A STRATEGY FOR ‘INNER AREAS’ IN ITALY

Sabrina Lucatelli (DPS-UVAL)

Coordinator - Italian Committee on Inner Areas

Bologna – OECD Conference 23d October 2013

Introduction The greater part of Italian territory is characterized by small towns and

villages which often have restricted access to essential services: “Inner areas” are those areas far away from large and medium-sized urban

centers, and from their associated infrastructure;

Since September 2012 - Italy is developing a National Strategy in favour of Inner Areas with the aim of: improving the quality of life and economic well being of people living in its

relatively isolated and sparsely populated areas and in the long term - “reverting” demographic trends …

Strong Technical Support (Department for Development Policies, Central Bank; Institute of National Statistics …);

Political Agreement Between Ministry of Territorial Cohesion; Agriculture; Health; Transports; School and Labor …

Robust Territorial definition of Inner Areas - (1)

The first step in the development of the strategy has been the elaboration of criteria to identify territories as ‘Inner areas’. The methodology was developed from two main concepts:

• the Italian territory is characterized by a dense and varied network of urban centers which offer a wide range of essential services like healthcare, education, and transport. These centers represent a 'point of convergence' for people living in remote areas;

• the distance from these urban networks affects people’s quality of life, and their sense of social inclusion

Methodology – (2)

‘Service Centers’ have been defined as those municipalities that offer • an exhaustive range of secondary schools; • at least a 1st level DEA hospital ; • at least a ‘Silver - type’ railway station (RFI).

NO DEMOGRAPHIC CRITERIA HAVE BEEN APPLIED

Areas have been mapped according to the distance (travel-time) from these ‘Service Centers’ as: • ‘Belt’ areas – up to 20 minutes far from the centers; • ‘Intermediate’ areas – from 20 to 40 minutes; • ‘Remote’ areas – from 40 to 75 minutes; • ‘Ultra – remote’ areas – over 75 minutes far

Inner Areas

Source: UVAL-UVER-ISTAT elaboration on data from the Ministry of Health, Ministry of Education and RFI (Italian Railway Network)

Inner Areas

Single–municipality service center 219 2.71 145 21,223,562 35.7 29,519 9.8Multi–municipality service center 104 1.29 166 2,466,455 4.1 6,251 2.1Belt areas 3,508 43.4 215 22,202,203 37.4 81,814 27.1Intermediate areas 2,377 29.4 395 8,953,282 15.1 89,448 29.6Remote areas 1,526 18.9 607 3,671,372 6.2 73,256 24.3Ultra – remote areas 358 4.4 627 916,870 1.5 21,784 7.2Total 8,092 100.0 358 59,433,744 100.0 302,073 100.0Source: DPS elaboration on Istat – Population Census 2011

Average elevation

%Classification of municipalities N. % Population % Km2

Inner Areas: main features and trends

DEMOGRAPHY • Remote and Ultra-remote: negative demographic trends since the late 70’s; • steep increase in the percentage of elderly people; • Increasing migration flows into these areas.

NATURAL ASSET • reduction in the percentage of land exploited for agriculture In the last 30 years; • increasing forest land; • increasing exposure to landslip and flooding risks.

ECONOMY • major (but declining) role of primary sector (especially in the South); • Regional specialization in secondary sector (inner areas of the Northern regions,

such as Piedmont, Lombardy or Veneto) • Regional specialization in third sector (regions close the Alps like Valle d’Aosta or

Trentino Alto Adige and regions such as Campania or Calabria) • Stronger fragility of productive structure

Inner Areas

INNER AREAS SERVICE CENTERS AND BELT AREAS

Service centers and belt areas

Italy -Percentage change in population 1971 - 2011

Source: DPS elaboration on Istat data – Population Censuses 1971 - 2011

Centers +11,6% Inner Areas +4,2% - remote areas -8,1% - ultra-remote areas -5,3% ITALY +9,8

Percentage of population change by type of Areas

Source: Dps elaboration on Istat data ( Population Censuses 1971 – 1981 – 1991 – 2001 – 2011)

