The Reconstruction of Production in the Province, a Key Pillar for the Ecological Reconstruction of the Greek Economy.

Transcription

1 The Reconstruction of Production in the Province, a Key Pillar for the Ecological Reconstruction of the Greek Economy. Elias G. Nottas, Management Consultant, Business Consultants Network of Thessaloniki Abstract Τhe lack of decentralization policy in Greece has led to the depopulation of the province. The fact that only 20% of the country's population lives in the province, the majority of which are no longer active and dynamic, is a sign of decline in the regional economy. To deal with the degradation of the region's socio-economic fabric required a new production model reconstruction. This paper presents a proposal for a development strategy starring the identity of the Greek countryside and the primary production sector and the development of this chain effect on the secondary and tertiary sectors both regional and national. Introduction The depopulation and infrastructural degradation of the Greek province is the result of a continuous course of urban centralization and it proves the failure of the development and decentralization policies of the latest thirty years in Greece. The fact that about 50% of the population is concentrated in two urban centers and about 30% in smaller urban centers of the province, while only about 20% of the population particularly older, retired people, remain in the rural areas, is a characteristic indication of the low level of socio-economic development of a country. The result of this process is a continuous and furthermore with a growing speed deterioration of the social and economical structure of the province and its infrastructure. This concludes to a degradation of its significance as a living space and that accelerates depopulation increasingly. Under these circumstances it is in demand, to create a model for reconstruction of the production of the province, which can cause the socioeconomic rehabilitation of the provincial tissue. This suggestion presents a proposal for a strategic framework and scopes to highlight the relations between the three economic sectors and geographical and operational closer association, which will birth vertically integrated production systems, combining

2 orientation of agriculture in cultivation of agri-food products as well as the processing and their qualitative upgrading orientation of rural areas on developing attractive and competitive products of tourism orientation in new organizational and cooperative business models orientation to alternative models of vocational education and training as well as the innovation and technological development in order to activate the creative forces of the Greek province and rural areas, which, in a progressive development process, can contribute as pillars to an effective socio-economic development of the country. The graphic below illustrates the effect of the reduction in public infrastructure in a region, which leads to a significant reduction of private sector infrastructure and the population migration. Population Private Economic Infrastructure Public Infrastructure t Graphic No. 1: A continuous and with growing speed reduction of the social and economic structure of the province and its infrastructure concludes to a degradation of its significance as a living space and that accelerates depopulation increasingly.

3 1. Strategic Framework for the Reconstruction of Production in the Province The Reconstruction of Production of the province requires a strategic framework. The essential blocks of the strategic framework include The reorientation of production The development of new organizational and cooperative enterprise models The creation of an Efficient vocational education model The creation of development tools for and within the Regional Government and the local self-administration. Reorientation of the Production Instrumentarium of the Regional Government local self - administration Strategic Priorities for the Reconstruction of Production in Greece New Organizational Structures and Co-operative Business Models Efficient vocational education model Graphic No. 2: Strategic priorities for the reconstruction of production in Greece

4 1.1 The reorientation of production The primary economic sector and specifically the agricultural and livestock sector must recognize the need to change their productive direction and familiarize with the business aspects of the engaged activity. The reorientation of the agricultural and livestock sector will generate a related restructuring of the secondary sector and particularly in the manufacturing of agricultural and livestock products. This restructuring would provide opportunities for new enterprises and contribute as well in innovation and technological development Additionally, the tertiary sector also requires a partial reorientation towards developing new effective services and it needs to undergo a course of adjustment which will be triggered both by new business horizons and from the adaptive changes in the primary and secondary sector under the new conditions created by those areas. 1.2 New organizational structures and co-operative business models The orientation changes in production areas also require the development of new organizational and cooperative business models aimed at supporting enterprising across the market demands. 1.3 The vocational education and training The creation of an effective model in career and human resources training is an absolute requirement in order to enable the labor market to operate efficiently in terms of a constantly changing and demanding environment in the world of employment. 1.4 The regional and the local self-administration A general development policy cannot be exclusively managed by the central administration. The central government ought to define the autonomous responsibilities of the primary and secondary self-administration and maintain a merely supervising and disciplinary role.

5 Creating development tools for the local self-administration is both a priority and an absolute precondition for the possibility of a successful regional development. 2. Regional Development Planning, factors and the interaction fields of regional development 2.1 Regional policy The particular identity of each region is basic and should be taken into account while designing of regional development. The social and cultural characteristics, the political and socio-economic structures, the physical properties are all essential elements of the identity of the region and influence the design of regional development. The design and management of regional development contributes to the progress of regional identity. This circular interaction results in the regional development. Regional policy Regional identity Political and socio-economic structures CONTOUR COHERENCE COMPLEXITY physically properties Regional Development Concepts Regional Development Graphic No. 3: Determinants of the regional policy and the regional development conception

