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Regional Management for Regional Rural Development

Toolbox for Trainers based on the InWEnt Programme EU Integration of South Eastern Europe

on behalf of:

Imprint
Regional Management for Regional Rural Development Toolbox for Trainers Published by: InWEnt Internationale Weiterbildung und Entwicklung gGmbH Friedrich-Ebert-Allee 40 53113 Bonn Fon +49 228 4460-0 Fax +49 228 4460-1766 www.inwent.org Responsible: Henriette Stange Concept: Uwe Krappitz Text: Georg Bokeloh Uwe Krappitz Hans Rosenbeck Angelika Thomas Thomas Wehinger Gero Wieschollek Editing: Angela Marx, Gundula Kreis Reproduction: This manual may be reproduced in whole or in part in any form for educational purposes with prior permission from the copyright holder. For more information contact: InWEnt Capacity Building International, Germany Lindenstrasse 41, 04519 Rackwitz / Zschortau, Germany angela.marx@inwent.org Layout and Fotos: Nicole Fritsch, Leipzig, Germany Icons: Daniela Veit, Dresden, Germany Printing: Thomas Druck, Leipzig, Germany December 2010

Regional Management for Regional Rural Development


Toolbox for Trainers based on the InWEnt Programme EU Integration of South Eastern Europe

Compiled contributions from the team of trainers Georg Bokeloh Uwe Krappitz Hans Rosenbeck Angelika Thomas Thomas Wehinger Gero Wieschollek

Contents

List of Abbreviations ...................................................................................................................................................................................6 Preface ............................................................................................................................................................................................................7 Orientation - how to use this toolbox? ................................................................................................................................................8 Module 1. Why Regional Rural Development? ...................................................................................................................................9 Module 2. Regional Management: Functions, Structure and Budget .......................................................................................19 Module 3. European Union and National Policy Frame: Funds, Programmes, IPA ................................................................31 Module 4. Elaboration of Local Development Strategies/Regional Development Concepts and Action Plans ........... 43 Module 5. Inward and Outward Regional Marketing ..................................................................................................................... 59 Module 6. Local and Regional Economic Promotion ..................................................................................................................... 69 Module 7. Project Cycle Management and Logical Framework Approach .............................................................................. 79 Module 8. Project Budgeting and Funding: Co-finance, Private Public Partnership ............................................................ 93 Module 9. Network Management ...................................................................................................................................................... 105 Module 10. Information and Communication Management ......................................................................................................115 Module 11. Capacity Building - Becoming a Learning Region ................................................................................................... 125 Module 12. Monitoring & Evaluation of Regional Development Processes........................................................................... 135

List of Abbreviations
BMVEL BMZ CAP CARDS CB CBC CF EAFRD EAGF EC EFRD ENPI ESF EU GI GTZ InWEnt IPA ISPA LAG LDS LEADER LED LFA M&E NGO NUTS OECD PACA PCM PDO PGI PPM PPP RDC RDS RED REGINA RM RRD SAPARD SWOT TSG UAP USP Federal Ministry of Food, Agriculture and Consumer Protection Federal Ministry for Economic Co-operation and Development Common Agricultural Policy Community Assistance for Reconstruction, Development and Stabilisation Capacity Building Cross-Border Cooperation Cohesion Fund European Agricultural Fund for Rural Development European Agricultural Guarante Fund Europaen Commission European Fund for Regional Development European Neighbourhood and Partnership Instrument European Social Fund European Union Geographical Indication Deutsche Gesellschaft fr Technische Zusammenarbeit GmbH InWEnt, Capacity Building Interrnational, Germany Integrated Instrument for Pre-Accession Assistance Instrument for Structural Policies for Pre-Accession Local Action Group Local Development Strategies Liasion entre actions de dveloppment de lconomie rurale Local Economic Development Logical Framework Approach Monitoring and Evaluation Non-Governmental Organization Nomenclature des units territoriales statistiques Organisation for Economic Co-operation and Development Participatory Appraisal of Competitive Advantage Project Cycle Management Protected Designation of Origin Proteced Geographical Indication Project Planning Matrix Public-Private Partnership Regional Development Concept Regional Development Strategy Regional Economic Development Regional Innovation Agency District of Neumarkt i.d.OPf. Regional Management Regional Rural Development Special Accession Programme for Agriculture and Rural Development Strengths Weaknesses Opportunities Threats Traditional speciality guaranteed Unique advertising proposition Unique selling proposition

Preface
The region as a territory below the national level has come more and more to the focus of policy and society as the driver for social and economic development in the last decades. Regions are considered as the spatial basis for competitiveness and increasing the quality of life of their inhabitants. However, no blueprint can be applied but the consideration of the specifics and characteristics of the particular region is essential in steering its endogenous development potentials. Consequently, rural development can be understood as a regional development process in areas which are mainly rural in their characteristics. In the South Eastern European Countries, which are on their way towards the accession to the EU, there is an explicit need to foster development processes in rural areas in order to improve the living conditions of the rural population. Although overall economic development has taken place in South Eastern Europe (SEE), rural and peripheral regions profit rarely. Instead, disparities rather grow compared to urban areas. Agriculture dominates the economic and social development in rural regions, but its significance steadily decreases and further structural changes will affect rural livelihoods in the future. Already losses in income, decreasing employment, depopulation and an ageing population occur in many rural areas. Development initiatives are needed to react to these challenges and foster diversification and a viable rural economy. More than a decade of intensive discussions, the implementation of regional and rural development initiatives and the support of the EU to set-up structures for such development initiatives on a local level have come up with economic and social changes and experiences. Nevertheless, there is still a substantial need for professional analysis, planning and management for rural regions considering not only economic but also social, institutional and ecological dimensions. This process requires political support and the strengthening of human capacities of those, who organise and handle such change pro-cesses. On behalf of the German Federal Ministry for Economic Co-operation and Development (BMZ) InWEnt, Capacity building international, focuses on the development of rural economic areas in SEE since many years. The approach taken is that of an integrated regional rural development based on the understanding of regional and local development being a crosscutting and multidimensional issue. In other words, Regional Rural Development constitutes a unity combining the regional and rural policies and programmes into one territorial development approach. InWEnts strategic Regional Rural Development approach targets firstly at the strengthening of the political dialogue. Secondly, InWEnt implements trainings which aim at strengthening the human capacities on the regional/local level to stir the endogenous development potentials. If this is supposed to be a comprehensive process, rather diverse stakeholders of a region with their different interests, available resources and attitudes need to be encouraged to cooperate and motivated to support each other. These requirements are met by the instrument of innovative regional management - a tool that has been increasingly applied in the European Union for 20 years in manifold ways. A third pillar of the approach has included the close cooperation with the German Technical Cooperation (GTZ) in order to qualify the people from implementing structures and projects on the national, regional and local level. This toolbox for Trainers comprises the experience collected in many years of trainings on Regional Management for Regional Rural Development in South Eastern Europe. Certainly it does not claim to be exhaustive however, its set-up and contents have proved to serve its purpose in practice very well. We are thankful to all the people who have contributed to the development and implementation of the Integrated Regional Rural Development Approach in SEE. Particularly we would like to thank the Standing Working Group for Regional Rural Development in South Eastern Europe (SWG RRD), Jens Adler, Dr. Detlev Boettcher, Angela Marx and the team of trainers and facilitators, first and foremost Uwe Krappitz.

Zschortau, December 2010

Dr. Henriette Stange Senior Project Manager

Orientation - how to use this toolbox?

This toolbox is the outcome and the summary of different modules and events implemented by InWEnt in the topic of Innovative Regional Management for Regional Rural Development. Throughout the last decade hundreds of professionals from all SEE countries participated in these trainings. All those colleagues from SEE who participated in this journey are somehow co-authors because they all contributed to the pool of knowledge and skills which is the substance of this tool-box. Many of them are themselves in a trainer position or situation where they try to forward their knowledge and share their experience among their institutions, colleagues or students. In some countries like Macedonia these multiplying efforts have already been started systematically through a training of trainers cycle in 2010. Along the years, however, the request to have substantial written material grew. The result is this toolbox, which fulfils a double purpose: It provides basic introductory texts to the relevant elements of Regional Rural Development to be used in dialogue and training situations. At the same time trainers in this field receive instruments and methods how to transform these contents into practice oriented training.

All modules are self-consistent and structured in a similar way in five sub-chapters: 1 Objectives, content, time Content: What should be learnt in this module and how long does it take? Introductory presentations Content: What are the frame and the essential information for this module? Group work and exercises Content: How can the knowledge be transferred? Self-test Content: Has the message of the module arrived? Reference material Content: Where to find more information, details and documents?

While the first two modules provide the conceptual framework of Regional Rural Development and the role of an Innovative Regional Management in this process, the other ten modules describe in detail the main tasks and functions Regional Management has to fulfil in order to establish and guide regional development processes. The chosen order of these topics does not imply a chronological implementation of these elements. The whole portfolio has to be looked at as a connected system of intervention options. According to the specific dynamics and needs in a given territory, the adequate mix of instruments in a regional rural development process has to be composed. Those elements which are considered to be basic to all other interventions are put first in the row. Nevertheless a reader may easily jump several chapters and enter a specific issue if interest, e.g. Regional Marketing.

We hope that all the readers and trainers find the toolbox a helpful instrument. Please contact InWEnt or the authors whenever doubts or questions arise. This toolbox does not pretend to be the ultimate standard work but it reflects the state-of-the-art, resumes the experiences gathered in dozens of events and hopefully can be used in many ways and many different situations. Therefore all contributions to improve and add information are welcome!

Module 1

Why Regional Rural Development?


Overview of this module
page Objectives, content, time
Territorial development approach Re-discovery of the Regional Local and regional governance Subsidiarity Sustainability Historical review on rural development in Europe Characteristics, objectives and approach of RRD Conceptual frame the 4 dimensions of RRD Presentation of participants working context: individual/group/information market Group work: Guiding Visions for RRD in participants countries Roots of RRD Challenges, characteristics and objectives of RRD The situation in your country The new rural paradigm OECD 2006 Actively Shaping Rural Development, BMELF, 2007 www.rz.uni-karlsruhe.de/ www.gtz.de/en/themen

10

Introductory presentations

11

Group work and exercises

16

Self-test

18

Reference material

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Module 1

Why Regional Rural Development?


During this first module awareness will be created why Regional Rural Development constitutes a unity combining the regional and rural policies and programmes into one territorial development approach. Without neglecting the social and environmental development dimensions (see in the next module the integrative nature of RM), these two policies are predominantly aiming at strengthening the Local/Regional Economic Development.

1.1 Objectives, content, time


Objectives
Through this module participants will become aware of the different roots of RRD in the context of European integration and development policies get a historical review of Rural Development as part of the Common Agricultural Policy CAP during the past 60 years understand objectives, characteristics and the approach of RRD be able to apply a systemic approach to explore and interpret given situations, design and verify the best intervention strategy as well as implement the action plans efficiently discuss and present guiding visions, development programmes and instruments to strengthen RRD in their respective countries reflect the own working context as a possible contribution to RRD and exchange these information with the other participants

Guiding questions

Guiding questions for this module are: There are many sector policies and programmes but there is only one territory: by what means can this dilemma be handled?

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Module 1 | Why Regional Rural Development

From local to regional: How can the regional level, when best suited for certain types of intervention, be re-structured after decades of a disregard through centralized political systems? Where does local end and regional start? How can the counter-balance of bottom-up and top-down be effectively and efficiently designed to contribute to a Good Regional Governance?

Minimum time required for this module, which sets up the context and frame for the whole training, is one full day without the exchange of experiences on the participants individual working context. If this is additionally organized in a three step sequence individual elaboration, short presentation in country groups and finally exhibition in an information market, another 1 1.5 days are required.

Time

1.2 Introductory presentations


Regional and Rural Development are like the two faces of the same coin. Whenever we turn it around, we will face the same reality. Integrating sector policies, harmonizing divergent interests, minimizing possible trade-offs and creating the famous synergies can be transformed into practical intervention only at local/regional level. Trying to combine different sector perspectives, Regional Rural Development has been nourished through four main roots, which have provided quite different nutrients and which until today sometimes do not yet bring about a harmonic nutrition for the region.

R R D through Regional Management


Regional Rural Development

1.2.1

Landscape and nature protection (the environmental perspective)

Landscape preservation and nature protection has had for quite a long time a strong conservation perspective towards the exploration of resources in environmentally sensitive areas. The focus has been on the protection of special biotopes and the prevention of human intervention. Although this approach may still prevail in special cases, the widening and further differentiation of environmental preservation categories led at the same time to a broadening also of the spatial perspective. The nature parks or biosphere reserves have mainly integrated a constructive view on human intervention in their concept, being aware that certain activities would contribute to the preservation of unique landscapes or special natural assets. The commercialisation of regional products meant as output of productive activities in harmony with environmental requirements is one of the most important
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accelerators for the promotion of the idea of landscape preservation. Nature parks have operational units which clearly execute Regional Management tasks, for example as responsible bodies for the LAG (Local Action Group see module 3) management. In many places regional brands were or are being created in order to highlight the special quality and the related origin of mostly agricultural products and foodstuff. But also traditional handicraft can often be found in the product basket of the brands. Recently, these so-called regional initiatives or movements joined for example in Germany in form of a legal umbrella association, which is currently requesting the introduction of a German-wide regional umbrella brand in order to prevent the misuse of this environmental character of regional products. Because of its specific objectives, this movement still exhibits a critical and reserved position towards the more economically oriented portfolio of Regional Managements.

1.2.2

Economic promotion

The shift from a more locally oriented perspective, regarding the instruments for economic promotion (location marketing, b2b, business incubators etc.) towards a much broader regional approach (horizontal and vertical clusters, value chains, regional marketing etc.) created the need for respective operational units. Already in the mid nineties, economic-oriented Regional Management units were established in the former socialist parts of Germany not so much with a rural scope but serving larger regions with strong urban and industrial sectors. As urban-rural linkages were increasing in importance and were put on the development agenda, many of these management units enlarged their portfolio towards the rural areas in their regions. Ideally classical economic promotion instruments are combined with measures from rural development programmes under one institutional roof, thus being adequately coordinated and creating additional value through win-win situations.

1.2.3

Spatial planning

A third origin for innovative Regional Management originates was an important shift of emphasis in spatial planning and development. Comprehensive land-use or regional planning mainly used to be a regulatory instrument setting frames through master plans and giving orientation for the spatial structure of a territory. Thus it was lacking the implementation oriented dimension of development. Recognizing this gap, the comprehensive spatial planning was the first way to introduce Regional Management as a complementary soft instrument to support the so called hard instruments as land-use plans, regional plans or the formal regional planning procedures. In a simultaneous process, the formal planning system, quite strongly regulated through legal procedures, was increasingly challenged by new and innovative forms of informal planning initiatives. Local and Regional Agenda 21, Municipal Development Programmes, Local Development Strategies (LEADER) or Regional Development Concepts are new forms of creating an implementation oriented planning base for development intervention. The integration of both planning systems formal and informal is yet far from being achieved. Regional Rural development through innovative Regional Manage-

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Module 1 | Why Regional Rural Development

1
ment is probably the most promising way to intensify this necessary combination through its area-based, bottom-up and implementation-focussed nature. The above described roots of Regional Management also add a new dimension to the classical rural development policies and programmes as described in the following section.

1.2.4

Rural development

History of RRD: Beginning globalization in the early nineties promoted the emerging of the regional dimension with a somehow integrated and territorial approach. Rural regions are not yet adequately represented in Europe. New challenges (worldwide markets, increasing competition, changing job requirements and unemployment, as well as demographic changes) show the need for an integrated and multidimensional concept adapted to the needs of each region.

Rural development as an important pillar in the process of European integration is not new at all. More than half of the population of the EU lives in rural areas and more than 2/3 of the total area of the EU is considered rural. The EU, as well as national governments provide a great number of various support programmes and subsidies. Most of these programmes are top-down and sector-oriented. A large portion of them exclusively support farmers and the agrifood sector, which, though still being of great importance for rural areas, is no longer the main driving force nor employment source.

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Looking at this history of Rural Development more in-depth, we may note that the regional dimension with an integrated and territorial approach only emerged in the late eighties, beginning of the nineties, when market globalisation became more and more evident. Since then, a small part of the EU funds has been dedicated to integrated RRD projects, e.g. through the LEADER approach (see module 3). One reason for this discrimination might be that rural regions in Europe are not adequately represented. They have not been heard in Brussels and the Member States for a long time different from those who mainly benefit from the first pillar of the CAP. The most challenging trends ahead increasing competition on worldwide product markets, lack of qualified jobs and the heavy demographic change, to mention just some of them do not get answers through sector policies any more but require an integrated and multidimensional concept adapted to the specific needs of each region.

1.2.5

The four dimensions of RRD

The understanding of a given reality in rural regions can be largely improved by distinguishing four main dimensions. To check on them will help not to overlook important aspects and crucial potentials. These four dimensions can be taken as a tool as well as a checklist when analysing territories or looking for relevant questions in assessing the holistic nature of rural realities.

The four dimensions of RRD are helpful to:


explore and interprete given situations design and verify the best intervention strategy set up efficient action plans and assess whether the intended changes occurred according to our intentions.

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Module 1 | Why Regional Rural Development

1
They represent a systemic approach: to explore and interprete given situations design and verify the best intervention strategy set up efficient action plans and assess whether the intended changes occurred according to our intentions.

Some of the main challenges for Central European regions in each of the four dimensions are presented on this board to exemplify how this conceptual frame can be practically used.

1.2.6

Characteristics, objectives and approach of RRD

RRD is an integrated and multidimensional concept for development interventions in a predominantly rural area. Appropriate solutions are usually not transferable from one region to another but must be developed in or adjusted to the region itself.

d s an s t ic R D e ri f R ac t har ctive o C e obj

Approach

Capacity building of people...


... so that they can seize opportunities as they arise

RRD is focused on people

bottom-up approach integrated approach regional approach

Strategy

Identification of the opportunities...


... supported by new economic and institutional frame conditions and region specific characteristics and resources

RRD is a multisectoral concept

Capacity building of service delivery through institutional reforms


... so that demand-driven and marketable services are available

RRD is a concept for regional development in a mainly rural area

RRD addresses ... The objective of RRD is ... lasting improvement of living conditions in rural regions sustainability!
local selfgovernment national departments regional and local government decision makers private sector research and education system civil society organisations, NGOs international development coop. organisations consultants

cohesion!

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In order to achieve a lasting improvement of living conditions in rural regions (which integrates the concepts of sustainability and cohesion), RRD is characterized by three main elements: * * * RRD is focussed on people and based on the bottom-up principle. RRD is a cross-cutting, multi-sector concept which requires an integrated approach. RRD is mainly targeting the regional level (as complementary to all necessary local interventions) of rural areas.

This requires first of all a continuous capacity building of people living in the region so that they can seize opportunities as they arise. Additionally, own (under-utilized) potentials and opportunities have to be identified supported by new institutional and economic frame conditions. These again have to be provided by a demand-driven and efficient service delivery of public and private institutions. Also this permanent adaptation towards marketable services requires an ongoing capacity building process. This finally means that RRD addresses all relevant stakeholders regional and local government decision makers, national structures, as well as the whole set of civil society and private sector organisations and representatives.

1.3 Group work and exercises

Step 1: Individual reflection of the own working situation

Step 2: Presentation in country groups

Step 3: Information market the country groups present their boards to each other

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Module 1 | Why Regional Rural Development

1
If time allows, an intensive exchange of participants experiences on RRD at the very beginning of a capacity building event will be quite useful. First of all, everybody is required to reflect on the own working situation, extract the relevant issues, work with mobile visualisation and produce a meaningful board to be shared with all other participants. The country groups can additionally enrich their boards with leaflets, photos, maps or even samples of typical regional products. This makes the market more interesting and the stand more attractive for possible buyers of the information. In a second step, these products are briefly presented in country groups to receive a first feed-back, give opportunity for corrections and allow to draw a common introductory board for the own country. The third and most intensive part is an Information Market where all boards from one country (or 2 to 3 countries, if the number of participants is limited) are exposed and all other participants actively demand the information from their colleagues. After a certain time, the next group exhibits and so forth. For a group with 25 participants one should plan for at least 4 sessions (plus some additional individual work in the evening) or better 5 to 6. If time does not allow, at least the following group work should give participants the chance to reflect on the actual situation in their countries and learn from the experiences and knowledge of their compatriots.

An example from Bosnia and Herzegovina: The Agro-Business Centre in Rogatica


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In a first group work, which is normally organised in country groups, participants are asked to exchange their specific experiences and level their information while answering two guiding questions: 1. What are the actual guiding visions for RRD in your country? 2. Describe and specify important instruments to implement the guiding vision. The combination of both group tasks is even better and creates a good base for the coming dialogues between trainers and participants regarding the specific topics, which will be described in the coming modules.

1.4 Self-test
What are the main roots of Regional Rural Development? What current trends can be identified? What have been the most important features along the time-line of Rural Development in the EU? What are the main challenges regarding the four dimensions of RRD in your country? What are the main characteristics and objective of RRD? Who are the addressees? In the working context of your organisation/institution: What are the main barriers to RRD and what contributions do you provide to overcome these barriers? What are guiding visions for RRD in your country and by what instruments do you try to implement these visions? What skills would you specially like to improve through this training measure?

