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1
The New Rural Economy Project: 1997-2006
The New Rural Economy Project: 1997-2006
Bill ReimerBill [email protected]@concordia.ca
nre.concordia.canre.concordia.ca2006/10/272006/10/27
Tom Beckley
David Bruce
Omer Chouinard
Ivan Emke
Greg Halseth
Bruno Jean
Patrice LeBlanc
Dianne Looker
Diane Martz
Solange Nadeau
John Parkins
Steve Plante
Doug Ramsey
Richard Stedman
Ellen Wall
Derek Wilkinson
Anna Woodrow
2
Making research work for youMaking research work for you
•What’s exciting and/or useful?What’s exciting and/or useful? What’s not?What’s not?
•What’s clear?What’s clear? What’s not?What’s not?
•What’s missing?What’s missing?
•How can we improve?How can we improve?
•What do you need to know?What do you need to know?
4
What are the differences between the old and new economies?
What are the differences between the old and new economies?
Old EconomyOld Economy
• Homogeneous cultureHomogeneous culture
• Low knowledge Low knowledge demandsdemands
• Resource commoditiesResource commodities
• Simple and repetitiveSimple and repetitive
• Low mobilityLow mobility
• Local relations Local relations importantimportant
New EconomyNew Economy
• Diverse culturesDiverse cultures
• High knowledge High knowledge demandsdemands
• Services and amenitiesServices and amenities
• ComplexComplex
• High mobilityHigh mobility
• External relations External relations importantimportant
5
How can rural Canada (re)vitalize?
How can rural Canada (re)vitalize?
• Identify the conditions that have Identify the conditions that have contributed to devitalizationcontributed to devitalization
•Organize assets and resources to do the Organize assets and resources to do the things considered importantthings considered important
This ability to organize is:
Capacity
Capacity transforms assets into valued outcomes
6
ASSETS and LIABILITIES
•Economic Capital•Human Skills and Abilities•Social Capital•Natural Resources
OUTCOMES•Economic wealth•Social and political inclusion•Social Cohesion •Environmental security•Social and self-worth•Health•Personal Security
outcomes can become outcomes can become new assets and new assets and
liabilitiesliabilities
PROCESSES
Market
Bureaucratic
Associative
Communal
7
Market
Associative Commun
al
R ob sonE con om ic
Jon esS oc ia l
P o lsonP o lit ica l
S m ithP res id en t
Bureaucratic
Normative SystemsNormative Systems
Market-based:Contractual, short-term, supply and demand
E.g. commerce, labour, housing, trade
Bureaucratic-based:Rationalized roles, principles
E.g. government, law, corporations
Associative-based:Shared interests
E.g. recreation, charity, religious groups
Communal-based:Generalized reciprocity, identity, birthE.g. families, cultural groups, gangs
8
Cap-à-l’aigleCap-à-l’aigle
9
The NRE Sample FrameThe NRE Sample FrameLow CapacityHigh Capacity
LagLeadLagLead
Distant
Adjac.
Distant
Adjac.
Distant
Adjac.
Distant
Adjac.
Local Exposed
Stable
Fluctu-ating
Stable
56169915
45710012
1351612
9454
3018165
198264
4412413251
154627175Fluctu-ating
Global Exposed
10
NRE…The Rural ObservatoryNRE…The Rural Observatory
…an International
Network
…an International
Network
11
General Observations - 1General Observations - 1
• Rural Canada is diverseRural Canada is diverse
• Primary industries are shedding labourPrimary industries are shedding labour
• Manufacturing and services competitiveManufacturing and services competitive
• Environment more importantEnvironment more important
• Knowledge-intensive employment growingKnowledge-intensive employment growing
• Communication and transportation price fallingCommunication and transportation price falling
• Youth leaving, families returningYouth leaving, families returning
12
General Observations - 2General Observations - 2
• Industry has concentratedIndustry has concentrated
•Government services more centralizedGovernment services more centralized
•Rural aging fastestRural aging fastest
•Rural perceived as safeRural perceived as safe
• Immigration strongImmigration strong
•Rural and urban Canada are interdependentRural and urban Canada are interdependent• Social capital is criticalSocial capital is critical
13
Social CapitalSocial Capital
•Social capital is as important as human Social capital is as important as human capital for key economic outcomescapital for key economic outcomes
•Social capital is organized in different Social capital is organized in different normative systemsnormative systems
•Social capital most often used in Social capital most often used in combinationcombination
•Available social capital is not always usedAvailable social capital is not always used
• Impacts of social capital vary by contextImpacts of social capital vary by context
Relationships, networks, and associated Relationships, networks, and associated norms that facilitate collective actionnorms that facilitate collective action
14
Social CohesionSocial Cohesion
•Perception and behavior-related social Perception and behavior-related social cohesion are not highly correlatedcohesion are not highly correlated
