RM Toolbox for Trainers

on behalf of:

Regional Management for Regional Rural Development Toolbox for Trainers based on the InWEnt Programme “EU Integration of South Eastern Europe”

Imprint

Regional Management for Regional Rural Development

Toolbox for Trainers

Published by:

InWEnt

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und Entwicklung gGmbH

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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

[email protected]

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 BokelohUwe KrappitzHans RosenbeckAngelika ThomasThomas WehingerGero Wieschollek

4

5

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

6

List of Abbreviations

BMVEL Federal Ministry of Food, Agriculture and Consumer Protection

BMZ Federal Ministry for Economic Co-operation and Development

CAP Common Agricultural Policy

CARDS Community Assistance for Reconstruction, Development and Stabilisation

CB Capacity Building

CBC Cross-Border Cooperation

CF Cohesion Fund

EAFRD European Agricultural Fund for Rural Development

EAGF European Agricultural Guarante Fund

EC Europaen Commission

EFRD European Fund for Regional Development

ENPI European Neighbourhood and Partnership Instrument

ESF European Social Fund

EU European Union

GI Geographical Indication

GTZ Deutsche Gesellschaft für Technische Zusammenarbeit GmbH

InWEnt InWEnt, Capacity Building Interrnational, Germany

IPA Integrated Instrument for Pre-Accession Assistance

ISPA Instrument for Structural Policies for Pre-Accession

LAG Local Action Group

LDS Local Development Strategies

LEADER Liasion entre actions de développment de l´économie rurale

LED Local Economic Development

LFA Logical Framework Approach

M&E Monitoring and Evaluation

NGO Non-Governmental Organization

NUTS Nomenclature des unités territoriales statistiques

OECD Organisation for Economic Co-operation and Development

PACA Participatory Appraisal of Competitive Advantage

PCM Project Cycle Management

PDO Protected Designation of Origin

PGI Proteced Geographical Indication

PPM Project Planning Matrix

PPP Public-Private Partnership

RDC Regional Development Concept

RDS Regional Development Strategy

RED Regional Economic Development

REGINA Regional Innovation Agency District of Neumarkt i.d.OPf.

RM Regional Management

RRD Regional Rural Development

SAPARD Special Accession Programme for Agriculture and Rural Development

SWOT Strengths Weaknesses Opportunities Threats

TSG Traditional speciality guaranteed

UAP Unique advertising proposition

USP Unique selling proposition

7

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 character-

istics of the particular region is essential in steering its endog-

enous 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, dispari-

ties rather grow compared to urban areas. Agriculture dominates

the economic and social development in rural regions, but its sig-

nificance 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 chal-

lenges 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 pro-

fessional 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 organ-

ise and handle such change pro-cesses.

On behalf of the German Federal Ministry for Economic

Co-operation and Development (BMZ) InWEnt, Capacity build-

ing 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 under-

standing of regional and local development being a crosscut-

ting and multidimensional issue. In other words, Regional Rural

Development constitutes a unity combining the “regional” and

“rural” policies and programmes into one territorial develop-

ment approach.

InWEnt’s strategic Regional Rural Development approach

targets firstly at the strengthening of the political dialogue. Sec-

ondly, InWEnt implements trainings which aim at strengthen-

ing 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 increas-

ingly applied in the European Union for 20 years in manifold

ways. A third pillar of the approach has included the close coop-

eration 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 Devel-

opment in South Eastern Europe (SWG RRD), Jens Adler, Dr.

Detlev Boettcher, Angela Marx and the team of trainers and facil-

itators, first and foremost Uwe Krappitz.

Dr. Henriette Stange

Senior Project Manager

Zschortau, December 2010

8

Orientation - how to use this toolbox?

This toolbox is the outcome and the summary of different mod-

ules and events implemented by InWEnt in the topic of Inno-

vative Regional Management for Regional Rural Development.

Throughout the last decade hundreds of professionals from

all SEE countries participated in these trainings. All those col-

leagues 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 situa-

tion 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 train-

ers´ 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.

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 Man-

agement has to fulfil in order to establish and guide regional

development processes.

The chosen order of these topics does not imply a chronologi-

cal 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 terri-

tory, the adequate mix of instruments in a regional rural devel-

opment 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 inter-

est, e.g. “Regional Marketing”.

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?