6 2.2 The regional development policy and development tools for the local self- administration The structure of the regional administration, the responsibilities assigned to it and the development tools that are available, all define the ability to pursue a regional development policy. Spatial structure planning and specifically land use planning, building of industrial parks, providing services and facilities, as well as formulating charges and local taxes practiced by a local government, these would make tools for a policy to enable the installation of companies and be attractive to residents. The regional marketing, the promotion of entrepreneurship, the education and training as well as regional funding would also make critical development tools. Regional Administration and Management Regional Marketing R Business Start-up & Enterprise Support Εducation & Τraining Regional Μoney Graphic No. 4: Synergetic fields in regional policy

7 2.3 Interactive fields in regional development Creative environment, economic geography, regional marketing as well as the regional disparities and the particular identity of each region of a region are areas of interaction with the regional development. Regional Marketing Creative Environment Regional inequality Regional development Economic geography Region Graphic No. 5: Areas of interaction with the regional 2.4 The influencing Factors of structural changes in the provincial periphery Megatrends The megatrends in markets (Megatrends) the endogenous potential of the region as well as the players, namely persons, institutions and organizations of the public and private sector are key factors of the structural changes at the periphery. Actors Regional Structural Changes Endogenous Potentials Graphic No. 6: The influencing factors of structural changes in the provincial periphery

8 3. The Reorientation of the Production in the Province In search of a reorientation of the production in the Greek province highlighted five axes sectoral activities which either will have to change its production orientation either will be forced to adapt to new conditions or to see and develop new areas of activities. Reorientation of the agricultural production Reorientation of the processing industry Development of suitable tourist product Development of appropriate and improving existing services Reorientation of trade The orientation in the markets is a top priority of every business endeavor and it determines the directions for the orientation of the Production. Reorientation of the Agricultural Production Reorientation of Trade The Reorientation of the Production in the Greek Province Reorientation of the Processing Industry Development of Suitable Tourist Product Development of Appropriate and Improving Existing Services Graphic No. 7: Sectoral redirection of production in the Greek Province

9 3.1 The reorientation of the agricultural production The agricultural and livestock sector must realize the business dimension of their activities and reorient the productive directions, oriented to market needs. The change of productive orientation towards an agri-food crop high quality and nutritional value, offers business opportunities and constitutes the answer to the current dead-end in the Greek rural economy. EXAMPLE The orientation of agriculture in cultivating agri-food products as well as their qualitative improvement is a prerequisite for the reconstruction of the provincial perspective tissue. Production policy Qualitative improvement of crops Specific elite varieties Fruit and vegetables cultivation Farming products with high nutrition and economic value Standardizing procedures and timing Well designed processes and timelines Compliance procedures and timetables Process control systems Ecological methods Reorientation / shift to organic farming Graphic No. 8: The reorientation of the agricultural sector and the qualitative improvement of crops 3.2 Redirecting the of the Processing Industry The change of direction of the agricultural production and the production in the livestock sector generates new needs and requirements which are new business challenges and opportunities for the manufacturing sector. The requirements regarding the processing, quality upgrading and refining of agrifood products offer the opportunity to create new businesses and also contribute to innovation and technological development.

10 EXAMPLE Manufacturing processes for upgrading of agri-food products Frozen Products Fresh products Fresh products Cleaning Sorting Weighing Freezing Packaging Maintenance Cleaning Washing Drying Sorting based on size and condition of the fruit Standard weighing (proportionalization) with minimized deviation margin correctness of the process and the freezing schedule adequate qualitative aesthetical according to the market technically correct ecological proper maintenance during storage, transportation and disposal. Graphic No. 9: Manufacturing processes for agri-food products 3.3 Creating competitive advantages The quality potential of small-scale productions as well as the consolidation of brands and protected designations of origin generate competitive advantages and support the optimization of the goodwill of the products. Branding Competitive advantages Logo, Coat, Corporate Identity (CI, CD) Brandmark, Trademark,, TM,, n PDO (Protected Designation of Origin) - AOC (Appellation d'origine Contrôlée) Awareness Uniqueness Attractiveness Monopolistic margins Graphic No. 10: Competitive advantages of brand products and product with Protected Designation of Origin 3.4 Developing a capable tourist product The tourism sector as a special branch of the services sector, which carries its own dynamic with regard to the openness of a region and a relative independence from other economic factors in the region and the overall

11 economic situation of the country, has hardly developed in the Greek mainland. In this respect, there is scope for the development of capable tourism products. A capable tourism product is characterised by its orientation towards the market trends and the compatibility of the identity of each region and potential, the attractiveness, quality of services, and its relative competitiveness. The Greek province hides unexploited, for the Greek tourism market, virgin tourism product sectors, which meet the standards of trends that bring consumers in different markets. The geographical advantage, in terms of accessibility and the variety of landscapes and attractions, either historical, cultural or natural, in relatively short distances, are a fertile ground for the development of alternative, non-saturated tourist suggestions. The natural, historical and cultural wealth, the prospect of a more personal service that is promised by the small-scale tourist facilities and the security offered by the socio-political system of the country and the small communities of the province gives the possibility of creating unconventional and strong tourism products, which due to their uniqueness, would have brought competitive advantage and the potential to impose on the markets. 3.5 Developing appropriate and improving existing services The restructuring of production and the development of new production sectors in the abovementioned sectors will also affect other productive sectors at local, regional and national level. The services sector will be geared to the new circumstances and needs, recognizing new business opportunities and specifying and upgrading the services offered. The restructuring of production in the agricultural sector and the corresponding reorientation of manufacturing will create new fields of activity in the services sector. The study and design requirements, product standardization, quality control (audit) and certification of products, management systems as well as training and human resources expertise will contribute to the creation of new jobs with high quality requirements.

