SIXTH FRAMEWORK PROGRAMME
PRIORITY 8.1. B.1.1.
Sustainable Management of Europe’s Natural Resources

SPECIFIC TARGETED RESEARCH PROJECT

Project acronym:
CARERA

Project full title:
The Impact of CAP Reform on the Employment Levels in Rural Areas

Task 1.1 Deliverable 2:

A Literature Review on the Analysis of the Effects of CAP Reform on Rural Areas Emphasizing Young People and Women

Partner 4: UWA

Lesley Langstaff, Steve Lowman & Peter Midmore

Contents

1.Summary

1.1.Section 4.1 CAP reform

1.2.Section 4.2 Rural development

1.3.Section 4.3 Women in agriculture and the rural economy

1.4.Section 4.4 Infrastructure and services in relation to rural employment

1.5.Section 4.5 Rural employment, labour mobility and migration

2.Introduction

3.Methodology

3.1.Defining the base

3.2.Keyword definition

3.3.Reviewing the results and reporting the findings

4.Key Issue findings

4.1.CAP Reform

4.1.1.2003 Reforms

4.1.2.Agenda 2000 Reforms

4.1.3.Other studies

4.1.4.Conclusions

4.2.Rural Development

4.2.1.Social exclusion

4.2.2.Legitimacy

4.2.3.Social vs. economic capital

4.2.4.Spatial diversity

4.2.5.Direct employment benefits?

4.2.6.Sectoral specialisation of rural development funds

4.2.7.Conclusions

4.3.Women in agriculture and the rural economy

4.3.1.Farm women

4.3.2.Other issues

4.3.3.Conclusions

4.4.Infrastructure and services in relation to rural employment

4.4.1.European policy structure

4.4.2.Community regeneration

4.4.3.Indicators

4.4.4.Information and Communication Technology (ICT)

4.4.5.Transport

4.4.6.Accessibility/Peripherality

4.4.7.Policy support for services to rural enterprise

4.4.8.Social exclusion impacts on children and young people

4.4.9.Skills and training

4.4.10.Conclusions

4.5.Rural Employment, Labour Mobility and Migration

4.5.1.Pan-European Studies

4.5.2.Country and regional research

4.5.3.Rural Microbusinesses

4.5.4.Conclusions

5.Assessment

6.References

7.Appendices: Individual Country Reports

7.1.Appendix 1: Germany

7.1.1.Methodology

7.1.2.Main findings

7.1.3.List of References

7.1.4.Appendix

7.2.Appendix 2: Greece

7.2.1.List of References

7.2.2.Literature

7.3.Appendix 3: Hungary

7.3.1.Literature on rural development

7.4.Appendix 4: Italy

7.4.1.Literature review on local development

7.4.2.Reports

7.5.Appendix 5: Sweden

7.5.1.Introduction: The Swedish LBU program (rural development program) 2000-2006

7.5.2.Publications on implementation and evaluation in Sweden, Denmark and Finland.

7.5.3.Brief summaries of all publications reported in table 4.

7.5.4.Concluding remarks

7.5.5.References

Index of Tables

Table 1: Matrix of infrastructure categories

1

1.Summary

This report ‘A Literature Review on the Analysis of the Effects of CAP Reform on Rural Areas Emphasizing Young People and Women’ forms part of Work Package 1 of the CARERA project (The Impact of CAP Reform on the Employment Levels in Rural Areas).The literature suggests general factors throughout the Member States which influence employment in rural areas, especially in relation to women and young people. Many of the differences that exist between rural areas are more related to the type of rural area, for example, its proximity to an urban centre, than to the specific country it is in. Literature relating directly to the 2003 CAP Reforms is sparse, especially in relation to Pillar II Reforms and their effects upon employment.Therefore, other literature, from the keyword searches, not directly related to CAP reform has been included in order to provide the background to the situation in which the reforms have been implemented to enhance the understanding of the potential impacts. The limitedamount of literature directly relating to the remit of this project highlights the importance of this research, in that, upon completion it will add greatly to the current knowledge base concerning the impacts upon rural employment of the current CAP reforms.

1.1.Section 4.1 CAP reform

The following general conclusions can be drawn from studies of current CAP reform, many of which are in keeping with studies of past reforms.However, it should be noted that many of the studies considered that due to the recent nature of the 2003 reforms it was too early to accurately predict their impacts and many of the farmers consulted in these studies were adopting a ‘wait and see’ attitude before making decisions to rationalise their farming systems or make exit decisions.