1.5 Reference material


Most of the sources are on the general reference list. Quite some information is available in German, material in English is still scarce or currently being developed. Theo Rauch, Matthias Bartels, Albert Engel Regional Rural Development - A regional response to rural poverty GTZ, 2001, ISBN 3-88085-532-3 The new rural paradigm, OECD 2006 Actively Shaping Rural Development, BMELF, 2007 www.rz.uni-karlsruhe.de/ www.gtz.de/en/themen

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Module 1 | Why Regional Rural Development

Module 2

Regional Management: Functions, Structure and Budget


Overview of this module
page Objectives, content, time
Cross-cutting concept of RM Transforming bottom-up approaches into action Sustainable organisational and financial set-up Implementation oriented: from Regional Planning to Regional Management The integrative nature of RM Central Functions of RM Organisation and legal forms of RM Potential financial resources of RM How will your RM organisation look like in five years? What will be the functional structure and how to generate a sustainable financing? Cross-cutting and integrative approach Functions and tasks: sequence or system? Organisational structure and self-finance The integrative nature of RM From Regional Planning to Regional Management

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Introductory presentations

21

Group work and exercises

29

Self-test

30

Reference material

30

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Module 2

Regional Management: Functions, Structure and Budget?


This chapter introduces the concept of Regional Management as a necessary instrument (means) to promote Regional Rural Development (end).

2.1 Objectives, content, time


Objectives
Through this module participants are able to conceptualize the integrative and cross-cutting nature of an innovative Regional Management (based on the general introduction in module 1) get an overview on the spectrum of functions performed by RM (which will be discussed in depth in the following modules) apply a systemic approach to explore and interpret given situations, design and verify the best intervention strategy as well as implement action plans efficiently analyse features, advantages and weaknesses of different organisational forms to implement RM discuss possible financial sources to sustain an effective and innovative RM independent of short-term promotion programmes develop a vision and outlook for the functional and financial development of the own organisation in the context of RRD

Guiding questions

Three challenging questions for this module are: How to implement an integrative and cross-cutting concept without getting lost in an ocean of possible activities and fields of intervention? How to institutionalize RM without loosing creativity, flexibility and the ability to innovate (i.e. how not to become bureaucratic)? How to establish a healthy financial mix without depending permanently on new promotion programmes to subsidize the basic performance of RM?

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Module 2 | Regional Management: Functions, structure and budget

Minimum time required for this module, which discusses the self-understanding and management of RM, is one full day. Organisation and financing of RM as well as the development of an own organisational vision may as well be placed at a different (later) stage of a training workshop, what would mean another full day to cover the whole spectrum

Time

2.2 Introductory presentations


The need for Regional Management emerged in Europe in the 1980s. The reason was the growing concern that development planning (spatial and sector) was not sufficiently being translated into implementation. The emergence of the issue of Rural Development as the second pillar of the European Common Agrarian Policy (CAP) brought up the need for more localised interventions and change management on a regional level. It was slowly introduced as a measure to promote the development of rural peripheral areas. Meanwhile, Regional Management has become a fully accepted instrument for initiating and promoting change being considered as a necessary pre-condition for successful Regional Rural Development (RRD). Regional Management can be seen as an integrated approach to initiate and support sustainable development of a region by using its endogenous potential, which can be mobilised through the concerted effort of stakeholders from the political/administrative arena, civil society and private business. The main operational functions of Regional Management will be described further down. Regions in this context can be defined by different criteria (geographical, natural, political-administrative, economic, functional) representing a huge scale or sizes varying from some 20,000 to several million inhabitants. The classical understanding of Regional Planning as a spatial development tool has been enlarged by functional approaches beyond formal political-administrative limits. The integration process towards EU membership as well as their own political reform process is forcing South East European countries to develop a new regional level as functional integrative link between national development policies and communal self-administration. However, local and regional action competence is still underdeveloped as decisionmakers and administrations hardly explore the existing potentials and opportunities. This refers equally to the public as well as to the private sector. Central institutions frequently criticise the insufficient capacity of regional/local structures to respond to all kind of national promotion programmes and initiatives. Additionally, the urban-rural links and relationships are far from being adequately understood and used for development purpose within a region. Short-sighted competition is normal reality. Regional Rural Development through Regional Management therefore requires a broad capacity building process accompanying the ongoing political-administrative reform process and socio-economic development programmes (many of them supported by EU funds). The vision of Learning Regions is becoming a guiding principle for sustainable development.
Tool Box for Trainers

Regional Management is nowadays an accepted instrument for the initiation and promotion of change a necessary precondition for successful RRD. RM is possible through the concerted effort of all stakeholders comprising: policy and administration civil society and private business.

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2.2.1

The integrative nature of Regional Management

The integrative nature of Regional Management


social coherence economic growth environmental protection

Livelihood in rural areas has to become (again) as attractive as in any urban setting. The guiding development principle of equity of living conditions will decreasingly have to be achieved by schemes of redistribution, but increasingly follow the competition of regions irrespective of national borders. In this setting, agriculture looses its feature of being the unique focus, but still remains with its up and downstream activities the most important socio-economic activity and main source of income for a significant part of the rural population. Neglecting or denying the role of agriculture is even less justifiable in SEE, given the socioeconomic data about the primary sector. For these reasons, rural areas have to break through the vicious circle of decreasing income from agricultural activities, unemployment/underemployment, out-migration of the young, etc. and develop a positive approach and something like a creative milieu instead. Therefore, Regional Management approaches have to strengthen at the same time: the economic development through diversification, mobilisation of under-utilised resources, cluster-building etc. the social coherence through rebuilding former (rural) mechanisms of social solidarity, complemented by a basic, but viable assurance system and the environmental preservation through sustainable management of natural resources and a pragmatic development-oriented land-use planning.

civil society

business

public sector

processes

projects

programmes

In its political dimension this requires a continuous strengthening of communal selfadministration, the integration of relevant stakeholders (decentralisation and participation) and adaptation to the inter-sector approach of EU development strategies, as foreseen in the current promotion period from 2007 to 2013. Without a strong conceptual and operational regional level, especially rural regions will hardly have a positive development. Local authorities will have to accept this fact.

2.2.2

Central functions of Regional Management

There is a lasting academic debate about what Regional Management really means, which activities it should comprise and which not, and how far it would have to be separated from other related professional fields. This debate will surely continue but 20 years of experience have produced a practical profile of those functions which have proven to be necessary for successful Regional Rural Development. It is the cross-cutting and integrative nature of Regional Management that makes the difference to the individual performance of the following functions. Hereby it is important to stress, that there is no logical sequence or order of priority for these following intervention fields. Using a pragmatic approach considering political priorities, existing promotion programmes and available co-finance, engagement of stakeholders and other important factors of influence, there will always be a need for a combination of these interventions (somehow comparable with a successful marketing mix), which requires constant efforts of reviewing and adaptation.

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Module 2 | Regional Management: Functions, structure and budget

Tool Box for Trainers

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Module III

2.2.2.1

EU and national policy frame: funds, programmes, IPA

In the frame of EU accession (which is the focus of the InWEnt programme EU integration of SEE) there is an urgent need to aquire a general understanding of how the EU system of structural policies and funds as well as the first and second pillar of the Common Agricultural Policy function. Based on this knowledge the design of the components of IPA with the definition of the respective measures and institutional structures is a huge challenge for the different implementation levels in each country starting with the Managing Authority and the Paying Agency, but also including those regional and local actors who are supposed to spend the money in a meaningful way!

Module IV

2.2.2.2

Setting up Regional Development Concepts and action plans (bottom-up planning)

Although Regional Management is mainly implementation-oriented, it is part of its preparation and follow-up, to develop a common planning document fixing the mandate for its performance. Apart from existing sector programmes or spatial plans, there is a need for developing integrated Regional Development Concepts RDCs or Local Development Strategies LDS (if using the official LEADER terminology). Defining a common orientation (visions/objectives) and action programme (projects/resources), the RDCs represent a living basis for implementation: unbureaucratic, creative and flexible. The initially informal character of these planning processes and documents means a big chance to break through sector barriers and political power structures. Nevertheless, for long-term relevance there is need for formal legitimacy through existing parliaments, which have to adopt the RDCs as their own political guiding instrument. There shouldnt be a parallel process in the long run (many Local Agenda 21 processes have failed because of this parallelism).

Module V

2.2.2.3

Regional Marketing

There are two important dimensions of regional marketing and both of them have to be developed simultaneously: an inward awareness building and outside public relations and location marketing. The inside dimension has very much to do with the function below. Without being able to create a strong information flow and identity within the region We are we and we are from here you will not be able to sell your product/service to outsiders. Two things make life complicated: the incongruence between grown regions and administrative borders and the inflation of local/regional brands. These are popping up like mushrooms all over Europe. But the right sizing of brands, a sound communication strategy and the close linkage with brands in other fields makes it a central and very critical issue for regional identity and marketing. Finding the right solution through an intensive stakeholder dialogue is one more central function for Regional Management.

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Module 2 | Regional Management: Functions, structure and budget

2
2.2.2.4 Local and regional economic promotion: mobilising inward investments

Module VI

We use the picture of BMW will not go to your Region to stress the importance of looking to the small/medium business opportunities within the region, to care for the development of the existing enterprises (also the small and medium ones), instead of chasing phantoms. There is a huge box of economic promotion tools which can be used and which are not detailed at this point.

2.2.2.5

Project management capacity: PCM/Log-frame/Impact chains

Probably there is no need to stress this intervention instrument too much. But let us be frank: If it is not a donor inviting us to do so, how many projects (also big and complex ones) are beining handled without a proper log-frame, without even knowing, if we are doing the right thing regarding the objectives we set in the beginning? Or do we ever verify if these objectives are really clear and change-oriented? Or how do we intend to measure the impact at the end? A stringent project planning and implementation on municipal or regional level is lacking too many times, wasting scarce resources.

Module VII

2.2.2.6

Project budgeting and funding

Goal-oriented project implementation or egoistic administration of the own scarce resources? Lighthouse projects or broad application? In any case, the development of a financial framework is difficult by nature even more in the poor rural settings we are looking at. Project financing cannot consist of the attempt to ask the mayor for a share of his/her budget but should rather be a continuous search for new models of financing between private and public sectors. Who has got the most stimulating and mobilising ideas, who is willing and able to develop these models facing general scarcity of financial resources on the communal/regional level?

Module VIII

2.2.2.7

Network Management: Organising stakeholders participation (PPP, citizens participation)

Module IX

This is probably the key function for regional development. If stakeholder participation is not organised within a continuous, efficient and serious process, the aim of mobilising the own potentials and resources as a lasting effort will not be achieved. The time of charity, welfare and caring or the enforcement of law and order being the guiding principles of public administration is over. Today the comparative advantage is that of an enabling public sector towards a strong civil society.

2.2.2.8

Information management and communication strategy: Knowing the region and sharpening its profile

Module X

The Regional Management unit is not the statistical office for the regional administration. Based on a good general knowledge, the main focus should combine the official data with all the unpublished or inofficial information, which are in the mind of

Tool Box for Trainers

25

key stakeholders (private and public). This requires acceptance and confidentiality, but it is a pre-condition for developing and sharpening the right regional profile: Why are we unique? What are our special strengths? What makes us attractive to people/companies/ institutions? And this knowledge has to be present immediately, if required. There is a saying regarding a huge company: If SIEMENS knew what SIEMENS knows . There are many underused skills, experiences and know-how in a region. How can we extract this knowledge and make it available? Through which channels do we get the right information to the right person and at the right time? Becoming an information society is not a technical issue. It means sharing power through the sharing of information.

Module XI

2.2.2.9

Capacity Building: becoming a learning region through training, participation, organisation

Life-long learning or Learning organisations (see especially Peter Senge) are central concepts for the 21st century. Without actually knowing, still looking for answers, what makes up a learning region, one thing is for sure: it is not only the formal education of youth and adults in schools, universities, enterprises or in evening seminars but also the stakeholder participation, networking, exchange and information processes, that make the ideal platform for regional learning.

Module XII

2.2.2.10

Monitoring and Evaluation as ongoing learning process

Last, but not least: M&E has to be designed and organised in a way that it is not the control function for outsiders, but the learning from observation and experience for insiders that plays the decisive role. How many human and financial resources could be saved or better utilised, if the necessary mistakes in a development process would not have to be hidden to evaluators through thousands of mechanisms. Real case studies to extract lessons learnt and common agreements on how to improve would represent a know-how supply as continuous input to the ongoing Regional Development process.

2.2.2.11

Two additional tasks

The first one may also be accomplished by other stakeholders, although practical experience shows that regional management units are frequently involved in cooperation activities, a special emphasis also from the EU perspective. The second one, also being subject of this Module, is a matter of self-preservation: who is living and acting permanently on a two-year project base may use and lose a lot of energy and resources to guarantee the institutional continuity instead of implementing interventions.

Establishing inter-regional and trans-national partnerships

Look and act beyond boundaries! Whether they are administrative, political, economic, ethnical, religious, etc., one thing is for sure: there are too many of them. Internal networking is a necessary but not sufficient condition for development. In a global economy our partners have to be anywhere, but why not start with the next neighbours. There

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Module 2 | Regional Management: Functions, structure and budget

2
are some very promising examples for cross-border co-operation between regions although incipient, they may become major development areas, possibly also because of their special treatment by EU programmes.

Institutional set-up: functions, organisations and financing of Regional Management

There is no standard solution to the organisational issues, nor will there be. Different options have to be analysed in the specific regional situation. The crucial challenge is to find the balance between establishing an administrative routine mentality in a safe employment harbour or creating a high risk job where you will get good staff only by extraordinary payment. Spending half of the time looking for money to pay the managers own salary does not make Regional Management an efficient tool.

2.2.3

Organisation and legal forms of Regional Management

This topic together with the financing of Regional Management (not projects, which will be addressed in module 8) may be considered and addressed as an own module and also addressed at a later stage, e.g. in function of the requirements of implementing the RDC/LDS. But although structure follows function, the permanent dependency on voluntary contributions or top-down promotion programmes (EU, national) may end up in a complete ineffective regional development effort. Before choosing the most adequate organisational structure to support regional development dynamics, several guiding questions will have to be answered.

Organization and Legal Form of RM

Objectives and tasks of RM determine the organizational and legal form

1 2

Clear definition of purpose and tasks

clarify fields of work

Identify gaps in the market

Avoid rivalries in the market Organizational and legal structure should follow the principle of practice Guiding questions
Who will be member of the decision making body? Legal regulations and administrative mandate Associations RM within existing organization? Only support of external project groups? Foundation

Who will finance RM?

New organization for RM?

Economic goals or non-profit making organization?

Implementation of own projects Limited liability company

Possible legal forms

Informal cooperation / networking Integration of RM in chambers / associations

Integration of RM in public administration

Regional (Development) Forum

Others

3
Tool Box for Trainers

Later adaptation should be possible

27

2.2.4

Potential financial resources for Regional Management

Possible financial sources of RM:


Membership fees Proportional distribution of costs to stakeholders Income generation from the delivery of services Participation in contests

In this section we do not discuss sources for RRD projects, but the self-maintenance of an effective operational RM unit. In many cases there is a political demand for self-financed RM at least after some initial subsidized years. Looking at the potential sources to finance RM, a broad variety of options can be activated. Most frequent are membership fees or the proportional distribution of costs to the participating stakeholders. Also income generation from services is a common source although with two inherent critical issues: profit-orientation vs. non-profit mission of RM and becoming an unfair competitor with private companies and consultancies. More and more, the participation in national and international contests is becoming a good complementary source of income, but still sponsoring and mainly the financing through EU and national programmes is the main source of revenue of many RM units.

Potential financial resources for RM


Membership fee (fix amount) Proportionate distribution of costs Income generated from services Municipalities District / county Associations Chambers Private members

According to financial strength Consulting fee

According to number of inhabitants Payments for studies / investigations

Commission on acquired funds Fees for project management Fees for elaboration of business plans Fees for moderation services Property management

License fees

Commission for use of registerred brands By regional banks National / regional contests EU funds

Commission on selling of registered products Through associations From foundations Support for specific projects Through regional enterprises Selling of (regional) shares

Sponsoring Contests and awards Public promotion programmes

National programmes

Revolving funds

Limited in time and declining

Often sector-oriented

Never get dependent on only one source

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Module 2 | Regional Management: Functions, structure and budget

2 2.3 Group work and exercises


While the integrative nature (as frame) and the central functions of RM (as overview) are most often delivered through an interactive visualised presentation, organisational set-up and financing of RM can be easily connected to participants working context. Both topics can be combined in a group work analysing some few selected real cases from the participants and developing a perspective towards the a mid-term future: How will your organisation look like in five years? Future organisational structure (staff, partners, participation of civil society, ) Sustainable financing (type of expenditure, sources of revenue/income, eg. in %)

It makes sense not to use this exercise at the beginning of the training as there should be an established atmosphere of trust and openness, which is necessary to frankly discuss also difficult and tricky financial questions of a normally still very young organisation.

Group work on organisation and financing of Regional Management How will your organisation look like in five years? 1 Future organisational structure (staff, partners, participation of civil society, ...) Sustainable financing (type of expenditure, sources of revenue/income e.g. in %)

An example from Southern Serbia

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2.4 Self-test
What elements define the integrative nature of Regional Management? In order to understand what Regional Management in practice means: What are the central functions of RM? Could you give a short description of each of these functions/tasks? Which of them are most relevant in your own working context? Are there arguments to start with a specific function (sequential order) or is there a need for simultaneous intervention? What strategies are needed in order to avoid the overburdening of RM with too many tasks and functions? What are the appropriate guiding questions to identify the most adequate organizational structure and legal status for the Regional Management? What are the potential sources for the financing of the self-maintenance of an effective and sustainable RM unit?

2.5 Reference material


Quite some information is available in German, material in English is still scarce or currently being developed. Powerpoint presentations on the CD: Koch, Regierung der Oberpfalz Regional Management in the Free State of Bavaria Becker, Krappitz, Parvex at the Trinational Dialogue on RM 2009 in Lindau giving an overview on RM in Austria, Germany and Switzerland. European Network for Rural Development: http://enrd.ec.europa.eu/

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Module 2 | Regional Management: Functions, structure and budget

Module 3

European Union and National Policy Frame: Funds, Programmes, IPA


Overview of this module
page Objectives, content, time
Community strategic guidelines for cohesion Priorities and general principles of EU Cohesion Policy Overview on the EU funding system, relevant for RRD Differentiation between programs for member states and IPA Community Strategic Guidelines for Cohesion 2007 2013 Overview about European funds 2007-2013 EAFRD - European Agricultural Fund for Rural Development IPA Integrated Instrument for Pre-Accession Assistance Cross-border co-operation programmes Terms and general knowledge Brainstorming for the introduction into the subject of EU policy and programmes Group work and presentation on different funds Visualized discussion on cross-border-cooperation ideas Expert talks/field trips to ministries, EU experts, lobbyists Rounds for reflection and conclusions Main objectives and guiding principles for EU cohesion policy 2007 2013 Important funds for RRD Recent developments in CAP for RD and LEADER Components if IPA and relevance for RRD EU cooperation programmes: Interregional and CBC Further reading material and websites are listed on page 42

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Introductory presentations

33

Group work and exercises

41

Self-test

42

Reference material

42

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Module 3

European Union and National Policy Frame: Funds, Programmes, IPA


The activities for Regional Rural Development in EU member states, candidate and potential candidate countries base on various EU programmes, which are meant to enhance a sustainable development and the political stability in Europe. Regional Rural Development as an integrated approach is mainly inf luenced by the two EU policy areas Regional and local development and Agriculture, fisheries and food. Actors in Regional Rural Development need to understand the present EU policies and the requirements and possibilities for funding. This builds up on the knowledge on the historical background of Rural Development in the EU and the guiding principles that are presented in module 1.

3.1 Objectives, content, time


Objectives
Through this module participants: are aware of the communities strategic guidelines for cohesion know priorities, general principles and major developments of EU cohesion policy understand the EU funding system/different funds with their implication on RRD differentiate between programmes for member states and IPA.

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Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

The contents of the topic contain the following parts: Introduction and overview presentations Exchange of participants expectations, e.g. towards the EU Community Strategic Guidelines for cohesion 2007 - 2013 Overview about European funds 2007 - 2013

Contents

Rural Development Policy EAFRD - European Agricultural Fund for Rural Development

Area-based approaches LEADER 2007 - 2013, including area-based local development strategies

Pre-Accession Assistance and European Territorial Co-operation IPA Integrated Instrument for Pre-Accession Assistance Interreg and cross-border co-operation at the EU external borders

Terms and general knowledge Basic principles of the Nomenclature of Territorial Units for Statistics (NUTS) and the German example of political and administrative structure EU terms common abbreviations Depending on the time, these contents may be presented as an overview and with different emphasis on different EU programmes. During courses that also focus on skills development the topics can be combined with team work activities and presentations of participants. They can also be organized as facilitated expert meetings. The unit will take 1-3 days or even more, depending on the field trips to be undertaken. Getting an overview and a first exchange of experience needs one day. For the use of interactive methods and the presentations of the participants, another two days should be reserved. Additionally, there should be sufficient time for the exchange with experts during the field trip. This should be taken into account when planning the excursions.