•Relational types of social cohesion matterRelational types of social cohesion matter
•Social cohesion can mitigate economic Social cohesion can mitigate economic challengeschallenges
•Social cohesion is not always under local Social cohesion is not always under local controlcontrol
The extent to which people respond The extent to which people respond collectively to achieve their valued outcomescollectively to achieve their valued outcomes
15
The Informal EconomyThe Informal Economy
•Supports the formal economySupports the formal economy
•Primarily used by middle income peoplePrimarily used by middle income people
•Strongly genderedStrongly gendered Women participate moreWomen participate more Self-employment of women increases their Self-employment of women increases their
burden but decreases it for menburden but decreases it for men But only for rural women – not for urban womenBut only for rural women – not for urban women
16
ServicesServices
•Service needs and delivery changingService needs and delivery changing Reducing and RegionalizingReducing and Regionalizing Population shiftsPopulation shifts Financial supports changingFinancial supports changing
•How have communities responded?How have communities responded? CommunicationCommunication FinancesFinances PartnershipsPartnerships OrganizationOrganization
17
CommunicationsCommunications
•Cost of communication and transportation Cost of communication and transportation fallingfalling
•Presence of media doesn’t mean they are Presence of media doesn’t mean they are usedused
•Locally-oriented communication remains Locally-oriented communication remains importantimportant
•Communication requires multiple venuesCommunication requires multiple venues
18
GovernanceGovernance
•Local governance is more than governmentLocal governance is more than government
•New governance = sharing of power, New governance = sharing of power, authority, information among municipal, authority, information among municipal, private, civic sectorsprivate, civic sectors
•Leading sites:Leading sites: Innovative reorganization of assetsInnovative reorganization of assets Multiple uses of assets, multiple outcomesMultiple uses of assets, multiple outcomes
•Local recognition of value of NGOsLocal recognition of value of NGOs
19
Environment and Natural ResourcesEnvironment and Natural Resources
•Resource and land entitlements changingResource and land entitlements changing
•Capacity in new conditions is challengingCapacity in new conditions is challenging
•External forces are dominantExternal forces are dominant
•Unit of analysis is criticalUnit of analysis is critical
•Multiple ways to develop capacityMultiple ways to develop capacity
20
Building CapacityBuilding Capacity
•Capacity comes in many formsCapacity comes in many forms•Available social capital is underutilizedAvailable social capital is underutilized•Modern technologies provide useful tools Modern technologies provide useful tools
(but they need supports to build capacity)(but they need supports to build capacity)•Government, private, civic sector alliances Government, private, civic sector alliances
strengthen local capacitystrengthen local capacity•Service innovations help, but volunteer Service innovations help, but volunteer
sector has limited capacitysector has limited capacity•Context mattersContext matters
21
The New Rural Economy Project: 1997-2006
The New Rural Economy Project: 1997-2006
The Canadian Rural Revitalization The Canadian Rural Revitalization FoundationFoundation
nre.concordia.canre.concordia.ca
www.crrf.cawww.crrf.ca2006/10/272006/10/27
22
Round Table QuestionsRound Table Questions
• IntroductionsIntroductions
•What are the 2 most important questions What are the 2 most important questions you have for the researchers?you have for the researchers?
•How are the answers likely to affect your How are the answers likely to affect your decisions or actions?decisions or actions?
•What more do you need to know?What more do you need to know?
23
Type of Social Capital used matters for HH Incomes
Type of Social Capital used matters for HH Incomes
($4,000)
($2,000)
$0
$2,000
$4,000
$6,000
$8,000
B C
oeffi
cie
nt
• Adj. RAdj. R22 = .37 = .37• Constant = $9102Constant = $9102• N = 1697N = 1697• Logged values for Logged values for
USE of social USE of social capitalcapital
• P < .05P < .05• Source: NRE HH Source: NRE HH
survey, 2001survey, 2001• Total HH incomeTotal HH income• Market, Market,
bureaucratic, bureaucratic, communal, communal, associative: associative: indexes of types of indexes of types of social capitalsocial capital
• Education of the Education of the respondentrespondent
• HH Size: number of HH Size: number of people in the people in the householdhousehold
Return
24
Social relations most often used in combination
Social relations most often used in combination
0
5
10
15
20
25
Bur.-Comm Communal Bureau. M-B-C B-A-C
% u
sed
by H
H
NRE Household survey 2001; 1995 respondents
Return
25
