The on-going CAP-reform – incentive for a shift towards rural development activities?

Dax, Thomas (2005): The on-going CAP-reform – incentive for a shift towards rural development activities?

Abstract

The paper is based on the findings of a 2 year, EU-wide project on the territorial impacts of the CAP (ESPON project 2.1.3). It particularly focuses on the territorial impact of the different components of CAP and assesses the changes towards rural development policy. The results presented are derived from statistical analysis of the database augmented by findings from an EU-wide review of literature and a series of case studies on the implementation experiences of the main rural development measures across the EU. It is shown that pillar 2 support is still strongly centred on agricultural measures and actors and far from reaching its potential for enhancing a more generally applied rural development strategy. The discussion of the paper will focus on the differing national priorities, and the uneven allocation of RDR funds, partly due to difficulties of co-financing in poorer regions. Importantly, analysis of the impact of the Mid Term Review proposals on farm incomes suggests that the latest reforms of the CAP do not improve substantially the consistency between the CAP, and cohesion. In particular, the proposed application of the CAP-reform in different member states shall be discussed and assessed whether the changes in the framework of rural development contribute to achieve a more balanced performance across EU countries and regions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Common Agricultural Policy (CAP); CAP-reform; rural development; territorial cohesion
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General

References

Arkleton Institute for Rural Development Research (2004). The Territorial Impact of CAP and Rural Development Policy, Final Report. ESPON Project 2.1.3, European Spatial Planning Observatory Network. Aberdeen. (www.espon.eu) Baldock, D., Dwyer, J. and Sumpsi Vinas, J. (2002). Environmental Integration and the CAP, a report to the European Commission DG Agriculture. Institute for European Environmental Policy, Office for Official Publications of the European Commission. Luxembourg. Bryden, J. (2000). Is there a ‚New Rural Policy’? paper at the Conference: European Rural Policy at the Crossroads. 29 June – 1 July, Aberdeen (UK). Buckwell, A., Blom, J., Commins, P., Hervieu, B., Hofreither, M., von Meyer, H., Rabinowicz, E., Sotte, F. and Sumpsi Vias, J.M. (1997). Towards a Common Agricultural and Rural Policy for Europe, Report of an Expert Group. European Commission. Brussels. CNASEA (2003). L’application du règlement de développement rural en Europe (étude comparative). Les cahiers du CNASEA. No.3. Commission of European Communities (CEC), (2002). Mid-Term Review of the Common Agricultural Policy, Communication from the Commission to the Council and the European Parliament. Brussels. 10 July, COM(2002)394. Commission of European Communities (CEC), (2004). Proposal for a Council Regulation on support for rural development by the European Agricultural Fund for Rural Development. COM(2004) 490final. Brussels. Council of the European Union (2005). Proposal for a Council regulation on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), Consolidated text of the Presidency final compromise. 10352/05. 22 June, DS 320/2/05 REV2. Brussels. Dax, T. (1999). Entwicklung des ländlichen Raumes - Kompromiß oder "Zweiter Pfeiler" der Gemeinsamen Agrarpolitik? In: Agrarbündnis e.V. (ed.): Landwirtschaft 99, Der kritische Agrarbericht. Kassel, 44-50. Dax, T., Hovorka, G. and G.Wiesinger, G. (2003). Perspektiven für die Politik zur Entwicklung des ländlichen Raumes. Facts & Features 24. Bundesanstalt für Bergbauernfragen. Wien. http://www.bergbauern.net/2005/dmdocuments/publikationen/FF24.pdf Dax, T., Machold, I. and Roberts, D. (2005), The CAP, Rural Development Policy and Territorial Cohesion: Findings from an EU-wide analysis, In Ortner, K.M. (ed.), Assessing rural development policies of the Common Agricultural Policy, selection of papers from the 87th Seminar of the European Association of Agricultural Economists (EAAE). 21-23 April. Wien, 107-123. Dwyer, J., Baldock, D., Beaufoy, G., Bennett, H., Lowe, P. and Ward, N. (2002). Europe’s Rural Futures – the Nature of Rural Development: rural development in an enlarging Europe. Land Use Policy Group of Great Britain and WWF Europe with the Institute for European Environmental Policy. London. European Commission - EC (1999). European Spatial Development Perspective. Potsdam. European Commission - EC (2003a). Rural development in the European Union, Fact Sheet. Luxembourg. European Commission - EC (2003b). Overview of the implementation of rural development policy 2000-2006, Fact Sheet. Luxembourg. European Commission - EC (2004a). New perspectives for EU rural development, Fact Sheet. Luxembourg. European Commission - EC (2004b). A new partnership for cohesion – convergence, competitiveness, cooperation, Third Report on Economic and Social Cohesion. Brussels. INEA (2002). Osservatorio sulle Politiche Agricole dell’UE, Le politiche agricole dell’Unione Europea. Rapporto 2001-02. Osservatorio sulle Politiche Agricole dell’UE. Settembre, Roma. http://www.inea.it/pdf/pac2002.pdf Knöbl, I. (2005). Ländliche Entwicklung 2007-2013, Die neue Ratsverordnung. Paper at the annual meeting of the Austrian Environment Association. 1-2 July. Eichgraben. Lowe, P. and Brouwer, F. (2000). Agenda 2000: A Wasted Opportunity? In Brouwer, F. and Lowe, P. (eds.), CAP Regimes and the European Countryside, Prospects for Integration between Agricultural, Regional and Environmental Policies. Wallingford: CABI Publishing, 321-334. Mantino F. (2003a). The Second Pillar: Allocation of Resources, Programming and Management of Rural Development Policy. paper to LUPG Conference on “Future Policies for Rural Europe 2006 and beyond”. Brussels. www.lupg.org.uk Mantino, F. (2003b). Rural Development Policies in the EU: The Main Progress after Agenda 2000 and the Challenges Ahead. paper at conference “Agricultural policy reform and the WTO: where are we heading? June 23-26. Capri, Italy. Saraceno, E. (2005). Rural Development policies and the Second Pillar of the Common Agricultural Policy: the way ahead, In Ortner, K.M. (ed.), Assessing rural development policies of the Common Agricultural Policy, selection of papers from the 87th Seminar of the European Association of Agricultural Economists (EAAE). 21-23 April. Wien, 25-47. Sotte, F. (ed.) (1995). The regional dimension in agricultural economics and policies, proceedings of the 40th EAAE seminar. 26-28 June. Ancona. Sotte, F. (2005). From CAP to CARPE: the state of the question, In Ortner, K.M. (ed.), Assessing rural development policies of the Common Agricultural Policy, selection of papers from the 87th Seminar of the European Association of Agricultural Economists (EAAE). 21-23 April. Wien, 3-24.