Time

3.2
3.2.1

Introductory presentations
Community Strategic Guidelines for cohesion 2007 2013

The Commission communicates its Cohesion Policy in Support of Growth and Jobs, the Community Strategic Guidelines, 2007-2013 for the reasons that are stated as fol-

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Objectives of the Community Strategic Strategic dimension of cohesion policy strengthened to ensure community priorities are better integrated in national and regional development programmes Efforts to ensure greater ownership of cohesion policy on the ground reinforced dialogue between commission, MS and the regions clear, more decentralised sharing of responsibilities such as financial management and control while promoting PPPs

lowed: Europe must renew the basis of its competitiveness, increase its growth potential and its productivity and strengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimisation of human capital. (Brussels, 05.07.2005, COM(2005) 0299). The recent enlargement of the Union has dramatically increased disparity levels across the EU. The renewed Lisbon strategy sets out that the actions supported with the limited resources available to cohesion policy should be concentrated on promoting sustainable growth, competitiveness and employment to foster real convergence. Macroeconomic stability and structural reforms are stated as a precondition for the success of cohesion policy along with a range of other conditions, which favour investment. The framework for Cohesion Policy 2007 - 2013 is based on the following principles: Concentration on the level of programmes and projects by including only those elements that can contribute to the growth and jobs agenda. The Commission will bring to bear this governing principle when negotiating the different national and regional programmes Convergence to reduce disparities in the enlarged Union. Key objective is to stimulate growth potential to maintain and achieve high growth rates for regions and member states eligible for cohesion policy support

Priorities according to the Lisbon agenda Making Europe and its regions a more attractive place to invest and work Improving knowledge and innovation for growth More and better jobs Territorial cohesion and cooperation

Regional competitiveness and employment aim at anticipating and promoting economic change by improving the competitiveness and attractiveness of EU regions through investments in the knowledge economy, entrepreneurship, research, university-enterprise co-operation and innovation, through access to transport and telecommunication infrastructure, energy, and health, environment and risk prevention, through supporting the adaptability of workers and enterprises, reinforcing participation in the labour market, and promoting social inclusion and sustainable communities. European territorial cooperation to promote stronger integration of the territory of the Union in all its dimensions. Cohesion policy supports the balanced and sustainable development of the territory of the Union at the level of its macro-regions and reduces the barrier effects through cross-border co-operation and the exchange of best practices. Governance concerns first a set of characteristics of public organisations related to the performance and the success of public policies. Secondly it includes measures and actions that are specifically needed in order to improve the capacity of member states in managing and implementing the cohesion policy. Another important factor is to enhance and ensure the quality of the partnership between all stakeholders, including those at regional and local level, in the preparation and implementation of programmes. The powerpoint presentation on the Community Strategic Guidelines includes the two principle objectives and guidelines according to the Lisbon agenda - a strategy and a broad range of objectives and policy tools with the aim of making the European Union more dynamic and competitive.

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Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

3
3.2.2 Overview about European funds 2007-2013

The financial instruments at the disposal of Cohesion Policy are the structural funds, the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF). Besides, the instruments of the Common Agricultural Policy (CAP), especially the European Agricultural Fund for Rural Development (EAFRD) play an important role with respect to Regional Rural Development. As shown in module 1, integrated rural development is a rather new area of focus. Shifts in CAP and the EAFRD, which are important to know for the target group of the training measure, are therefore explained in more detail, as well as the Integrated Instrument for Pre-Accession Assistance (IPA)

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3.2.3

EAFRD - European Agricultural Fund for Rural Development

The Common Agricultural Policy bases on two pillars. Pillar 1: Pillar 2: the European Agricultural Guarantee Fund (EAGF) includes intervention measures to regulate agricultural markets and direct payments to farmers. the European Agricultural Fund for Rural Development (EAFRD) supports rural development and may be of higher interest for the participants.

Main axes of the EAFRD: Competitiveness of agriculture and forestry The environment and the countryside The quality of life and the management of the economic activities in the rural areas

Although the second pillar was introduced progressively since the 1970s and institutionalised in 1997 with Agenda 2000, it was after the reforms of the CAP of June 2003 and April 2004 that EAFRD was introduced in 2005 as a financial instrument and a single programme. This instrument aims at strengthening the EUs Rural Development Policy and simplifying its implementation. To implement EAFRD, each member state draws up a national strategy plan in line with the strategic guidelines adopted by the Community. The national strategy plans for 2007 to 2013 are submitted to the Commission before member states present their rural development plans. The EARDF has been allocated a budget of EUR 96.3 billion for the period 20072013, or 20% of the funds dedicated to the CAP. The national strategic plans are implemented through Rural Development Programmes containing a package of measures grouped around four axes. The three main axes are according to the objectives of the EAFRD the competitiveness of agriculture and forestry the environment and the countryside the quality of life and the management of economic activity in rural areas.

Additionally, the LEADER axis relates to the implementation of local development strategies through public-private partnerships.

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Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

3
EAFRD 2007-2013

Rural Development 2007 - 2013


LEADER Axis Axis 1
competitiveness in agriculture and forestry

Rural Development Policy 2007-2013: Foundations

Axis 2
environment and land management

Axis 3
quality of life and economic diversification

Single set of programming, financing, monitoring and auditing rules

Single Rural Development Fund


For the presentation of the EAFRD the measures under axis 1 to 4 are visualized.

EAFRD 2007-2013: Measures Axis 1-4


Axis 1: improving competitiveness Improving human potential Vocational training and information actions Investments to improve production Meeting standards temporary support Semi-subsistence Setting up of young farmers groups Early retirement Use of advisory services (including for meeting skills) Restoring agricultural production potential Setting up of farm management, relief and advisory services

Restructuring physical potential Improving the quality of agricultural production and products Transnational measures for the new MS (until 2009)

Processing and marketing (infra) structures Food quality incentive scheme Setting up producer groups

Agricultural / forestry infrastructure Food quality promotion

Axis 2: environment / land management Sustainable use of agricultural land Mountain LFA (less favoured areas) First afforestation Introducing prevention actions
Tool Box for Trainers

Other areas with handicaps First establishment of agro-forestry systems Support for non-productive investments

Natura 2000 Agri-environagricultural areas ment and animal welfare Natura 2000 forest areas Forest environment

Support for non-productive investments Restoring forestry production potential

Sustainable use of forestry land

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Axis 3: diversification and quality of life Diversification of the rural economy Improvement of the quality of life Training and capacity building Diversification of non-agricultural activities Basic services for the rural economy and population Vocational training Support for micro enterprises Renovation and development of villages Capacity building for local development strategies Implementation preferably through local development strategies Overlapping with structural funds (ex ante choice) Encouragement of tourism activities Presentation and management of the natural heritage

Axis 4: the LEADER approach Implementation of local development strategies through a LEADER approach to contribute to the achievement of the objectives of one or several of the three thematic areas Inter-territorial and trans-national cooperation between LAGs Capacity building and functioning of LAGs

As mentioned before, EAFRD unites several measures in one single programme. LEADER as one of them dates back to 1991. It was launched in 1991 with the aim of improving the development potential of rural areas by drawing on local initiative and skills, promoting the acquisition of know-how on local integrated development, and disseminating this know-how to other rural areas (see module 4).

3.2.4

IPA Integrated Instrument for Pre-Accession Assistance

L E A D E R

Liaison Entre Action de Developpement de LEconomie Rural

Link Between Actions to Develop Rural Economy

The Instrument for Pre-Accession Assistance (IPA) is the financial instrument for the European Union (EU) pre-accession process for the period 2007-2013. Assistance is provided to two categories of beneficiary countries depending on their status as either candidate countries under the accession process or potential candidates under the stabilisation and association process. What is IPA? Replaces five different programmes/instruments: Phare, ISPA, SAPARD, CARDS and Turkey pre-accession instruments Flexible and integrated pre-accession instrument allowing a higher level of coherence and co-ordination of EU assistance Assists potential candidate countries and candidate countries according to their needs Better preparation for structural, cohesion and rural development funds through progressive emulation of EU fund rules financial envelope for the period 2007-2013: 11.500 million
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

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3
IPA comprises five components, whereby the first two components concern all beneficiary countries, and the other three the candidate countries only. Two components should be highlighted as they comprise essential measures to boost the development in rural areas. C2 Cross-border Co-operation aims at supporting the beneficiary countries in the area of co-operation between themselves, with the EU member states or within the framework of cross-border or inter-regional actions. C5 Rural Development concerns with the preparation to the Common Agricultural Policy and related policies and to the European Agricultural Fund for Rural Development (EAFRD).

IPA: Integrated Instrument for Pre-Accession Assistance


Bridging function to prepare for the time after accession Serbia Montenegro Albania Potential candidate countries Candidate countries Medium-term perspective Macedonia

2007 - 2013

Beneficiaries

Bosnia & Herzegovina Kosovo

Turkey

Croatia

C1

C2
Crossborder cooperation CBC EU MS Candidate/pot. candidate Participation in transnational and interregional coop.

C3
Regional development

C4
Human resources development

C5
Rural development

Components of IPA

Transition assistance & institution building

Focus on institution building Transition Potential assistance for cancandidate didate countries countries

Emulation of ERDF and Cohesion Fund Preparation for participation in the structural fund after accession Finance, investment and technical assistance

Provides preparation for use of cohsion policy Finance ESFtype measures

Finance rural developmenttype measures Prepare for postaccession EU-funded rural development programmes

Potential catch all candidate components countries Potential Rapid reaction andcandidate to adaptation changing needs countries

Employment and social inclusion

3 priority axes

9 measures

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3.2.5

Cross-border co-operation programmes

Fom INTERREG III to EUROPEAN TERRITORIAL CO-OPERATION Co-operation between MS and with IPA and third countries based on geographical features: borders, sea basins, periphery, etc. Structural Fund (ERDF) support for activities which decrease the negative impacts of borders or enhances co-operation and integration among partners, who share a common space Under the new European Territorial Cooperation Objective INTERREG IV programmes are divided into three different strands: cross-border co-operations transnational co-operations interregional co-operations

Cross-border co-operation is a strategic priority of the EU policy. All in all the following three programmes play a role to enhance co-operation among EU member states and with countries outside the EU: The Instrument for Pre-Accession Assistance (IPA) supports both cross-border co-operation between member states and candidate / potential candidate countries on the one hand, and among the candidate / potential candidate countries themselves on the other. The European Neighbourhood and Partnership Instrument (ENPI) promotes cooperation and economic integration between the EU and partner countries (among them Armenia, Azerbaijan, Belarus, Georgia, Moldova, the Russian Federation, Ukraine). Included are 14 cross-border co-operation programmes, which operate along EU external borders. The European Territorial Cooperation Objective in the period 2007-13 is one objective of EU cohesion policy. It is financed by the European Regional Development Fund (ERDF) and supports cross-border, transnational and interregional co-operation programmes. The European Territorial Co-operation Objective is the formerly INTERREG Community Initiative, which was first launched in 1990. With INTERREG IV it became a full Structural Fund Objective and is now financed by the European Regional Development Fund (ERDF). The budget of 8.7 billion for this objective accounts for 2.5% of the total 2007-13 allocation to cohesion policy, including the allocation to member states to participate in EU external border co-operation programmes supported by other instruments (IPA and ENPI). It includes the following three strands: INTERREG IVA - Cross-border programmes aim at bringing adjacent cross-border regions closer together through the development of joint projects. Under these programmes, projects can be financed in a wide variety of themes e.g. culture, tourism, economic development and transport. INTERREG IVB - Transnational programmes aim at promoting a higher degree of territorial integration, with a view to achieving sustainable, harmonious and balanced development across the EU and better territorial integration with candidate and other neighbouring countries. Key areas of focus include: innovation, environment, accessibility and sustainable urban environment. INTERREG IVC - Interregional co-operation focuses on the identification, analysis and dissemination of good practices by public authorities in order to improve the effectiveness of regional and local policies. Co-operation projects are eligible across all 27 EU states, plus Norway and Switzerland.

3.2.6

Terms and general knowledge

Preparing the study tours to German examples of EU funded Regional Rural Development projects the political and administrative structure of the Federal Republic of Germany can be explained, which also refers to the Nomenclature of Territorial Units for Statistics (NUTS), EC No 1059/2003. The NUTS was created by the European Office for Statistics (Eurostat) in order to apply a common statistical standard across the European Union. It established a common classification of European regions.

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Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

3 3.3 Group work and exercises

The emphasis of this module is on the transfer of specific information and background knowledge on EU measures. To connect to the background and previous experience of the participants and to increase their active involvement, the following working methods can be foreseen.

3.3.1

Brainstorming for the introduction into the subject of EU policy and programmes

What are your expectations towards the EU? What general or specific questions with regard to EU regional policies do you have?

Key word collections on these two questions can be followed by a presentation of the Community Strategic Guidelines for Cohesion Policy.

3.3.2

Group work and presentation on different funds

With respect to the home countries of the participants, a work in teams can be conducted to prepare a presentation, especially on IPA components in the different candidate or potential candidate countries. Documents, weblinks and useful handouts have to be prepared in advance to facilitate the team work tasks. Working tasks: e.g.: Please give a general overview about IPA in Croatia (or Serbia, Albania ) or: Describe the IPA Rural Development Component in ...? other funds/programmes For this, please study the uploaded documents in Global Campus. Prepare a pin board/powerpoint presentation of 10 minutes This group work element can be combined with the subject of presentation skills, thus collecting criteria for good presentations, introducing feedback rules and giving feedback to the presenting participants.

3.3.3

Visualized discussion on cross-border co-operation ideas

To complete background information on CBC, own ideas about co-operation projects can be collected that might be worked on later.

3.3.4

Expert talks/study tours to ministries, EU experts, lobbyists

Participants are asked to prepare the study tours in teams of two or three persons by: giving a short summary on the institution to be visited gathering questions to be asked to the speakers Findings after the visits: What did I learn from the presentation xy about z? My remarks/ideas about the ?
Tool Box for Trainers

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3.3.5

Rounds for reflection and conclusions

The following methods can be used to enhance the reflection on the topic: questions and answers after the presentations findings and conclusions, e.g.: What information on EU policy has been most interesting for you? Which are the most interesting characteristics of EU policy for you? Other... morning committees: summaries and repetitions of participants

3.4 Self-test
What are the main objectives of the Community Strategic Guidelines for Cohesion 2007 - 2013? What are the guiding principles for the Cohesion Policy 2007-2013? Which European funds play a major role for Regional Rural Development in member states and why? What are the recent developments in the Common Agricultural Policy with respect to Rural Development? What do I know about the EAFRD, especially about LEADER? Which components of IPA are of major importance for RRD, why? Which EU co-operation programmes did I get to know that are or could be applicable in my home country?

3.5 Reference material


Presentations
annex 1.1 EU guidelines_en_final.ppt 1_EU Funds and EAFRD_en_final_BS.ppt 2_EU IPA IPARD_en_final_BS.ppt 3_Interreg_en_final_BS.ppt

Websites
Summaries of EU legislation http://europa.eu/legislation_summaries/index_en.htm Community strategic guidelines: http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/050706osc_en.pdf The LEADER approach: a basic guide http://ec.europa.eu/agriculture/rur/leaderplus/pdf/factsheet_en.pdf
Module 3 | European Union and National Policy Frame: Funds, Programmes, IPA

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Module 4

Elaboration of Local Development Strategies/ Regional Development Concepts and Action Plans
Overview of this module
page Objectives, content, time
Become familiar with the LEADER approach Elaboration of a Regional Rural Development Strategy Exchange methods and tools Management of a Local Action Group Interregional and transnational cooperation projects Conceptual framework of LDS/RDCs Legal and administrative framework Area-based LDS in the LEADER approach Content and structure of LDS/RDCs Process of elaboration Exchange of experience on LDS/RDC Elaboration of an event management plan LDS follow-up activities / next steps Key-features of LEADER Contents of RDC/LDS Elaboration process Basic structures of LAG Management Advantages and disadvantages Respective documents on the official EU-website Shaping the future, BMVEL, 2006 Regional Development Concept 2007-2013, LAG Regina Neumarkt

44

Introductory presentations

45

Group work and exercises

56

Self-test

57

Reference material

57

43

Module 4

Elaboration of LDS/ RDCs and Action Plans


Within Axis 4 the LEADER Axis of the European Agricultural Fund for Rural Development (EAFRD) - the elaboration of Local Development Strategies (LDS) is a precondition for the selection of a rural area for funding. The LEADER approach developed into

LEADER:
frz.: Liaison entre actions de dveloppement de lconomie rurale eng.: Connection between measures to develop rural economy

a mainstream programme of the EAFRD in the period of 2007 to 2013 after having been a common initiative for three funding periods before.

4.1 Objectives, content, time


Objectives
Different to the EAFRD, the European Fund for Regional Development (EFRD) mostly follows an approach for economic development through infrastructure support and investment aids for companies. There is a big difference regarding the process of the elaboration of a LDS and the obligation regarding the setup of the organisational structure for the implementation of the two EU programmes. Whereas the LEADER approach delegates the decision-making power for the allocation of the money to a public-private partnership the so-called Local Action Group, the administration of the EFRD money is delegated to the responsible political and administrative units. The following chapter therefore focuses on the LEADER approach of the area-based approach to economic development. The objectives for the training in the elaboration of a LDS are: to be familiar with the LEADER approach as part of the European Agricultural Policy for Rural Development to be aware of the different aspects and the elaboration of a rural development strategy to exchange tools and methods of how to support the process of elaboration of LDS/ RDC in the region

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Module 4 | Elaboration of LDS/RDCs and Action Plans

to acquire the knowledge on how to organise and finance a Regional Management (Management of a Local Action Group) to be able to support the set up of transnational co-operation projects within rural development activities.

A training on elaboration of a LDS/RDC should include the following contents: Rural Development Policy of the EU and the EAFRD - European Agricultural Fund for Rural Development as the political and administrative guidelines for the LEADER approach Mandate and justification for the elaboration of a LDS Content of a LDS Participatory elaboration of a LDS Evaluation criteria for a LDS Roles and tasks of experts and consultants during the elaboration and implementation of a LDS.

Contents

The duration depends very much on the number of field trips and the number of interactive elements and group work units a trainer intends to implement. Three days are the minimum time frame, which can be extended up to six days.

Time

4.2 Introductory presentations


4.2.1 Legal and administrative framework for the elaboration of a LDS within LEADER

The contents on the legal and administrative framework for LEADER are described in Module 3 on EU and National Policy Frame. There, one can find the relevant powerpoint presentations (PPTs) and pin board presentations (PBPs) on the EU funding system and especially the EAFRD Axis 4/LEADER. Within the frame of the European regulations and guidelines on the implementation of LEADER, the national programmes for rural development lay down the detailed rules on the national level. Therefore, some very important decisions on LEADER have to be made on the national level and can be influenced especially by setting the selection criteria for the Local Action Groups and the assessment of the Local Development Strategies. The Council Regulation (EC) No 1698/2005 of 20th September 2005 on the support for rural development by the European Agricultural Fund for Rural Development (EAFRD) with amending acts lays down the detailed rules on the implementation of Axis 4/LEADER.

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The 7 key principles of LEADER


LEADER (Liaison entre actions de dveloppement de lconomie rurale) follows seven key principles: An area-based Local Development Strategy (LDS) - sometimes called Rural Development Strategy (RDS) or Regional Development Strategies (RDS) - for a well-defined sub-regional territory is the basis for the funding. 2 A local public-private partnership organized as a Local Action Group (LAG) has to be formed. 3 The bottom-up approach delegates the responsibility for the elaboration and the implementation of the LDS to the LAG. 4 A multi-sectoral design of the LDS should guarantee the interaction of actors and projects of different sectors. 5 The actions should focus on the implementation of innovative approaches. 6 Interregional (between LAGs of a country) and/or transnational (between LAGs of different countries) actions are obligatory. 7 The LAGs have to network with other LAGs within the Rural Network on the national and the European level. 1

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Council Regulation 1698/2005 Art. 61: Definition, elements
a b c d e f g Area-based LDS for well-defined subre-gional rural territories Local public-private partnerships (Local Action Groups LAG) Bottom-up approach with decision making power for LAGs Multi-sectoral design of the strategy Concerning elaboration and implementation of LDS Interaction between actors and projects of different sectors

Impelementation of innovative approaches Implementation of cooperation projects Networking of local partnerships LAG shall implement the partnered local development: Old groups (LII and L+) or new groups Ability to define and implement a LDS They must propose an integrated LDS based at least on a)- d) + g) Partners from various locally based socio-economic sectors They are responsible for its implementation Or select an administrative and financial lead actor

Art. 62: Local Action Groups

Or come together in a legally Or select an administraconstituted common structure tive and financial lead actor Guarantee the satisfactory operation Offer sufficient critical mass in terms of human, financial and economic resources They may also select cooperation projects To achieve the objectives of the three other axes of the EAFRD Run the LAG, acquire skills and animate the territory

Ability to administer public funds 3 Area covered by the strategy shall be coherent LAGs choose the projects to be financed under the strategy Implement LDS as referred to in Art. 62.1 Implement cooperation projects (involving the selected objectives

Art. 63: Measures

Art. 64: Implementing local strategies Art. 65: Cooperation

If the operations under LDS correspond to measures defined in axes I-III, the relevant conditions shall apply in accordance Support shall be granted to interterritorial and transnational cooperation projects Only expenditure relating to territories within EU shall be eligible for support Inter-territorial: within a member state Art. 64 also applies to cooperation projects Transnational: territories within several member states and with territories in third countries

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The most important decisions regarding the bottom-up approach giving full responsibilities to the LAGs for the administration of the financial resources etc. are taken on the national level. The strength and the benefit of the LEADER approach for rural areas depend very much on these decisions. Questions related to these decisions that need to be raised could be: What kind of legal status has the LAG? To what extent is the management of a LAG independent of or connected to existing administrative structures? Does the LAG really have decision-making power for the allocation of the LEADER funds? This question is strongly linked to the availability of the co-financing. Do the political power system and the administrative structure support the bottomup approach or do they hinder its implementation? Are the necessary capacities and competences available and sufficient for the implementation of the LEADER approach and the administration of the public funds? How much committed and experienced are the members of a LAG?

The EAFRD provides the basic guidelines for these questions. In the end, the conceptual framework for local/regional development is based on the process, which includes the civil society, the private business and the public sector in the elaboration of a programme (written document) focusing on sustainable projects with an innovative approach on local, regional and transnational level (see pin board presentation).

