Approaches in RD Programmes and Strategy documents

Within the framework of a rural development programme, the analysis and identification of needs is one of the preliminary steps. The identification of needs flows directly into the identification of objectives, and consequently should influence the choice of policy instruments and allocation of financial resources. The technical guidelines from the European Commission strongly recommend that Member States and programming authorities follow this logical process, when preparing their RDPs, and Commission desk officers seek to verify this, during negotiations on draft RDPs.

In reality, this process may not be so linear. The concept of need, as used in RDP planning, is both partly objective (and thus can in theory be formalised through common indicators), and at the same time partly subjective, because it reflects the perceptions of the main actors and stakeholders participating in the construction of the policy strategy. Thus, there are some

basic conceptual issues which must be considered in the analysis of needs for rural development. These are as follows:

• What factors influence the identification of needs?

• What are the reference points of comparison, for identification of relative needs?

• How are indicators of need used in drafting policy programmes?

What factors influence the identification of needs?

In theory, a complete diagnosis of weaknesses and strengths (as part of the SWOT analysis during RDP preparation) should be the basis for the identification of needs. This diagnosis should identify the problems to be addressed and the rationale for public intervention. In this process, differences between the characteristics of areas are very important for the identification of needs, such as between different types of rural area (e.g. peri-urban, remote, growing or suffering from economic decline). Needs emerge also from contrasting agricultural systems (e.g. different needs for ‘Mediterranean’ production systems and ‘continental’ ones, within the same region).

In the process of rural development planning, needs are typically described in the National Strategy Plans and then explored in more depth in the initial chapters of RDPs, particularly in SWOT analyses. Thus to build a picture of how needs are identified in programming, we need to examine both these sources. Within the resources available to this study, an exhaustive examination was not possible. Therefore a two-stage approach was adopted:

• A brief analysis of texts of all available National Strategy Plans and draft RDPs;

• a more detailed assessment of 10 agreed or latest-draft RDPs from a contrasting

selection of programme areas, namely:

EU-15

- UK: England and Northern Ireland - Italy: Campania and Emilia-Romagna

- Germany: Sachsen-Anhalt and Rheinland-Pfalz

- Sweden

New MS

- Bulgaria, Lithuania, Czech Republic.

The selection of these 10 areas is explained more fully in section 3.5 of this report. Brief analysis of NSPs and draft RDPs

Analysis of needs based upon a variety of characteristics and indicators has been made in most of the National Strategy Plans for 2007-13. The analyses are rarely strictly comparable between plans, not least because many use a typology or definition of rural areas which is specific to their own context. In addition, the choice of indicative characteristics varies between territories, and most assessments are made on the basis of quantitative indicators and qualitative arguments derived from secondary sources (research literature and evidence from stakeholders). Nonetheless, it is clear that economic, social and environmental characteristics are all considered legitimate indicators of need for RD expenditure.

What are the reference points of comparison for the identification of needs?

Considering programme-level indicators, in many RDPs socio-economic and environmental baseline indicators are compared with the average for the Member State (particularly in the case of regional programmes), to indicate relative need. In other cases, particularly for sub- regional targeting, the point of reference may be the regional average (this is the case in some regional programmes and also a few national ones). In other cases – this is most common among the programmes of the new Member States - comparison is made with EU average values. This suggests that the reference point is frequently that which is closest to the level of the Programming Authority, i.e. the choices are relative, rather than absolute.

How are indicators of need used in draft RDPs?

The Commission’s CMEF Guidelines encourage programmes to use standard and common indicators for identifying characteristics and thus considering needs. Member States present many CMEF baseline indicators in these documents. However, many use rather different measures or indicators to characterise specific needs in their NSP and RDP, usually developed from more qualitative and specific (programme-level) analytical perspectives, which vary considerably between programmes. Nevertheless, some key themes recur, and the range of characteristics used to explore these themes is broadly consistent with those set out in section 3.3.

Presentation of RD needs at programme level

A wide range of RD needs and opportunities are covered: economic, social and environmental. In most cases that we examined, programme authorities produced broad SWOT analyses and related these to priorities for funding, and selection of measures. In some cases such as the Italian regions, a common, structured analysis was undertaken in which sub-regions were characterised using different datasets, typologies identified, and measures and resources allocated on the basis of these. In other cases, the narrative in the programming documents is more qualitative and generalised and thus it can be difficult to relate all needs to specific characteristics supported by data. Nevertheless in most cases there is evidence from consultation processes that a range of rural stakeholders is broadly satisfied with the choice of measures and funding, which suggests general support for the identified needs.

Economic needs are readily apparent, and clearly felt most acutely, in the new Member

States and convergence regions. They are typically characterised as needs for assistance to help the farm and forestry sectors to become more productive by overcoming significant barriers to development (mainly low levels of physical and human capital and poorly developed structures). The usual concern is with very small farms of low productivity generating low levels of income which, on their own, lack the capacity to invest in new technologies to raise productivity and incomes. The relative importance of farm structures as

a perceived indicator of economic need is notable – programme areas with a predominance of very small farm holdings tend to prioritise economic needs particularly strongly. However,

other indicators such as declining population, ageing workforce, few other economic

opportunities outside agriculture, and high rural unemployment, are also cited as providing

evidence of significant economic needs. Many programmes identify needs for the broader rural economy, including both convergence and non-convergence territories.