Available Social Capital is not always UsedAvailable Social Capital is not always Used
Correlation Correlation (r)(r) Available Social CapitalAvailable Social Capital
Used Social Used Social CapitalCapital MarketMarket BureaucraticBureaucratic AssociativeAssociative CommunalCommunal
MarketMarket .12** .22**.22** .20**.20** -.18**-.18**
BureaucraticBureaucratic .08**.08** .14** .09**.09** .09**.09**
AssociativeAssociative .21**.21** .35**.35** .28**.28** .07**.07**
CommunalCommunal .05*.05*
NRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of siteNRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of site
Return
26
Context Matters (Metro Adjacency)Context Matters (Metro Adjacency)Correlation (r)Correlation (r) Available Social CapitalAvailable Social Capital
Used Social Used Social CapitalCapital MarketMarket BureaucraticBureaucratic AssociativeAssociative CommunalCommunal
MarketMarketNAdjNAdj .36** .40**.40** .43**.43** -.31**-.31**Adj.Adj. -.09**-.09** -.08* -.07*-.07* -.16**-.16**
BureaucraticBureaucraticNAdjNAdj .19**.19** .18** .18**.18** nsnsAdj.Adj. nsns ns nsns .13**.13**
AssociativeAssociativeNAdjNAdj .42**.42** .53**.53** .52**.52** -.22**-.22**Adj.Adj. nsns .09**.09** nsns .17**.17**
CommunalCommunalNAdjNAdj .11**.11** .11**.11** .14**.14** nsnsAdj.Adj. -.18**-.18** -.08**-.08** -.22**-.22** nsns
NRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of siteNRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of site
Return
27
Context MattersContext Matters
Index of Associative Social Capital
highlow
Est
imat
ed M
argi
nal M
eans
60000
50000
40000
Exposure
Local
Global
HH Income by Associative Social Capital and Global Exposure The use of social capital
increases HH incomes
…but not if exposure to the global economy is low
Public expenditure on associative social capital will have higher impact in
globally exposed sites
NRE HH Survey 2001 (N=1698) Adj. R2 = .04
Return
28
Perception vs. Behaviour-based Indicators
Perception vs. Behaviour-based Indicators
MarketMarket BureauBureau Assoc.Assoc. ComnlComnl TotalTotal
Community Community CohesionCohesion
.10.10 .11.11 .25.25 .18.18 .24.24
Psychol. Psychol. CohesionCohesion
.09.09 .12.12 .25.25 .17.17 .24.24
Attract-Attract-ivenessiveness
.14.14 .08.08 .09.09
Neighbour-Neighbour-linessliness
.13.13 .08.08 .15.15 .20.20 .21.21
All correlations significant at .01 level (2-tailed)
All correlations significant at .01 level (2-tailed)
NRE HH survey, 1995 respondentsNRE HH survey, 1995 respondents
Return
29
0
2
4
6
8
10
12
Market Bureaucratic Associative Communal
employment health home care
Return
SoCo and Household ChangesSoCo and Household Changes
30
SoCo mitigates external contextSoCo mitigates external contextFluctuating Economy
Market-based SoCo
Bureaucratic-based
SoCo
AverageHH Income
Global with Bureaucratic or Local with non-
Bureaucratic
-$7,000
+$4,500 -$680
+$2,000
External factors have significant effects
Social cohesion can mitigate these effects
The relations are often conditional
$47,000$47,000
Return
31
SoCo not all under local controlSoCo not all under local control
Market Bureau. Assoc. Comm. Variety
Global Economy
High High High
Stable Economy
Low Low Low Low
Metro Adjacency
NotAdjac.
Capacity Low Low Low
Return
32
Participation in the IE by Employment(social activities only)
Participation in the IE by Employment(social activities only)
30
40
50
60
70
None Emp 1 FT 1 FT/1 PT Both FT
min
/ d
ay
Urban Rural
Employment ConnectsEmployment Connects
Nonemployment IsolatesNonemployment Isolates
Return
33
Participation in the IE by IncomeParticipation in the IE by Income
160
180
200
220
240
< $10K 10-19K 20-39K 40-59K >60K
min
/ d
ay
Urban Rural
Mid incomes
Mid incomes
participate most
participate most
Return
34
Participation in the IE by GenderParticipation in the IE by Gender
0
100
200
300
Men Women
min
/ d
ay
Formal HH Prod. ExchangeReturn
35
IE by Employment and GenderIE by Employment and Gender
100
150
200
250
300
350
unemp self-emp paid
min
/ d
ay
Men Women
Self-Self-employment is employment is
additional additional burden for burden for
womenwomen
Return
36
IE by Employment and Location(women only)
IE by Employment and Location(women only)
180
200
220
240
260
280
300
320
unemp self-emp paid
min
/ d
ay
Urban Rural
Self-Self-employment employment
reduces reduces burden for burden for
urban women urban women onlyonly
Return
37
% Media Used for Financial, Employment, or Living Changes
% Media Used for Financial, Employment, or Living Changes
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
newspaper TV bulletins radio books magazines internet other
% U
se M
edia
financial employment living
Newspapers and Internet used most oftenfor financial, employment, living changes
NRE Household Sample – 1995 cases
38
Use of Media by HH ChangesUse of Media by HH ChangesFinance/
Employmt/Living
Arrangment
Health Child care
Home Care/
Education
Personal achievment
Newspaper * * *TV * *Bulletins * *Radio *Books * * *Magazines * *Internet * * * * *
NRE Household Sample – 1995 cases