2 Introductory presentations

Content: What are the frame and the essential information

for this module?

3 Group work and exercises

Content: How can the knowledge be transferred?

4 Self-test

Content: Has the message of the module arrived?

5 Reference material

Content: Where to find more information, details and docu-

ments?

We hope that all the readers and trainers find the toolbox a help-

ful 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!

9

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

10

Introductory presentations Historical review on rural development in Europe

Characteristics, objectives and approach of RRD

Conceptual frame – the 4 dimensions of RRD

11

Group work and exercises Presentation of participants working context:

individual/group/information market

Group work: Guiding Visions for

RRD in participants’ countries

16

Self-test Roots of RRD

Challenges, characteristics and objectives of RRD

The situation in your country

18

Reference material • “The new rural paradigm” OECD 2006

• “Actively Shaping Rural Development“,

BMELF, 2007

• www.rz.uni-karlsruhe.de/

• www.gtz.de/en/themen

18

10

1.1 Objectives, content, time

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 effi-

ciently

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 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?

Why Regional Rural Development?

Module 1

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 develop-

ment 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.

Objectives

Guiding questions

Module 1 | Why Regional Rural Development

11Tool Box for Trainers

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 effi-

ciently 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.

1.2 Introductory presentations

Time

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, harmoniz-

ing divergent interests, minimizing possi-

ble trade-offs and creating the famous syn-

ergies can be transformed into practical

intervention only at local/regional level.

Trying to combine different sector per-

spectives, 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 nutri-

tion for the region.

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 sen-

sitive areas. The focus has been on the protection of special biotopes and the preven-

tion 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 construc-

tive 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 activ-

ities in harmony with environmental requirements – is one of the most important

R R D through Regional Management

Regional Rural Development

1

12

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 food-

stuff. 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 exam-

ple 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 eco-

nomic promotion (location marketing, b2b, business incubators etc.) towards a much

broader regional approach (horizontal and vertical clusters, value chains, regional mar-

keting etc.) created the need for respective operational units. Already in the mid nine-

ties, 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 ade-

quately 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 spa-

tial structure of a territory. Thus it was lacking the implementation oriented dimen-

sion of development. Recognizing this gap, the comprehensive spatial planning was

the first way to introduce “Regional Management” as a complementary “soft” instru-

ment 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 Devel-

opment Programmes, Local Development Strategies (LEADER) or Regional Develop-

ment 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-



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 fol-

lowing section.

1.2.4 Rural development

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 por-

tion 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.

History of RRD:

Beginning globalization in

the early nineties promoted

the emerging of the “regional”

dimension with a somehow inte-

grated and territorial approach.

Rural regions are not yet ade-

quately represented in Europe.

New challenges (worldwide mar-

kets, increasing competition,

changing job requirements and

unemployment, as well as demo-

graphic changes) show the need

for an integrated and multidi-

mensional concept adapted to the

needs of each region.

1

14

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 prod-

uct 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 dis-

tinguishing four main dimensions. To check on them will help not to overlook impor-

tant aspects and crucial potentials.

These four dimensions can be taken as a tool as well as a checklist when analysing ter-

ritories 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 sit-

uations

design and verify the best inter-

vention strategy

set up efficient action plans and

assess whether the intended

changes occurred according to

our intentions.



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 dimen-

sions are presented on this board to exemplify how this conceptual frame can be prac-

tically 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.

lasting improvement of living conditions in rural regions

The objective of RRD is ...

sustainability!

cohesion!

RRD is focused on people

RRD is a multisectoral concept

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

bottom-up approach

integrated approach

regional approach

Characteristic

s and

objective o

f RRD Capacity building of people...

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

Identification of the opportunities...

... supported by new economic and institutional frame conditions and region

specific characteristics and resources

Capacity building of service delivery through institutional reforms

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

Approach

Strategy

RRD addresses ...

local self- government

regional and local government

decision makers

civil society organisations, NGOs

national departments

private sector

international development coop.

organisations

research and education system

consultants

16

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 adapta-

tion 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 soci-

ety and private sector organisations and representatives.

1.3 Group work and exercises

Step 1: Individual reflection of the own

working situation

Step 3: Information market – the country

groups present their boards to each other

Step 2: Presentation in country groups



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 intro-

ductory 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 partici-

pants 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 expe-

riences and knowledge of their compatriots.

