutional 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?