J. Sci. Dev. 2009, 7 (Eng.Iss.1): 104 - 111 HA NOI UNIVERSITY OF AGRICULTURE 104 Principle of territorial based rural development: Experience from LEADER program of European Union Nguyên tắc của tiếp cận phát triển nông thôn theo vùng: Kinh nghiệm từ chương trình LEADER của Liên minh Châu Âu Nguyen Thi Minh Hien Faculty of Economics and Rural Development. Hanoi University of Agriculture TÓM TẮT Chính sách phát triển nông thôn là một trong những thành phần quan trọng của chính sách nông nghiệp chung (CAP) của cộng đồng châu Âu. Chính sách này khuyến khích sự phát triển bền vững trong khu vực nông thôn nhằm giải quyết các vấn đề kinh tế, xã hội và môi trường. Chương trình LEADER là một trong các tiếp cận phát triển nông thôn rất sáng tạo và được xem là một trong những thử nghiệm thành công của tiếp cận phát triển nông thôn theo vùng (TBRD). Bẩy nguyên tắc chính của tiếp cận TBRD bao gồm: i) Tiếp cận dựa trên vùng; ii) Tiếp cận từ dưới lên; iii) Hiệp hội và nhóm hành động địa phương (LAG); iv) Khuyến khích và thúc đẩy sự sáng tạo; v) Các hành động tổng hợp và đa lĩnh vực; vi) Mạng lưới và sự hợp tác giữa các vùng và vii) Quản lý và tài trợ địa phương. Từ khóa: Chiến lược TBRD, LEADER, nhóm hành động địa phương, phát triển nông thôn. SUMMARY Rural development policy is an increasingly important component of the common agricultural policy (CAP). It promotes sustainable development in Europe’s rural area addressing economic, social and environment concerns. LEADER presents an innovative approach and is considered as one of the most successful experiments of territorial based rural development approach (TBRD). The seven key principles of TBRD include of i) the area-based approach; ii) Bottom-up approach; iii) Partnership approach and the “local action group” (LAG); iv) Innovation facilitation; v) Integrated and multi- sectoral actions; vi) Networking and cooperation between areas and vii) Local financing and management. Key words: LEADER, local action group (LAG), rural development, TBRD strategy. 1. INTRODUCTION 70% of the poor on our planet now are living in rural areas. Policies of rural development are the most direct way to fight against poverty and ensure sustainable development. The different rural development approaches have been tried such as top-down approach, sectoral support or subsidies for beneficiaries. However, those approaches tend to focus on sectoral support rather encouraging local development players or project leaders, to acquire the necessary skills to turn them into agents and architects of the future of their own area. Hence the need to reconsider the foundation and objectives of the policies and to progress from a rationale of growth to one of sustainable local development, taking into account the environmental, economic, social and cultural dimension of rural areas. This new rural approach concept has given rise to the emergence of innovative approaches of which Territorial Based Rural Development (TBRD) with their LEADER program is one of the most successful experiments. 2. BACKGROUND OF LEADER PROGRAM 2.1. The limitations of traditional approaches in rural development The traditional approaches are mainly based on average growth. They have some limitation such Principle of territorial based rural development: Experience from LEADER program 105 as: those approaches ignore the heterogeneity of rural societies; the multidimensional character of rural poverty have not been taken into account; Agriculture have been overemphasized and centered; they do not correct market failures, frequent in rural areas; They do not relate activities aiming to transform production with those oriented to reform rural institutions and fail in connecting rural policies with macro economic policies; It is difficult to assume that are the market and the agents operating in the market the one mainly influencing rural poverty; They ignore the potential positive influence of urban economy in rural areas and lack flexibility to adapt national policies to specific territories. In most cases, support policy administrators are remote from the beneficiaries of such policies (centralized, vertical management, decisions taken far away from the grass roots level, etc.), which throws up a number of obstacles when providing support to distressed areas: standardized definition of the needs of rural areas and beneficiaries, “clerical” processing of applications with no direct knowledge of the situation “in the field”, slow decision making, procedures and approval times ill- matched to the needs of project leaders, etc. 2.2. The new characteristics and constraints of rural societies Interaction with globalization process, rural societies has new characteristics and it is also facing constraints as follows: - Distinctions and frontiers among local, regional and national markets for food are blurred - The need to compete globally is unavoidable for rural economies - It disappears the identification between the agrarian sector and rurality - Globalization and privatization processes show the market failures - Old rural institutions are not adequate - Decentralization processes reach rural areas - Rural culture changes rapidly - Sustainability of rural activities becomes a social demand. LEADER - “Links between Actions for the Development of the Rural Economy” has endeavored to close this gap by putting program administrators in direct contact with the “field”, by seeking to shorten decision-making cycles and by providing customized support and guidance for projects notably by setting up local teams of practitioners to coordinate the work locally. Even though projects have not always been carried out according to this ideal model, it has been possible to vary the type of support to suit the individual characteristics and conditions of each area. These efforts demonstrate the usefulness of the approach. 