An example from Bosnia and Herze-

govina: The Agro-Business Centre in

Rogatica

18

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 Develop-

ment 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 barri-

ers 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 avail-

able 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

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 answer-

ing 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 com-

ing dialogues between trainers and participants regarding the specific topics, which

will be described in the coming modules.


19

Module 2

Regional Management: Functions, Structure and Budget


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

20

Introductory presentations The integrative nature of RM

Central Functions of RM

Organisation and legal forms of RM

Potential financial resources of RM

21

Group work and exercises How will your RM organisation

look like in five years?

What will be the functional structure and

how to generate a sustainable financing?

29

Self-test Cross-cutting and integrative approach

Functions and tasks: sequence or system?

Organisational structure and self-finance

30

Reference material The integrative nature of RM

From Regional Planning to Regional Management

30

20


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 dis-

cussed in depth in the following modules)

apply a systemic approach to explore and interpret given situations, design and ver-

ify 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 inde-

pendent 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

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?

Regional Management: Functions, Structure and Budget?

Module 2

This chapter introduces the concept of Regional Management as a

necessary instrument (means) to promote Regional Rural Develop-

ment (end).

Objectives

Guiding questions

Module 2 | Regional Management: Functions, structure and budget


2

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

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 suf-

ficiently 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 ini-

tiating and promoting change being considered as a necessary pre-condition for suc-

cessful Regional Rural Development (RRD).

Regional Management can be seen as an integrated approach to initiate and sup-

port sustainable development of a region by using its endogenous potential, which can

be mobilised through the concerted effort of stakeholders from the political/admin-

istrative 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, natu-

ral, political-administrative, economic, functional) representing a huge scale or sizes

varying from some 20,000 to several million inhabitants. The classical understand-

ing 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 com-

munal self-administration.

However, local and regional action competence is still underdeveloped as decision-

makers and administrations hardly explore the existing potentials and opportunities.

This refers equally to the public as well as to the private sector. Central institutions fre-

quently 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 develop-

ment 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 sup-

ported by EU funds). The vision of “Learning Regions” is becoming a guiding princi-

ple for sustainable development.


Time

Regional Management is nowadays

an accepted instrument for the

initiation and promotion of

change

a necessary precondition for suc-

cessful RRD.

RM is possible through the con-

certed effort of all stakeholders com-

prising:

policy and administration

civil society and

private business.

22 Module 2 | Regional Management: Functions, structure and budget

2.2.1 The integrative nature of Regional Management

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 “competi-

tion 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 activ-

ity and main source of income for a significant part of the rural population. Neglect-

ing or denying the role of agriculture is even less justifiable in SEE, given the socio-

economic data about the primary sector.

For these reasons, rural areas have to break through the vicious circle of decreas-

ing income from agricultural activities, unemployment/underemployment, out-migra-

tion 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 soli-

darity, 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.

In its political dimension this requires a continuous strengthening of communal self-

administration, the integration of relevant stakeholders (decentralisation and partici-

pation) 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 sep-

arated 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-cut-

ting 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 pro-

grammes and available co-finance, engagement of stakeholders and other important

factors of influence, there will always be a need for a combination of these interven-

tions (somehow comparable with a successful marketing mix), which requires constant

efforts of reviewing and adaptation.

The integrative nature of Regional Management

social

coherence

economic

growth

environmental

protection

civil society

business public sector

processes

projects programmes


2


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 inte-

gration 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 institu-

tional 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!

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 man-

date for its performance.

Apart from existing sector programmes or spatial plans, there is a need for develop-

ing integrated “Regional Development Concepts – RDCs” or “Local Development Strate-

gies – 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. Never-

theless, 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 shouldn’t be a parallel process in the long run (many Local Agenda 21 processes

have failed because of this parallelism).

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 rela-

tions 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 admin-

istrative 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.

Module III

Module IV

Module V


2

2.2.2.4 Local and regional economic promotion: mobilising inward investments

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 com-

plex 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 implementa-

tion on municipal or regional level is lacking too many times, wasting scarce resources.

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 scar-

city of financial resources on the communal/regional level?

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

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 mobilis-

ing 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

The Regional Management unit is not the statistical office for the regional administra-

tion. 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

Module VI

Module VII

Module VIII

Module IX

Module X


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/com-

panies/ 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.

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”.