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4.2.2 Content of a LDS

The content of a LDS is basically laid down in the EU guidelines for the implementation of LEADER. The following table gives an overview on the content of a LDS, which again needs to be adjusted to the respective guidelines on the national level. Some managing authorities provide a template for the document, which is more or less obligatory to follow.

Structure and content of Regional Development Concept (following EU LEADER)


1 2 Boundaries and location of the area/region Description of the actual situation Administrative boundaries General data Energy and environment Education 3 Adopted procedures SWOT Analysis to a) develop strengths further Structural changes b) reduce weaknesses Demographical development 4 Description of regional structures LAG and bottom-up approach 5. Guiding vision and objectives for the region Bottom-up approach Population and coherence of the territory Political and legal framework Tourism and local recreation Agriculture, forestry and fishery Overview of identified S+W Image of the region Employment situation Formation and composition of LAG Definition of role of stakeholders Central motto Communication concept and public relations Implementation procedures Cooperation with other regions Reference to Natura 2000 and other regulations Womens participation Protection of natural/ cultural heritage Youth participation Sustainability Organizational structures Continuous M&E Links to administration and politics Cooperation networks Guiding and specific objectives Reference to MDGs Involvement of business and civil society Human resources and financial power Economic basics Nature and landscape Ethnic groups Level of services (Social) infrastructure Transfer opportunities into strengths Different ways of structuring Critical mass for efficiency Economic development trends Social groups and cultural offers

Operational structure and decision-making Common vision SMART objectives Concentrate on key issues Management skills and capacities Environmental impact

6.

Key topics and implementation strategy

7.

Integration with sectoral policies and programmes

Harmonization of interventions
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Criteria and justification

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8.

Environmental protection Sustainability

Divide because it is two different points Possible partner regions Further contribution to the reach the goals Estimates of grants and own resources

Consideration of existing Careful use of environmental plans resources Specific objectives of the cooperation Pilot character/ exemplary function Project responsibilities Possible/planned cooperation projects Correspondence with guidelines and regulations Brief log-frame of key projects

Consideration concerning sustainability Justification of cooperation Including budget estimation Success as soon as possible!

9.

Cooperation with other regions

10. Selection and description of key projects

4.2.3

Elaboration procedure What, how, when?

The process of the elaboration of a LDS or a RDC does not follow a standardised concept but can be based on guidelines regarding the time frame and some of the steps to be taken. Experience shows that the elaboration of a LDS or a RDS takes approximately 6 to 12 months. During this time, three phases of the process can be defined. The first phase is dedicated to the information of the stakeholders trying to get a clear mandate for the elaboration of a LDS and convincing the political and the administrative level of the benefits of the LEADER approach and enhancing the participation of the private sector and the civil society. The second phase is dedicated to intensive consultation and discussion on the content of the strategy and the organisational setup for its implementation with the founding of a Local Action Group. The third phase addresses consultations on the written documents and gaining agreement on the financial contributions of the stakeholders for the implementation of the strategy.

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The process of elaboration of a RDC / LDS

What?

How?

Awareness raising for RDC/LDS Get key actors to support the elaboration Negotiate area and boundaries Formation of LAG

Set up a communication strategy Form and train a team of moderators Stakeholder analysis with key actors Draft of constitution Basic decision by political bodies (councils)

Workshop (1-2 days) information on Rural Development Excursion Best Practice Workshop - 1 day in area + stakeholder

Or: short meetings in the villages Consultations, training on the job

Situation analysis

Analysis of existing activities Collect project ideas Possibly parallel working groups

Screening of documents, interviews Workshop (1-2 days) on elaboration of a RDC/LDS A strategy is not an operational plan Public meetings, hearings, councils Workshop day confirmation Possibly full and light version Party Decision in the council: document and budget

Formulation of basic elements (bones) Search for expertise if needed

Elaborate key issues

Write draft of RDC/LDS RDC/LDS draft distributed Formulate the final version Final version distributed Publish and distribute the LDS/RDC

Set up budgets for key projects (priorities) Consider and integrate recommendations Consensus on RDC/LDS

Integrative workshop if working groups were formed

The methodology for the process needs to be adjusted to the situation of each region and depends very much on the experience of the stakeholders in co-operation and the LEADER approach in general. It will be much easier to elaborate a LDS for an already experienced and well established LAG than for a new LAG.

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4.2.4

The structure of a LAG

The structure of a LAG follows some basic rules laid down in the EU regulations. The members of the public sector and the political level must not exceed 50%. Vice versa the percentage of representatives of the civil society and the private sector needs to be at least 50%. Usually the members of a LAG would represent interest groups or organisations. The representatives would be legitimated by the interest group or the organisation, they represent. Individuals are allowed to be members. Example of a LAG composition: Total No % 27 100.00% Men 18 66.67% Women 9 33.33% Young people Elderly people 2 7.41% 2 7.41% Public sector 12 44.44% Private sector 15 55.56%

The LAG has decision-making power and sets up a professional management (Regional Management), which links the institutional level with the participation level of the private sector and the civil society.

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The Regional Management is fully responsible to the LAG and acts as interface between the public and the private sector. The management facilitates the meetings of the LAG and provides the necessary organisational structures and supporting measures like capacity building measures. The LAG very often has a steering committee, which takes responsiblity for the supervision of the LAG management and day to day decision-making. Thematic groups are set up in order to be able to focus on some specific topics or fields of interventions. These thematic groups would provide professional input to the implementation of the strategy. On the level of the thematic groups participants without membership can take part e.g. in the development of project ideas or the elaboration of the strategy. The balance of power between formal institutions and informal structures is one important aspect of the LEADER approach. The LAG Regina in Bavaria has established Innovation Fora on different topics, which provide the thematic inputs for the fields of intervention to the steering group of 29 members (decision-making body). The management and supporting units are the Regina Ltd Regional Innovation Agency, the Department for Regional Development of the district administration and the Bureau for Agriculture and Forestry. The District Council approves the RDC (Regional Development Concept Local Development Strategy). The Regina Ltd has 19 mayors and the district as shareholders.

Membership of a LAG:
Administrative/policy sector < 50% Civil society/private sector > 50% The members represent interest groups and/or organisations (but can also be individuals)

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Advantages and disadvantages of different legal forms of RM

Advantages + RM integrated in public administration Qualified staff in various sectors Political back-up and power Better access to budgets RM as (registered) association Members from all sectors of civil society can join Rather easy to establish Objectivity better chances to mobilize

Disadvantages Not neutral being one stakeholder Not necessarily the best professionals Efficiency? Responsibility? Liability Little political commitment Easy to influence long time for decision-making Financial sustainability

RM as Ltd. limited liability company

Clearly known legal status Financial flexibility Focus on economic activity economic efficiency

Membership not as open as association Can be seen as consultancy with private interest Tax burden and book keeping demands

The organisational set-up of the RM for the LAG can be quite diverse. In most cases the LAG is established within the legal framework of a non-governmental organisation as a public-private-partnership. The management of the LAG is part of the organisation and very often organised within the public administration. Less often the management is organised as managing level of the NGO or a limited company owned by the LAG. Throughout the years of LEADER experience one of the most important factors of success is the continuity of the organisational set-up, and strongly linked to this question is the availability of financial resources for the LAG management. Due to the fact that this funding is not available all the time, the LAG should think about additional financial resources for the management and negotiate a fair contribution from the members of the LAG. Apart from membership fees, the management could also generate income from services or license fees, try to find sponsors or apply for contests, awards and public promotion programmes. It is wise not to depend on only one source.

4.2.5

Presentations on examples of LEADER and LAGs

For the outcome of a training on LEADER the presentation of examples from already existing LAGs with practical application and description of projects is essential. For the presentation of examples usually a powerpoint presentation would be used in order to illustrate with pictures. Several examples can be found on the CD or through research on websites of LAGs.

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Photograph credits: Dr. S. Weizenegger

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4.3 Group work and exercises


4.3.1 Exchange of experiences concerning the elaboration of a LDS/RDC
A good start for a training on LEADER is a group work on the experiences in LDS or RDCs. Participants can exchange their experiences and at the same time get to know each other in an early stage of the training.

ToRs for the exchange of experiences on local/regional development strategies/concepts

Please, give an overview on the following elements: 1. Deliniation and short description of the area(s)/region 2. Mandate and justification for the elaboration of a LDS/RDC origin/context existing legal framework existing plans, programmes, concepts 3. Stakeholder participation decision-making structures organisational set-up for elaboration 4. Process design and expected outputs steps undertaken until now main contents and issues 5. Assessment of the process undertaken so far (SWOT)

4.3.2

Elaboration of an event management plan

The LEADER approach does foster participative elements for the elaboration of a LDS like information campaigns, group meetings, workshops, public hearings, etc. It is essential for the LEADER approach to be familiar with the planning and implementing of group events. A good interactive element for a LEADER training is the elaboration of an event management plan, which properly illustrates all the details one has to look at.

ToRs for the elaboration of an event management plan

1. What do you want to achieve during/until the end of the envisaged event/workshop? 2. What do you have to do before the event? 3. Please describe the time schedule of the workshop Time schedule 10:00 Topic/issue Welcome address Detailed steps Who is responsible? Material/ equipment Welcome Dont forget minister Mladen Microphone, desk

4. What has to be done after the workshops - LDS follow-up activities?

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4.3.3

LDS follow-up activities next steps

What are the next steps in the elaboration and/or implementation of your LDS/RDC? Next activities Time frame Who is responsible? What support is needed?

4.4 Self-test
What are the seven key features of the LEADER approach? How can a LDS/RDC be structured? What are the necessary contents? What are the main elements of the elaboration process? How would you describe the basic structures of RM in your region? What are the advantages and disadvantages of different legal forms for LAGs and their management?

4.5 Reference material


BMVEL (2004): Actively Shaping rural development. Guidelines for integrated rural development. Federal Ministry for Consumer Protection, Food and Agriculture, Federal Republic of Germany, Bonn. DFID (2003): Tools for development A handbook for those engaged in development activity. Department for International Development (editor.). London. http:// webarchive.nationalarchives.gov.uk/+/http://www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdf, visited on 2010-12-18. Dick B. (2001): Action research resources; http://www.scu.edu.au/schools/gcm/ar/ arhome.html, visited on 2010-12-18.

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European Communities (2006): The LEADER APPROACH. A basic guide. Source: http://ec.europa.eu/agriculture/rur/leaderplus/pdf/factsheet_en.pdf, visited on 2012-12-18 Manktelow R. (2003): Mindtools - Essential skills for an excellent career - Stakeholder-Analysis. Source: http://www.mindtools.com, visited at 2010-12-18. OECD (2006): The New Rural Paradigm - Policies and Governance. Organisation for Economic Co-operation and Development, OECD Publishing. Source: http:// www.unisi.it/cipas/ref/OECD_2006_Rural_Paradigm.pdf, visited on 2010-12-18 OECD_2009_A_Guide to evaluation of local development strategies, Source: http:// www.oecd.org/dataoecd/27/5/42748793.pdf, visited on 2010-12-18 Shaping the future Regionen Aktiv, BMVEL, 2006 Regional Development Concept 2007-2013, LAG Regina Neumarkt

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Module 5

Inward and Outward Regional Marketing


Overview of this module
page Objectives, content, time
Mobilize stakeholders on the regional highlights and special products Understand the EU-Policy on Geographic Designations: orgin, elements and instruments How can regional products be marketed and protected? Time: 2-6 days Meaning of regional marketing Branding of products and services Regional profile EU regulations on geographical indications Group work: Reflection on own experiences with regional products and regions to be marketed Display and reflection of real examples of regional produtcs from various countries Assessment and findings of real case examples during a study trip What are main elements for regional marketing? What instruments can be used/are appropriate? How can the protection of a regional product be done? What are the important features of the EU type of branding? ppt on geographical indications Factsheet: European policy for quality agricultural products

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Inward and Outward Regional Marketing


Regional marketing is an important instrument for Regional Management as it intends to combine economic objectives (adding value to the region and its products) and social and institutional aims (building a regional identity among inhabitants and organizational structures to sustain it). There are two important dimensions of regional marketing and both of them have to be developed simltaneously: an inward awareness building and outside public relations and location marketing.

5.1 Objectives, content, time


Learning objectives
The learning objectives for the participants are to: understand the need for addressing people and stakeholders inside a given region (inward) as well as outside a region (outward) for any touristic, investment or product related type of marketing understand the double meaning of regional marketing as a marketing of products and of regions understand the relevant EU Council Regulations (agricultural products, food-stuff) and the registration procedures for the branding of regional products experience and reflect on practical examples of regional branding in the Federal Republic of Germany.

During a module participants should exchange know-how on current experiences and on new initiatives of regional branding and marketing in South Eastern Europe discuss the possibilities of networking between South East European countries in the development of regional brands.

Contents

The contents of the topic should contain the following parts: Introduction: meaning and understanding of regional marketing
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5
The origin and context of regional marketing The main elements of regional marketing The instruments commonly used in regional marketing The branding of products for regional marketing in the EU: geographical indications

Only to introduce to the minimum information on the topic needs about 1 day. As an interactive reflection of the content of regional marketing a groupwork should be done to relate the topic to participants reality: 2 3 days should be foreseen. The experience of real case examples adds a strong, convincing element to the learning effect. Depending on the local situation a minimum of 2 3 days for visiting regional marketing examples during an excursion have to be added to the calculated time as experience has shown in Germany.

Time

5.2 Introductory presentations


5.2.1 Clarification of terms
Regional marketing has two different components. On one side it comprises the marketing of a particular geographical region with its specific regional profile (landscape, culture, economic characteristics, etc.). The marketing of regions means to make a region known to outside investors as well as to the people living in the region and thus, strengthening their regional identity. This is a major task in regional marketing. The second meaning refers to the marketing of regional products, whereby specific and as such unique characteristics of regional products are defined, protected and by being appropriately marketed, also used for the economic benefit of the regional stakeholders (producers, processors and traders). In the German language there are even two terms to distinguish these different meanings. The challenge and task in regional marketing is to connect the two meanings and the related instruments and ask the question: How to join forces from either side for the benefit of the region? The origin of regional marketing is to be found to a high degree in the European economic unification process, which strives at a common and open market for goods and services. Further background aspects are: The parallel ongoing processes of globalisation and regionalisation in Europe and elsewhere (including the EU cohesion policy, which has its clear orientation in working for regions) The increasing importance of issues of consumer protection and quality control in the context of globalisation The protection of regional assets and values, which is expressed in the new EU regulation No. 509 and No. 510 of 2006 (formerly known as 2081/2082 of 1992). This can also be seen as a growing regional countermovement to face the mentioned globalisation and give it a more human, social and cultural dimension.

in German: Regionalmarketing in English: What is meant? reference:

Regionalvermarktung

regional marketing marketing of regions mostly geographically defined land of miracles marketing of regional products also freely defined regional products but also: EEC regulation on the protection of geographical indications and designations of origin for agricultural products and foodstuff (509 + 510 2006)

How to join forces?

Traditional speci- Protected Geo- Protected Desigality guaranteed graphical Indica- nation of Origin T.S.G. tion P.G.I. P.D.O.

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The question of defining a region becomes even more relevant in the context of regional marketing. Also the effort to look for all the potentials existing in one region and the need to involve all important stakholders are questions to be asked in the process. In order to come to a sound regional marketing concept, 3-4 important elements have to be included: a well made market analysis a clear definition of the target groups and the objectives the development of the necessary instruments and their implementation a constant controlling and redirecting if necessary

All the elements have their pitfalls and dangers, which should be named and scrutinised regularly. In order to comply with the given trends, regional marketing concepts have to answer a series of critical questions, also regarding the central question: What do we really define as our region? It is very obvious, that political-administrative boundaries still are important, but other criteria like socio-cultural traditions, natural and geographical criteria play an increasing role.

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A collection of instruments for the promotion of regional marketing is important! But first the region itself has to be properly defined! Without a well prepared and sound delimitation of what is included (and excluded) by designing the region, no (or any) instrumental marketing mix will be the right one and the different options of organisational set-ups will be most probably only the second or third best option. The introduction into the instruments can be done in a very lifely and interactive manner. Participants should be asked what instruments they already know or are aware of. Card by card then this part should develop and additional explanations can be given on each one if necessary. The list can always be extended if paraticpants come up with new or different ideas of instruments they have heard about.

5.2.2

The branding of products in the EU: geographical indications

For the marketing of regional products a common instrument in use are the brands, which indicate a companys individual products. In additon, the protection of a geographical origin can be issued (on national and European level). To address the question on what a geographical indication (GI) really is, the following powerpoint presentation by terrafusca could be a helpful tool for presentation. It shows different views on the GIs and shows some current examples, taken from European retailer and supermarket reality.

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The UAP

Consumer expects benefit

USP technology ingrediences use

UAP personal benefit social benefit

market research
Source: Thiedig (2007)

objective benefit

subjective benefit

Product

Throughout Europe there is an enormous range of great food. However, when a product acquires a reputation which extends beyond national borders, it will find itself products, which are presented as the real genuine article and apply for the same name. This unfair competition not only discourages producers but also misleads consumers. That is why, in 1992, the European Union created systems known as PDO (Protected Designation of Origin), PGI (Protected Geographical Indication) and TSG (Traditional Speciality Guaranteed) to promote and protect food products. The differences compared to brands are:

Brand vs. geographical origin


Place of production Risk of enterprise Decision-making process Acquisitional potential Experience

Brand
COMPANy ORIGIN Not fixed Risk is carried by the owner of the brand Can be very simple Image of the brand needs high investment A lot of experts

GI
GEOGRAPHICAL ORIGIN Fixed Risk is carried by the whole group Might be complex Positive Image of a region or country reduces investment Few experts, so far

In addition the three types of GI at European level need to be explained: The presentation as power point is ready made (by terrafusca), and can be used with all stated examples. Important is to clarify the concepts/terms usp (unique selling proposition), uap (unique advertising proposition) and ulp (unique local proposition) and also the geographical indication.

A PDO (Protected Designation of Origin) is the term used to describe foodstuffs, which are produced, processed and prepared in a given geographical area using recognised know-how.

In the case of the PGI (Protected Geographical Indication) the geographical link must occur in at least one of the stages of production, processing or preparation. Furthermore, the product can benefit from a good reputation.

A TSG (Traditional Speciality Guaranteed) does not refer to the origin but highlights traditional character, either in the composition or by the means of production.

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The difference between the two first ones shows, that the designation of origin (PDO) is a much stricter way of protection than the geographical indication (PGI). The second one gives more flexibility to the applicant and is more widely found in Germany (at present more than 35 food items: mainly mineral waters, beers, meat-based products, cheeses, vegetables and bread). The PDO is more widely applied in France and Italy, as these countries have historically an excellent reputation for good food!

production and processing and finishing and / or and / or

The two types of GIs (according to 2081/92)

P.D.O.

P.G.I.

Designation of origin

Geographical indication

Why are European systems for developing and protecting food needed? To encourage diverse agricultural production To protect product names from misuse and imitation To help consumers by giving them information concerning the specific character of the products

The process to apply for such a protection is a rather long and tedious one (and can become very expensive). As a moderator for such a process the following steps need to be observed on the way to protection: Gather the information for the group that intends to apply for the protection If the results are positive: Coordination of the process Find the adequate opinion leaders and stakeholders to be involved Organise a workshop for information dissemination and motivation Decide whether an application should be done or not Follow up the further process for the application

How do producers and processors proceed in the registration of a products name? A group of producers has to define the product according to precise criteria for specification.

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The application, including the specifications, must be sent to the relevant national authority... ... where it will be studied first and thereafter transmitted to the Commission. Here the application will undergo a number of control procedures. If it meets the requirements, a first publication in the Official Journal of the European Union will inform those in the Union who are interested. If there are no objections, the European Commission publishes the protected product name in the Official Journal of the European Union.

Protection and registration of a brand: Protects producers and consumers from misuse and imitation Increases the publicity of the region and the product Promotes regional identity areas

The specifications of the protected product are formulated and defined by the applicant (who always needs to be a group of people) and should contain the following: Specification (code of practise) name description limitation of the geographical area proof of the tradition production link with the region control body labelling specific national legislation From April 2006 on, applications for registration of PDOs and PGIs by producers in third countries outside the EU and objections to applications by individuals in third countries can be made directly to the Commission.

5.3 Group work and exercises


5.3.1 Exchange of experiences on marketing of regions and regional products

In order to relate the presented contents to the particpants home context, a group work, which allows the preparation, discussion and presentation of the regional marketing situation in their countries or regions, is a good introduction to the topic. The idea is simply to know more about the current situation regarding marketing of regions and regional products in participants countries. Participants have to split in subgroups according to their countries of origin. In groups they should work on the following tasks: 1. Give a brief overview on the current situation: e.g. traditional, regional and product brands legislative framework major constraints, difficulties promotion programmes, etc. 2. Describe one example of a regional marketing activity.

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The results of this group work are to be presented in plenary afterwards.

5.3.2 Field trip: Assessment and transfer to own working context


If there are days spent for visiting regional marketing examples e.g. in Germany, the experiences made during an excursion have to be reflected and discussed. The group work task could be presented in the following way: Looking at the marketing efforts for regional products ... Looking at the promotion efforts for the Region (like Spreewald) Looking at the organisational set-up and the networking of many different stakeholders. 1 What are the main findings/conclusions that are useful and applicable in your own working context? 2 What open questions need further clarification? 3 What are your proposals for networking in Regional Branding and Marketing in SEE?