3. THE “LEADER” CONCEPT One core element included in each rural development programme is the “LEADER concept”. Whereas classical rural development support policy is based on a top-down approach – although in a number of cases a quite decentralised one – the LEADER approach works bottom-up and is centred on local development. Public and private partners at the local level form a local action group. This public-private partnership consists in general of one or several municipalities together with local entrepreneurs, farmers, foresters and other people interested in the development of their communities and the improvement of the local environment. At least half of the partners in a local action group have to come from the private sector. The local action groups prepare their local development plans and introduce them into a selection procedure. The best plans are then selected by the regional or national authorities for support. They must refer to well-identified sub- regional rural territories and should contain an integrated multi-sectoral approach based on the interaction between actors and projects of different sectors of the local economy. The local development plans must contribute to achieve the three core objectives of the rural development policy. But in order to leave room for innovative ideas and approaches, they do not have to use the pre-defined support measures. Support can be granted for the implementation of the local development strategies, for the operational costs of the local action groups, for cooperation projects between them as well as for capacity building and animation necessary for the preparation of local development strategies. When one looks at the independent evaluation studies we have commissioned on our rural development policy instruments, the results for the LEADER approach are quite positive. Of course, there have been failures. But altogether, LEADER is judged to be efficient because it is adaptable to very different socio - economic contexts in rural areas, brings key actors together, Nguyen Thi Minh Hien 106 mobilises voluntary effort and is responsive to small scale activities and projects to promote local development. It is judged effective because it closes the gap between a top-down programme and the local people, conveys responsibility to local actors and links public authorities with the local economy and society. It contributes to capacity building in rural areas and there are many examples where LEADER has contributed to the creation of new jobs and to the improvement of incomes in rural areas. The LEADER approach, if well implemented, can provide a lot of local mobilisation and development for little money. The local action groups under LEADER and other actors of rural development are linked together and assisted in their work through a national rural network. A European network will bring together the national networks as well as organisations and administrations in the field of rural development at the EU level. According to experience, this networking is essential to bring rural development actors together, to exchange expertise and experience, to promote and diffuse best practice, to generate new ideas and to build new partnerships for cooperation projects. It clearly has a strong mobilising and multiplying effect and is a key to success. The LEADER program is not only attained successfully in EC, but also in other developed countries like Canada and developing countries in Latin America. In such countries programs like LEADER have been introduced, for example: Brazil: The national Program for Strengthening the Household Agriculture. Bolivia: The Low for Grassroots Democratization. Colombia: The Program for Household Integral Development. Mexico: The Law for Sustainable Rural Development. Canada: Canadian Rural Partnerships. LEADER Program in EU Chronologically, as well as methodologically, LEADER has undergone three phases: LEADER I initiated a new development approach; LEADER II generalized the approach; and LEADER+ aims to consolidate the method by means of pilot strategies and unifying themes. Main objectives of rural development in LEADER: Bring administrative decision bodies closer to those under administration. Promotion of the principle of programming: actions will be based on programs, designed for the development of the territory, and elaborated by the groups themselves. Promotion of social vertebration by participation in the groups of social and economic agents, as well as local administrations. Dismantling of “policies based only on subsidies”. Other goals of the LEADER initiative: - Recuperation of balance in economic activities by way of diversification of activities. - The programmes will have a local and endogenous focus to add value to the resources of the regions themselves. - The promotion of any innovative solutions through the creation of a European network. - The merging of the different sectorial measures to make the most of synergies. - Avoid all polluting effects and protect the environment. 