Sustainable Development in Rural Regions: Conditions and Prospects

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1 International workshop Regional Governance for Sustainable Development October 28 th to 29 th 2005, FernUniversität in Hagen Sustainable Development in Rural Regions: Conditions and Prospects Peter Nijkamp Eveline van Leeuwen

2 Background Research Project Urban and Rural Interactions: The current role of rural towns and existing linkages with the direct hinterland How can small and medium-sized towns be useful for rural development? European Research Project Marketowns: The role of small and medium-sized towns in rural development

3 Contents Three parts: I. Urban-Rural Nexus: Urban Developments Rural Developments II. Town and Hinterland in a model: Model Sustainability issues III. Sustainable Development: Future Challenges Regional Governance

4 I. The Urban-Rural Nexus

5 Historical overview First cities developed around 3500 B.C. in Mesopotamia. Populations in general remained rural, until 1850 A.C. only 4-7% lived in urban areas. After the industrial revolution, both urban and rural areas changed drastically. However, different patterns of urban/rural interaction took place in the development process of countries less developed countries (LDC) versus more developed countries (MDC) in the urban-rural nexus

6 Urban Rural interdependency Historically: technological innovation in the agricultural sector capital accumulation capital flow to cities Rural areas: provide a stimulus for urbanization and industrialisation; provide employment opportunities for urban workers in agri-processing and agri-business activities. Cities: provide markets and act as centres of trade for agricultural goods; create demand for agricultural products and leisure activities; provide opportunities for off-farm employment.

7 Urbanization In the developed world, urbanization now results in a population redistribution down the urban hierarchy. ~ Mainly internal migration flows Urban infiltration of the countryside with non-farm activities and values. In the less developed world, urbanization results in fast growing mega-cities. Rural infiltration of the city with farmers values and habits. ~ Mainly external migration flows

8 Sustainability in urban areas A nation's competitive advantage is directly related to the performance of its cities. Nowadays, the quality of life in cities is becoming an increasingly important issue. Urban sustainability issues are: -Congestion/Commuting -Pollution -Criminality -Unemployment

9 The agricultural sector A basic characteristic of economic development seems to be the long-term shift of (economic) activities from agriculture to industry and services. After the Second World War, modernisation of the agricultural sector: innovation, scale economies in production, farmers income growth. Since the 1990s, a change took place from a main focus on production of food and fibre, coined productivism, to a focus on a multitude of functions, referred to as postproductivism.

10 New role for agriculture From an economic point of view, the agricultural sector has lost its important position in most developed countries. Nevertheless, income from agricultural activity is growing, but at a rate below that of the other sectors. In the developed regions, the debate about the agricultural sector now focuses on agriculture s ability to produce joint products. Although farmers are a minority group in the countryside, they are still the main managers of the land and thus of the landscape

11 Sustainability in rural areas In rural areas, because of stronger interactions with the natural system, developments seem to evolve slower but affect larger areas and systems. Rural sustainability issues are (among others): Environmental quality (e.g. pollution and landscape management) Changing role of the agricultural sector Demographic changes Decreasing availability of facilities Improvement of formation levels of rural population

12 II. Town and Hinterland in a model

13 Town and Hinterland interaction To describe the urban-rural interactions between town and hinterland, we make use of a systemic network perspective. This perspective refers to complexes of elements or components, which mutually condition and constrain one another, so that the whole complex works together.

14 Town and Hinterland in a model Values - Resources/other firms - Consumers - Labour - Facilities - Cultural heritage - Social interaction and cultural values Values - Nature/ Biodiversity - Cultural Heritage - Piece/ Quietness -Space - Resources/other firms Activities - Industry - Services - Residential - Tourism Town Town Direct Hinterland 7 km Activities - Agriculture -Industry - Transport -Conservation - Flood protection - Tourism - Residential - Other towns Hinterland Actors - Enterprises: Firms and Farms - Households (consumers and employees) - Visitors / Tourists - Nature/cultural heritage Organizations - Government

15 Values in town and hinterland Sustainability and quality of life problems occur when values and activities are not balanced. Values can be categorised as follows: Economic values; Resources, other firms, consumer market, labour market, facilities Environmental values: Landscape, cultural heritage, space, quietness and peace Cultural values: flexibility and openness to external inputs Ecological values: long term availability of natural resources

16 Activities in town and hinterland Activities can be categorised as follows: Economic activities; Agriculture, industry, services, transport Environmental activities: Flood protection, conservation Social activities: residential, tourism

17 Sustainability and quality of life issues A classical issue is the threat of environmental and ecological values by economic activities. At the same time, economic activities can improve economic values as employment and the availability of facilities. Environmental activities mainly affect ecological and environmental values. In addition, flood protection also improves economic values Social activities can be an income source for cultural and natural protection (culture and ecologic values). Nevertheless, they can also threat weaker values as peace and quietness when activities are too intense.

18 III. Sustainable Development

19 Sustainable Development: Europe As rural areas account for 80% of European territory, the commission acknowledges that agricultural and rural policy are important for the cohesion of EU territorial, economic and social policy. The main features of rural development are: Strengthening the agricultural and forestry sector Improving the competitiveness of rural areas Preserving the environment and rural heritage Flexible aids for rural development, based on subsidiarity, the promotion of decentralisation, and consultation at regional, local and partnership level.

20 Importance of Regional Governance Importance of network-oriented approaches of cooperation between regional actors to achieve common goals of regional development. - Custom-made strategies and policies - More local support For example the LEADER+ projects which support approaches to integrated and sustainable development that will reinforce rural development policy in the EU.

21 Future challenges for main actors Farms and Firms: Policy restrictions and legislation related to environmental problems require farms and firms to produce in an efficient and sustainable way. Agriculture is becoming a less dominant sector. Therefore, rural areas are in need of new economic activities However, farms will (have to) play an important role in maintaining landscapes. Input output production systems (network-oriented approaches of co-operation between regional actors: firms, research centres, universities )

22 Future challenges for main actors II Households: Rural residents are more often economically linked to the city (jobs and shopping), this could mean that rural towns lose most functions except from the residential function. Demographic changes need special attention. They can be an opportunity for new initiatives such as the Seniorengenossenschaften (cooperation of elderly) Governments: The increasing decentralisation and growing importance of sustainability issues force regional and local governments to cooperate and work in an integrated way.

23 Summarising remarks Sustainability and quality of life problems occur when values and activities are not balanced. In rural areas, because of stronger interactions with the natural system, developments seem to evolve slower but affect larger areas and systems. Importance of network-oriented approaches of cooperation between regional actors to achieve common goals of regional development.

24 Future Research Issues II Demographic changes: What will be the effect of the increasing share of elderly in the European population for the economic and social situation in rural areas? New Member States: The new MS are in a different phase of rural development, coping with different sustainability issues. To which extent can they apply lessons learned from the old MS?

25 Future Research Issues Landscape management: Rural areas, especially near larger cities, are more and more seen as a backyard for urbanites. But, as the number of farmers is decreasing, who is going to maintain this backyard and how? Rural Economy: What are, and will be, the most important carriers of the rural economy, taking into account the earlier discussed sustainability issues?

26 THANKS