Territorial linkages in rural development

The IFAD NEN learning visits have been an interesting and knowledgeable opportunity to visit various areas in the Tuscan region wherein the EU LEADER+ approach to Territorial Development (TD) has been adopted, reports Faith Nilsson. The purpose of the visits were to explore alternative approaches to rural and social development that NEN may potentially explore in its own poverty reduction engagements.

Olive oil production in the Comunita Montana Amiata Grossetano 

The visit to the ‘Valorization of the Olive oil’ project of the Mountain Community of Amiata Grossetano was particularly interesting.  The project ‘Valorization of the Olive oil’ is part of a broader programme called Sapori d’Amiata (Flavors of Amiata), that aim to valorise or add value to products of good-quality and distinctive to the Amiata mountain areas. The visit included a walk through the historic area of Amiata, a visit to the Olive oil museum and an old oil production factory, and an occasion to interact with local producers and taste their olive oil products. 

The Sapori d’Amiata (Flavors of Amiata) project is funded under the GAL (Local Action Group) Maremma in the LEADER + programme for the Grosseto Province. The funds provided to the GAL Maremma have made possible the development (and preservation) of local agricultural and forest activities of the province. The Sapori d’Amiata project targets the local tourist, agricultural and agrifood sector in order tackle issues associated with the limited capacities of its local farms and enterprises to improve the communication and commercialization of its local products. Part of the Sapori d’Amiata strategy was to also strengthen the quality brand of its territory and products, and to attain the high-quality certification DOP Denominazione di Origine Protetta (Protected Destination of Origin) that also ensures traceability of its products.

The project was part of a larger and integrated local development strategy to sustain and improve the agricultural system of the Tuscany region.

LEADER and territorial development  

The LEADER+ Liaison Entre Actions de Développement Rural or Links between Actions of Rural Development approach allows for the development and increased competitiveness of the local economy. It draws upon local comparative advantages in terms of local competencies, skills, and resource endowments to achieve local economic development and regional cohesion. This also comes in parallel with supportive aspects such as the development of social services (education, health infrastructure) through a coherent package and tailored policy measures.

The Local Action Group (LAG) set-up is a precondition for LEADER+ programmes. It allows local public and private partners to get together and link their economic development priorities into an integrated strategy - this is an original feature of the LEADER approach. The LAG has the task to identify its local needs, develop and implement a local development strategy, and to make decisions about the allocation of its financial resources.

The Local actions build on the local needs and must have coherence and critical mass in terms of human, financial and economic resources to support a viable local development strategy.

The LAG ‘bottom-up’ formation allows for an endogenous process to promote local governance.  This results in efficiency as the private and public actors are both part of the decision-making process. It is important to note that a LEADER prerequisite is for private partners and associations to make up at least 50% of the LAG. Moreover, the actual payments of the funds are made by a paying authority dealing with public funding rather than the LAG itself.

Listed below are some cited potential benefits of the TD approach:

• Capitalization of local competencies and network
• Valorization of local resources and markets that foster entrepreneurship
• Promotion of multi-sectoral approaches to economic development providing on- and off-farm economic opportunities
• Increased relevance of the agricultural sector in regional development
• Promotion of decentralization and local governance that empower both private and public local actors
• Strengthening of private-public interaction and coordination
• Strengthening of local partnerships (local government, entrepreneurs, farmers, civil society and services) towards local development
• Positive environmental and social effects
• Narrowing of inequality gaps among regions and support lagging areas
• Contribution to minimization of urban migratory tendencies as rural employment opportunities increase, and incentives to retain large population in the rural areas are enhanced
• Integration of rural and urban activities around regional economic projects
• Incorporation of the rural poor into employment and investment opportunities created by local growth.

TD approach in IFAD

The TD LEADER+ projects in Tuscany directly support and give added value to the economic, social and cultural promotion of the local territory, consequently strengthening an array of economic sectors and enhancing rural conditions.

LEADER has helped bridge the regional disparities within the Tuscan region and narrow those of its rural areas vis-à-vis EU regions.

The benefits of the TD approach are plentiful. In order for the TD approach to become sustainable in the more marginal areas in our developing regions, it requires a more specific and contextualized structure different from that of the LEADER programmes in Tuscany. For productive, economic and institutional transformation to occur in fringe regions, building up the local capacities (financial, administrative), infrastructure, institutions, markets, and social rights are of utmost necessity.

A TD approach could be complementary to IFAD’s community driven development strategies, and built with territorial linkages in its poverty reduction strategies. IFAD may also capitalize on its capacity to provide the technical support and policy networks needed to support dialogue and interaction among the decision makers, the local farmers and small farm holders. Territorial Development approaches’ complementary role in IFAD investments should also occur in full alignment with existing national development strategies to make local rural development in these areas more viable.