Rural Development Funds Research Articles

A NUTS 2 Level Cluster Analysis of EAFRD Submeasure 4.1 Implementation in Romania and Poland

Rural development is an important part of the Common Agricultural Policy (CAP) of the European Union, as the Second Pillar of CAP, covering a wide range of actions, aimed at achieving a balanced territorial development of rural economies and communities. Previous studies highlighted significant similarities between Romania and Poland, regarding agricultural sector and rural areas. A k-mean cluster analysis was performed on Romanian and Polish NUTS2 regions, in order to identify common problems and examples of good practices. The analysis considered five clusters, built over a dataset of four variables: EAFRD investments in farms per capita, share of agricultural output in GDP, utilized agricultural area, and GDP per capita. Out of the five clusters, only one presented a balanced composition of Romanian and Polish regions, also representing a good example of attracting rural development funds where they're mostly needed.

Influence of Municipalities on LAG's Effectiveness in Attracting Project Subsidies in Croatia

Local Action Groups LAGs are tri-sectoral bodies in which the economic and civil sectors in partnership with the public sector use EU policy funds for rural development. In such a decentralized approach to community led local development there is a risk of excessive municipal interference and principles of bottom-up development can be compromised. The basic assumption by which the leading public sector is trying to justify itself as having a better administrative capacity that can help LAGs to attract and absorb subsidies is statistically tested in this paper. Example of Croatia has shown that “municipalisation” of local partnerships have no justifications, as increasing the share of public partners in the membership structure reduces LAG effectiveness in attracting project subsidies, and in the same time municipalities that prove stronger absorptive capacity through larger share of EU funds in their budget, show no positive influence transferred to LAGs in which they are members.

Local determinants of the Common Agricultural Policy rural development funds’ distribution in Poland and their spatial implications

Abstract We combine factor analysis and linear regression models to link local determinants of development of agriculture and rural areas with the frequency of applications for the Common Agricultural Policy (CAP) rural development measures. We use Poland as an example. Our analysis provides insights into spatial implications of incentive-based rural development programs. The results demonstrate that EU rural development policy in Poland remains farm-centric and favors regions of better agricultural structures, thus it tends to deepen the regional disparities in Polish agriculture and rural areas. The level of local agricultural potential is strongly related to the frequency of applying for funds under all analyzed measures, including those that were designed to diversify rural economies and increase the quality of life in rural areas.

Фонд розвитку сільських територій як фінансовий інструмент просторової справедливості в землекористуванні та сталому сільському розвитку

The Rural Areas Development Fund (RADF) is specified to be a part of special state and local budget funds in terms of “completing” land reform in Ukraine. The funds should be aimed at the development of local infrastructure, facilitation of local people’s access to health care and education services, support of small agricultural producers, etc. However, the sources for this Fund (RADF) is only slightly connected with land use results and other spatial resources in rural areas utilized by agricultural producers and do not include the necessity to provide their fair participation in the reproduction of these resources. The purpose of the article is to assess the formation sources of the Rural Areas Development Fund and justify their replenishment to financially ensure sustainable rural development based on spatial justice in land use. The concept of spatial justice in land use is revealed: it provides for adequate participation of agricultural producers, peasants, and society as a whole in the benefits of land use and other related spatial resources (water, air, landscapes, local infrastructure, etc.) and the equivalent contribution of these beneficiaries in resources reproduction. It is shown that corporate economic entities in agriculture rather extract spatial resources than contribute to their reproduction, however, the contribution of family and peasant farms in the financial base for rural development is significantly higher than agricultural enterprises. The necessity of per hectare payments to the Rural Areas Development Fund by agricultural producers leasing more than 100 hectares of agricultural land is substantiated; it is proposed that the rate of these payments in the amount of not less than 1 % of the normative monetary value of land should be set by local self-government bodies.