Totale

Piedmont 18,0- 19,3 18,5 2,5- 27,6- 41,0- 1,5- Valle d'Aosta 7,6- - 46,3 7,0 18,1 - 16,2 Lombardy 17,1- 10,3 39,4 8,2 4,5 1,4- 13,6 Trentino Alto Adige 9,7 - 42,4 24,3 15,9 13,9 22,3 Veneto 7,7- 31,2 38,6 15,9 11,3 33,3- 17,8 Friuli Venezia Giulia 13,7- - 19,4 5,0- 35,5- - 0,4 Liguria 24,9- 5,8- 4,3 1,0- 41,4- 34,3- 15,3- Emilia Romagna 0,2- 24,5 35,5 14,9 8,5- 52,0- 12,4 Tuscany 4,3- 15,6 24,0 1,0- 15,6- 6,6 5,7 Umbria 13,3 9,5 32,1 7,9 5,2 - 14,0 Marche 5,9 15,2 37,0 2,3- 7,5- - 14,8 Lazio 1,0- 36,2 67,7 59,1 11,2 27,4- 17,3 Abruzzo 6,9 42,5 42,5 2,5- 23,9- 42,8- 12,1 Molise 44,8 - 17,1 18,3- 34,7- 46,9- 1,9- Campania 10,6- 38,3 45,0 3,7 16,6- 10,5 14,0 Apulia 3,1 15,3 26,7 17,0 1,5- 9,5- 13,1 Basilicata 25,2 - 57,6 1,9 10,1- 22,1- 4,2- Calabria 2,5 8,6 17,2 1,7- 18,2- 10,6- 1,5- Sicily 2,7- 5,6 63,0 7,4 8,1- 21,1- 6,9 Sardinia 10,9- - 81,5 11,3 4,5- 13,9 11,3

Italy -6,8 22,7 35,8 11,6 -8,1 -5,3 10,0Dps elaboration on Istat data - Population censuses 1971 - 2011

Remote AreasIntermediate Areas

Ultra remote Areas

Region Single–municipality service center

Multi–municipality service center

Belt Areas

Percentage of population 1971-2011

Italy – Percentage of population aged 65 and over - 2011

Inner Areas

INNER AREAS SERVICE CENTERS AND BELT AREAS

Service centers and belt areas

Source: DPS elaboration on Istat data – Population Census 2011

Centers 20,7% Inner Areas 21,2% ITALY 20,8%

Italia – Share of foreign resident population on total popolation 2011

Fonte: ISTAT – Censimento della popolazione 2001 e 2011

Aree intermedie, periferiche e ultra-periferiche INNER AREAS CENTERS

Poli urbani, poli intercomunali e cintura

AreeQuota 2001

Quota 2011

Rapporto quote 2011

su 2001Centri 2,5% 7,2% 3Aree Interne 1,8% 5,4% 3ITALIA 2,3% 6,8% 3

Centers Inner areas Of which Remote Ultra remote Total

Primary school 90.3 82.8 80.1 88.0 86.3

Secondary School 71.3 61.2 60.4 72.6 66.0

High school 23.9 20.7 21.6 28.2 22.2

Source: DPS elaborations on Ministry of Instruction data – school years 2010-2011

Type of school % of municipalities with at least one school

Access to education

Distance from Hospitals Distance from the closest municipality with hospital

Distance from the closest DEA

The Department of Development and Economic Cohesion is working on the final draft of a National Strategy for the development of Inner areas within the Country.

Aims of the strategy: • reallocate Inner areas in a strategic position for the

Country; • set up a set of interconnected projects focused on few

selected priority fields of intervention and linked with the ordinary policy (supply of services).

A Strategy for Italian Inner Areas

local targets • improving wealth and well-being of the population; • restoring vitality of local communities national targets • population growth/stability and increase in occupation; • definition of new functions for under-utilized human,

natural and economic resources; • reduction in social costs linked to population dynamics.

Ultimate goal of the strategy: reinforcement of the demographic structure of Inner Areas.

Targets of the Strategy

• The strategy will focus on Specific Factors with great potential for socio – economic growth in Inner areas.

• Strategic projects will concentrate on a number of selected fields (development factors): land management and forests; local food products; renewable energy; natural and cultural heritage; traditional handicraft and SMEs (Saperi Locali)

Development Factors

Key steps: • Strategic Approach a National Committee with strategic analysis charges; negotiation with regions and establishment of a

common operative framework; signature of the Partnership Agreement with the

Commission and high level commitment from key Ministries and President of the Regions;

organization of a Platform to put projects in a Net-Work.