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 expe-

rience 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 imple-

menting 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 net-

working 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

Module XI

Module XII


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 man-

ager’s 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 perma-

nent 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

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

Later adaptation should be possible

1

2

3

Who will be member of

the decision making body?

Legal regulations and

administrative mandate

Associations

Integration of RM in

public administration

New organization for RM?

Implementation of

own projects

Limited liability company

Regional (Development)

Forum

Who will finance RM?

Economic goals or non-profit

making organization?

Informal cooperation /

networking

Integration of RM in

chambers / associations

RM within existing

organization?

Only support of external

project groups?

Foundation

Others …

Guiding questions

Possible legal forms


2.2.4 Potential financial resources for Regional Management

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 poten-

tial 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 becom-

ing 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.

Possible financial sources of RM: Membership fees

Proportional distribution

of costs to stakeholders

Income generation from

the delivery of services

Participation in contests

Potential financial resources for RM

Membership fee

(fix amount)

Municipalities District / county Associations Chambers Private members

Proportionate dis-

tribution of costs

According to

financial strength

According to

number of

inhabitants

Commission on

acquired funds

Income gener-

ated from services

Consulting fee Payments for

studies /

investigations

Fees for project

management

Fees for elabo-

ration of busi-

ness plans

Fees for modera-

tion services

Property

management

License fees Commission for

use of registerred

brands

Commission on

selling of regis-

tered products

Sponsoring By regional banks Through

associations

Support for

specific projects

Through regional

enterprises

Selling of

(regional) shares

Contests and

awards

National /

regional contests

From foundations

Public promo-

tion programmes

EU funds National pro-

grammes

Revolving funds Limited in time

and declining

Often

sector-oriented

Never get dependent on only one source


2


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, ...)

2 Sustainable financing

(type of expenditure, sources of

revenue/income e.g. in %)

An example from Southern Serbia


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 organi-

zational structure and legal status for the Regional Management?

What are the potential sources for the financing of the self-maintenance of an effec-

tive and sustainable RM unit?


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/

31

Module 3

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


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

32

Introductory presentations 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

33

Group work and exercises 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

41

Self-test 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

42

Reference material Further reading material and websites are listed on page 42 42

3

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


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.

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

Module 3

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 devel-

opment and the political stability in Europe. Regional Rural Devel-

opment 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 pos-

sibilities for funding. This builds up on the knowledge on the his-

torical background of Rural Development in the EU and the guid-

ing principles that are presented in module 1.

Objectives


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

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 dif-

ferent 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.

3.2.1 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-


Contents

Time

3

34

lowed: “Europe must renew the basis of its competitiveness, increase its growth poten-

tial 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. Macr-

oeconomic 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 stim-

ulate growth potential to maintain and achieve high growth rates for regions and

member states eligible for cohesion policy support

Regional competitiveness and employment aim at anticipating and promoting eco-

nomic change by improving the competitiveness and attractiveness of EU regions

through investments in the knowledge economy, entrepreneurship, research, uni-

versity-enterprise co-operation and innovation, through access to transport and

telecommunication infrastructure, energy, and health, environment and risk pre-

vention, through supporting the adaptability of workers and enterprises, reinforc-

ing participation in the labour market, and promoting social inclusion and sus-

tainable communities.

European territorial cooperation to promote stronger integration of the territory of

the Union in all its dimensions. Cohesion policy supports the balanced and sustain-

able 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 mem-

ber states in managing and implementing the cohesion policy. Another important

factor is to enhance and ensure the quality of the partnership between all stake-

holders, including those at regional and local level, in the preparation and imple-

mentation 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.

Objectives of the Community Strategic

Strategic dimension of cohesion pol-

icy strengthened to ensure commu-

nity priorities are better integrated

in national and regional develop-

ment programmes

Efforts to ensure greater ownership

of cohesion policy on the ground

reinforced dialogue between

commission, MS and the regions

clear, more decentralised shar-

ing of responsibilities such as

financial management and con-

trol while promoting PPPs

Priorities according to the Lisbon agenda

Making Europe and its regions

a more attractive place to invest

and work

Improving knowledge and inno-

vation for growth

More and better jobs

Territorial cohesion and coop-

eration

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


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)

3

36

3.2.3 EAFRD - European Agricultural Fund for Rural Development

The Common Agricultural Policy bases on two pillars.