4. CONTENT AND MAIN PRINCIPLES OF TBRD The TBRD or LEADER approach can be analyzed according to seven key aspects: - The area-based approach – This entails defining a development policy on the basis of an area’s own particular situation, strengths and weaknesses. In LEADER, this area is a fairly homogeneous local rural unit, characterized by internal social cohesion, a shared history and traditions, a sense of common identity, etc. The raison d’être of the area- based approach stems from the growing awareness by and for the prime movers in the local area of the role of endogenous resources in achieving sustainable development. This approach facilitates the recognition of local strengths and weakness, threat and opportunities or endogenous potential for rural development. - Bottom-up approach: This aims to encourage participatory decision-making at local level for all development policy aspects. The involvement of local players is sought, including the community as a whole, economic and social interest groups and representative public and private institutions. The bottom-up approach relies on two major activities Principle of territorial based rural development: Experience from LEADER program 107 (“animation” and training of local communities) and comes into play at different stages of the programme. This approach is the most distinctive feature. Local actors participate in decision making about the strategy and in the selection of the priorities to be pursue in their local area. - Partnership approach and the “local action group” (LAG): The LAG is a body of public and private players, united in a partnership that identifies a joint strategy and a local action plan for developing a LEADER area. The LAG is one of the most original and strategic features of the LEADER approach. Endowed with a team of practitioners, decision- making powers and a fairly large budget, the LAG represents a new model of organization that can considerably influence the institutional and political balance of the area concerned. The LAG is responsible for identifying and implementing a local development strategy, making decision about the allocation of its financial resource and managing them. The rural actors that are most active in local initiatives: professional organization and union (farmers, non-farming professionals and micro-enterprises); trade association; citizens, residents and their local organization; local political representatives; environmental association; cultural and community service providers, including the media, women’s association and young people. - Innovation: Even though the LEADER concept and its implementation in the field are innovative in themselves, the LEADER Initiative stresses that the actions must also be innovative. They may be actions to promote local resources in new ways, actions that are of interest to local development but not covered by other development policies, actions providing new answers to the weakness and problems of rural areas, or else the creation of a new product, new process, and new form of organization or new market. Innovation in rural areas may imply the transfer and adaptation if innovations developed elsewhere, the modernization of traditional forms of know-how, or finding new solutions of persistent rural problems. Innovation is also embodied in the programme’s demonstrative and networking components: disseminating information to other groups of players wishing to gain inspiration from achievement elsewhere or to carry out joint projects. - Integration and multi-sectoral actions: The actions and projects contained in the local action plan are linked and coordinated as a coherent whole. Integration may concern actions conducted in a single sector, all programme actions or specific groups of actions, or, most important, links between the different economic, social, cultural, environmental players and sectors involved in the area. - Networking and cooperation between areas: By facilitating the exchange and circulation of information on rural development policies and the dissemination and transfer of innovation, the LEADER network aims to break the isolation of LAGs and to establish a basis of information and analysis on the actions. To complement existing European and national networking, some LAGs have spontaneously organized themselves into informal networks. Cooperation between areas can be transnational but may equally take place between neighbouring areas. - Local financing and management: Delegating to the LAG a large proportion of the decision-making responsibilities for funding and management is another key element of the LEADER approach. However, the LAGs’ degree of autonomy varies considerably depending on the Member State’s specific mode of organization and institutional context. 5. TBRD STRATEGY: BASIC STEPS From a sustainable development perspective, the LEADER approach seeks to take into account the internal opportunities and constraints of rural areas as a result of the environmental, economic, social and cultural factors of an area’s past, as well as the external opportunities and constraints arising from opening up local economies. Components of an Ideal Action in Rural Development A rural development action in a specific territory normally requires: A collective and shared view of the territory and its future. Action objectives. General inspiring principles for the action. Inspiring principles for rural development. Diagnosis of rural reality: the territory, sectorial aspects, transversal aspects, aspects related to other policies, SWOT of the specific situation. Definition of strategies: Promoting the environment, both general and sectorial, and strictly speaking rural (strategies). Lines of action that develop the strategies that have been formulated. Nguyen Thi Minh Hien 108 Some main basic phases required as depicted in below diagram: Methodology phases The choice of an area-based approach is linked with the importance of “endogenous” (local) resources in sustainable development. Such endogenous resources may be physical, environmental, cultural, human, economic and financial, as well as institutional and administrative. Note that it is not only “exceptional” resources that can be developed, quite the reverse. In most cases, it is an “ordinary” local heritage or one that seemed “unremarkable” that is considered to be worth reviving. This has particularly been true of ancient skills which, when reintroduced and professionalized, become sources of new business and added value. This approach converges with the definition of sustainable development. By refining these three dimensions, it is possible to identify the area’s profile based on eight components, each of which can be developed further, depending on the specific situation or expectations: Creation of Local Action Group Setting up a local partnership, known in LEADER as a “local action group (LAG)” allows this concept to be put into practical application: - By harnessing the differing and complementary resources of the public sector, the private sector and the civic and voluntary sector. - By uniting local players around joint projects and common, cross-sectoral actions, in order to achieve the critical mass or threshold needed to improve the area’s economic competitiveness. - By envisaging development through a multi- sectoral approach, stemming from negotiations and consultations between the players concerned. Initial requirements Creation of local action group Participative diagnosis Definition of vision (fundamental core) Strategy Projects Plan implementation Execution Looking for needed financial resources Training of initial technical team Propaganda communication promotion Permanen t technical team Principle of territorial based rural development: Experience from LEADER program 109 Under the LEADER approach, the partnership is comprised of the “local action group” (LAG). The local action group promotes the development strategy and is responsible for implementing it: - The partners involved in the LAG represent the interests of local socio-economic players and communities and the different sectors and associations concerned by the environment, the heritage, social and cultural integration, etc. - Together they establish a joint strategy and implement the development program, based on the widespread engagement of the entire community and on a search for integration (involvement, participation in the approach, “trawling” for projects, encouraging the creation of new links, conflict management, etc.) - The LAG has decision-making powers and a budget. However, decentralized funding and management does not rule out negotiations with the regional or national authorities responsible for applying the program. The local action group is neither a public administration nor a private entity. Far from ignoring such bodies, it plays a complementary role in linking the two. This is one of the most original and strategic features of the program. The LEADER local action group generally concerns three major categories of potential partners: people or associations of people; economic players and private enterprises; public institutions. Each is comprised of a number of groups of players: - For people or associations of people: associations representing an interest (trade unions, trade associations); associations with an interest in the area (local development associations, environmental associations, etc.); cultural, social or religious associations; people or groups (informal groups, private individuals, etc.). - For economic players and private enterprises: organizations of entrepreneurs (business and industrial associations, major enterprises working in the area); cooperative farming sector (cooperatives, cooperative union); financial sector (banks, friendly societies, etc.); enterprises providing community services (cultural services, newspapers, radio, television, non-cultural services, etc.). - For public institutions: local authorities (district councils, associations of districts, etc.); public administrations (local, regional, branch offices of national administrations); public services (social, public health and transport services; schools, universities, etc.). Framework The full importance of analyzing the area’s capital comes to light when the local rural development program is developed. This involves four priority aims: - To share the results of the analysis, which have pointed to a number of major innovation needs for the area - This stage follows on from engaging the community and involving local players. - To give priority to an integrated approach (which will impart overall coherence and make it possible to identify what is a priority and what is less so and to rank the objectives and actions). This integrated approach helps to identify and consider existing geographical, economic, social, cultural imbalances and possible synergies in order to take into account the relationships between the planned actions and to develop solutions over time. The integrated approach serves as a main thread running through the entire process. - To choose one or more unifying themes that both responds to innovation needs and offer longer- term prospects. The unifying theme acts as the core