Development frames in peripheralized areas of Romania

ABSTRACT This paper explores the potentials and limits of using European structural and investment (ESI) funds for rural development in one of the least developed areas of Central and Eastern Europe: Romania’s Sălaj county. The research draws on peripheralization as a key theoretical concept and on frame analysis as a heuristic framework for understanding the effects of policy instruments on development capacities in peripheral places. Desk research and semi-structured interviews reveal how local leaders identify the challenges they face and how they articulate development perspectives in relation to available policies. The key findings are twofold. First, that ESI-funded rural development instruments tend to favour place-blind interventions that do little to address peripheries’ economic weakness and lack of institutional capacity. Second, it can be observed that the implementation of ESI funds has so far only marginally stimulated new styles of policy action that shift local actors’ behaviour and expectations of the development policy system. To address growing intra-regional disparities, the case is made for more reflective policy design for strengthening institutional capacities and better integrating peripheries within their regional economies.

Why India’s urbanization is hidden: Observations from “rural” Bihar

In the developing world, processes of urbanization sometimes remain hidden in official statistics and urban populations are thought to be substantially misread. This article aims to better understand why that happens in urbanizing rural India. It situates hidden urban growth within a framework of agrarian transformation and distress-driven employment shifts out of agriculture. The analysis is based on mixed methods research: I draw on geospatial approaches that visualize population concentration and shifts in the economic profiles of villages, and on local fieldwork in rural Bihar, northeastern India. I find that hidden urbanization in Bihar mainly occurs around rapidly growing secondary cities that have spilled over into surrounding villages. Livelihoods in these villages are now for the most part based in secondary and tertiary economic sectors, but for a (declining) number of households farming still remains part of their livelihood portfolios. I show how village leaders, mukhiyas, actively hold on to the “rural” status of these villages even when urban growth has been substantial. Rural-to-urban settlement reclassification has consequences for village residents in terms of cost of living, land-ownership, access to rural development funding, and democratic and inclusive participation in local governance. These findings have a theoretical bearing on urbanizing India, and have direct implications for our understanding of allegedly underdeveloped rural states like Bihar.

Importance of Community Forestry Funds for Rural Development in Nepal

Nepal’s Community Forestry (CF) process has implied the devolution of powers to collect, retain, and redistribute forest revenue from community forests products. This study contributes to our knowledge about these important aspects of CF by presenting an analysis of the dynamic pattern of income and expenditure of 43 randomly selected Community Forestry User Groups (CFUGs) from Kaski, Nepal. Results show that CFUG three-year average annual income accounts NRs 216,225 (1 US$ = NRs.114) and is highly skewed towards a few wells off CFUGs; the high-and-low average annual income of one-third of CFUGs in the sample ranges from NRs. 33,116 to NRs 502,363. Timber income and user’s contribution constitute the most important sources of income, comprising 40% and 25% respectively. The rural development investments of CFUG income are also highly variable and are shaped by income size of CF, and the other socio-political factors such as the number of households, distance to market, infrastructure status, and contextual factors. Overall, 44% of the CFUG income is invested in community development and 37% in forest conservation. Investment in community development increases with rising income. Accordingly, results presented here provide insights to promote community forests to generate more income which, indeed, could be a vehicle for community development as it appears in the mid-hills of Nepal.

Success or Waste of Taxpayer Money? Impact Assessment of Rural Development Programs in Hungary

The effectiveness of support directed to less developed regions is a timely question more than halfway through the 2014–2020 programming period. We present an analysis of the impact of rural development support on the well-being of Hungarian LAU1 regions between 2008 and 2013. The aim was to measure the overall impact of all of the Rural Development Funds, covering all measures within the program. Two indices of local well-being were used: the multi-dimensional, local-variables-based Regional Development Index that measures the overall level of regional development and a simple, migration-based index as a proxy for perceived quality of life. Generalized propensity score matching, and difference-in-differences estimation techniques were employed to evaluate the impact of subsidies. Irrespective of how the amount of support was calculated, the measure of local well-being, or the methodology employed, the impact was not significant, and was sometimes even negative. This casts doubt on the effectiveness of Rural Development Policy in Hungary.