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5.4 Self-test
What are main elements for regional marketing? What instruments can be used/are appropriate? How can the protection of a regional product be done? What are the important features of the EU type of branding?

5.5 Reference material


Powerpoint presentation on geographical indications and its context in Europe Factsheet: European Policy for Quality Agricultural Products, January 2007

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Module 6

Local and Regional Economic Promotion


Overview of this module
page Objectives, content, time
To inform particpants/stakeholders of a region on the important aspects of economic development and the role of Regional Management therein What is the history and origin? What are the main tasks and the instruments? Time: 0.5 - 2 days Background and context of LED/RED Objectives and tasks Instruments for LED/RED Organisational structures Reflection on own experiences with LED - RED (what is possible in what context?) Comparison of advatantages/disadavatages of different instruments in various country situations Main aspetcs of LED/RED Instruments to be used Organisational set-up for LED/RED General, important features for starting LED/ RED in a Regional Manangement context? GTZ-Publication on Regional/Local Economic Development in SEE http://www.mesopartner.com/ http://www.worldbank.org/urban/local/toolkit/ pages/home.htm

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Introductory presentations

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Group work and exercises

76

Self-test

77

Reference material

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Module 6

Local and Regional Economic Promotion


Local and Regional Economic Development (LED/RED) is an important function in Regional Management as it intends to improve the economic situation in the region creating employment and adding value to the region. We use the picture of BMW will not come to your Region to stress the importance of looking to the small/medium business opportunities within the region, to care for the development of the existing enterprises (also the small and medium ones), instead of chasing phantoms.

6.1 Objectives, content, time


Objectives
The learning objectives for the participants are: To understand the background and context (e.g. in Germany) for getting involved in LED/RED To know the main objectives and tasks for LED/RED To get a first overview on major instruments commonly used for LED/RED To reflect and exchange on known practical examples in LED/RED and compare advantages and disadvantages

During a module participants should exchange know-how on current experiences and on new initiatives of local and regional economic development in South Eastern Europe (and elsewhere) discuss the possibilities of networking between South East European countries in the development and implementation of LED/RED initiatives.
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The contents of the topic should contain the following parts: Introduction: meaning and understanding of LED/RED in Regional Management The origin and context of LED/RED The main policy orientation in local and regional economic development The instruments commonly used in LED/RED Some general principles to be considered

Contents

In order to introduce to the information on the topic it needs about 0.5 days. To deepen the given information in an interactive reflection of the content on LED/RED a groupwork can be done to relate the topic to participants reality: 1-1.5 days can be forseen then. The experience of real case examples (instruments that particpants are familiar with or have introduced themselves) adds a strong, convincing element to the learning effect.

Time

6.2 Introductory presentations


A first necessary clarification deals with the terminology of local and regional economic development. Many of the ideas and concepts in this topic arise from what is called local economic development (LED) in literature. The definition of what is local is not always very clear and can refer to one community only or to several communes or even districts. In the context of Regional Management for rural areas it means explicitly the attempt to cover several communities within a territory and to bundle resources in rural areas and gain a wider outreach that way. Literature and projects commonly use the term LED nowadays, but it would be more complete if the term was extended to Local and Regional Economic Development (LED/RED). More important than the area covered in LED/RED is the involvement of various stakeholders as it is already expressed in the definition given by the World Bank. The aims of this process of local/regional economic development initiatives are to stimulate growth of local/regional economies and create new job markets, to make the best use of available local/regional resources, to create space and opportunities to balance supply and demand, and to develop new business opportunities for and with regional stakeholders.

LED is the process by which public, business and nongovernmental partners work collectively to create better conditions for economic growth and employment generation. The aim is to improve the quality of life for all in the community. World Bank

6.2.1 What is the context in which LED/RED for rural areas (at least in Germany - and Central Europe) has to be seen?
The government obligation on the creation of equivalent or comparable living conditions (not the same!) in all parts of the country is laid down in the German constitution (Art 28). The self-administration laws at communal level state the responsibilty for the regulation of all matters of the local community (among them to strive for economic development).
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In that context also LED/RED should be seen as part of services of general interest: provision of jobs (like the basic needs as part of Daseinsfrsorge). In reality nowadays there is a multitude of levels (village, city, municipalities, districts, etc.), approaches, tasks and activities - and not a one way concept of how to go about it. There is a noticable re-orientation from the establishing of new economic opportunities (new investments and compannies) towards a stronger focus on the safeguarding of the existing enterprises in a rural area. In this context the so called soft location factors (well trained labour force, good cultural and ecological environment, etc.) become more important (besides the hard location factors physical and technical infrastructure).

6.2.2

Which policies can give orientation where and how to go about LED/RED?

Growth-oriented policy refers to regional value adding through the mobilisation of unused potentials in the region (which may be identified in the Regional Development Concept see module 4) Stability-oriented policy the diversification of the economic structure (not to depend on one sector, one crop or only one or two types of activities) will help to make the regional economy more crisis-proof Balance-oriented policy based on the above given statement striving for equivalent or comparable living conditions one should have a mission towards that and also try to keep economic, social and ecological goals in balance Sustainability (as a policy for LED/RED at local and regional level) an improved economic situation in a rural region should aim at strengthening the local and regional financial power and base of the private enterprises as well as indirectly the public authorities.

6.2.3
What policies can support LED/ RED? Policies with an orientation on growth Policies with an orientation on stability Policies with an orientation on economic balance Policies aiming at sustainability

What are the objectives and tasks in and for LED/RED?

Improvement of basis of economic development (local infrastructure, knowledge and motivation of people, ...) Promotion of innovations and technology through information, networking, study tours Securing of qualification and therefore also employment (training, adult education, regional knowledge exchange, ... Securing and developing of existing enterprises and institutions (supporting them in different ways e.g. information, technical and administrative support as they are based and bound in the region) Promotion of the creation of new business and jobs (as far as potentials have been identified and investors can be attracted) Location marketing/image building (for outside investors - see before) selling the strong points of the region to the outside world and creating a positive picture of the economic opportunities Land provision and locational planning - as far as the legal system allows local and regional authorities to plan, own, buy and sell, guide and decide over land resources in their area, which are suitable for economic development Administrative (internal) support of/for regional business interests help and advice in bureaucratic procedures, legal permits, etc.
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6.2.4

What instruments can be used / are known for LED/RED?

Having done the introductory part above, one could start with a brainstorming exercise for the participants making them think about appropriate measures for LED/RED. The introduction to the instruments can be done in a very lifely and interactive manner. Participants should be asked what instruments they already know or are aware of. This part is then developed card by card and additional explanations are given where needed. As the system is flexible, the list of ideas can always be extended if the participants come up with more ideas on appropriate instruments.

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Even outside the local/regional level, there might be additional important aspects having a strong impact on a successful economic development the most important frame conditions can be named and discussed in this context as well: Clear legislation Politcal stability Transparency in decision making Anti corruption measures

The instruments can be grouped as above (additional clusters are possible). Services provided by agencies Land and infrastructure support
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6
Linking and networking support local co-operation Education and qualification of people Promotion of the region (regional marketing see module 5) Contests and competitions Fiscal measures tax facilitation and reduction (as far as possible) Start-up newly created business/enterprises; newcomer; need special advice/support during start, in the beginning (1-2 years) of business One stop shop a place/office (in the administration) where all the necessary papers/permits for starting a business are taken care of One window / service door providing the needed services

Depending on the experience of the particpants, additional explanations may be given about specific terms and instruments without going into every detail of an instrument. This topic could easily cover another seminar. The combination of instruments (as an integrated approach) is in many situations possible and recommendable. Depending on the creativity of the regional management body, there is a whole range of additional new instruments, which could arise depending on the creativity of the local and regional authorities, their decision making power and their financial possibilities.

6.2.5

What organisation is suitable/possible for promoting LED/RED?

In different countries various legal forms for organising the economic development at local and regional level do exist. Regional Management provides the ways and means to include private stakeholders (individuals or companies) or other members of the civil society (NGOs) in the LED/RED. Depending on the degree of self administration at regional level, the compentencies and responsibilities given to this level and the financial and technical resources available, several organisational aspects should be considered: To have the promotion agency within the administration or as a ltd. company depends on the above conditions (advantages disadvantages). If it is located within the regional administration it should be a cross sectorial task. Experience shows that more and more public-private partnership models are chosen. It is always important to integrate the political decison makers of the region into the process and have them informed on promotion activities. Sustainable financial solutions for the economic promotion activities are most important in order to have a long term perspective for the support measures. Nevertheless, the promotion should be project-oriented: this indicates that clear objectives, time frame and target groups should be presented. Done as an integrated approach, economic as well as social, environmental and/or institutional aspects should be considered. The latter requires teamwork within public administration, specially in co-operation with the private sector, where a lot of the expertise is to be found.

6.2.6

What principles (or general recommendations) can be drawn from experiences for promoting LED/RED?

The districts and municipalities hold (at least in Germany) a wide range of tools for attracting investors, but these tools by themselves do not guarantee success. The human factor, as expressed in the following six principles, does play an important and decisive role.
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Specialised knowledge

On economic and business understanding is necessary for RM to find the right tone for the discussions with different stakeholders and for the identification of the needed support instruments. Like above, skills in this field are not necessarily available in a public administration and sometimes have to be hired from outside. When it comes to decision-making on promotion measures (especially if these are involving costs) the responsible authority has to be clearly identified! This is relevant for formal (e.g. district councils, chambers, ...) as well as for informal groups (clubs, initiatives) People who become active in economic development and promotion activities have to make this clear and show it, in order to keep a good relationship and to be taken serious as competent partners. Given the competencies, skills and traditions that often characterise rural areas (positive or negative) the regional economic promoter has to show flexibility towards various aspects (time, availability, understanding, motivation, etc.) Being a basis for RM this principle becomes even more relevant for RED/LED. As economic activities take place almost exclusively in the private sector a serious partnership with people from public sector and civil-society is essential.

Advisory competence

Decison-making authority

Seriousness

Flexibility

Partnership

6.3 Group work and exercises


6.3.1 Group work on the current situation in participants countries

The above given subject matter can be presented and dicussed as an input presentation in 0.5 to 1 day. In order to relate the presented contents to the participants home context a group work can/should be foreseen. The focus should be on the presentation and discussion of the economic promotion possibilities at regional level and the present situation of their regions economic development. The intention is to know more about the current situation regarding local and regional economic development within a region in the participants countries. Participants have to split in subgroups according to their countries of origin. In groups they may work on the following tasks:

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1. Give a brief overview on the current situation: e.g. main characteristics of the economic situation and its trends legislative framework for local and regional promotion efforts major constraints, difficulties faced in your region already existing economic development/promotion programmes 2. Describe one example of a local and regional economic development activity/ approach (instruments). The results of this group work are to be presented in plenary afterwards. If several days have been spent for visiting local and regional economic development examples (e.g. promotion measures in Germany) the experiences made during the excursion have to be reflected and discussed.

6.3.2

Group work: Assessment of field visits and transfer to own working situation

The group work task can look as follows: Looking at the local and regional economic development examples ... Which organisational set-up and type of networking of various stakeholders seems to be promising? Why? What are the main findings/conclusions that are useful and applicable in your own working context? What open questions need further clarification? What are your proposals for information sharing and networking in local and regional economic promotion/development in SEE?

6.4 Self-test
What are main aspetcs for LED/RED ? What instruments can be used/are appropriate? How can the organsiation for LED/RED look like ? What are general, important features for starting LED/RED in a regional manangement context?

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6.5 Reference material


GTZ: Regional/Local Economic Development in SEE http://www.mesopartner.com/ http://www.worldbank.org/urban/local/toolkit/pages/home.htm a lot of useful information; not focused on rural areas or related to Regional Management Local Economic Development (LED), a powerpoint presentation by PACA based on experiences by GTZ in Indonesia: http://www.red.or.id/

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Module 7

Project Cycle Management and Logical Framework Approach


Overview of this module
page Objectives, content, time
Overview on the general concept, principles and instruments of PCM Formulation of realistic project objectives PCM instruments for analysis and planning LFA/PPM as main tool for project planning Understanding of EU project management language Key PCM principles and clarification of main terms Elements of PCM Logframe approach: analysis and planning phases Stakeholder analysis Problem and objective tree PPM - Project Planning Matrix Activity planning Experiences on failure and success in project planning Stakeholder analysis Elaborate a sound project document: group work in several steps Commonly used terms in PCM, Logframe & PPM Tools for analysis Difficulties in implementing the PCM approach How to formulate the own project proposal Further reading material and websites are listed on page 92

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Project Cycle Management and Logical Framework Approach


A stringent project planning and implementation on municipal and regional level is an important success factor, which can be influenced by the project management. It is nowadays a requirement from most of the donors to prove the ability and skills of sound planning and a set of clear and realistic objectives, already in the first draft proposal of a project. There are certainly also examples for successful projects, which did not start from a solid planning base, but these cases are few and most of such insufficiently planned projects either fail completely or result in a big waste of time and money including unnecessary learning loops of trial and error. Regional managers should have the capacity to use the current project management tools and instruments in a way that is most appropriate and supportive.

7.1 Objectives, content, time


Objectives
The learning objectives for the participants are to: get an overview on the general concept, objectives, principles and different phases of the project cycle management be able to formulate realistic project objectives according to the logic of PPM

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know how to use PCM instruments for situation analysis, planning and implementation reflect the appropriate use of management instruments and learn from the experiences of others have a consistent understanding of terms used by the EC. A training on project management should include the following contents: Introduction into Project Cycle Management background and principles Introduction into the Logical Framework Approach Presentation and group work on selected instruments for a sound problem and stakeholder analysis Elaboration of a Logical Framework Matrix and clarification of its vertical and horizontal logical structure Outlook on activity planning and scheduling Presentation and discussion of practical examples that include best practice ideas as well as possible pitfalls and issues for critical reflection. If the objective is to give participants the chance to work on their own cases, four to five days including group work, exchange of experience and the presentation of practical examples are required. Eight days can be reserved if field visits to several examples are planned. Just to give an introduction and do some exercises, 2,5 days are required.

Contents

Time

7.2

Introductory presentations

Project Cycle Management (PCM) was adopted by the EU (EC Europe aid) as a primary set of project design and management tools. The European Commission developed guidelines on PCM to enhance the quality of EC development assistance and to support good management practices and effective decision-making throughout the project management cycle (EuropeAid Cooperation Office 2004). The Logical Framework Approach (LFA) is a core tool used within Project Cycle Management. The EC generally requires the development of a Logframe Matrix/Project Planning Matrix (PPM) as part of its project formulation procedures for external assistance. Project managers in regional development should know the logic and the terminology since the communication and proposal procedures are based on this common understanding. Beside the formal requirements, the tools offer support for thinking, analyzing and steering project stages and activities in a systematic way (EuropeAid Cooperation Office 2004).

7.2.1

Project Cycle Management

Before presenting the project cycle, basic characteristics of projects highlight some challenges for the project management and steering. Usually projects in Regional Rural Development are characterised by:
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complexity of objectives and tasks interdisciplinary teamwork no routine no continuous process high costs interdependence of participants

Additionally, the clarification of commonly used terms my be helpful at the beginning.

Clarification of terminology

Management, managing

structuring social processes in order to achieve pre-determined objectives (several functions involved) a process of providing inputs over a limited period of time containing a group of actvities a series of projects, where all objectives contribute to an overall common objective (linked together in a sector, sub-sector, region)

Project Programme

Project Cycle Management is a term used to describe the management activities and decision-making procedures during the life cycle of a project (including key tasks, roles and responsibilities, key documents and decision options) (EuropeAid Cooperation Office 2004, p. 17). It is a set of project design and management tools, which are based on the Logical Framework Approach. As the international debate on aid effectiveness is ongoing, one should know that the tools for project planning and management are also a constant issue for further development and improvement. From the point of view of the EC it is important to understand the key principles of PCM.

Key PCM-Principles

2 3 4 5

Use of Logical Framework Approach to analyse problems work out solutions Production of good quality key-documents for structured and well informed decision-making Consulting and involving key stakeholders as much as possible Keeping a clear focus on the project purpose sustainable benefits for intended target group Incorporation of key quality issues into the design from the beginning

To show this life cycle the following pin board can be used. The life cycle is based on the classical management cycle starting from situation analysis and planning and going to implementation and evaluation. Evaluation of results is not necessarily the end of the process. The assessment of intermediate or final project results is again a description of a new situation (Where are we now? How does the situation look like now?) and could be the base for continued project planning. Also the steps are interrelated. Problems in the implementation phase can occur because a wrong understanding of the situation existed.

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For a more detailed introduction into PCM including an outlook on the tools used during the analysis, planning and implementation phase, powerpoint presentations can be used. References on Monitoring and Evaluation are included as this is an inherent part within the project life cycle and the stages are interrelated. The topic on M&E in Regional Rural Development projects is deepened in module 12.

What does PCM aim at?


Projects respect and contribute to the overarching policy objectives of the donor organisation and the beneficiary country as well as to cross-cutting issues. Projects have to be relevant and propose a strategy, which is agreed upon among the target groups/beneficiaries and has the potential to solve their real problems. Projects have to be feasible, e.g. objectives can be realistically achieved within the operating environment and the capabilities of the implementing institutions. The benefits generated by the projects are sustainable.

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PCM and Logical Framework Approach

Analysis

Analysis Phase Identify stakeholders Identify problems Derive objectives Select strategy Planning Planning Phase Define the logical frame of the project Specify activity schedule, milestones, responsibility Specify resources from the activity schedule

Evaluation

Implementation

7.2.2

Logical Framework Approach

PCM is based on the Logical Framework Approach. A famous element but actually only the result of an iterative discussion process is the logframe matrix. All in all the logframe approach includes various tasks within the analysis and planning stage (EuropeAid 2004, p 60):

ANALYSIS PHASE
Stakeholder analysis - identifying and characterising potential major stakeholders; assessing their capacity Problem analysis - identifying key problems, constraints and opportunities; determining cause and effect relationships Objective analysis - developing solutions from the identified problems; identifying means to end relationships Strategy analysis - identifying different strategies to achieve solutions; selecting most appropriate strategy

PLANNING PHASE
Developing Logical Framework Matrix - defining project structure; testing its internal logic and risks; formulating measurable indicators of success Activity scheduling - determining the sequence and interdependence of activities; estimating their duration, and assigning tasks and responsibilities Resource scheduling - from the activity schedule, developing input schedules and a budget

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For the practical use of LFA, the EC points out that it has to be intelligently applied in order to be an effective analytical and management tool. This means that experience and professional judgment cannot be substituted through guidelines. The LFA must also be complemented by the application of other specific tools (such as Institutional Capacity Assessment, Economic and Financial Analysis, Gender Analysis, and Environmental Impact Assessment) and the application of working techniques that promote the effective participation of stakeholders (EuropeAid Cooperation Office 2004).

7.2.3

Stakeholder Analysis

Regional rural development projects are change processes that depend on the behaviour of the involved and concerned people. The projects intervene and take place in a social environment, with a number of actors, who form a mobile system of mutual relationships and dependencies and who act on the basis of the roles and expectations ascribed to them, their influence and their resources and adopt a supportive or a rejective attitude toward reform projects (GTZ 2007, 75). Within this context, the stakeholder analysis is an instrument for situation analysis and project planning and can be conducted on a preparatory and preliminary or on a detailed scale. It also includes preliminary institutional capacity assessment, gender analysis and others. Participants get a practical tool for undertaking a stakeholder analysis for a project idea. While conducting a stakeholder analysis, doubts or new information about the interest of important stakeholders, especially the target group and key players might come up, what can lead to an adjustment of the defined objective(s). The introduction to this instrument can be part of a Powerpoint presentation on PCM followed by a pin board that shows a matrix to list the stakeholders with their attitude towards the project idea and their possible influence. Once this scheme is introduced it can also serve as base for a group work. The questions that are related to the Stakeholder Analysis are: Which people and organisations are concerned? What interests and benefits do the stakeholders expect? How strong/important are these interests and benefits? How can the stakeholders contribute to the project? How important is the contribution?

The stakeholder analysis is a widely used tool, nevertheless there are variations that are not contradicting but might cause confusion by a slightly different usage of terms. Attention should be therefore put on the clarification of stakeholder classifications. Common terms are beneficiaries (target groups as well as final beneficiaries) and project partners (EuropeAid 2004), but also key stakeholders, veto players and primary and secondary stakeholders (GTZ 2009).

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7.2.4

Problem and objective analysis

A common tool to conduct a problem and objective analysis is the problem tree and the resulting objective tree. The analysis altogether involves three main steps: Definition of the framework and subject of analysis; Identification of the major problems faced by target groups and beneficiaries; and Visualisation of the problems in form of a problem tree or hierarchy of problems to help analyse and clarify cause effect relationships. The analysis aims at identifying the real bottlenecks, which stakeholders attach high priority to, and which they wish to overcome. A problem tree illustrates the cause and effect relationship of problems using a hierarchical tree diagramme. It encourages team members to explore the chain of events or causes by constantly asking why? Once complete, the problem tree represents a summary picture of the existing negative situation. The instrument of the problem tree is introduced with a Powerpoint presentation. A written example on a pin board serves for a later group work. Participants understand how the analysis of problems gives basic information to be transformed into objectives in order to improve the situation.