  • There will be a continued restructuring of agriculture within the EU Member States.
  • Scenarios examined generally indicate positive or neutral outcomes for the EU Member States, as a whole, but the outlooks for certain types of enterprise and regions, for example, dry livestock (meat and livestock rearing) enterprises in peripheral areas,are not as good.
  • Extensification and diversification of the farming systems is predicted to continue with the possibility that many smaller farms will cease to be viable and become absorbed into larger, more efficient enterprises.
  • The trend towards part-time farming and off-farm employment is expected to continue with many women and young people seeking off-farm employment.
  • Increased diversification activities, especially those leading to increased interaction with the public, may result in more women taking over the role of farm management in part-time farming areas.
  • The trend for the young to take employment away from the farm has a potentially adverse effect upon farm succession and new entrants to agriculture, as by the time a farmer decides to retire potential successors have built careers and lives away from the family farm.
  • Non-family farm labour is generally predicted to continue to decline.
  • Start-up support has been shown to increase the possibilities for young people to take over farms.
  • Studies examining the effects of rural development initiatives are mixed in their assessments of impacts upon employment.
  • Some studies report positive gains from investment programmes but it may be queried whether the prevalent economic conditions and the investment decisions of the enterprises studied would have reaped these benefits anyway, in the absence of Government support.
  • Other studies concluded that the investment resulted in the substitution of labour for capital and therefore had a negative effect upon employment or that any benefits gained were short lived or may not continue after the withdrawal of support.
  • Women fared particularly poorly under many of the initiatives both in terms of success when support was obtainedand in the levels of support they succeeded in achieving.
  • Enterprises run by women generally have lower employment effects.
  • Some studies suggest that an increase in organic agriculture will result in increased agricultural employment. As this is a sector which in some countries attracts higher levels of female farmers, for example, a quarter of all organic farms in Germanyare run by women, an increase in organic agriculture may result in more employment for women in selected rural areas.

1.2.Section 4.2 Rural development

This section examines the importance of the local context for rural development programmes. Various studies have emphasised the role of social capital and social structures and the need for these to be fully taken into account in the rural development process to ensure social inclusion and effective development projects. The diversity, both between and within, of rural areas is again emphasised, along with the need for this diversity to be taken into account in local rural development policy.

The following features have been identified from individual countries literature:

  • SME’s with less than 10 employees benefit more from rural development funding than larger enterprises.
  • Sustained employment creation is most effective in new enterprises that have initially been planned to be implemented without policy support.
  • A study of the LEADER II programme in Germany found that 40% of the jobs created were for women.

1.3.Section 4.3 Women in agriculture and the rural economy

Throughout Europe farm women play a vital role in the continuation of the family farm. Their off-farm employment and role in the development of on-farm diversification activities often ensure the survival of not just the family farm but also the notion of the farming family. Recent CAP reforms have accelerated the trend towards farm women seeking off-farm employment and therefore participation in the wider rural economy. However, research throughout Europe suggests that far from raising the status of women within the farming community off-farm employment and diversification activities can cause further disempowerment contributing to ‘keeping farming male’.

The literature suggests that, throughout Europe, farm women have similar experiences of farm and off-farm employment and diversification activities. These are summarised below.

  • Both off-farm work and diversification activities are often tailored to meet the needs of the farm, household duties and children constraining the employment opportunities and defining the scope and scale of diversification activities.
  • The on-farm work of women, whilst often essential to the running of the farm, is often undervalued.
  • The constraints posed by the needs of the farm, household duties and childcare limit the job opportunities available to farm women resulting in local work that is often low paid.
  • Hours worked off-farm or on new on-farm diversification activities are often undertaken in addition to existing duties and responsibilities with no renegotiation of hours worked. This has led to further disempowerment of farm women.
  • The main strategy of farm women is to maintain the family farm, and the family farm defines their role as ‘farmers wives’ even if they are educated and work off-farm.
  • The general increase in the level of education of women is the most important factor responsible for the rise in off-farm employment.
  • Women play an important role in the development of new income resources on the farm and on-farm diversification can result in an increase of female family farm labour. For example, a study in Germany found that:
  • On 40% of farms women had sole responsibility for direct marketing activities (for example, farm shops and farmers markets), this responsibility was shared with their spouse on a further 40% of farms.
  • Women undertook 81% of the work related to farm holiday provision, such as, holiday cottages.

The following points relate to factors that impact upon all women, including farm women, within the rural economy.

  • The success of women as entrepreneurs within the rural economy is hampered by the tendency of rural development policies and schemes to begeared towards men and their success being judged upon male criteria, predominantly that of profit maximisation. Throughout Europe, women experience lower access to subsidies and credit.
  • Women, especially farm women, often have constraints which they work within, for example, the business fitting in with the needs of their family. Although profit is important, avoiding disruption to the family may take precedence over profit maximisation, and therefore starting small is often preferred as it enables the impact upon the family to be assessed without high risks.
  • When judged by male criteria thebusiness activities of women are often deemed unsuccessful whilst in reality the enterprises satisfy the constraints and criteria placed upon them.
  • The desire to balance family, other commitments and work not only influences the decisions taken by female entrepreneurs but also the employment decisions made by women in general.
  • Many women work below their potential in part-time employment in order to balance the demands of family and work. The move from full-time to part-time employment is commonly combined with a downgrading of skill level required and / or reduced promotion prospects.