The LEADER approach and drivers of job creation

AbstractThis study investigates the links between rural development funding delivered via LEADER and job creation. Analysis is carried out using application‐level data during the 2007–2013 period in Northern Ireland. A two‐step procedure is employed to estimate a negative binomial model and correct for sample selection. Results indicate that there is a positive relationship between the number of jobs created and the amount of funds awarded, and that this depends on what Measure within Axis 3 applications are submitted under. More economic‐focused Measures, such as Farm Diversification, Business Development, and Tourism show a positive relationship between the amount of public funds and the number of jobs created. No such relationship was found for the more social, or cultural Measures. This result supports the argument that in such cases “jobs created” is not an appropriate indicator for evaluation purposes, but rather non‐economic criteria should be given priority to better suit the primary objective of such Measures. Other factors that are linked to job creation include applicant characteristics, such as its business status. In general, we find a limited connection between the process to select which applications are funded and the application characteristics most strongly associated with job creation.

Rationing methods for allocating the European Union’s rural development funds in Poland

In this paper, we evaluate the applicability of the bankruptcy and the relevance factors methods to the allocation of structural policy budgets using Polish Rural Development Program as a practical example. Our results demonstrate that the main problem with the bankruptcy approach used for policy budget allocation is that project claims are not directly related to project importance. Highly significant programs with small claims are potentially penalized by the proportional solution or by the Constrained Equal Losses solution, while projects of low importance and small claims may be fully funded using the Constrained Equal Awards solution. The relevance approach, on the other hand, is highly dependent on the measure computed using expert opinions. This measure is not influenced by claims. Thus, given reliable expert assessments, the relevance factors method appears advantageous to the bankruptcy approach. This method is also far superior to the less formal methods currently used by decision-makers.

Analysis of Accessing Rural Development Funds

Abstract The present study aims to analyse successful projects of the Romanian Rural Development Funds from different perspectives based on a county level. The framework of the analysis focuses on two periods: one before the accession, the 2002–2006 period of SAPARD applications, and the other one, the first period of the Rural Development Programme, more specifically, the period between 2007 and 2013. Results show that there is a positive correlation between applications and targeted areas based on infrastructure, tourism, and agriculture indicators. Findings also highlight that there is a positive correlation between the number of previous applications (SAPARD applications before the accession) and the grant size of current applications. Moreover, there is a negative correlation between the grant size of previous applications and the size of current applications. Cluster analysis revealed important social changes: on the one hand, the western counties of Romania (Bihor, Arad, Timiş, and Cluj) have strengthened their position, while other counties are lagging behind.

Analysis of Accessing Rural Development Funds

Abstract The present study aims to analyse successful projects of the Romanian Rural Development Funds from different perspectives based on a county level. The framework of the analysis focuses on two periods: one before the accession, the 2002–2006 period of SAPARD applications, and the other one, the first period of the Rural Development Programme, more specifically, the period between 2007 and 2013. Results show that there is a positive correlation between applications and targeted areas based on infrastructure, tourism, and agriculture indicators. Findings also highlight that there is a positive correlation between the number of previous applications (SAPARD applications before the accession) and the grant size of current applications. Moreover, there is a negative correlation between the grant size of previous applications and the size of current applications. Cluster analysis revealed important social changes: on the one hand, the western counties of Romania (Bihor, Arad, Timiş, and Cluj) have strengthened their position, while other counties are lagging behind.

