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OECDRural
Policy
Reviews:
Whattheyprovideandhowthey
functionDavidFreshwater
2010RuralDevelopmentNetworkAnnualMeeting
Gatineau,Quebec
March2,2010
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PresentationOutline
TheOECD
What
is
it?
Howdoesitoperate?
howdoesruralpolicyfitin?
TheOECDRuralPolicyProgramme
The
New
Rural
Paradigm NationalPolicyReviews
OtherWork
ThemesfromtheQubecRuralPolicyReview
Policy
context
ideas SpecificideasfromtheQubecanalysis
WhatthismightmeanforRuralPolicyinCanada
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OrganizationforEconomic
Cooperationand
Development
Parisbased.Madeupof30industrializedcountries
democraticgovernment
and
alargely
market
oriented
economicsystem.
EvolvedoutofthepostWorldWarIIMarshallPlan.Canadahasbeenamembersincetheoriginin1961.
Providesaforumforinvestigatinganddiscussingeconomicdevelopmentamongmembers.Orientedtoimprovingpublicpolicyandenhancingtheroleand
efficiencyof
market.
Purelyadvisoryinnature,operatesonaconsensusbasis.
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OECDMember
Countries
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OECDMission
Statement
Supportsustainableeconomicgrowth
Boostemployment
Raiselivingstandards
Maintainfinancial
stability
Assistothercountries'economicdevelopment
Contribute
to
growth
in
world
trade
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Operation ManagedbyaSecretaryGeneralwhoreportstoaCouncil
(permanentambassadorsfrom30membercountries).
Fundedbydirectmembershipfeesandvoluntarycontributions.
Secretariatisorganizedinto12themeorienteddirectorates Economics,Education,TradeandAgriculture(TAD),
Public
Governance
and
Territorial
Development
(GOV),etc.
Workisdrivenbytopicorientedworkingpartiescomprisedofdelegatesfrommembernational
governmentsthat
supervise
projects
carried
out
by
the
Secretariat,whichinturnprovidesitsowninternalanalysis,engagesconsultantsandrequestsspecificanalysisfrommembercountries.
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PART2:TheOECDRuralPolicy
Programme
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Ruralat
the
OECD
Occursin2Directorates GOVandTAD
TADmainly
does
agriculturally
related
work
agricultureandruraldevelopment(CAPPillar2),parttimefarming,multifunctionality
GOV Regional
Competitiveness
and
Governance RuralPolicyProgrammemainlyexaminesgovernmentpolicyand
factorsthat
influence
rural
economic
development
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TheRural
Policy
Programme
Foundationin1983toexaminehowruralis
different
from
agriculture
WhatFuture
for
Our
Countryside?
Initiallyfocusedonthematicwork amenities,ruralemployment,nichemarketsandrural
governance,but
subsequently
moved
into
more
spatiallyfocusedwork specificterritoriesandcountries.
Focuson
what
are
the
opportunities
and
constraintstosustainabledevelopment,andhowdoespolicyinfluencethem?
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EvolutionoftheOECD
NewRural
Paradigm
(NRP)
ReflectsOECDruralworkfromthe1990s:issuebasedwork(employment,amenities,niche
markets,governance)
and
sub
national
territorial
reviews.
Inpartareactiontocommonperceptionsthat: ruralisjustnoturban, whichimplieshomogeneity,
ruralis
farming,
which
implies
asingle
dominant
sector,
and
ruralisdeclininganddependent.
OECDTerritorial Indicatorsprovidedevidence
that
while
some
rural
areas
are
lagging,
some
are
moreprosperousthanmanyurbanareas.
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TheOld
and
New
Paradigms
OldParadigm Equalization
or
entitlementapproach,
focusedonfarmincome,
farm
competitiveness Sectorbased
Reliesonsubsidies
Mainactors
are
national
governmentandfarmers
NewParadigm Focus
on
enhancing
competitivenessofrural
areasusinglocalassets
Focus
is
all
aspects
of
the
localeconomy
Reliesoninvestments
Actorsare
firms,
all
levels
ofgovernmentandNGOs
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RuralPolicy
Within
the
NRP
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RuralPolicy
Reviews
Assessmentsoftheruralpolicyofmemberor
nonmember
countries
conducted
at
the
requestofthecountryandfundedbythat
country(voluntarycontribution).
Guidingprinciples
howwelldoesthecurrentpolicyconformtotheNRP.
howcanthecountrybetterfollowtheprinciplesofthe
NRP
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OECDRuralPolicyReviews
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TheReview
Process
BackgroundReport thehostcountrycompletes
a
background
report
following
a
questionnaire
providedbytheOECD 3monthexercise.
Severalweeklongsitevisitsarearrangedwitha57memberOECDteam(Secretariat,Peer
Reviewersand
Experts).
Reportisprepared,reviewedandrevisedandthenpresentedtotheRuralWorkingPartyfor
acceptance. ReportisreleasedbythecountrywithOECD
participation.
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ReportStructure
Fairlystandard4chapterformat
RecommendationsandAssessment executivesummary Profile descriptionoftheruralconditionincluding,size
andnatureofrural,ruraldemography,ruraleconomyand
majoropportunitiesandissues
PolicyAssessment reviewofcurrentnationalruralpoliciesbothexplicitandimplicit,includingstrengthsand
weaknesses
PolicyRecommendations suggestionsforimprovementbasedupon:theNRP,expertandpeerreviewersuggestionsandrelevantbestpracticeinotherOECDcountries
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TheQubec
Review:
The
Context
ScotlandandEnglandarenotsovereignstates,
butQubec
is
the
first
sub
national
part
of
afederalsystemtobereviewed.
Federal/provincialissuescameupinGermany
andin
Mexico
and
Italy,
but
were
not
as
central
asforQubec.