structural principle of a project. The quality of a unifying theme depends on its ability to serve as a lever for encouraging the emergence of initiatives, whilst at the same time matching identified needs. - To build a shared vision of the area’s future - Creating this shared vision on the basis of a unifying theme calls for a certain amount of blind faith, combined with the ability to adapt to concrete realities. These two approaches are often adopted by different people or even institutions, so it is a good idea to institute a wide-ranging public debate, which takes time. Diagnosis of the territory This analysis is implemented in order to consider what we do have. It requires the fully public participation. This needs to analyze whole territory. The territorial resources include of Physical Resources, Human Resources, Culture and Identity, Know-How and Skills, External relations, Governance, Activity and Jobs, Image. - Physical resources and their management (in particular natural resources, facilities and infrastructure, historic and architectural heritage, etc.). Nguyen Thi Minh Hien 110 SWOT Matrix Strength Opportunity Weakness Threats As defined as INTERNAL factors by territorial resources As defined as EXTERNAL factors not belonging to the territory - Human resources (the people living in the area, who set up home there or who leave it; the demographic characteristics and social structure of the community). - Activities (enterprises, their sector, position in this sector, size, degree of geographical concentration, etc.) and jobs (structure, stability, employment conditions, etc.). - Know-how and skills (implicit and explicit, command of technology, research and development capabilities, etc.). - The area’s culture and identity (values shared by local figures, their interests, outlook, attitudes, forms of recognition, habits and customs, etc.). - The level of “governance” (local institutions and administrations, the political rules of the game, collective bodies, the relationships between all of these players, the degree of autonomy in managing development, including financial resources) and of democracy (forms of consultation and participation). - The image and perception of the area (by the inhabitants themselves and by outsiders), local communication. - External relations (in particular the area’s degree of integration in the various markets, its contacts with other areas, networks of exchanges, etc.). SWOT analysis Different ways can be used to see clearer what’s going on in the territory. SWOT Matrix, Diagram, and Problems Tree can be interchangeable used to see the strength, weakness, opportunity and challenge of territory. The resumed information will help to define the strategy for rural development in the territory and easier in choosing appropriate strategies. Fundamental core: Vision of the territory From diagnosis the strategic plan will be defined. Strategic plan as Fundamental core: It’s a unifying theme which represents a shared vision of the area’s future. Fudamental core can be seen as long-term prospect, resumes the territory’s major potential and main characteristic, that make it different from others. It focus on the process and on an integrated vision. Strategic axes Strategic plan then be formed to Strategic Axes. Different axes must to respond to the fundamental core of the territory. The axes are defined around the fundamental core. All the axes are connected one with each other and there are synergies between them. Projects From strategic axes, projects will be identified with the territory. Projects responding to the fundamental core and there are connection among projects. LEADER is judged to be efficient because it is adaptable to very different socio-economic contexts in rural areas, brings key actors together, mobilizes voluntary effort and is responsive to small scale activities and projects to promote local development. It is judged effective because it closes the gap between a top-down program and the local people, conveys responsibility to local actors and links public authorities with the local economy and society. It contributes to capacity building in rural areas and there are many examples where LEADER has contributed to the creation of new jobs and to the improvement of incomes in rural areas. REFERENCES Amador, F. (2003). Rural Development as the Most Reliable Way of Achieving the Eradication of Poverty, and Sustainable Development. Principle of territorial based rural development: Experience from LEADER program 111 Amador, F. (2003). Support for Rural Development in Vietnam: An example of Action Research. Revista de Fomento Social, vol. 58, n. 229. Dirk Ahner (2006). Rural development policies in the European Union. Presentation at International Seminar “Sustainable rural development policies in the Mediterranean Countries in the context of the EU’s neighbourhood policies” (2007 / 2013) in 8 / 9 February 2006 – Cairo, Egypt. Initiative for Rural Development in Nicaragua (2001). Basis for a Rural Development Plan for Nicaragua. A proposal for discussion and action. UCA, Managua. 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Principle of territorial based rural development: Experience from LEADER program 105 as: those approaches ignore the heterogeneity of rural societies; the multidimensional character of rural. local development players or project leaders, to acquire the necessary skills to turn them into agents and architects of the future of their own area. Hence the need to reconsider the foundation