Effects of National Rural Development Funds on Milk Manufacturers: Şarkikaraağaç Example

Dünya üzerinde bulunan toplumlar belli bir gelişmişlik seviyesine ulaşabilmesi için üretim düzeylerinde artış meydana getirirler. Artan üretim düzeyleri ile birlikte ülkeler büyüme aşamalarını gerçekleştirirler. Bu aşamadan sonra ülkelerin ekonomik olarak kalkınması ortaya çıkabilmektedir. Gelişen toplumlar sektörel bazda kalkınma faaliyetlerine önem vermektedirler. Kimi ülkeler sosyal olarak kalkınmayı hedef olarak ele alırken kimi ülkeler ise ekonomik kalkınmayı temel hedef ele almaktadırlar. Değişik planlara ve değişik uygulayıcı aktörlere rağmen ülkemiz de tek amaç ekonomik kalkınma olmuştur. Gıda Tarım ve Hayvancılık Bakanlığı tarafından ülkemizde zirai üretim ve hayvansal üretim yapan üreticilere kaynak aktarışı olmaktadır. Zirai faaliyetle uğraşan üreticilerimize mazot gübre desteği çerçevesinde destekler verilip tarımsal üretimin artışı hedeflenmektedir. Bunun dışında hayvansal üretim kapsamında üreticilere, canlı hayvan desteği, çiğ süt desteği, yem desteği ve tohumlama desteği gibi destekler verilerek ülkemizde hayvansal üretimin artışı sağlanmaktadır. Yapılan bu çalışmada; ülkemizde Gıda Tarım ve Hayvancılık Bakanlığı tarafından ulusal kalkınma fonundan süt üreticilerine sağlanan desteklerin, ülkeye sağladığı katma değeri ölçmek amacıyla yapılmıştır. Çalışmada Şarkikaraağaç ilçesinin ele alınmasındaki temel amaç; ilçenin mevcut il potansiyeli içinde il merkezi ve 12 ilçe içinde en yüksek miktarda süt üretimine sahip olmasıdır.

Region-specific budgeting of rural development funds—An application study

We propose a method for region-specific budgeting of European Union rural development funds, based on objectively measured indexes of rural development. The indexes are calculated based on statistical data with the use of factor analysis. Next, they are implemented in a linear programming model in order to allocate the given rural development budget. The results demonstrate that the proposed approach allocates the funds according to an assumed logic that supports the weaker and underdeveloped regions and features of agriculture. However, it can be also used as a discussion tool for allocation taking into account different assumptions.

COMPATIBILITY OF ALLOCATION OF CAP STRUCTURAL FUNDS WITH REGIONAL DIFFERENTIATION OF RURAL AND AGRICULTURAL DEVELOPMENT IN POLAND

The objective of the research was to examine whether the current distribution Common Agricultural Policy structural funds (second pillar of CAP) between different objectives in particular macroregions corresponds to the regional differentiation of rural areas and agriculture in Poland. Policy objectives were identified according to RDP 2014-2020 priorities. Six macroregions have been adopted at regional level NUTS-1. In order to determine whether the directions of distribution correspond to regional variation, the linear correlation coefficient was calculated. The coefficient describes the correlation between synthetic variables describing the level of rural and agricultural development in macroregions of Poland and regional allocations of funds for rural development and agriculture in Poland in the years 2004-2013 according to the RDP 2014-2020 priorities. The results show the presence of moderate linear dependence or lack of it between the variables tested. This means that the previous division of CAP structural funds only partially took into account the regional differentiation of rural and agricultural areas.

Natura 2000 payments for private forest owners in Rural Development Programmes 2007–2013 - a comparative view

The role of Natura 2000 network is to ensure the long-term survival of Europe's most valuable and threatened species and habitats. Ecologically valuable forest ecosystems are often owned or managed by private forest owners. Natura 2000 benefits communities by enhancing tourism, regional brands and marketing. In private forests, however, its restrictions imposed on land owners cause financial losses in comparison to the usual forest management. The paper compares the level at which the compensation mechanism within the European Rural Development Programmes (RDP) for the period 2007–2013 was implemented in seven European Union countries - Belgium, the Czech Republic, Germany, Greece, Hungary, Lithuania and Slovakia. The research focuses on compensation and restrictions within Measure 224 - Natura 2000 Payments - imposed on forest owners in Natura 2000 sites. To obtain the data, a non-reactive research method was applied using a content analysis of the existing documentation. The data sources include European and national statistics and expert knowledge based on common terms of reference. The results show that due to substantial gaps in the implementation of Measure 224 across the EU, there are significant differences in compensation and restrictions for private forest owners in individual countries of the European Union (EU). As opposed to the initial expectations of the measure, the financial support reached less than a third of the forest holdings and less than half of the forest land. The member states (MSs) which implemented the measure spent 92% of their original budget on average. Moreover, rural development funds for private forest owners are very limited and the implementation of Measure 224 says nothing about the success of Natura 2000 with regard to biodiversity targets in private forests. One approach to financing Natura 2000 network is a comprehensive use of all existing EU funds, another would be to propose own Natura 2000 fund.