Implementation of the Strategy (1)

• Project Approach Selected projects need to have a number of specific characteristics: create new employment through action on at least two of

the selected development factors; strong participation of the local Community; constant monitoring and evaluation process on pre-

established results; strong “Assistance”; action on both development factors and improvement of

basic services.

• Pre-Conditions: Central Ministries engage in improving services (health;

School; Local Transport); Municipalities do Associate (Unions; Consortiums; etc. …)

Implementation of the Strategy (2)

THE CENTRAL LEVEL • Fosters and Monitors the Strategy’s Application • Encompass main elements of the Strategy into the

Partnership Agreement 2014-2020 (rendendola cogente) • Manages the Federation of Projects THE CENTER AND THE REGIONS: check pre-conditions! THE REGIONS • Financial Allocation for Inner Areas in the Programs (ITI?);

Selection of Specific Areas / Projects; Political Support; MUNICIPALITIES (associated) and Provinces Application of the Strategy at territorial level; Participate in the Framework Agreement selecting projects; manage services …

A Multelevel Governance…

Area = Framework Programme

Agreement

Ministries; Regions; Provinces; Municipalities and/or Municipalities Associations

Promotion and joint planning

of Area projects

Projects and interventions appraisal and

selection

Projects funding and

financial management

Governance of Area projects

Thank you for your attention

Sabrina.lucatelli@tesoro.it

Promoting Growth in Remote and Internal Areas

Enrique Garcilazo

Regional Development Policy Division Directorate for Public Governance and Territorial

Development OECD

Bologna, Italy, 23rd October 2013

1. Trends in regional growth 2. Drivers of regional growth

3. Policy lessons

Outline

Promoting growth in all regions

Is broader based growth economically viable?

Does growth potential exist is some regions?

Does it matter for national and aggregate growth?

What preconditions are needed?

Policy lessons?

There is no single/unique path to growth…

Convergence forces in rural regions

Convergence forces in intermediate regions

The most dynamic OECD regions over 1995-2007..

7

140

150

160

170

180

190

200

210

220

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

pop and GDP growth pop density and GDP growth pop and GDPpc growth

average rank (1== highest) population pop density

Contributions to growth OECD TL2 regions

8

y = 0.6509x-1.311

0%

1%

2%

3%

4%

5%

6%

7%Co

ntrib

utio

n to

OEC

D gr

owth

TL2 regions

California

Texas

KantoFlorida

Capital Region (KO) Virginia

New York

London

GeorgiaNorth Carolina

IllinoisOntario

Ile de FranceLombardia

32% of growth driven by 4% (or 14) regions...

...and 68% of growth by the remaining

Contributions to growth OECD TL3 regions

9

y = 0.5031x-1.201

0%

1%

2%

3%

4%

5%

Cont

ribut

ion

toO

ECD

grow

th

TL3 regions

5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75 % 80% 85% 90% 95%

Tokyo

London West

Gyeonggi-do

SeoulMadrid

RomaMilanoAichiBarcelona

AttikiMiasto Warszaw

Dublin

Chungcheongnam-doGyeonsangbuk-doParis

München

Hauts-de-SeineStockholms län

Gyeonsangnam-do

Inner London -- East

27% of growth driven by 2.4% (or 20) regions...

...and 73% of growth by the remaining

Lagging regions contribute to national growth Lagging Regions Contribution to Aggregate Growth

Overall, they contributed to 44% of aggregate OECD growth in 1995-2007.

Austra l ia 29% 71%

Austria 53% 47%

Canada 26% 74%

Czech Republ ic 62% 38%

Finland 35% 65%

France 68% 32%

Germany 27% 73%

Greece -16% 116%

Hungary 34% 66%

Ita ly 26% 74%

Japan 27% 73%

Korea 23% 77%

Mexico 44% 56%

Netherlands 49% 51%

Norway 61% 39%

Poland 44% 56%

Portugal 54% 46%

Slovak Republ ic 67% 33%

Spain 48% 52%

Sweden 58% 42%

Turkey 47% 53%

United Kingdom 57% 43%

United States 51% 49%

average unweighted 43% 57%

average weighted 44% 56%

lagging leading

In eight OECD countries lagging regions contributed more to national growth

than leading regions.

