IDARI - Rural Development - Lecture Slides, Slides of Human Development

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Rural Development

IDARI Training Programme

Module Objectives

• Introduce theoretical concepts relating to rurality and rural development.
• Highlight problems arising in rural areas of CEEC.
• Aid students in the writing of a report on the existing conditions of rural CEEC.

Overview of Module

• Theoretical considerations
• Problems of Rural Areas
• Market Failure in Rural Economy
• Institutions of Rural Development
• Issues arising in Central and Eastern European rural areas
• Agreeing framework for student’s report

Theoretical Considerations (1)

• Complexity of rural areas
• ‘Rural’
  • Spatial definitions (urban/rural divide)
  • Sectoral definitions (agriculture & traditional activities)
  • Rural idyll (conceptual)
  • Administrative definitions (OECD, NUTS)

OECD classification

• predominantly rural regions : over 50% of the population living in rural communities;
• significantly rural regions : 15 to 50% of the population living in rural communities;
• predominantly urban regions : less than 15% of the population living in rural communities. Also, according to their degree of integration with the national economy, rural areas can further be distinguished as:  Integrated rural area  Intermediate rural area  Remote rural areas

• Ireland: Population change 1996-

Theoretical Considerations (3)

• Rural Sustainable Development

Recognition that any development process must be able to be maintained; continuity of process through time. Extending concept of rural development to include:

• Economic considerations
• Social considerations
• Environmental considerations.

Integrating Ideas on Rural

Development

Sustainable Rural Development IN Economic Efficiency T E Ecological Integrity Social Equity GR Cultural Identity AT IO N Socio-Economic Forces Environmental Impact

Demand and Supply side Problems

• Sectoral Dimension
• Spatial Dimension
• Spatial/Sectoral Interaction

Market Failure (Theory 1)

• Allocative efficiency
• Production efficiency

Neo-classical Paradigm

• General equilibrium
• All markets in equilibrium
• All markets cleared
• Disruption of equilibrium
• New equilibrium

Labour Market Equilibrium

W

L

Traditional market failure

»Public goods »Externalities »Competition

New Market Failure

»Absence of markets »Imperfect information