Analyse - describe the problem


Effects

general

Decreasing income of artisanal fisherfolk

detail Decreasing fish stock general Causes detail Destruction of coral and mangrove habitats Illegal fishing methods Processed fish is of bad quality Limited access to market Low price received by artisanal fisherfolk in the village

Analyse - describe the objectives


Effects

general

Income of artisanal fisherfolk increases

detail Rate of decline in fish stock arrested general Causes detail Coral and mangrove habitats conserved Incidents of illegal fishing reduced Quality of fish processing improved Access to markets improved Price received by artisanal fisherfolk increased

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7.2.5 Project planning matrix

The logframe matrix is the central step within the Logical Framework Approach that summarizes previous steps and visualises the logic of intervention on the different levels of objectives (EuropeAid 2004, p 73). The introduction into the logframe matrix can be given with a pin board presentation or a Powerpoint presentation. The use of both is possible as well, since the matrix illustrated on a pin board can support group work on the elaboration of a hierarchy of project goals. Participants understand the hierarchy of objectives and clarify terms.

Logical Framework or Project Planning Matrix - PPM


Gives an executive overview on all necessary information regarding the why, the what, the where, when and how of a project Project/programme strategy Indicators (logic of intervention) How can the achievements of the project be measured? Development goal What impact will the project have in the target group situation? Project purpose What immediate effects will the project have on the behavior of the target group? Outputs, results What is the project going to achieve? Activities What is the project going to do? Means: inputs and costs How much will the project cost? Sources/means of verification Where can evidence be found for the formulated indicators? Important assumptions What external conditions are important for the projects success?

In addition to the interrelation of the different columns in the logframe, the need for and use of assumptions are introduced to participants: Assumptions are external factors that influence or even determine the success of a project. An intervention never covers all aspects of reality. Pre-conditions must be fulfilled before activities can start.

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Assumptions
What are they? They are external factors that influence or even determine the success of the project. Why are they required? Intervention logic never covers all aspects of reality. External factors have an important influence on the success and should be identified and taken into account. What is a pre-condition? A condition that must be fulfilled/met befor activities can start.

Logframe: An example
Intervention logic Overall objective Income of artisan fishermen increased Objectively verifiable indicators The normal income of 75% of the 3600 fishermen members of the fish co-operatives in region X has increased by 25% at the end of the project. The number of radios and motorcycles increased in the area. By the end of the project the prices for one ton of processed fish paid to the small fishermen organised in co-operatives in region X has increased: for mackerel by 20%, for sardines by 35%, for salmon with 25%. Sources of verification Enquiry among members of the co-operatives Assumptions

Project purpose Prices received by artisan fishermen increased

Statistics and The production costs accountability will not increase faster of the different than the inflation. cooperatives

Results 1. Quality of fish processing improved

The quantity of processed fish not Records of the accepted by the market decreased by co-operatives 10% after 1 year and by 50% at the end of the project. Fish processed by the artisan fishermen of region X can be found on all markets and they can sell 25% of their products on the international market in the capital. Survey on the markets; records of the co-operatives

The government remains in favour of the development of the artisan fishery sector.

2. Access to markets improved

Activities 1.1 Invest in processing units 1.2 Train the artisans in making good use of the processing units 1.3 Install a cold chain for fish storage and transport 2.1 Strengthen the bargaining power of the co-operatives 2.2 Organise a representation of the cooperatives in the national fishery board 2.3 Organise advertisements for the products of the cooperatives

Means Costs 5 processing units 150 000 40 000 4 training sessions (10 days) for 5 people 300 000 3 cold chains 50 000 10 leadership training advertisement total 540 000

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Logframe and evaluation criteria

Logframe Overall objective

Evaluation criteria

Impact Purpose Effectiveness Results Efficiency Activities Relevance Situation Sustainability

A good indicator should be .... SMART


Specific Measurable Available Relevant Time bound to the objective it is supposed to measure either quantitatively or qualitatively at an accaptable cost to the information needs of managers so we know when we can expect the objective to be achieved

Key elements of good indicators


Quantity how much? Quality how good? Time how long / When? Location Where? Target group with / by whom?

7.2.6

Activity planning

Activity planning is to show the link of project management to scheduling activities and resources. An activity schedule: maintains objective-oriented approach of logframe breaks activities down into operational details clarifies sequence, duration and precedence of activities identifies key milestones assigns management responsibility, implementing responsibilities and should include management tasks. A recource schedule: maintains objective-oriented approach of logframe facilitates results-based budgeting and monitoring of cost-effectiveness provides basis for planned mobilisation of resources (external & local) identifies cost implications counterpart funding requirement post-project financial sustainability.
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Activity scheduling

Resource scheduling

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7.3
7.3.1

Group work and exercises


Brainstorming: Exchange of experience in the beginning

The introduction to PCM can start from the experiences of participants by collecting and structuring common factors for failure and success in project planning experienced by participants so far: What are failures and successes that you have experienced in project planning? Participants may write their own answers or a moderator visualizes continously.

7.3.2

Group work: Stakeholder analysis

The following group work helps participants to get familiar with the instrument of the stakeholder analysis as a tool to further develop ideas and question possible ways for involvement and participation of stakeholders.

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Based on a given project idea of a group member, teams of 3 - 5 participants are asked to elaborate an assessment of stakeholders involved: list all possible stakeholders describe their attitude towards the project describe their potential power/influence to support or hinder the project assign values for attitude and influence (--, -, 0, +, ++) decide on an appropriate communication strategy.

Additionally, the group work can include the visualization of the stakeholders in a matrix as presented during the introduction or as a Venn diagram.

7.3.3

Group work: Problem tree and objective tree

The instrument of the problem tree is introduced. Starting from a first brainstorming participants are asked to develop a project tree: develop a problem analysis for the project idea collect all problems related to the project idea cluster the problems discuss and decide upon the hierarchy of the problems.

In a second step the problem tree is transformed into the objective tree, which represents the base for further discussion on the intervention strategy. After the exercise, a possible discussion in plenary may be helpful to identify the lessons learned: How to identify the problem description that is put into the central position? How to transform problems into appropriate objectives?

Participants reflect on experiences and pitfalls with planning instruments in a visualized group discussion.

7.3.4

Group work: formulating objectives and indicators on different levels

Participants learn to structure project ideas according to the content of the project (problem and objective), stakeholder and organizational set-up for implementation. They use a logical framework to structure the project idea and go into details about the planning of activities. During the training a group of participants concentrates on one project idea developing first a general idea and then going into details of the project. Often the group work is split into 3 -4 group work sessions with intermediate presentations. During the discussion of the group work, details of the project can be clarified. The logic of the intervention needs to be proven.

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7.4 Self-test
Which are the most common terms used in the context of PCM and Logframe? What are useful tools for the analysis of a project idea.

Describe the different stages of the PCM: What type of difficulties may arise in the project cycle? How could a PPM look like for your own project? What are parts of the Logframe?

7.5 Reference material


Beaumelou, F. (2009): Guidelines Elaborating and managing a project within IPA. Croatia. European Commission (2004): Project Cycle Management Guidelines. Volume 1. Brussels. Available at: http://ec.europa.eu/europeaid/multimedia/publications/publications/ manuals-tools/t101_en.htm, visited on 2010-12-18 GTZ (2009): Capacity WORKS The GTZ Management Model for Sustainable Development. Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) GmbH. Eschborn. Spreckly F. (2006): Project Cycle Management. Herefordshire. Available for download on http://www.locallivelihoods.com/Documents/Toolkit%20 2.1.pdf visited on 2010-12-18

Internet Sources
www.worldbank.org (search pcm) www.undp.org (search pcm) www.dfid.gov.uk www.livelihoods.org www.ifad.org (search pcm) www.gtz.de/english (search pcm)

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Module 8

Project Budgeting and Funding: Co-finance, Private Public Partnership


Overview of this module
page Objectives, content, time
Set-up project budgets through creative co-financing Elaborate alternative sources of project funding Combine different sources (public means, sponsoring, donation, etc.) Introduce concept and experiences of regional funds Example of a financial mix for regional projects Presentation: Principles of fundraising Difference: Sponsoring - donation Principles of regional funds Group work: Sponsoring concept Group work: financing concept for a selected project Alternative means for financing regional projects Steps to elaborate a financing strategy Difference between sponsoring and donation Advantages/disadvantages of PPP Links to EU programmes Aktives privates Kapital fr die Region erschlieen: Instrumente und Beispiele (Hg. Bhler, 2009) Leader-Forum 2/2005

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Group work and exercises

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Self-test

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Reference material

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Module 8

Project Budgeting and Funding: Co-finance, Private Public Partnership


Module 8 Project budgeting and funding shall give an overview on different possible ways of financing a regional project. It may also motivate interested stakeholders not only to rely on public means but to search for individual project (co-)financing. Key terms that will be introduced and discussed are donation, fundraising, sponsoring, in-kind contribution, Public-Private Partnership (PPP), and Regional Fund.

8.1 Objectives, content, time


Objectives
Through this module the participants will be able to: make local/regional project owners and project managers think about creative project financing show alternative sources/ways of project funding, motivate Regional Managers resp. regional stakeholders for the search of alternative financing means, stimulate regional stakeholders for fundraising or sponsoring activities in their current projects.

Guiding questions

What is a useful alternative financing concept for my project? Who can be a financing partner? Where can (additional) means be found for the financing of my project?
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Minimum time required for this module: 0.5 days for the presentation and discussion of alternative financing means one full day with group work: development of a concept of project financing for an current project.

Time

8.2 Introductory presentations


8.2.1 Introductory example of a financial mix for regional projects

The financing of a regional project normally turns out to be a complex issue. Normally the Regional Management does not have just one pot for 100% project financing but has to mobilize different sources. These sources have special characteristics and therefore the spending of money has to follow different regulations. It is the art to navigate in this financing jungle and to find the best solutions possible for the project financing. Project-financing with different partners needs some essential attributes: an efficient project management, an efficient administration (of the project owner), an excellent communication between the project partners.

The following example of good practice shows, what positive changes a good financial concept can bring:

Project: Renovation of a public swimming pool with latest ecological technology in a rural community. Total costs: 490,000 , + in-kind contribution by citizens of more than 3000 working hours (implemented in 2007, www.postbauer-heng.de)

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The example shows different sources for the financing of the project: European Union Freestate of Bavaria (Province) Municipalities Donations of citizens additionally 3,000 hrs of in-kind contribution by engaged citizens.

The kind of project financing has some important side effects, apart from the economic perspective: (financial) responsibility is on more than one shoulder confidence among partners (esp. public and citizens) is strengthened co-operation increases the commitment in the region.

8.2.2 Project budget and funding


Overview on different sources of project funding

Project budget
Public sources Private sources Enterprises/ companies Private persons In-kind contribution Mixed forms Public private partnership Regional fund

European Union

Donation

Government

Foundation

Province

Fund raising

District Community / municipality

Sponsoring

Public Sources Public financing sources are: the European Union the government the province the municipality.
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EU-funds are often characterized by a 50% contribution, which has to be nationally co-financed by other means. Normally an EU-project has to be pre-financed by the project owner because the contribution from EU will only be given after the expenditure. EU pays only after having got receipts for the real money transfer from account to account. This can become a problem because you need an amount of money which is possibly too much for your co-financing partners at the beginning of a project. Wide and large control measures are also characteristic for EU projects. Besides the IPA programme there is a wide range of specified EU programmes offered, for example for culture, education, environment etc. Also on national level similar programmes have similar rules for financing.

Private sources and donations The contribution to a project budget can also come from private sources. In this case it is normally from enterprises, associations or citizens. If private sources co-finance a project which gets subsidies (e. g. by the EU) this can mean, that the rate of subsidies will be decreased according to EU regulations. In reality we often find a mixture of private and public means. Donations are given by private persons or companies. In contrary to sponsors, donators do not expect a service or product for their money (maybe only a receipt for their tax declaration). For a Regional Management initiative and its projects it has to be clarified whether it is legally allowed to receive donations. In some countries it is not.

Fundraising Fundraising can be defined generally as the sum of all efforts to get money for a project. Others define it as a communication exercise: Fundraising means to elaborate a communication strategy for the acquisition of financial means. Fundraising is targeted to public and private donors for the promotion of very different purposes. It is a kind of project-marketing, which is very common in the USA and which is used more and more in Europe. The own service or product has to be promoted to potential clients (or: promotors) in a way they can understand and to motivate them to support the project by financial means. Therefore a fundraising concept is important. The concept should answer all questions about the project, purpose, costs, use of means etc. As an orientation some fundraising steps can be identified: Step 1. Situation analysis and goals Clarify the questions: Where are we? What are trends in our working/business environment? What activities could help us? What are our goals for the next years?

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Step 2. Project development The starting point is a project idea or proposal. It has to be clearly formulated. Therefore the following questions should be answered: How could the project look like, what are sub-targets? Who is our target group? What activities are needed? Who are (potential) project partners? Step 3. Budget and market estimation Find out what kind of a market it is and who the marketing partners are. Do possible financing partners know about problems and needs of your project? Are they aware of them? Maybe an information campaign could support the creation of more awareness and understanding for the project and/or the product! Step 4. Analysis, search and selection of available financing means and sources What kinds of financing are possible? Is it enough? Which programmes from which sources or donors fit to my project? Step 5. Formulation of a fundraising strategy What methods do we want to use? How can we show the target group/promotors the value of their engagement? What media do we want to use? What is the time frame? Step 6: Acquisition of financing means For the acquisition of means different methods are thinkable: for example individual letters to organisations/institutions, presentations etc. according to the target group. Monitoring and evaluation of the fundraising process, if necessary: changing of fundraising strategy.

Sponsoring Sponsoring is a two-way business, not just an idealistic or altruistic approach. The idea should be: a sponsor supports your project with money and/or infrastructure etc. in return for his support you give the sponsors the possibility to prove to the public, what good intentions he has: using his logo on the letters, with public relation activities, press conferences etc. Both sides are in charge of delivering either money or reputation. This is the main difference to donations. In sponsoring one has to clarify/deliver: What should be sold: what is the product/project? The needs: is financial support needed or any other goods or services? The target group: Who can be a sponsor? Important: Is he suitable for your project, philosophy, approach? The method: How can the sponsoring be implemented? A calculation of personnel, time and financial resources is needed.

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A sponsoring concept is needed: How can possible sponsors be reached? It should explain clearly and in brief to possible sponsors what is needed, why they should sponsor the project, and what the added value for them could be. Possible sponsors might have money but normally no time for long academic introductions and explanations. They have to be convinced very quickly about your idea or project: A good preparation and a well-prepared sponsoring folder with information about your project (short, concise description; leaflet ...) which is presented in a smart way to the possible sponsor will help open the doors. Sponsoring needs a longer planning phase and one should try to think from the donors perspective about what is the added value for the sponsor? Sponsoring What is your product / project? What do you need? Describe your project concisely Financial support? Goods? Services? Select the sponsor properly does he suit your project? Consider the value added for the sponsor What resources are needed?

Who can be a sponsor? What can you offer to the sponsor? How are your resources calculated (personnel, time, money)?

Good preparation and planning Sponsoring concept Sponsors normally plan their budgets in the second half of a fiscal year. Big companies have clear internal sponsoring rules and often they focus on a specific action field like culture, sport activities or social activities. That means: start early enough in order to be in time for the sponsoring of the project. In the context of Regional Management good experiences with regional banks can be stated. Regional banks have their roots in the specific region, have knowledge about the regions situation, are legally forced to invest money in the region, can be motivated better for regional engagement as they have many personal contacts to regional stakeholders.

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Foundations (of citizens) Foundations are on regional level an exception for the financing of projects. But, like fundraising, they are becoming more and more popular and that is why they are a part of this chapter, especially so-called foundations for citizens. Before the establishment of a foundation many questions have to be clarified. The most important is whether there is enough basic capital for the foundation? The basic capital of foundations is safe and may not be used for any other purposes than the generating of interests of which the projects are financed. That means that quite a big amount of money is needed to have a useful financing source. At the beginning there are normally a few persons who initiate the foundation. A foundation of citizens is neutral, independent and has the self-understanding of being a part of a democratic and responsible society. It is independent in terms of economy and politics and is neutral concerning confession or political parties. The foundation is situated in a region, district or municipality. A foundation of citizens continuously increases the amount of money. This can come -besides interests- from different sources, like donations or additional foundation capital from citizens. A regional foundation of citizens can just promote initiatives or projects or is working operationally with own projects. Transparency and public relations are very important for a foundation in order to get money and to show the integrity of the work and projects. Therefore it has to have clear criteria for the funding of projects, controlling and reporting.

Public Private Partnership (PPP) Although a PPP is also a mixture of public and private money sources it is an extra category of financing projects. It has very special legal aspects and is an own form of business model. The expression Public Private Partnership came up in the 90s, when governments and municipalities started to sell public goods like railway systems or public services to external private investors. For the use by the public hand they paid a fee to the investors and had long-term contracts with them. The advantage for the public hand is: the immediate pay off of debits no investment costs up-to-date techniques external competences, which can not be provided by public administration, can be used political influence and decision-making is assured risks (financial, technical, organizational ...) are shared among PPP partners private actors take over more responsibility for the region.

On the other side not all PPP-projects were successful. Sometimes the disadvantages for the public were bigger than the advantages: many organizational and personnel resources are needed for preparation, political influence is assured but not to 100 % (compared to other public projects),

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some forms of PPP are only meaningful if they have a certain volume of investment, dependency of a private contractor (30 years and longer), high monthly costs (depending on the contract), loss of public property to private sector.

Meanwhile governments and municipalities are quite critical concerning PPP, although there are functioning models on small-scale level. A Regional Management can base on a form of PPP: basis financing by the district and by generating own money by offering special services like moderation services and others. A new PPP approach on regional level is the initiation of a regional fund as explained in the following chapter.

XperCapital - a regional fund established as PPP 1. Initiation of a regional holding company In a rural area in Germany a lack of regional investment capital is identified, because normally supra-regional investment companies are only focused on selected hightech branches innovative ideas from regional SMEs can often not be developed or implemented because of too few companies own capital or because of missing securities the banks normally have problems to offer products, similar to own capital.

A rural region lives especially from the SMEs, which strengthen the region and offer many workplaces. Innovative regional entrepreneurs often face the problem of getting no credits from banks or investors who only invest in high-tech sectors. It is the intention of this fund to fill this financing gap. Not only rentability but also other economic and social effects are assessed. The region shall be explicitly promoted. Therefore shares are only given to companies which have their roots resp. headquarters in one of the communities in the region. 2. Structure of the fund The XperCapital GmbH & Co. KG was founded in 2007 and has been working since 2008 as a so-called revolving regional development fund. The capital stock for this limited partership was collected in three signing phases: 350,000 Euros have been collected by regional banks of the districts Rottal-Inn and Dingolfing-Landau further 230,000 Euros have been invested by entrepreneurs and private persons in the end of 2009 the stock had an amount of 580,000 Euros. This sum was increased by means from the European Fund for Regional Development (EFRD/ GER: EFRE) with an amount of 395,789.02 Euros.

In total the sum in 2009 was 975,000 Euros. The future goal of the fund is a total sum of 2,000.000 Euros.

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3. The control board The control board was elected by the members of the shareholder assembly. It has the task to approve the investment proposals by the management but has the right of veto and proof the quarter reports. The board has eight members from communities and companies. 4. Investment and investors The profile of a typical investor in such a fund: The investor shows social responsibility finds more sense in regional added value than in quick profit wants to create new workplaces by investing in innovative companies supports the regional companies with his expertise, experience and contacts wants his engagement to be seen in public in a valuable way. In XperCapital there are about 20 investors, regional banks, local companies and private persons involved. 5. Strategy of investment Who gets the investment from these non-active interests? companies from the target region innovative ideas investment in companies with high grade of autonomy entrepreneur must accept criticism less than 50 workers less than 10 Mio Euros turnover per annum.

Shareholders participate with an acceptable amount of own capital. In general there are further investors (local banks, other investment companies) involved, one share is between 20,000 and 200,000 Euros. Natural persons and the juridical persons or owners have liability for their shares. Securities covered by assets are not demanded. 6. Conditions and period Basic interest is 9% p. a. Variable return on capital, dependent on success up to 4% p. a. Variable final return on capital, dependent on success up to 5% p. a. Period max. 10 years Repayment in five constant annual rates starting from the 6th year Extra repayment is possible On demand: strategic and micro-economic accompanying. 7. Benefit for the region Innovative companies attract innovative people and other companies give motivated people safe workplaces promote the region increase the quality of life in the region.
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In-kind contribution With in-kind contribution a project can decrease costs for example for the construction of a building. Engaged people work without payment to accomplish the building. That means the project financing can concentrate on other important project elements. In-kind contribution is only possible if it is clear that engaged local or regional people have the will and motivation to spend their spare time in order to support a common project. While planning the project it also has to be clarified that the donor will accept an in-kind contribution as a co-financing for the project. This is not always the case.

8.3 Group work and exercises


8.3.1 Group work: Develop a sponsoring concept
Define a project and develop a sponsoring concept for it. Consider the following questions: What are the objectives of the sponsoring? Who should be sponsor and why?

From the perspective of the potential sponsor: What are the reasons why he should sponsor your project?

8.3.2 Group work: Elaborate a financing concept for a selected project


Select a possible project from you region and try to set-up a raw financing concept by concerning the following topics: By what means should the project be financed? Who/which organization could be a financing partner?

8.4 Self-test
What are alternative means for financing regional projects? What are necessary steps to elaborate a sound financing strategy? What is the difference between sponsoring and donations? What are advantages and disadvantages of PPPs?

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8.5 Reference material


Documents: Most of the documents are in German language
Bhler, Josef: Finanzierungsquellen fr Non-Profit-Organisationen, in: Deutsche Vernetzungsstelle LEADER+ (Hg. 2003): FrdermittelakquiseAlternativen zu LEADER, p. 29-40. Bonn. Bhler, Josef: Aktives privates Kapital fr die Region erschlieen: Instrumente und Beispiele. LAG Wirtschaftsraum Schraden e.V. und LAG Mrkische Seen e.V. (Hg. 2009). Elsterwerda, Strausberg. Crole, Barbara: Profi-Handbuch Fundraising (2007). Regensburg, Berlin. Leaderforum 2-2005, Deutsche Vernetzungsstelle LEADER+(Hg.2005), Frankfurt am Main.