12 The development of tourism products will yield a guide for the development of services and new business opportunities in the fields of hotel industry and gastronomy as well as the sectors involved in activities (survive training, rafting, climbing, hiking, sightseeing) or spa and wellness. 3.6 Reorientation of trade The trade and services sectors have a wide range of flexibility and adapt relatively easily and quickly to new situations and needs. The reorientation of production in agriculture and manufacturing as well as tourism product development can both cause changes in the market in terms of trade supply range and stimulate the market. 4. New Organization and Cooperative-Business Models The policy changes in agriculture require a targeted networking of local factors as well as the development of new forms of cooperation, aiming at the support of competitiveness of business activities and products. The creation of clusters, cooperation and social cooperative business networks offer appropriate organizational perspective, to create the conditions for small businesses to meet the challenges and cope competitively with market requirements. EXAMPLE Cluster Regional network for promoting local enterprises and institutions. Social cooperative Guest Houses Local Association of Retailers Social cooperative Primary economic sector Social cooperative Secundary economic sector Local Association of Hotels and Inns Local Gastronomy Association Regional network of food and beverages producers Graphic No. 11: Cluster-organization model; Network for promoting local enterprises and institutions.

13 4.1 Network of food and beverages producers The purposes of networks for producers Strategic planning, organization and supervision of joint operations for companies which are part of the network. The certification of the products of its members, based on quality standards by independent certification bodies The promotion of the network, its partners and their products. (advertising and sales) The formation of appropriate conditions for unification and voluntary cooperation of companies from the surrounding region, ensuring under strict specifications a high quality standard, causing the activation of the local potentials contributing to the profitability and the viability of companies and deepening the comprehensive development of the region. The creation of differentiated and innovative activities which will cause determinated desires to identified target groups of specific market segments. The contribution to the development of innovative activities, the promotion of tourism, the stimulation of employment and the optimization of the offer of trade and services in rural areas The market and marketing research, which will contribute both to the marketoriented optimization and the character imprinting of the offered products as well as to the optimization the cost/performance ratio of and the advertising and promotional activities. The inspection of the parties to determine the determination or review of the quality of products and services and the creation of processes and the identification of processes and activities which may be optimized.

14 The training and education of entrepreneurs and employees, as a result the quality certification of people and of the facilities, which consist the core basis of national and international promotion The objectives of the activities of the network Increase of the area recognition, identifying of quality products and services connecting to the region and their introduction to the markets. Strengthening the entrepreneurial awareness and strengthening of business cooperation of people locally. the effect of other productive sectors of the region and their mobilization to further improve the quality and increase their competitiveness through an exemplary framework and implementing best possible actions. The presentation - promotion to the target groups of an integrated competitive product (quality services and local products) The specificity and in advance differentiation of the messages, according to the addressee (the group of communicants) of each communication action. 4.2 Social cooperatives Categories and Objectives Integration cooperatives Aimed at integrating within the economic and social life of people belonging in Vulneruble Population Groups, namely: People with disabilities Addicted or detoxified people Seropositive people Prisoners / ex-prisoners

15 Social Care cooperatives Aimed at producing and providing with social - welfare goods and services directed at population groups such as: Elderly Infants Children People with disabilities People with chronic diseases Collective and productive oriented cooperatives Aimed at promoting the local and collective priorities, promoting employment, strengthening of community cohesion and of local or regional development. Related to the production of goods and services in areas such as: Correctness Culture The environment Ecology Education Public utilities Development of local products Maintenance of traditional enterprises and professions etc. 5. Vocational education and training The restructuring of production also requires an effective model of professional education and manpower training, which aims to high quality training and expertise as well as to meet the changing demands of the labor market. The education and training offer must be compatible with the needs of the economy. The businesses' needs in terms of skills and human resource skills determine the requirements in the labor market and have reserved the need for their participation in vocational education. The dual education system as applied in other European countries, such as Germany and Switzerland, combines the educational mission of the State and

16 respective competent bodies with the education and employment opportunities offered by the agents and operators of private and non-private economy. The vocational schools, vocational training centers and enterprises and other employment bodies undertake a joint training mission on vocational education and training to impart knowledge and skills. The dual vocational education system Fields of interaction of the dual education system common educational mission Enterprises: Working and learning Vocational School: Learning and working Expertise and specialization Working world in transition Further education: Opportunities of education and employment Working/ Lifelong learning Graphic No. 12: Fields of interaction of the dual education system