Bottom line: support for lagging regions need not be merely a “social” policy. They contribute a large share of national growth.

10

The relative weight of these different factors depends, inter alia, on the level of development of the region.

Initial GDP pc

<75% national av.

A

B

C

11

Infrastructure provision

Policy responses

Human capital formation

Business environment

Innovation

Regional growth and convergence

Towards a Multidimensional Response

At the regional scale

Many countries are reforming in this direction, but implementation is still difficult.

12

-Horizontal evidence? -Policies ? -Institutions ?

Case Studies Methodology

13

Sample of 23 case study regions Questionnaire (21 questions)

Field study

Drafting of case study

Case study number Region Category

1 Aquitaine CUP and growing above av.2 Asturias CUP and growing above av.3 Brandenburg LCUP and growing above av.4 Central Transdanubia CUP and growing above av.5 Durango CUP and growing above av.6 Jalisco CUP and growing above av.7 Marche CUP and growing above av.8 Midi-Pyrénées CUP and growing above av.9 Sachsen-Anhalt LCUP and growing above av.

10 San Luis Potosi LCUP and growing above av.11 Wielkopolskie CUP and growing above av.12 Zuid-Nederland CUP and growing above av.

13 Chiapas LCUP and growing below av. 14 Estado de Mexico CUP and growing below av.15 Lubelskie CUP and growing below av.16 Nord-Pas-de-Calais CUP and growing below av.17

Wear) CUP and growing below av.

18 North West (CR Manchester) CUP and growing below av.19 Podlaskie CUP and growing below av.20 Sicilia LCUP and growing below av. 21 Vychodne Slovensko CUP and growing below av.22

(CR Leeds) CUP and growing below av.

23 Zacatecas LCUP and growing below av.

Dynamic regions

Less dynamic regions

Factors for Growth Among Regions Growing Above Average “Growing” Regions

14

Factors for growth in regions growing above average Frequency %Policies (shift mentality, silos, fragmentation, adjusting policies to assets, linkages, cross border, urban spatial) 8 15%Infrastucture connectivity 8 15%Institutions (governance, leadership capacity, continuity, mobilisation) 6 12%Human capital 6 12%Innovation, includes entrepreneurial 5 10%Business environment, public sector activity and industry 5 10%Geography 4 8%Internationalisation: international competition and brandname attractiveness 3 6%Presence of natural assets and amenities 2 4%FDI 2 4%Economy (diversified, differentiated and market aware) 1 2%Other 1 2%Tourism 1 2%Density (cohesion, internal fragmentation, labour market mismatch) 0 0%Demographic factors 0 0%Agriculture 0 0%Environmental constraints 0 0%Availabity of financing 0 0%Total 52 100%

Bottlenecks in Regions Growing Below Average “Underperforming Regions”

15

bottlenecks in regions growing below average frequency in %Institutions (governance, leadership capacity, continuity, mobilisation) 8 15%Policies (shift mentality, silos, fragmentation, adjusting policies to assets, linkages, cross border, urban spatial) 7 13%Density (cohesion, internal fragmentation, labour market mismatch) 7 13%Human capital 6 12%Geography 5 10%Infrastucture connectivity 4 8%Business environment, public sector activity and industry 3 6%Demographic factors 3 6%Innovation, includes entrepreneurial 2 4%Agriculture 2 4%Economy (diversified, differentiated and market aware) 1 2%Other 1 2%Environmental constraints 1 2%Internationalisation: international competition and brandname attractiveness 0 0%Presence of natural assets and amenities 0 0%FDI 0 0%Tourism 0 0%Availabity of financing 0 0%total 50 100%

Conclusion

1. Institutional factors and policy framework matters – Institutions that facilitate negotiation and dialogue among key actors in order to

mobilise and integrate them into the development process are vital, as are those that enhance policy continuity

– Self-conscious shift towards a growth-oriented policy framework is very often a part of the recipe for success.

2. Complementarities and synergies are critical

– Simultaneous improvement in policies, infrastructure and human capital, suggesting strong synergies and avoidance of brain-drain effects.

– Simultaneous improvement in infrastructure, the business environment and geographic factors , thus avoiding leaking-by-linking effects.

3. Upgrading the skills of low-skilled workers may be as important for

growth as policies aimed at expanding higher education.