Often, the same characteristics (poor farm structures, population decline, unemployment) are used to discuss social needs in rural areas. Others include low levels of training and

education among farmers and other rural inhabitants, and a lack of suitably-skilled people to

lead partnerships or projects. Rural services and infrastructure are also cited as in need of resources, in the context of quality of life goals, but these tend to be justified without quantified characteristics. Some RDPs make reference to social exclusion and a need to increase the involvement of women and young people in the workforce, or to improve their access to services. Again, these needs are based upon prior research, not characterised by simple indicators.

Environmental needs are almost universally recognised in programmes but tend to be

given more analytical prominence, and thus greater priority, in areas where rural economies are more viable (e.g. good balance between sectors, low unemployment). RDPs tend to look

at High Nature Value (HNV) areas, the relative abundance of priority species and habitats, poor water quality or water scarcity, and soil erosion, as key indicators of need. The area of

land either designated or proposed as Natura 2000 is often used as a proxy indicator for

biodiversity need. This clearly relates to the Habitats Directive target of ‘favourable conservation status’ for sites, which is also highlighted in the Community Strategic Guidelines. There is also reference to landscape quality and threats from neglect of feature maintenance – usually because farms no longer have an economic incentive to undertake this. Quantified landscape indicators are frequently lacking, although the potential clearly exists (eg length of linear features, field size, woodland area and plot size, etc).

Some illustration of how needs have been presented in different RDPs is given in the following paragraphs. These indicate the variety of characteristics used to support evaluation of needs (highlighted in bold), and the nature of more qualitative needs assessments.

Lithuania’s GDP per capita was only 54.8% of the EU average in 2006. The agriculture

sector in Lithuania is dominated by small semi-subsistence farms with two-thirds of all farm

holdings being less than five hectares. The incomes of semi-subsistence farms are

insufficient to enable farming methods to be upgraded and modernised. The development of market oriented farms is therefore slow and there is a lack of investment capital and insufficient human capital. There is therefore a need to provide support for these semi- subsistence farms. Co-operatives and producer groups are seen as one way of improving the quality of produce, increasing production, improving added value and increasing competitiveness, and overcoming a lack of co-operation between farmers. However these groups are unpopular due to the Soviet experience. 17.5% of the UAA is affected by soil erosion which reduces productivity. Soil erosion is mainly a problem in hilly LFAs. There is

a need for appropriate farm management to alleviate this problem, for example, maintenance and establishment of grasslands, promotion of organic farming and afforestation. There are

266 proposed SCIs and 77 SPAs in Lithuania. The Natura 2000 network covers 12% of the country and management restrictions affect 13,000 ha of farmland and 309,000 ha of forests, but designation is not yet complete.

In Northern Ireland, less accessible rural areas have lower household incomes and a

lower rate of growth of household incomes than either accessible rural areas or Belfast

Metropolitan Urban area, although other urban areas are lower still. Family sizes are larger in rural areas, exacerbating poverty. Average gross weekly earnings per head have been

lower in inaccessible rural areas than in accessible rural or urban areas. Since 1980, the total

number of persons recorded in the Agricultural Census as working on Northern Ireland

farms has fallen by 25% to 51,000 in 2005. There has also been a shift from full-time towards part-time and casual working patterns. Full-time employment is lower in rural areas although there is a considerably higher rate of self-employment. Unemployment is lower in rural (3.6%) than in urban areas (4.2%). Unlike the urban population, the rural population is expected to increase, increasing the need for employment opportunities. The

SWOT analysis identifies a slow erosion of water quality over many years. Between 1990

and 2003, ‘the river length of good biological quality has fallen from 40.8% to 23.5%

while that classed as fair quality has increased from 56.6% to 76.1%29’, although

chemical quality has improved.

In Sachsen-Anhalt, the RDP baseline analysis showed that the per capita GDP is

significantly lower than the German national and EU 25 averages. The employment rate is

comparably low and unemployment rate almost double the German average. The RDP

needs assessment gives emphasis to the following aspects:

29

Environment Agency, Scottish Environment Protection Agency, Environment and Heritage Service NI – river quality monitoring data.

• Production deficits in e.g. horticulture, specialised cultures and animal production; as

well as income disparities, lack of capital and low liquidity

• A lack of competent and qualified personnel is anticipated, due to demographic trends

and deficits in the quality of human capital;

• Broadening the food industry economy in Sachsen-Anhalt is seen as the starting point to strengthen sector competitiveness, improve incomes and create jobs in rural areas;

• The agriculture and food sector has to face less stable conditions than before, due to market liberalisation. These and tightened requirements in environment, nature protection, animal welfare and food safety, require substantial adjustment;

• Regarding wider economic, labour market and demographic challenges, the situation in

rural areas does not differ from the situation in towns, and overall;

• Infrastructure is a problem in rural areas, especially transport infrastructure, schools and day-care nurseries have a need for modernisation and expansion.

Concluding remarks on programmes’ identification of needs

Evidence from previous studies (eg Dwyer et al, 2003), as well as sections in the 2007-13 RDPs which reflect upon changes since the 2000-06 period, indicate that the recognition and justification of needs has become more prominent in RD programmes for 2007-13. Where available, consultation responses also offer views on how understanding of RD issues and needs has developed since 2000-06, and how expert opinions on this matter have been taken into account. These sources suggest that RD needs are now more clearly conceptualised and evaluated than when the 2000-06 programmes were first designed.