1.4.Section 4.4 Infrastructure and services in relation to rural employment

Numerous studies have examined the importance of rural infrastructure and good quality services and the key findings are summarised below.

  • The availability of infrastructure and basic services is an important precondition for successful regional economic development.
  • The successful economic development of a region requires appropriate infrastructure necessary for businesses to succeed, for example, ICT infrastructure and good transport links, and that which provides the necessary services to households, for example, schools, health care and leisure facilities.
  • The quality of local infrastructure and basic services not only influences the direct ability of businesses to function but also has implications for quality of life issues and net migration to the area and therefore influences the potential availability of labour and / or local markets.
  • Rural SMEs need to exploit the potential for using ICT in order to increase competitiveness. The digital divide exists not just between the standards of ICT technology in different regions of the EU but also in usage of available ICT infrastructure between different sectors of society, and these divides need to be addressed to counteract social exclusion and promote development.
  • The necessity of adopting a long- term view is particularly important when addressing issues of service deprivation and social exclusion, especially of the young, in rural areas. Community based development initiatives require long-term support to enable capacity building to increase voluntary activity and skills within the local area.
  • Children and young people are less likely to remain in their home area once qualified if their experience has been one of social exclusion and service deprivation. This is more likely to occur in the peripheral rural areas than in accessible regions.
  • To develop an appropriate service provision infrastructure in peripherally situated communities requires capacity building to increase voluntary activity and skills, especially amongst the young.

1.5.Section 4.5 Rural employment, labour mobility and migration

Despite the diversity of rural areas, both between and within countries, there are many common problems experienced by the young living in those areas, although the solutions to these problems are likely to vary greatly. Access to education, leisure facilities, childcare and transport are common problems experienced by the young throughout the EU Member States. Although in many rural areas employment is available, the quality of the jobs causes difficulties with many of the opportunities being in part-time and / or seasonal employment and access to employment can be hampered by lack of transport opportunities. Out-migration of the young both for higher education and for higher quality employment is a problem for many rural areas which are experiencing ageing population demographics.It has been suggested that improving educational opportunities without a corresponding increase in high quality employment may exacerbate the situation causing more young people to migrate to find employment that fully utilises their skills.

  • Out-migration of the young for higher education is not in itself a negative factor, the experiences and knowledge that they gain can be valuable to rural areas. It is the inability of rural areas, through lack of suitable employment, to encourage their return that results in this resource being lost.
  • In order to attain rewarding employment young people in rural areas have no choice but to leave. Much of the available employment in the rural areas is part-time, temporary or seasonal requiring low levels of qualification.
  • The higher the education level of the head of household the more likely it is that family members would out-migrate with continuing education being the prime motivation.
  • Many young people wish to return to rural areas at later stages in their lives, for example, once they had children, as they considerrural areas to be safe, high quality places to live.
  • The young who remain within the rural areas experience problems of access to services, jobs, affordable housing, low pay, exclusion from decision making and also the stigma of ‘staying behind’.
  • There are two distinct patterns of access to employment for young people in rural areas. They either become integrated into the national labour market, that are, distant, well-paid and with career opportunities, or into the local labour market which is predominantly low-paid, insecure, unrewarding and with fewer prospects.
  • Young people have a more positive view of the rural area in which they live if it is reasonably close to an urban centre, and the more remote the area the less content they become.
  • Young people often feel excluded from the local community feeling and that their needs are overlooked or of low priority.
  • Gender imbalance also occurs in some areas as young women are more likely to leave for employment opportunities elsewhere. This leads to the masculinisation of the remaining populations and produces the ‘knock-on’ effect of declining fertility rates.
  • There is a clear link between higher rates employment and participation of the young and women and GDP/capita.Women who commute for employment are more highly educated than their male counterparts and tended to commute to the nearest regional town. They have a heavy reliance on public sector employment, especially in education, health care and generally receive higher incomes than those available in the private sector.
  • The needs of rural businesses differ not only from their urban counterparts but also between rural areas. Therefore, business support needs to be tailored to the individual circumstances of the specific locality.
  • Employers in rural areas need to see the potential benefits of training and provide informal training solutions that are appropriate to the needs of small businesses.
  • Innovative SMEs are the most likely to contribute to economic development and employment growth in rural areas and the success of such businessesis dependent upon a range of factors including training, business service provision and transport and communication infrastructure.
  • Evidence suggests that the needs of small businesses in rural areas, including farming enterprises, are not currently being met by existing extension and support agencies and therefore, the lack of specialised targeted services and support is preventing rural SMEs from reaching their full potential.

2.Introduction

This literature review analysing the effects of CAP reform on rural areas emphasizing young people and women forms part of the work of Workpackage 1: State of the Art in Theory and Practice of Rural Development.