4. Infrastructure does not appear to be the binding constraint for the great majority of regions.

16

thank you

JoseEnrique.Garcilazo@oecd.org

17

Rurality, isolation and policies: A brief overview of the Chilean case

OECD 9th Rural Development Policy Conference

«Rural – Urban partnerships: an integrated approach to economic development»

Bologne, Italy. 23th October, 2013

M. Camilo Vial C. Chief – Division of Policies and Research

Undersercretary of Regional Development

4329 Km LEN

GTH

468 Km MAX WIDTH

90 Km MIN WIDTH

177Km

AVERAGE WIDTH

GEOGRAPHIC CHILE ACORDING TO REGIONS

DEMOGRAPHIC CHILE ACORDING TO INHABITANTS

Von Baer, 2010

Chaculay Island, Aysen Commune: • 150 min to the emergency

room; • 490 min (8hrs) to High

Complexity Hospitals; • 450 min (+7 hrs) to primary

education; • 490 min (8hrs) to Regional

Capital.

WHAT IS RURAL?

Definition by opposition: GENERAL URBAN PLANNIG ACT - Creates Territorial Planning Instruments (IPT) - Defines urban. It is understood that the non urban, is rural.

IN A METRIC APPROACH: - Rural depends on the settlement’s size and occupation of the economically

active population. - Up to 1,000 inhabitants, or - Up to 2,000 inhabitants, if less than 50% of the economically active

population works secondary and tertiary activities.

0.23% CHILEAN CITIES OCUPPY

OF THE TERRITORY 54.9% THE 3 METROPOLITAN AREAS CONCENTRATE

OF THE URBAN GROUND

40.7%

SAN

TIAG

O

7.8%

CON

CEPC

IÓN

6.5%

VALP

ARAÍ

SO

EVEN THE DICOTHOMATIC DEFINITION, IPT APPLY IN URBAN AREAS AND THEIR EXTENSIONS (RURAL – URBAN AREAS)

5%

LESS

TH

AN

IS UNDER IPT 95% IS RURAL

Currently, in Chile urban population predominantly over the rural, as more than 85% of the national population lives in urban areas, and less than 15% do so in rural areas.

Trends of change in land use 1994 -2007

Surface changes by type of use: -Urban and industrial areas 2.300 ha -Forest Plantations 220.850 ha -Agricultural Areas -117.000 ha -Grasslands and Thickets -63.500 ha -Wetlands -1.210 ha

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

18 MINISTERIES Mining, Agriculture, Economics… (each represented in regions in the by the SEREMIS).

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

14 UNDERSECRETARIES Agriculture, Fishery, Regional Development…

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

51 PUBLIC SERVICES INDAP, SERCOTEC, FOSIS, CORFO, National Service of Fishery and Aquaculture…

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

51 PUBLIC SERVICES INDAP, SERCOTEC, FOSIS, CORFO, National Service of Fishery and Aquaculture…

+ INTENDENCIA

+ GOBERNACIÓN

+ REGIONAL GOVERNMENT + MUNICIPALITIE

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

PUBLIC INSTITUTIONS RELATED TO RURAL AREAS

Tax exemption zone (1974)

Special Public Funds (FONDEMA)

Special multi-sectorial committees

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Arica y Parinacota

Tarapacá

Antofagasta

Atacama

Coquimbo

Valparaíso

RM

O'higgins

El Maule

Biobío

La Araucanía

Los Ríos

Los Lagos

Aysén

Magallanes

Decentralized public investment per cápita (Regional development national found)

Chaculay Island, Aysen Commune: • 150 min to the emergency

room; • 490 min (8hrs) to High

Complexity Hospitals; • 450 min (+7 hrs) to primary

education; • 490 min (8hrs) to Regional

Capital.

TERRITORIAL POLICIES

• General context:

National Policy of REGIONAL

Development

National Policy on URBAN

Development

National Policy on RURAL

Development

Make up the Policy of the Territory: coherent, complementary, integrating, guiding principles.

Rurality, isolation and policies: A brief overview of the Chilean case

OECD 9th Rural Development Policy Conference

«Rural – Urban partnerships: an integrated approach to economic development»

Bologne, Italy. 23th October, 2013

M. Camilo Vial C. Chief – Division of Policies and Research

Undersercretary of Regional Development