Websites: Many of them are available in English


http://ec.europa.eu/budget/index_en.htm www.fundraising.co.uk www.fundraising-ideas.org www.fundraising-verband.de PPP - Examples: www.gtz.de --> English --> Publications http://en.wikipedia.org/wiki/Public%E2%80%93private_partnership http://de.wikipedia.org/wiki/Sponsoring www.sponsor-service.com/ www.xperregio.de

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Module 9

Network Management
Overview of this module
page Objectives, content, time
Clarify what a network is and why networks are needed in Regional Development Analyse different types of networks in the context of Regional Development / Management Stakeholder analysis Key factors for successful networking and role of Regional Management Definition of and reasons for networks Types of networks in regional development Interactive gathering of characteristics for successful networking Discussion on the role of Regional Management Knives and glasses exercise Group work on stakeholder analysis (participants practical examples) Group work on networks from participants context Networks to promote RRD Different types of networks & implications for RM Relevant questions for a stakeholder Analysis Key success factors PPT on networking Practical example: Networking in Pielachtal/Austria Different types of networks in the REGINA context (steering network, LDC network, energy plenary) Bayerisches Netzwerk Nachhaltige Brgerkommune NENA www.nachhaltige-buergerkommune.de

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Module 9

Network Management
In Regional Development and Regional Management, networks are tools to achieve a sustainable and interdisciplinary regional development by connecting relevant actors and activities (economy, capacity building agencies, associations, administrations, communes ). The creation of networks by itself is therefore a specific development goal. Active networking (= linking actors with similar objectives and/ or activities fitting one into another) is consequently a central task of Regional Management.

9.1 Objectives, content, time


Objectives
Learning objectives are that participants will be able: to understand the importance and benefits of networks and networking for a successful Regional Management: Networks as a tool to disseminate ideas and objectives of Regional Development in the region Networks as a tool to involve and integrate relevant stakeholders in the development process Networks as a tool to promote knowledge exchange and the development of new ideas and solutions to understand the role of the Regional Management in networking to be aware of success factors.

Content

The contents of the topic should contain the following parts: Introduction: What is a network and why do we need networks? Types and examples of networks Stakeholder analysis The role of Regional Management and key factors for successful networks.

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To give a general introduction in an interactive way into the topic (including the knives & glasses exercise) at least half a day is required. In addition to that a stakeholder analysis related to real participants examples (group work day) could be part of the module (who are relevant stakeholders, what are their interests, how should they be involved?) unless it is not done in the context of PCM (cf. module 7: Project Management) For deepening a group work on participants examples could be added ( day).

Time

9.2

Introductory presentations

A network in regional development is a social structure made up of individuals or independent organizations which are connected by one or more links such as common interest, common project, knowledge, relationships of beliefs. The co-operation between network members is for a specific purpose/specific purposes and can apply to different areas. To become a continuous and sustainable relationship the network must produce benefits to its members. These benefits are expected by generating synergetic effects through the exchange of knowledge, the using of complementary skills or by joining efforts. The realizing of networks potentials requires a good and competent network management. The quality and intensity of networking is also used to quantify social capital - the value an individual or organization gets from a (social) network it is part of.

9.2.1

Why do we need networks?

Traditional institutionalized planning systems characterized as well by a sectoral and a top-down approach are in many cases overwhelmed by the complexity of todays environmental, social and economic challenges. In many cases integrated and coordinated planning approaches and co-operation are required. Relevant actors from different sectors must be identified, informed and involved. However, the management of co-operation and participation requires structures that can be adapted to the individual needs that provide transparency and openness and ensure the exchange of information and knowledge in different subject areas and between sectors. Networks can meet all these requirements. The regional level provides a good basis for an integrated network approach: hierarchies are flat and sectoral thinking is not as pronounced as on national level. Integrated problem solving strategies also fit with the growing political weight of the regional level e.g. in view of regional energy cycles, regional policies on demographic change, regional marketing activities, etc. The benefits through co-operation and innovation are limited not only to individual projects. Networking offers to the Regional Management the opportunity to control a regional development process, to initiate innovation and to facilitate the exchange of knowledge in different subject areas and between sectors.

Why do we need networks? Boundaries of institutionalised planning Complex ecological, social and economic problems Growing relevance of regions Lack of information and transparency Need for coordination Benefits through co-operation and innovation

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9.2.2

Types and examples of networks

Different types

Steering network Cross-cutting network Project network

Local Action Group

Basic decisions for RM Integration of different sectoral action fields Bundeling of capital/human resources Develop new products, projects Exchange of information and experiences

Discussion and decision about projects and goals

Guiding vision (Leitbild) Cooperation (and financing?) to implement a project Exchange of knowhow in one branch Project co-operation

Network of innovations Interregional/ international network

Co-operation of different levels/ sectors of a branch (To get extra funds for co-operation)

Steering network

Cross-cutting network

Project network

In Regional Development/Management different types of networks are relevant: In the EU-LEADER context by a steering network it is the Local Action Group (LAG). In this body all relevant stakeholders of the Regional Development process are represented. The composition of the group (min 50% civil society - max 50% politics and administration) ensures the participatory approach (bottom-up) and promotes cooperation. The members of this network make the basic (strategic) decisions in the management of the development process. In this steering network project proposals are presented, discussed and modified. The members decide also which projects should be funded. Moreover, the members of the network have a lobbying function. The participation in the management and decision making body includes also the active support of the objectives of the Regional Management in other political, administrative and civil society areas. Horizontal co-operation across sector boundaries is an original issue of networking in Regional Management. A cross-cutting network is a prerequisite not only for all local or Regional Development concepts or guiding visions (Leitbild). The coordination between the different fields of action and intersectoral co-operation are rather permanent tasks of Regional Management. The facilitation of thematic groups and the exchange of information between the different thematic groups is therefore a central and permanent task for the Regional Management. This includes also the involvement of already existing initiatives or local activities (e.g. marketing, tourism, social ). The implementation of a crosscutting network also opens up the possibility of disseminating and spreading the idea and objective of Regional Rural Development in the whole region. Designing, managing and implementing a project requires usually the co-operation of different stakeholders, which can also be described as project related network or project network. Already is it apparent from the name, that this network is created
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only on the implementation of a project. It is therefore timely limited and is primarily used to organize the co-operation of the stakeholders and to join forces. Especially larger and complex projects that require long term commitment, support and financial contributions from different stakeholders will need an organizational structure to manage the implementation. The task of the Regional Management will be to bring the right partners together and to facilitate and organize the implementation of the project network. Cross-sectoral networks are seen as a driving factor for mobilizing local potentials. They are also an important instrument in capacity building. Innovation networks or learning networks are therefore an important tool in regional development and regional management. cf. modul 11: Capacity Building. Although they are cross-cutting these networks usually have a main thematic focus. An example for an innovation network is the mechatronics-network in the district of Cham (Eastern Bavaria). The network links several innovative companies in the region with universities for applied sciences in Eastern Bavaria, the East Bavarian Technology Transfer Institute, the Department for Economic Development in the district administration and the regional facilities for vocational training. Objectives are the improvement of vocational training, of applied research and development and of information on mechatronics. Moreover the creation of a mechatronics cluster in the region is envisaged. In the EU-LEADER context interregional/international networking is explicitly encouraged and projects related to this type of co-operation get higher funding. From an interregional and transnational co-operation a particularly fruitful exchange of information and experience is expected due to different points of view, different mentality, different types of resources, etc. Especially in border regions as well as in case of neighboring Local Action Groups the implementation of numerous projects requires a state border crossing or administrative boundary crossing co-operation. In European projects with national/transnational elements the search for suitable project or co-operation partners is usually facilitated through partnership fora either web-based or during national/transnational meetings. Because of a higher input in time, effort and money interregional and international networking requires an accurate assessment on costs and expected benefits.

Innovation networks / learning networks

Interregional / international networking

9.2.3

Stakeholder analysis

Who are the main stakeholders in relation to a development process or to a planned (thematic) network (e.g. elaboration of a local development concept or set-up of a project network)? A stakeholder analysis identifies all important actors as well as their interests and expected benefits. The analysis should also include the possible contributions of the stakeholders to the project or process as well as their importance for a successful outcome. A thorough stakeholder analysis graph may give a clear picture how to involve stakeholders in order to ensure success. The degree of involvement can be divided in three levels: information, participation and co-operation. The analysis allows to recognize the most important and powerful stakeholders, whose support and opinion is needed to shape the network or project. The involvement of important backers may also help to attract more support and a better funding.

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Stakeholder Analysis Graph

high

B = participate

A = cooperate

Questions related to the stakeholder analysis What people and organisations are concerned? What interests and benefits do the stakeholders expect? How strong/important are these interests and benefits? How can the stakeholder contribute to the process/project? How important is the contribution?

influence/power

women

low

D = inform attitude/interest

C = participate

Early and regular communication with interested parties can ensure that they understand well what is going on and recognize the benefits. You can predict how people will react to your project and assure their support with specific activities.

9.2.4

The role of network management and key factors for successful networks in Regional Rural Development

Networks need management, networks need a booster, network management is time consuming. As the acceptance of the process and confidence in the coordinator are important prerequisites, the Regional Manager personally must be part of the development process. Nevertheless, the Regional Manager can only accept the network management itself in selected key areas (e.g. steering network, elaboration of local development concept ). In most cases Regional Management will play a midwife role: initiation of networks, coordination of groups of actors, placement of potential partners, organization of information exchange, filtering and distribution of central information, prevention of duplication etc. What are key factors for successful networks in RRD? The factors can be presented with powerpoint or elaborated in an interactive manner: Attitude and interest: members are aware of networks benefits Common objectives: the objectives were developed in co-operation with members Co-operation and common projects: common projects are planned and the network is based on trust

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Cost-benefit ratio: is clear to all and accepted by all members Information exchange: the exchange of knowledge and information works on a reciprocal basis Network identity: network has a CI and all members can identify with the network Key actors: all key stakeholders are identified and participate actively in the network PR is a central part of the communication concept Tasks and roles of members, steering group and management are clearly defined Planning and implementation: a realistic and specific project plan is available Resources (time, money) of management and all members are sufficient Qualification: all necessary skills are available or can be obtained

9.3 Group work and exercises


9.3.1 Exercise: Knifes and glasses
The exercise Knives & Glasses should sensitize participants for the important issue of teambuilding and networking. The task is quite simple: separated in 3 or 4 groups participants are instructed to construct a platform made of knives on top of the glasses, which is strong enough to support an additional glass full of water. Task: To build a platform using knives on top of glasses (glasses being upside down) Rules: All parts have to be used None of the knives may touch the table
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The glasses stand at least the length of 1 knife apart (one additional knife to measure) The platform is that stable to carry a full glass of water in its center When you find the solution, please call the moderator for verification! The evaluation focuses on the questions: What did facilitate the finding of a solution in the group? What made it difficult to find a solution in the group? What factors are of importance for a productive teamwork?

The evaluation should make clear, that teamwork success is not automatic. Teams have to be established, team member selection is very important, as is ensuring that the team purpose is clear and agreed upon.

What facilitated the finding of a solution in the group?


Accept each others skills Each group member has the chance to try Try many options Help each other Confidence to achieve Improve understanding the rules Need to have know-how and manager Competition Follow the instruction Not afraid to fail Learning by doing Analyse the situation Where are they?

What made it difficult to find a solution in the group?


Understanding of instruction Starting without discussing the plan No experience

What is of importance for a productive team work?


Respect each others idea Commitment Helping each other Encourage each other Understand each other Common vision Trust each other Patience

Believe it is achievable Good atmosphere

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9.3.2 Group work: Network anaysis

For deepening, a group work on participants examples on How regional networks can be organized? or an Analysis of a network from the participants context could be added ( day). The assignment to the groups could include the following elements: visualized description of a network from participants regional context with regard to: type/organizational form objectives stakeholders measures/activities/projects facilitation/role of Regional Management.

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9.4 Self-test
Why do we need networks to promote Regional Rural Development? What are different types of networks and what are the implications for Regional Management? What are relevant questions when performing a stakeholder analysis? What are the key factors for successful networks in Regional Rural Development?

9.5 Reference material


Powerpoint on networking Practical example: Networking in Pielachtal/Austria Different types of networks in the REGINA context (steering network, LDC network, energy plenary, etc.) Bayerisches Netzwerk Nachhaltige Brgerkommune NENA www.nachhaltige-buergerkommune.de

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Module 10

Information and Communication Management


Overview of this module
page Objectives, content, time
Structuring the dissemination of target group specific information Organizing an efficient stakeholder participation Perform moderated group events and presentations Elaborate awareness raising and promotion strategies for the region Communication tasks of the Regional Management Planning and structuring of public relation work Participatory communication and working methods in group events Introduction of the moderation cycle Self-assessment on personal experiences and skills The Regional Managers skills, knowledge and behaviour Design of a communication strategy within a RRD process Planning of moderated group events Analysis of press work Design of an own press release Assessment of own communication tasks Different roles in a Regional Development Process Objectives and instruments of public relation work Improvement of communication in the own working context Steps of the moderation cycle Please see the deatailed list of reference material on page 124

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Module 10

Information and Communication Management


As shown in the overview of module 2, there are many underused skills, experiences and know-how in a region. Local and regional development processes are change processes made by people. These change and learning processes include interaction and communication - a central task of Regional Management.

10.1 Objectives, content, time


Objectives
The learning objective for the participants in this module is to deepen their skills in terms of the strategic use of tools for: dissemination of target group specific information involvement of stakeholders, participation moderated group events and presentations awareness raising and promotion of regions.

Information and communication management for this module is not meant in the sense of IT techniques and data management. The understanding is similar to that of enterprises: to plan, design, steer and control information and communication to reach the strategic objectives. This involves the collection and distribution/sharing of information and considering those who have a stake in, or a right to that information. Management of information refers to the organization of and control over the structure, processing and delivery of information (through which channels do we get the right information to the right person at the right time?). Since a channel has maximum two directions, communication in terms of dialogue and exploration of new ideas and insights adds additional dimensions. Information and communication are the means to develop guiding visions, find problem solutions, make decisions, share responsibility and enhance ownership and transparency in a Regional Rural Development process.

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Compared to this broad subject, the selected training units focus on: Relationship of actors in Regional Rural Development Regional Managers skills, knowledge, behaviour Roles and functions in a development process/capacity building process Stakeholder analysis and communication strategy (how to involve) Moderation cycle and planning of group events Public relation and work with media.

1,5 days are required for the listed topics. That might not be in one row within a training, e.g. if a stakeholder analysis is performed within the LEADER topic (module 4) or the NETWORK MANAGEMENT topic (module 9). Other related topics serve as a good basis, e.g. the communication process, four sides of a message and the iceberg model, self assessment of communication skills, as well as presentation, moderation and visualization. Also more specific units or examples can be added to deepen or specify certain aspects: the process of team building, or examples for an information strategy. To refer to this field of soft skills, a huge number of publications is available.

Time

10.2
10.2.1

Introductory presentations
Communication tasks of the Regional Management

Introductory ideas can be given with reference to the pin board functions/tasks of Regional Management (module 2, p. 23) or with reference to useful soft skills for Regional Managers or coordinators involved in Rural Development projects. Thus one possibility for starting the module could be a self assessment of communication skills or a brainstorming on the Regional Managers skills, knowledge, behaviour. The pinboard presentation used in module 4, p. 52 on Regional Management can also be used to focus on the tasks and roles at this interface between the political decision-makers and the participation level. This picture shows the relationship between the various actors on different levels and the need for differentiated ways of communication. Being in an intermediate position, members within the Regional Management need to clarify their roles, which might differ in different situations. Thus, the following visualization is an input for discussion and self-clarification.

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Module VII, Module IX

A direct link to different information and communication strategies is given with the stakeholder analysis. This instrument helps to find out the parties to involve in a project, to look from their perspective about interests and anticipated benefits and to get aware of actors who can influence the project in a positive and negative way. It helps project planners and leaders to avoid problems, and to elaborate sound communication strategies based on the decisions who to involve, in which way and to what extent.

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10.2.2 Public relation work

Public relation should be planned according to objectives, which can be: to announce planned programmes and activities to support a positive image of the programme/project to sensitise for the overall goals of the project to invite/mobilise actors to participate to get the support of decision makers to enhance the mutual trust between primary and secondary stakeholders to inform about results to enhance the sustainability of results by spreading them to support ownership and broaden guiding visions within the region to get recognition of results and success.

Elements and criteria for a press release headline informative and compelling most significant benefit for most important readers lead paragraph should start with the current date 1-2 key sentences announcing the end of a news first should answer as many of the 5 Ws as possible: Who, what, where, when, why and how (if appropriate) succeeding paragraph source of information, additional facts body of the press release provide supporting information underlying background information mark the end of the press release text boilerplate standard, reusable contact information for editorial follow-up (contact person, address, phone, email, web address) boilerplates should maintain consistency

Besides the objectives, which have to be defined first, the characterisation of the target groups as stated above and the availability of the resources/budget decide on possible PR activities. Different means for PR work are: the project website press releases press conferences interviews with journalists, press inquiries presentations and lectures poster exhibitions trade fairs flyers and other print material newsletters public events.

To work with media means to work together with journalists and reporters and press officers in districts and municiplaities, trying to establish a good co-operation. It is necessary to understand how they work and what news, events and stories are of interest to them. The above listed means are often used in combination. If for example a public event takes place within the process of the elaboration of a local development strategy, this is announced with a press release and journalists would be invited to report the results. Such events are for example large group events to present and discuss the results of a SWOT analysis or even to do a SWOT analysis with representative from the different stakeholder groups. A short input about the work with media can be given as a Powerpoint and with a pinboard or flipchart, that focuses on the elements and criteria for a good press release (see text box). The story should be told backwards, so that the length of a press release can be adjusted, cutting the least important information from the bottom without compromising the integrity of the most important information positioned at the top. This way readers get the principle point of the story in a hurry. They can then make their own determinations as to a press releases importance or relevance and choose for themselves whether or not to read past the first paragraph.

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10.2.3

Participatory communication and working methods in group events

The way of communicating with project partners/involved stakeholders should be in accordance to the ideas of a bottom-up or participatory approach. These basic thoughts can be presented as followed:

Another basic overview to present is the moderation cycle if this is not already known through former training parts. The moderation cycle is composed of six steps. 1 2 Introduction and orientation - getting to know each other, expectations, objectives Gathering and structuring topics card collection, agenda, called-out responses, brainstorming
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3 4 5 Selecting topics by setting priorities Handling the topics in the order of their importance Planning measures to be taken: action plan, assignment of responsibilities and deadlines 6 Conclusion: looking back (have our expectations been fulfilled?), looking forward (how will we continue?) and the official closure with a positive ending hopefully!

For each of the steps a range of moderation tools can be taken into consideration. An overview on different moderation and visualization techniques could be given here with a second pinboard presentation. The elements how to plan a group event including the objectives of the event, participants/target group and activity plan (when, what, who, ...) are a topic to add here and to be worked on in a group work.
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10.3 Group work and exercises


10.3.1 Self-assessment in the beginning
In order to link to the personal experiences and training needs of the participants a self assessment can be prepared as a matrix, answering the questions I assess my experiences/skills in the following topics as .

10.3.2

Brainstorming on the Regional Managers skills, knowledge and behaviour

In order to come closer to the understanding of Regional Management participants brainstorm on the Regional Managers skills, knowledge, behaviour, etc.: In first place, a Regional Manager should ....

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10.3.3 Group work: Design of a communication strategy within a Regional Rural Development process

This group work can include the following questions for a decision on the appropriate communication strategy. It is based on the topic of the stakeholder analysis: a. Concerning the information about and involvement in the local/regional development process: what interests would the identified stakeholder groups have? b. What are your strategic information and communication objectives as the Regional Management/ project team towards these stakeholder groups? c. How would you accomplish these objectives/by what information and communication tools? d. Considering limited resources for the communication management, which measures have highest priority, what are the nice-to-have ones?

10.3.4

Group work: Planning of moderated group events

Participants are asked to plan an event, which could be undertaken within the process of elaborating a local development strategy (see p.56) or within one of their ongoing project examples: 1. What do you want to achieve during/until the end of the event/workshop? 2. What do you have to do before the event? 3. Please describe the script of the workshop Time schedule 10:00 Topic/issue Welcome address Detailed steps Who is responsible? Material/ equipment Welcome Dont forget minister Mladen Microphone, desk

ToRs for planning a moderated event

4. What has to be done after the workshop? The group work can be extended with the following questions: Would you involve the media? And if yes, to what point(s) and how?

10.3.5 Individual or group analysis: Assessment of press work


Participants are asked to evaluate a press release by reading a given example, which has to be provided in advance. The check includes answers to the five Ws: a. b. c. d. e. What happened/happens Where When Who is involved Why/how it happened (if possible or necessary)

Plus: what other information is given? The group results are shared and discussed in plenary.
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10.3.6

Individual work: Design an own press release

Participants are asked to design a first draft for a press release for the own project. They do not need to make complete phrases, but to brainstorm on the key elements and sequence of the content.

10.4 Self-test
What are my own tasks related to communication (what, why, how, with whom)? What are different roles in the RRD process, which Regional Managers have to perform? What are possible objectives of public relation work and what instruments can be used? What do I want to do next within my team to improve internal and external communication? What are the steps of the moderation cycle?