Firstexperienceinareviewwheretherewas
such
a
strong
commitment
to
first
building
social
capacityasafoundationforfutureeconomicdevelopment.
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Part3:
Themes
from
the
Qubec
Review
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TheQubec
Review:
The
Context
RoleofMAMROTisunique:typicallygovernment
focuses
on
economic
development
and
only
gives
lip
servicetosocialdevelopment asaparallelcondition.
ThesecondPactRuralfocusesonsocialdevelopment,inpartbecauseofproblemsinthefirstpactwhen
socialand
economic
development
were
tried
simultaneously toolittlelocalcapacity.
Providesrealevidencethatcommunitycapacity
building
has
to
be
prior
to
local
economic
development.
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TheQubec
Review:
The
Context
Confirmationofthelongtermdisruptionatthe
regionlevel
when
ahigher
level
of
government
unilaterallyreorganizeslocalgovernmentprimarilytofacilitatehighergovernmentobjectives(MRCsinQubec,regionsinEngland,administrative
boundaries
in
Spain
and
Mexico).
Importanceofunderstandingdemographyasawaytounderstandruraldevelopmentissuesandopportunities
(aging
population,
youth
outmigration,smallernumbers).
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The
Qubec
Review:
Lessons
from
the
Report
Qubechasawellconstructedandcoherent
ruraldevelopment
strategy
that
has
had
strong
multiyearsupportfromtheprovincial
government providesruralcommunitieswitha
senseit
is
worth
investing
in
participation.
MostofQubecsruralpolicyisconsistentwith
theideasoftheNRP placebased,bottomup,
investmentoriented
and
multi
sectoral.
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The
Qubec
Review:
Lessons
from
the
Report
DespiteagoodruralpolicyQubecfacesmajor
challenges
in
achieving
its
goals
unfavorable
demographicsgoingforward,weakshorttomediumtermprospectsforresourcebasedindustry(16years),decliningfiscalbalancesattheprovinciallevel.Ittakes
morethan
good
policy.
Agriculturecontinuestoplayperhapsatoolargerolebothintermsofpolicystructureandintermsofpolicyinfluence highcosttoconsumersandfreezeslandinfarms.
But
if
not
for
farmers,
where
would
rural
advocatescomefrom?
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Part4:
Implications
for
Canada
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WhatMight
This
Mean
in
Canada?
BasicHypothesis:Almostallruralregionsface
thesame
basic
set
of
problems.
Virtually
all
countriesapplypoliciesfromthesamesmall
set.Whatdiffersisthecontextinwhichthese
problemsexist
and
that
determines
which
policiesarebest.
Conclusion:
The
art
of
good
policy
lies
in
understandingthecontext.
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WhatMightThisMeaninCanada?Tourism
as
ared
herring
Heavyemphasisonruraltourismtoreplace
traditionalsources
of
rural
income
and
employment.But,ruraltourismpaysless,isseasonalandishighlysensitivetoweather
andcustomer
tastes.
Toomanyfirmsineachruralplaceofferthesametouristexperience marketsaturation
Toomany
rural
places
offer
the
same
tourist
experience marketsaturation
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WhatMightThisMeaninCanada?RenewableEnergy promisebutrisk
Virtuallyallrenewableenergygenerationwill
takeplace
in
rural
areas.
Butfortheshorttomediumtermweknow: NaturalgaswillbecheapinNorthAmerica
Climatechange
results
in
good
political
rhetoric,
but
little
willingnessbyconsumerstopay
Withoutmajorinvestmentsintransmissionmostnewgenerationwillbelockedin andearnlittle.
EveryCountry/Province
wants
to
be
aleader
in
renewables,includingexportingthetechnologywherearethemarketsandprofitmargins?
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WhatMightThisMeaninCanada?How
will
immigration
change
the
game?
EssentiallyallnetpopulationgrowthinOECD
countriesnow
comes
from
immigrants
who
have
noattachmenttothehostcountrysruraltraditions.
As
immigrants
become
a
larger
share
of
the
populationwillurbanmulticultural societiescontinuetosupportpoliciesfortraditionalruralregions?Willtheyvisitruralplaces?Willthey
movethere
to
offset
declining
populations?
(Qubecasafocalcase).
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WhatMightThisMeaninCanada?Staying
the
course
in
policy
is
vital
The2PactsRuralconfirmthatsignificant
improvementrequires
multi
year
strategies
andfirmfinancialcommitmentstocommunities.Littledifferentthanthelessons
fromCommunity
Futures
(CF)
and
LEADER.
Highdegreeofconsistency,betweenCFand
thePactRural.Differentfocus,butverymuch
likethe
original
CF
committees
in
strategy.
Hastobemorethanbusinessdevelopment.
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WhatMightThisMeaninCanada?The
Employment
Insurance
(EI)
Connection
TherearetwotypesofEIpolicy income
replacement(money
for
nothing)
and
Active
LabourMarketPolicy(moneyonlyifyouchange
behaviour).
CForiginated
as
aform
of
ALMP
in
the
1980s,
but
seasonalEIwasalsointroducedaboutthen.
CFhaschangedpeopleandcommunities,but
seasonalEI
has
provided
areason
not
to
change.
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WhatMightThisMeaninCanada?fuzzy economic
thinking
continues
to
hamper
progress
Examples:
Thereare
no
differences
between
urban
and
rural
economicstructure.
Ruralishomogeneousandrequiressubsidies.
Because
productivity
is
lower
in
rural
areas
(due
to:industrymix,humancapital,sizeoffirms),weshouldfocusinvestmentsinurbanareas.
Therearenorealconflictsbetweeneconomicdevelopmentinruralareasandenvironmentalprotection.
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