Neil Ward - developing resilience in Europe’s rural economies


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Neil Ward - developing resilience in Europe’s rural economies

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