10.5 Reference material


Move Manual: Moderation and Visualization for Group Events, InWEnt 2003 Methods for Trainers, Lecturers and Facilitators, InWEnt 2010

example for press releases http://www.aberdeenshireleader.org/, e.g. www.aberdeenshireleader.org/News_and_Events/LEADER _Launch_ PR_260608.pdf http://www.norfolkcoastaonb.org.uk/mediaps/pdfuploads/pd000768.pdf http://www.dgcommunity.net/dgcommunity/MiniWeb.aspx?id=143&menuid=89 38&openid=8938 how to write a press release http://www.wikihow.com/Write-a-Press-Release http://www.prlog.org/tips/1016-how-to-write-a-press-release.html communication toolkits http://www.odi.org.uk/rapid/tools/toolkits/Communication/tools.html www.odi.org.uk/rapid/tools/toolkits/Communication/Communications_strategy. html

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Module 11

Capacity Building Becoming a Learning Region


Overview of this module
page Objectives, content, time
Definition and explanation of the terms Learning Region and Capacity Building Motivation to initiate qualification/capacity building offers Role of capacity building in establishing a regional development network Capacity building as a means to promote trust and confidence What is a Learning Region and why to become one? Types of capacity building Capacity building activities: Examples From your perspective: What is a Learning Region? From your experience: What capacity building activities are planned or have been implemented in your region? Analysis of the needs for capacity building in a region. What offers do already exist? What are the needs of the people in the region? Transfer of Learning Organisations to RRD How to become a Learning Region Different types of capacity building Main components of regional learning process Contents for process moderators PPT on curriculum of training of process moderators http://www.gdrc.org/uem/capacity-define.html www.mechatronik-cham.de The Fifth Discipline. The Art and Practice of the Learning Organisation, Peter M. Senge, 1990

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Module 11

Capacity Building Becoming a Learning Region


Life long learning has become a key feature for development in the 21st century. Originated in business management, the concept of learning organizations was developed more than 20 years ago (see the outstanding work from Peter M. Senge). In the last decade many attempts were made to transfer this practice into the context of Regional Rural Development. A large number of Learning Regions has emerged but neither the concept nor the practice has reached a satisfactory quality. Nevertheless all experts agree about the outstanding importance of regional capacity building processes, either through the formal system or via informal processes of participatory learning.

11.1 Objectives, content, time


Objectives
The learning objectives for the participants are to: understand the meaning of the terms Learning Region and Capacity Building become motivated for the initiation of qualification/capacity building opportunities understand capacity building as an instrument to leverage endogenous potentials impart the approaches of Regional Management and Rural Development, which base mainly on citizens participation

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The contents of the topic should contain the following parts: Introduction: What is a Learning Region and why do we need to become one? Types of capacity building Capacity building activities: Examples

Contents

To give a general introduction in an interactive way into the topic at least 0.5 days is required. For deepening, a group work on participants examples could be added (+ 1 day).

Time

11.2 Introductory presentations


11.2.1 The concept of Learning Region

The concept of the Learning Region may guide one to a certain misunderstanding. Of course a region, mostly defined in a geographical way, is not able to learn as it is not a living creature. But it is about the human beings in the region, their organisations, institutions, companies and interactive systems. Taking into account the interaction between these regional actors or stakeholders it will always be a kind of learning from each other. This process of learning from each other can lead to unsystematic and accidental learning opportunities, if left without control. But it is favourable to promote the learning culture of a region in an organized way through regional initiatives, Regional Management or politics, in order to: increase the capacities in the region, promote development, induce innovation, widen the competences, attract people and companies and increase the standard of living as well as the quality of living in a region.

There is a close link between the terms Capacity Building, Learning Region and Regional Networks. One can say, a Learning Region consists necessarily of one or more regional networks but not the other way round. Networking is less relying on educative factors but more on exchange of experiences and on the operational level for the implementation of projects. In brief our definition of a Learning Region is: A Learning Region is the sum of all systematic efforts of capacity building in a given region.

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Regions with a high learning ability adapt faster, more flexible and more successful to changes. Changes in a globalized world force municipalities and regions to suit to the circumstances in order to stay or become attractive for their people. The concept of Learning Regions is closely connected with the idea of leveraging and using a regions endogenous potentials. Regional Development depends mainly on this endogenous potential and it needs the support of regional institutions, stakeholders and structures to encourage and support a sustainable Regional Development. Not being just a question of personnel or financial resources, it is also an issue of know-how and education. In consequence, a Learning Region requires capacity building as an educational task for Regional Management.

11.2.2

Capacity Building

The building of capacities in its three dimensions: knowledge, skills and social/emotional competence, has been subject to numberless explorations and interpretations. Common to most of them is the broad and integrated approach to human learning processes. Two examples may exemplify this holistic perspective: Specifically, capacity building encompasses the countrys human, scientific, technological, organizational, institutional and resource capabilities. A fundamental goal of capacity building is to enhance the ability to evaluate and address the crucial questions related to policy choices and modes of implementation among development options, based on an understanding of environment potentials and limits and of needs perceived by the people of the country concerned. Capacity Building - Agenda 21s definition (Chapter 37, UNCED, 1992.) Or: Capacity building is much more than training and includes the following dimensions: Human resource development, the process of equipping individuals with the understanding, skills and access to information, knowledge and training that enables them to perform effectively. Organizational development, the elaboration of management structures, processes and procedures, not only within organizations but also the management of relationships between the different organizations and sectors (public, private and community). Institutional and legal framework development, making legal and regulatory changes to enable organizations, institutions and agencies at all levels and in all sectors to enhance their capacities. The Urban Capacity Building Network

(...)

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In the respective model above three types of Capacity Building (CB) can be distinguished: CB by Directive Communication: The communication direction is like in school: It is one-way from the trainer (T) to the participant (P) and depends on the authority of the teacher (trainer). Used methods are, for example powerpoint presentations, speeches or lectures. CB by Analytic Communication: The communication way is two-way, like a dialogue: the trainer gives input and the participants discuss. The method relies on the superior knowledge of the trainer. CB by Consultative Communication: The communication is also two-way organized but there is a difference compared to Analytic Communication: The trainer and the participants are on one level. The exchange relies on experiences, which can be contributed by everybody not only experts. The results of such a discussion are open and not yet fixed at the beginning. The trainer has the function of a moderator, not expert.

Once a region decided to become a Learning Region the CB has to be embedded into a certain learning system. The learning system has typically three main components: types of learning learning levels learning dimensions.

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Directive

Types of learning Analytical Consultative

Knowledge (cognitive)

Individual skills, knowledge & attitude

Learning dimensions Skills (practical) Attitude (affective) Organizational improvement

Learning levels

Regional Rural Development

First element in this system are the types of learning as described above. The second one is called learning levels. As we are talking about Regional Rural Development we have three different levels: the regional rural development: strategic learning for the region, long-term oriented; the organisational improvement: communication and interaction among stakeholders, initiatives and organisations, and the skills, knowledge and attitude of individuals, which bring the whole system to life.

The third element concerns the different learning dimensions of individuals: cognitive (knowledge) practical (skills) affective (attitude). The description of theses three elements may show important factors, which influence the creation or design of a Learning Region. This means that no learning region can be directly compared (one to one) with another.

11.2.3

Capacity building: Examples

Every region is special, has individual needs and resources. Thus, there is no general recommendation possible, when it comes to offering capacity building activities. In order to present some ideas how capacity building activities could look like, a few examples have been collected.

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For the strengthening of the local and regional stakeholders and initiatives a moderation/facilitation training can be offered. The following example was successfully implemented and is able to be changed concerning the number of modules and the content according to the specific needs in the respective region.

Process moderation training Contents and Objectives of the training: 1. Learn useful competences for participative work in networks and for steering of processes and projects (moderation, communication, processes and project management). 2. Setting-up of a network of multipliers in your region 3. Dissemination of the same idea (picture) of rural development and of Regional Management in the whole of your region. Participants of the training become multipliers and stakeholders of the development process and should therefore come from all communes in your region. 4. Creation of personal relationships with relevant multipliers/stakeholders in your region Consequently the confidence in the region will grow and this is an important precondition for transparency, collaboration, cooperation and innovation. 5. Basis for further qualifications.

Module 1: moderation and mobile visualization moderation cycle role of the moderator mobile visualization: methods and techniques planning of a moderated event working in (small) groups Modul 2: process planning and process management development concepts stakeholders, teambuilding and networking planning and management of a development process Modul 3: project management project cycle project planning project management and implementation Modul 4: communication importance of good communication task clarification dealing with difficult situations and conflicts exchange of experiences

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Further conditions: Participants come from all municipalities/communes in the district. Participants are from civil society, administration, politics or others. The course must be inexpensive and affordable for everybody.

Examples of learning activities initiated by Regional Management (see also module 9, networking): Womens Agenda 21 Initiate and moderate an Agenda 21 working group with the main topic of empowerment/strengthening of women. The participating people can concentrate on womens issues like equity. Family-Network Offering a series of seminars and workshops concerning relevant topics of famliy life, e.g. concerning different phases of childrens education etc. Bioenergy region Advanced trainings and seminars for the implementation of regional energy cycles and the use of renewable energies in rural areas Mechatronics network co-operation of several training institutions (University of Applied Science, vocational training, training agencies, etc.) Social network

Another effect of such a regional qualification offer is the fact that means which are spent in trainings resp. qualification activities can be used equally by all people of a region not just from those of one community.

11.3 Group work and exercises


11.3.1

Plenary discussion/brainstorming through guiding questions

From your perspective: What is a Learning Region? From your experience: What capcaity building activities are planned or have been implemented in your region? (also useful for group work)

11.3.2

Group work: Analyse the needs for capacity building in your region

What offers do already exist? What are the needs of the people in the region?
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11 11.4 Self-test
What does it mean transfering the concept and practice of Learning Organisations to Regional Rural Development? How to become a Learning Region? What are different types of capacity building? What does it mean for Learning Regions? What are the main components of learning processes? What would be the contents for a training of process moderators in your region?

11.5 Reference material


PPT on curriculum of training of process moderators http://www.gdrc.org/uem/capacity-define.html www.mechatronik-cham.de The Fifth Discipline. The Art and Practice of the Learning Organisation, Peter M. Senge, 1990

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Module 12

Monitoring & Evaluation of Regional Development Processes


Overview of this module
page Objectives, content, time
Need for monitoring and evaluating the process and the effects of measures/projects at regional level Integration of all stakeholders in monitoring the processes and evaluating the successes of their regional activities Examples of integrating M&E in RM and LAGs activities Time: 0.5-2 days M&E in regional processes Accountancy and transparency: the REGINA example Formulation of performance indicators Local involvement: training for moderation and M&E Group work: Reflection on own examples and experiences with M&E (procedures, forms, results) Main steps in M&E in regional processes Important aspects to keep in mind and consider in the M&E steps Formulation of performance indicators Checklists for assessing a Regional Management Process EU Handbook for PCM Managing for Impact in Rural Development - A guide for project M&E; IFAD,

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Introductory presentations

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Group work and exercises

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Self-test

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Reference material

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Module 12

Monitoring & Evaluation of Regional Development Processes


Monitoring and Evaluation are essential components of the Regional Management approach. The terms themselves are normally well known to participants and used in manifold circumstances. Here the focus should be strongly on the role and importance of M&E in Regional Management processes with a strong stakeholder participation.

12.1 Objectives, content, time


Objectives
The learning objectives for participants are to: understand the need for monitoring and evaluation of the process and the effects of measures/projects at regional level understand the integration of all stakeholders in monitoring the ongoing processes and evaluating the successes (and failures) of their regional activities show examples of integrating M&E in RM and LAGs activities and ways to train people in M&E for the development of their regions.

Contents

The contents of the topic should contain the following parts: Introduction: meaning and understanding of monitoring and evaluation in RM Important considerations An example from Neumarkt, Germany How to set-up a learning unit for RRD/RM training

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Only to introduce the minimum information on the topic needs about 0.5 days. As an interactive reflection of the content of regional marketing a groupwork should be done to relate the topic to the participants reality: 2-3 days can be calculated then.

Time

12.2 Introductory presentations


12.2.1 M&E in regional processes
Monitoring and Evaluation (M&E) in Regional Management and Regional Development projects/processes is a continuous process. The results will help to improve future programme/project designs and the implementation. Continuous M&E may help to: ensure a better understanding of what works and what does not work; systematically monitor the progress of processes or the implementation of projects; improve process/project effectiveness; enable improved donor reporting; achieve a common understanding of monitoring and evaluation and reporting at all levels. top-down control function

M&E
bottom-up learning function

In real life M&E is often misused as a control instrument. Instead of control instruments M&E should be seen as a learning instrument for improvement. The manifold issues of M&E in Regional Development processes contain the following main steps:

Defining the issues, contents

Controlling the process and procedures

Reporting procedures (to whom, what)

Assessing of results, findings

Re-directing based on the learning experience

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M&E in Regional Processes

The important sources for M&E and relevant issues to be considerd are given in the following chart. defining higher level plans promotion guidelines political programmes controlling implementation records and individual project accounts reporting regular meetings of project steering boards/committees assessing redirecting

all kinds of plan reviews

Regional Development Concepts guiding visions objectives/ projects Logframe for individual projects (indicators)

regular inventories, field visits

financial audits on-site controls

intermediate or mid-term evaluations

staff/team meetings (daily/ weekly/monthly) steering groups project progress reports to all kinds of donors performance/ quality management systems (ISO ...?)

own surveys self-evaluation external evaluations (resources and time) research / Master or PhD-Thesis multistakeholder views mirror peer review

12.2.2

Example for accountancy and transparency: the REGINA process

Curriculum for the training

In order to show an example of the above stated staff/team and steering group meetings the accountancy system for a region in Neumarkt, Germany the Regina GmbH can be shown. The chart shows regular meetings, the involved persons and responsibilities: reporting towards stakeholders and shareholders, information sharing, approvals, audits and internal tuning. All these involvements contain a monotoring and evaluation moment and are needed for a transparent process and in order to keep the Regina network running. This amount of participatory activities can only be performed with a strong support of the stakeholders themselves. Therefore, Regina GmbH and the Agency for Village and Rural Development/School of Good Governance developed a capacity building system for citizens how to organize and facilitate moderated meetings and working groups. The details can be found in module 11.

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Example of staff/team and steering group meetings

12.2.3

Formulation of performance indicators

An important element in the M&E process is the formualtion of indicators that show whether progress is been made in projects or the process as a whole. Practical examples from Bavaria and other parts of Europe show, the implementation of M&E in EU LEADER projects is still ongoing. Nevertheless, EU is developing its M&E standards for Rural Development processes and programmes. The EU Handbook for PCM includes state of the art M&E requirements. Examples of performance indicators found on the Bavarian LEADER+ Internet Platform LEADER Online (LE-ON: http://le-on.org/internet/ministerium/): Performance indicators for the priority field New Technologies, Know-How Number of accomplished expertises Number of implemented innovations Number of newly founded enterprises, co-operations and other organisations Created capacities with potential turnover expectations Expected turnover in Euro Capacity of facilities
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Number of trainings Number of participants Number of training time per participant (training hours per participant) Number of created jobs Full-time jobs Part-time jobs Number of secured jobs Produced or saved energy Produced energy in MWh Saved energy in MWh Use of services (consulting, coaching) number

Performance indicators for the priority field Quality of Life Number of directly promoted citizens Number of projects to improve inter-municipal networking Number of established people-oriented institutions Number of new events for citizens Number Number of profiting households Number of supply facilities Number Number of profiting households Number of disposal facilities Number Number of profiting households Number of projects with ecological activities Number of conservation projects Number of energy projects Figure of directly produced follow-up investments Amount in Euro

12.2.4

M&E checklist for Regional Management processes

As a practical example of M&E in Regional Management, the following checklist can serve. It was developed by the University of Triesdorf (Prof. Seibert and Dr. Geiendrfer) and used to evaluate the Bavarian Regional Management and covers eight central aspects of Regional Management: Participation and involvement of regional actors; Objectives and organisation; Resources and financing; Project planning and implementation; Project impact; Networking; Knowledge management; Stakeholders. This checklist may be used for self-evaluation or the assessment through close partners, like the RM team, the board of directors, steering groups, etc.

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M&E checklist for Regional Management Processes
Aspect 1 Participation and involvement of regional actors Political decision-makers are well informed and take part in important decisions. Regional chambers, associations and other interest groups are sufficiently involved. Participation of the local/regional business community is fully realised, important key companies are involved. Existing problems are being addressed and potentials/ chances are being used as basis for joint initiatives. Strong personalities in terms of integrative power, driving force or good ambassador are part of the game. There is a balance between rational and systematic stakeholders and non-conventional, lateral thinkers. Others (to be added) Aspect 2 Objectives and organisation There is a constructive connection to existing institutions. New structures were only created when really necessary. Basic definitions and decisions are being taken by consensus. Minoritiy votes are possible and taken serious. Relevant stakeholders are able to agree on common objectives, even if individual interests are diverging. Objectives are precise and operational. They can be described by measurable milestones or indicators. Objectives and indicators are clearly communicated to decision-makers and higher level authorities or administrative structures. A systematic controlling at project and strategy level is established and pragmatically implemented. Others (to be added)
Tool Box for Trainers

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

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Aspect 3 Resources and financing Human resources are sufficient to implement the necessary activities for the achievement of the objectives. Basic financing is guaranteed at least for the implementation of the ongoing projects. The use of personnel and financial resources is transparent and comprehensible, necessary records are available. Regional distribution of resources and resulting benefits is justifiable and accepted by relevant stakeholders. Financial reserves are available to bridge financial bottlenecks. Dependency on single funding sources does not produce major risks. Others (to be added)

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

Aspect 4 Project Planning and implementation Project planning is participatory involving beneficiaries as well as possible opponents. Project selection is transparent and embedded in the regional development strategy. Projects are comprehensively structured and responsibilities clearly attributed. Regional characteristics, customs and heritage receive special attention. Project financing is making full use of own regional resources and external promotion funds. Others (to be added)

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

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Aspect 5 Project impact Project outcomes are tangible and produce high impact in public opinion. Implemented projects produced spin-offs resulting in follow-up activities and new project proposals. Projects contribute to the increase in regional economic value adding. Benefits stay in the region. Even after the promotion phase, projects are likely to be economically sustainable. Others (to be added) Full agreement Partial agreement Neutral Partial disagreement Full disagreement

Aspect 6 Networking Regional Management is playing its role as moderator between different regional interests. Regional Management is efficiently coordinating the participating regional stakeholders. Regional Management is playing its role as think-tank for development processes (initiatives, innovative ideas, project proposals). Functional intra-sectoral and inter-sectoral networks are established and develop an own dynamic. Regional management is actively involved in and benefiting from interregional networks. Others (to be added)

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

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Aspect 7 Knowledge management and promotion of innovations Regional knowledge, skills and experiences are systematically collected and broadly used by regional stakeholders. Regional Management contributes to the formation of competence centres, research networks or business clusters. Technical, organisational and social innovations are stimulated by participation in regional or national competitions. Others (to be added)

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

Aspect 8 Attitude of regional stakeholders Acceptance for long-term engagement into the regional development process could be created regarding relevant institutions and decision-making bodies. Communal self-interests and internal competition are widely overcome within the region. Communication and contact abilities have improved and are self-evident among regional actors. Regional identity has become stronger, also in the business community which acts as conscious regional ambassador. Sector boundaries have been increasingly overcome, integrated thinking is improving. Participating stakeholders are willing to share their experiences actively joining into a regional learning culture. Others (to be added)

Full agreement

Partial agreement

Neutral

Partial disagreement

Full disagreement

Adapted from: Handbuch Erfolgreiches Regionalmanagement StMLU 2003

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12 12.3 Group work and exercises


The M&E topic can be presented and dicussed as a input presentation in a half day session. If there is a special need to deepen certain aspects of M&E a group work can/ should be foreseen that puts elements of M&E in relation to the participants home context. The focus should be on the practical handling of M&E with stakeholders at regional level, self determined indicators and the requirements of M&E in a given situation.

12.3.1

Group work: M&E practice in participants countries

1. Give a brief overview on the current situation of networking and information sharing among different stakeholders: e.g. type and frequency of meetings, procedures; M&E topics/issues that are under discussion major constraints, difficulties faced in putting up a regular M&E system already existing formats and forms that capture and report important results.

The results of this group work are to be presented in plenary afterwards.

12.3.2

Group work: Assessment of field visits and transfer to own working context

If there is time spent for visiting Regional Management examples (e.g. stakeholder groups or an RM agency in Germany) the experiences made during an excursion have to be reflected and discussed. The group task could be presented as follows: Looking at the kind and ways of M&E in the visited examples ... What procedures and forms of various M&E for different stakeholders did you notice and seem to be replicable, why? What are the main findings/conclusions concerning M&E that are useful and applicable in your own working context? What unclear questions remain and need further clarification? What are your ideas and proposals for M&E information collection and distribution for RM in SEE?

Tool Box for Trainers

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12.4 Self-test
What are the main steps to be aware of in M&E in regional processes? What are the main aspects to keep in mind and consider in the M&E steps? How to formulate performance indicators? How can I work with checklists for assessing a Regional Management Process?

12.5 Reference material


EU-Handbook for PCM, 2005 http://ec.europa.eu/echo/files/about/actors/fpa/2003/guidelines/project_cycle_ mngmt_en.pdf Managing for Impact in Rural Development - A guide for project M&E; IFAD, 2002 http://www.ifad.org/evaluation/guide/index.htm full of useful (partly academic) material, not focusd on Regional Management but on projects; available in different languages

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Module 12 | Monitoring & Evaluation of Regional Development Processes

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