Dairy donkey: an alternative building layout

In Italy, donkey dairies are growing in popularity to produce an alternative milk source for human infants. The use of donkey milk is not limited to the paediatric field, being used in geriatric nutrition and in the cosmetic industry. In 2010, the Department of Veterinary Science, University of Pisa, was involved in a project supported by the Tuscany Region Rural Development Fund 2007- 2013 dealing with the creation of a donkey milk productive chain. The project has as its main partner the Bandite di Scarlino, an agro-forestry complex of considerable size. It covers approximately 9000 hectares, which fall in Scarlino, Castiglione della Pescaia, Follonica and Gavorrano municipalities, under Tuscany regional control. The so-called FILAMI project (Filiera Latte Asino Amiatino, acronym of the goal of the project in Italian) had among its goals helping preserve an indigenous breed of donkeys called Amiatina. Salimei (2011) assessed that the presence of the foal during milking does not affect milk ejection in jennies (the female donkey) adapted to the milking procedure, but when foals are not present the milking routine is more manageable for the animals and for optimal milk harvest; in accordance, in the present farming system the jenny has been kept separately from the foal during the milking session. To this purpose, the stable, the milking parlour and the paddocks must be well organised with a proper milking routine. Milking facilities must be designed for the milk treatment and storage at low temperature or for freezing. Currently, the milk undergoes a pasteurisation cycle for human consumption, or directed to the cosmetic industry. Moreover, the milking facilities should fulfil the creation of a milk collection centre in order to play an important role between the dairy donkey farms and the dairy industry. In this paper, the technical and technological aspects of the donkey stable, paddocks, milking parlour, mobile milking unit, and processing plants have been described and the main issues addressed.

Unravelling the response of diurnal raptors to land use change in a highly dynamic landscape in northwestern Spain: an approach based on satellite earth observation data

Land use and land cover change (LULCC) is one of the main components of current anthropogenic global change. Unravelling the ecological response of biodiversity to the combined effect of land use change and other stressors is essential for effective conservation. For this purpose, we used co-inertia analysis to combine LULCC analysis of earth observation satellite data-derived maps and raptor data obtained from road censuses conducted in 2001 and 2014 at sampling unit level (10 km2 spatial resolution), in northwestern Spain (province of Ourense, c. 7281 km2). In addition, habitat suitability models were also computed using ten widely used single-modelling techniques providing an ensemble of predictions at landscape level (four spatial resolutions: 500-m, 1-km, 2-km and 5-km radius around each sighting) for each year and raptor species to analyse the habitat suitability changes in the whole study area through three niche overlap indices. The models revealed an increase in occurrence and habitat suitability of forest raptor species coupled with a strong decrease in species associated with open habitats, mainly heaths and shrub formations. Open-habitat specialist species were negatively affected by the concomitant effects of intensive forest management and a long-lasting trend of rural abandonment coupled with an unusually high frequency of wildfires. Sustainable forest management and agricultural practices should be encouraged by both public and private sectors, through, e.g. policies related to European funds for rural and regional development (FEDER and FEADER programs) to effectively protect threatened habitats and species, and to comply with current environmental legislation. The combined use of satellite imagery and ground-level biodiversity data proved to be a cost-effective and systematic method for monitoring priority habitats and their species in highly dynamic landscapes.

