Rural development & regional policies

RuDI stands for “Rural Development Impacts” and is a consortium of 10 research institutes that has taken an in-depth look at the second pillar of the CAP, examining the rural development programs in all member states and conducting 20 case studies. In addition to calling for more effective use of policy evaluation and bottom-up processes (LEADER), they take issue with the excessive concentration of rural development on agriculture and insufficient integration with other regional policies.
They observe – and endorse – an emerging “new rural paradigm” which

is based on the notion of the multifunctionality of rural areas, where various sectors beyond agriculture are acknowledged to play a key role with regard to rural areas’ competitiveness, and where investments across sectors are considered to be a more appropriate tool than farm subsidies alone. This shift can also be viewed as a change from an exogenous model of Rural Development, emphasising policy interventions “from outside”, to a more endogenous approach based on the notion of Rural Development as a process involving multiple levels, dimensions and actors, that is also self-driven.

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Rural development & regional policies

RuDI stands for “Rural Development Impacts” and is a consortium of 10 research institutes that has taken an in-depth look at the second pillar of the CAP, examining the rural development programs in all member states and conducting 20 case studies. In addition to calling for more effective use of policy evaluation and bottom-up processes (LEADER), they take issue with the excessive concentration of rural development on agriculture and insufficient integration with other regional policies.

They observe – and endorse – an emerging “new rural paradigm” which

is based on the notion of the multifunctionality of rural areas, where various sectors beyond agriculture are acknowledged to play a key role with regard to rural areas’ competitiveness, and where investments across sectors are considered to be a more appropriate tool than farm subsidies alone. This shift can also be viewed as a change from an exogenous model of Rural Development, emphasising policy interventions “from outside”, to a more endogenous approach based on the notion of Rural Development as a process involving multiple levels, dimensions and actors, that is also self-driven.

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Franco-German position on future of the CAP

This week the governments of France and Germany have published a short document setting out their common position on the future of the common agricultural policy. It makes for fairly light reading though the following points are worth remarking on:

– The common position endorses further moves towards greater market orientation in the CAP but suggests countervailing measures are needed “to buffer devastating effects of growing price volatility and market crises”.

– There is nothing concrete on the future budget of the CAP and it is stressed that “a final decision on all questions relating to finances will be made when decisions are made on all policies and the entire EU financial framework”. In other words, there is not going to be another stitch-up like the Chirac-Schroeder deal of 2002 which effectively fixed the CAP budget for the next 11 years, short-circuiting the normal EU budget-setting processes.

– The two pillar structure of the CAP should be maintained, and no national co-financing should be required of pillar one expenditure (i.e.… Read the rest

Public goods in the spotlight

What’s in a word? Or, to be more specific, two words? Where CAP and the term ‘public good’ is concerned, quite a lot. A new briefing note from the Institute for European Environment Policy takes a look at how the slogan ‘public money for public goods’ has come to define the political debate over the future shape of the CAP.

The briefing looks at the evolution of the idea of environmental public goods as a justification for future public expenditure on agriculture. It also sounds a note of caution, that’s worth repeating here:

The increasing visibility of the public goods concept however, has resulted in the concept being interpreted in different ways. It appears that there has been recognition of this agenda as one with real gravity and legitimacy, and therefore for political reasons some interests are trying to justify various aspects of current policy as conducive to, or essential for outcomes that they have presented as ‘public goods’.

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Budget rumbles in Brussels

The summer break has come and gone and with the European Parliament back in session, Commissioners back from their yachts and their fonctionnaires back at their desks, the future of the EU budget is back in the spotlight.

As part of the December 2005 heads of government agreement on the 2007-2013 financial perspective it was agreed that there would be a midterm ‘budget review’ in 2008-09 which would look at all areas of the EU budget. including the two hottest political potatoes – the large share of funds going to the CAP and the British budget rebate. The review began with a big public consultation led by the then Budget Commissioner Dalia Grybauskaite, who pulled no punches in describing the budget as largely out of tune with Europe’s current and future challenges. However, she left the Commission early to become President of Lithuania and with delays to the Lisbon Treaty ratification the review process slowed to a standstill.… Read the rest