Pillar 1: the European Agricultural Guarantee Fund (EAGF) includes intervention

measures to regulate agricultural markets and direct payments to farmers.

Pillar 2: the European Agricultural Fund for Rural Development (EAFRD) supports

rural development and may be of higher interest for the participants.

Although the second pillar was introduced progressively since the 1970s and institu-

tionalised 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 EU’s Rural Develop-

ment 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 2007-

2013, or 20% of the funds dedicated to the CAP.

The national strategic plans are implemented through Rural Development Pro-

grammes 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 strat-

egies through public-private partnerships.

Main axes of the EAFRD:

Competitiveness of agriculture

and forestry

The environment and the coun-

tryside

The quality of life and the man-

agement of the economic activi-

ties in the rural areas



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

EAFRD 2007-2013: Measures Axis 1-4

Rural Development 2007 - 2013

« LEADER » Axis

Axis 1competitiveness

in agriculture and

forestry

Axis 2environment and

land management

Axis 3quality of life and

economic

diversification

Single set of programming, financing, monitoring and auditing rules

Single Rural Development Fund

Rural Development Policy 2007-2013: Foundations

Axis 1: improving competitiveness

Improving human

potential

Vocational train-

ing and infor-

mation actions

Setting up of young

farmers groups

Early retirement Use of advisory

services (includ-

ing for meeting

skills)

Setting up of

farm manage-

ment, relief and

advisory services

Restructuring physical

potential

Investments to

improve pro-

duction

Processing and

marketing (infra)

structures

Agricultural /

forestry infra-

structure

Restoring agri-

cultural produc-

tion potential

Improving the quality of

agricultural production

and products

Meeting stan-

dards tempo-

rary support

Food quality incen-

tive scheme

Food quality

promotion

Transnational measures

for the new MS

(until 2009)

Semi-sub-

sistence

Setting up producer

groups

Axis 2: environment / land management

Sustainable use of

agricultural land

Mountain LFA

(less favoured

areas)

Other areas with

handicaps

Natura 2000

agricultural areas

Agri-environ-

ment and ani-

mal welfare

Support for

non-productive

investments

Sustainable use of

forestry land

First affor-

estation

First establishment

of agro-forestry

systems

Natura 2000

forest areas

Forest envi-

ronment

Restoring for-

estry produc-

tion potential

Introducing pre-

vention actions

Support for non-pro-

ductive investments

3

EAFRD 2007-2013

38

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

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 sta-

bilisation 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 coher-

ence 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 €

Axis 3: diversification and quality of life

Diversification of the rural

economy

Diversification of

non-agricultural

activities

Support for micro

enterprises

Encouragement of

tourism activities

Presentation and

management of the

natural heritage

Improvement of the quality

of life

Basic services for

the rural economy

and population

Renovation and devel-

opment of villages

Training and capacity

building

Vocational training Capacity building

for local develop-

ment strategies

Implementation

preferably through

local development

strategies

Overlapping with

structural funds

(ex ante choice)

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

L Liaison Link

E Entre Between

A Action de Actions to

D Developpe-

ment de

Develop

E L’Economie Rural

R Rural Economy



IPA comprises five components, whereby the first two components concern all ben-

eficiary 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 Agricul-

tural Policy and related policies and to the European Agricultural Fund for Rural

Development (EAFRD).

3

IPA: Integrated Instrument for Pre-Accession Assistance

“Bridging function” to prepare for the time after accession

Medium-term perspective

2007 - 2013

Beneficiaries

Components of IPA

Potential candidate countries

Bosnia & Herze-govina

Serbia

Kosovo

Monte-negro

AlbaniaCandidate countries

Turkey

Mace-donia

Croatia

C1 C2 C3 C4 C5

Transition assistance & institution building

Cross- border co-operation

Regional develop-

ment

Human resources develop-

ment

Rural develop-

ment

Focus on institution building

CBC EU MS

Candidate/pot. candidate

Emulation of ERDF and Cohesion Fund

Provides preparation

for use of cohsion policy

Finance rural development-type measures




Prepare for post- accession EU-funded

rural development programmes

3 priority axes

9 measures

Transition assistance for can-

didate countries

“catch all” components

Rapid reaction and adaptation to

changing needs

Preparation for participation in the structural fund

after accession

Finance, investment and technical

assistance

Finance ESF-type measures

Employment and social inclusion

Participation in transnational and interregional

coop.

