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Neil Ward - developing resilience in Europe’s rural economies
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Neil Ward - developing resilience in Europe’s rural economies Presentation Transcript

  • 1. Developing Resilience in Europe’s Rural Economies Neil Ward, Norwich Business School & Faculty of Social Sciences, University of East Anglia
  • 2. Plan
      • Introduction – Europe’s rural economies
        • Diversity and common challenges
        • Characterising rural economies
      • The OECD’s ‘New Rural Paradigm’
        • From sectoral to spatial, from subsidies to investment
      • System shocks and resilience
        • Adaptive responses to the 2001 Foot & Mouth Crisis
      • Rural development models
        • Exogenous and endogenous models
        • Neo-endogenous rural development
  • 3. Agriculture’s share of total employment, 2002
  • 4. England’s rural-urban classification
  • 5. Characterising rural economies
      • Characteristics
        • Smaller firms and micro-businesses
        • Higher levels of self-employment
        • Higher levels of female entrepreneurship
        • Lower average wages
        • Sectorally similar to urban economies
      • Common challenges
        • Sparsity
        • Distance
        • Risks of marginalisation in economic development planning
  • 6. The OECD’s ‘New Rural Paradigm’
      • Rural advantage / disadvantage
        • In OECD countries, rural per capita GDP is 82% of national averages
        • But rural is not synonymous with decline
        • The fastest growing region in 1 out of 3 OECD countries is rural
      • Rural opportunities
        • Role of rural in-migration in local economic dynamism
        • ICT and national/international interconnectedness
        • Role of rural resources in urban and regional tourism and business offer
  • 7. System shocks and resilience
      • 2001 Foot & Mouth Disease outbreak in the UK
      • Rural micro-business responses in the north of England
      • Phillipson et al ., 2004, Journal of Rural Studies
      • “ It is impossible to understand the micro-business enterprise as separate from the household in which it is located” (Oughton & Wheelock, 2002)
  • 8. System shocks and resilience
      • Micro-businesses can show features of both vulnerability and resilience at the same time
        • Limited internal resources
        • Over-reliance on limited personal networks
        • Low cost flexible labour reserve
        • Credit-raising potential among close social relations
      • System shock stimulated some positive responses:
        • Forging new business alliances
        • Strengthening social relations
        • Conscious strategic planning
      • Shock absorption capacity of “business households” led to surprisingly low levels of unemployment and business failure (even in most affected areas)
  • 9. Exogenous and endogenous development models Diverse service economies Food & primary products for expanding urban economies Functions of rural areas Capacity-building (skills, institutions, infrastructure); overcoming exclusion Ag. Modernisation; encourage labour & capital mobility Focus of rural development Ltd capacity of areas/groups to participate in economic activity Low productivity & peripherality Major rural dev problems Local initiative & enterprise Urban growth poles (drivers exogenous to rural areas) Dynamic force Harnessing local (natural, human & cultural) resources for sustainable development Economies of scale & concentration Key principle Endogenous development Exogenous development
  • 10. Neo-endogenous development
      • Wholly ‘endogenous’ development is an unattainable ideal
      • Hybrid model, “locally-centred” development (maximising the capturing of local benefits)
      • Neo-endogenous agents: (business households; business networks; place-identity; learning regions)
      • Key role of ‘neo-endogenous facilitators’ ( e.g. universities - as both local and global institutions; regional development agencies; LEADER networks)
  • 11.
      • Thank you
      • Further research reports on neo-endogenous rural development are posted at:
        • www.ncl.ac.uk/cre