Public sector Innovation in rural policy

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Cacères, 23 March 2007
Public sector Innovation in rural policy
P u b l i c S e c t o r
I n n o v a t i o n
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Why shall governments care about innovation?
What is innovation in rural policy and
governance?
Looking forward some open questions
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the boiling frog
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WHY 1 Globalisation, EU enlargement, CAP reform
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WHY 2 devolution calls for innovative planning
capacity
Changes in the share of subnational governments
in total public revenues and spending
(Percentage points, 1985-2000)
Revenue
Spending
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WHY 3 migration / mobility trends
Where does rural start ?
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WHY 4 changing profile of rural economies
1950
Center for the Study of Rural America, FRBKC
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1990
Center for the Study of Rural America, FRBKC
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WHY 4 changing profile of rural economies
Agriculture as an employer
Rur. empl. 10
Nat GVA 2
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Result many rurals across the territory and
over time
one example
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So there is diversity, complexity, rapid change
and the governments ?
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In times of rapid change, the last thing we
want to do is to undercut our capacity to
innovate A. Greenspan
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Producer Support in of Gross Farm Receipts
(SourceOECD)
The limits of agricultural policy 1,3 of OECD
GDP
60
50
EU
40
PSE
30
OECD
20
USA
10
0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
inefficient, ineffective, inequitable
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But so, how shall governments innovate?
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Towards a new rural policy paradigm a lot of
innovation
In the OECD LEADER, PITs, LSPs, Growth
Agreements, Regionen Aktiv, Canadian community
futures, Mexicos PDRs and microregions and in
developing Countries India, Central and South
America, China At nationaland local levels
Tuscany, Basque Country, Scotland, Quebec,
Extremadura
some common principles
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Innovation moving away from simplistic approaches
1. place-based, integrated vs. sectoral
approach 2. emphasis on opportunities vs.
disadvantage 3. investments vs. subsidies 4.
multiple actors
a matter of governance
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Governance innovation 3 key dimensions
Supra-national
National Regional Local

• Upper Horizontal co-ordination
• Vertical co-ordination
• Local horizontal co-ordination

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Innovating at the central level

• who should do what ?
• cross-ministerial co-ordination ?
• rural proofing ?

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innovating vertically

• what role for the central government ?
• negotiation and (incomplete) contracts
• transfers how vs. how much, co-financing
• monitoring evaluation what indicators?
• reward sanction a culture of evaluation ?

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and innovating locally

• target area functional vs. administrative
• partnership leadership, private actors
• strategy integrated, consensus-based

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Integrated approach innovative.and complex
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Multiple actors
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Sophisticated mechanisms
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Integrated approach innovative.and complex

• overcrowded instit. settings who coordinates
  what?
• emphasis on processes vs. outcomes
• partnership fatigue
• coherence / integration of sect. and RD programs
• transaction costs and additionality
• efficiency and effectiveness ?

need to address intellectual, institutional,
administrative gaps
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Summing up 5 ideas to bring home

• is innovation

1. innovation goes beyond stereotypes
2. innovation is adaptation
3. innovation is doing mistakes you have to kiss
a lot of frogs to find the prince
4. knowledge, knowledge, knowledge
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innovation any alternative?
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Cacères, 23 March 2007
Public sector Innovation in rural policy
P u b l i c S e c t o r
I n n o v a t i o n