40

3.2.5 Cross-border co-operation programmes

Cross-border co-operation is a strategic priority of the EU policy. All in all the follow-

ing 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-oper-

ation 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 co-

operation 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 objec-

tive of EU cohesion policy. It is financed by the European Regional Development

Fund (ERDF) and supports cross-border, transnational and interregional co-oper-

ation programmes.

The European Territorial Co-operation Objective is the formerly INTERREG Commu-

nity 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 instru-

ments (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 pro-

grammes, projects can be financed in a wide variety of themes e.g. culture, tour-

ism, 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 bal-

anced development across the EU and better territorial integration with candidate

and other neighbouring countries. Key areas of focus include: innovation, environ-

ment, 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 Devel-

opment 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 com-

mon classification of European regions.

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 inte-

gration among partners, who

share a “common space”

Under the new European Territo-

rial Cooperation Objective INTER-

REG IV programmes are divided

into three different strands:

cross-border co-operations

transnational co-operations

interregional co-operations



3.3 Group work and exercisesThe 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 meth-

ods 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 con-

ducted to prepare a presentation, especially on IPA components in the different candi-

date 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 feed-

back 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 …?

3

42

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 mem-

ber 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 applica-

ble in my home country?


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

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


43

Module 4

Elaboration of Local Development Strategies/ Regional Development Concepts and Action PlansOverview 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

44

Introductory presentations 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

45

Group work and exercises Exchange of experience on LDS/RDC

Elaboration of an event management plan

LDS follow-up activities / next steps

56

Self-test Key-features of LEADER

Contents of RDC/LDS

Elaboration process

Basic structures of LAG Management

Advantages and disadvantages

57

Reference material Respective documents on the official EU-website

Shaping the future, BMVEL, 2006

Regional Development Concept 2007-2013,

LAG Regina Neumarkt

57

44 Module 4 | Elaboration of LDS/RDCs and Action Plans


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 struc-

ture 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-pri-

vate partnership – the so-called “Local Action Group”, the administration of the EFRD

money is delegated to the responsible political and administrative units. The follow-

ing 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

Elaboration of LDS/ RDCs and Action Plans

Module 4

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

a mainstream programme of the EAFRD in the period of 2007 to

2013 after having been a common initiative for three funding peri-

ods before.

Objectives

LEADER:frz.: Liaison entre actions de dével-

oppement de l’économie rurale

eng.: Connection between measures

to develop rural economy


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 implemen-

tation of a LDS.

The duration depends very much on the number of field trips and the number of inter-

active 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

Contents

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 pow-

erpoint 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 implementa-

tion 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 Devel-

opment Strategies.

The Council Regulation (EC) No 1698/2005 of 20th September 2005 on the sup-

port 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.


4

46

The 7 key principles of LEADER

LEADER (Liaison entre actions de développement de l’économie rurale) follows seven

key principles:

1 An area-based Local Development Strategy (LDS) - sometimes called Rural Develop-

ment 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.

Module 4 | Elaboration of LDS/RDCs and Action Plans


Council Regulation 1698/2005

Art. 61: Definition, elements

a Area-based LDS for well-defined subre-gional rural territories

b Local public-private partnerships (Local Action Groups – LAG)

c Bottom-up approach with decision

making power for LAGs

Concerning elaboration and implementation of LDS

d Multi-sectoral design of the strategy Interaction between actors and projects of different sectors

e Impelementation of innovative approaches

f Implementation of cooperation projects

g Networking of local partnerships

Art. 62: Local Action Groups

1 LAG shall implement the partnered

local development:

They must propose an

integrated LDS based

at least on a)- d) + g)

They are responsible

for its implementation

2 Old groups (LII and L+) or new

groups

Partners from various locally

based socio-economic sectors

Or select an admin-

istrative and finan-

cial lead actor

Ability to define and

implement a LDS

Or come together in a legally

constituted common structure

Or select an administra-

tive and financial

lead actor

Ability to administer Guarantee the satisfactory

public funds operation

3 Area covered by the strategy

shall be coherent

Offer sufficient critical mass

in terms of human, finan-

cial and economic resources

4 LAGs choose the projects to be

financed under the strategy

They may also select

cooperation projects

Art. 63:Measures

Implement LDS as referred

to in Art. 62.1

To achieve the objectives of the

three other axes of the EAFRD

Implement cooperation projects

(involving the selected objectives

Run the LAG, acquire skills

and animate the territory

Art. 64: Implementing local strategies

If the operations under LDS correspond to measures defined in axes I-III, the relevant