PROBLEMS AND PROSPECTS OF MANAGEMENT OF RURAL DEVELOPMENT

The purpose of the research is to study problems of rural development management, to analyse the effectiveness of management of the resource potential of rural areas, and to study the socio-economic priorities of their development, as well as to determine the justified ways of their solution in modern conditions. Methodology. The system approach to studying the development of rural areas makes it possible to consider components in the relationship between themselves and interaction with components of other systems. The state, problems, and prospects of rural development management are considered. The necessity of significant changes in the state policy of rural management is determined. It is substantiated that the current trends in the development of rural areas of Ukraine take place in the direction of narrowing the sphere of application of labour and the mismatch of professional and skilled workers’ quality to the needs of employers, and the growth of unemployment. The results showed that the revival of rural areas depends primarily on the level of economic development of the country. Multifunctional development of the village should be carried out taking into account the integrated approach to solving the problems of the agrarian complex, villages, rural areas in general, through the combination of interests of inhabitants of rural areas, rural communities, local government, and the state, applying social and economic levers of regulation of the relevant relations in conjunction with the organizational and legal ones. The subject of the research is the mechanisms for managing the development of rural areas. The emphasis is made on the imperfection of the modern mechanism of the financial and economic provision of rural development management, in particular, regarding the distribution of state budget funds in this area. The impact of a clear state policy that is aimed at supporting regional development is outlined. The importance of the issue of transferring significant powers and resources to places is investigated; there must be an active position and mutual responsibility of local self-government, local business, and civil society for the development of their territory. The main problem is outlined that the financial situation of rural residents in terms of the unstable development of all spheres of the country’s economy is more complicated than that of the urban population. It is emphasized that the current state of social and economic infrastructure of rural areas confirms the existence of a deep crisis. Taking into account the condition and problems of rural development and modern European traditions in this area, it is proposed to finance the management of rural development using three sources – the state budget, local budget, and rural development funds. Potential sources of the formation of local budget funds, which will be directed to ensuring issues of management of rural development and rural development funds, are determined. Specific directions for the use of funds of each of the mentioned sources are proposed. It is determined that for Ukraine, it is important to study foreign skills of formation of sustainable development of rural areas, analyse their regularities and trends of development. It is proved that the experience of countries of the European Union in the context of European integration should become especially useful for the national economy. Practical implementation. The emphasis is made on the fact that state regulation is the main direction of ensuring sustainable development of the Ukrainian village and a means of ensuring the equilibrium of the Ukrainian economy. Originality. It is outlined that one of the directions of the rural development strategy may be to strengthen initiatives of local entrepreneurs, which will be assisted by local partnerships and the state. The urgent task of further scientific development of this problem is to study the influence of the basic, district, and regional levels of state policy on the management of rural development.

Possibility of rural sector development in Serbia using IPARD program

For the countries of the Western Balkans, especially in Serbia, whose economy is largely dependent on agriculture, strategically, within the accession negotiations with the European Union, topics concerning the rural sector are of great importance. In this sense, it is very important for all countries in the region, including Serbia to create the conditions for the implementation of IPARD - Instrument for Pre-Accession Assistance for Rural Development as the EU pre-accession program. This European instrument which helps countries that are at the door of the EU is actually a preparation for future participation in the complex and clearly defned Common agricultural policy of the European Union (CAP – Common agriculture policy), which is a set of rules equal for all and that means common agricultural budget. The importance of being well-prepared for the CAP, is expressed in the fact that this budget is more than half of EU cash. When a country joins the EU, it is given a quota in the common agricultural budget through two funds - EAFRD (European Agricultural Fund for Rural Development) and EAGF (European Agricultural Guarantee Fund), and for a national agriculture to effectively adopt the mode of operation of these instruments, it is important that the funds which are at its disposal in the pre-accession period are better utilized, and to master the principles on which CAP is based. First steps in the use of further more generous funds for agriculture and rural development are laid down through IPARD.