conditions shall apply in accordance

Art. 65: Cooperation

Support shall be granted to inter-

territorial and transnational


Inter-territorial: within a

member state

Transnational:

territories within several

member states

and with territories

in third countriesOnly expenditure relat-

ing to territories within EU

shall be eligible for support

Art. 64 also applies to


4

48

The most important decisions regarding the bottom-up approach giving full respon-

sibilities 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 exist-

ing 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 bottom-

up approach or do they hinder its implementation?

Are the necessary capacities and competences available and sufficient for the imple-

mentation 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 concep-

tual 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).



4.2.2 Content of a LDS

The content of a LDS is basically laid down in the EU guidelines for the implementa-

tion 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 man-

aging authorities provide a template for the document, which is more or less obliga-

tory to follow.

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

1 Boundaries and loca-

tion of the area/region

Administra-

tive boundaries

Population and coher-

ence of the territory

Human resources

and financial power

Critical mass

for efficiency

2 Description of the

actual situation

General data Political and legal

framework

Economic basics Economic devel-

opment trends

Energy and envi-

ronment

Tourism and local

recreation

Nature and landscape Social groups and

cultural offers

Education Agriculture, forestry

and fishery

Ethnic groups

3 SWOT Analysis to

a) develop strengths

further

b) reduce weaknesses

Adopted procedures Overview of identified

S+W

Level of services Transfer opportuni-

ties into strengths

Structural changes Image of the region (Social) infrastructure Different ways

of structuring

Demographical

development

Employment situation

4 Description of

regional structures

LAG and bottom-up

approach

Bottom-up approach Formation and com-

position of LAG

Links to administra-

tion and politics

Involvement of

business and

civil society

Operational structure

and decision-making

Definition of role

of stakeholders

Cooperation networks

5. Guiding vision

and objectives

for the region

Common vision Central motto Guiding and spe-

cific objectives

Reference to MDGs

“SMART” objectives Communication con-

cept and public relations

6. Key topics and

implementation

strategy

Concentrate on

key issues

Implementation

procedures

Organizational

structures

Continuous M&E

Management skills

and capacities

Cooperation with

other regions

7. Integration with

sectoral policies

and programmes

Environmental impact Reference to Natura

2000 and other

regulations

Protection of natural/

cultural heritageSustainability

Harmonization of

interventions

Women’s participation Youth participation Criteria and

justification

4

50

4.2.3 Elaboration procedure – What, how, when?

The process of the elaboration of a LDS or a RDC does not follow a standardised con-

cept 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 approxi-

mately 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 sec-

tor and the civil society.

The second phase is dedicated to intensive consultation and discussion on the con-

tent of the strategy and the organisational setup for its implementation with the found-

ing 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.

8. Environmental

protectionDivide because it is

two different points

Consideration of existing

environmental plans

Careful use of

resources

Consideration

concerning sus-

tainabilitySustainability

9. Cooperation with

other regions

Possible partner

regions

Specific objectives

of the cooperation

Possible/planned


Justification of

cooperation

10. Selection and

description of

key projects

Further contribution

to the reach the goals

Pilot character/

exemplary function

Correspondence

with guidelines

and regulations

Including budget

estimation

Estimates of grants

and own resources

Project responsibilities Brief log-frame of

key projects

Success as soon

as possible!



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.

3

The process of elaboration of a RDC / LDS

Possibly parallel working groups

What? How?

Awareness raising for RDC/LDS

Set up a commu-nication strategy

Workshop (1-2 days) information on Rural

Development

Or: short meetings in the villages

Get key actors to sup-port the elaboration

Form and train a team of moderators

Negotiate area and boundaries

Stakeholder analy-sis with key actors

Formation of LAG Draft of constitution Basic decision by politi-cal bodies (councils)

Situation analysis Analysis of existing activities

Elaborate key issues Collect project ideas

Write draft of RDC/LDS

Set up budgets for key projects (priorities)

RDC/LDS draft distributed

Consider and integrate recommendations

Formulate the final version

Consensus on RDC/LDS

Final version distributed

Publish and distribute the LDS/RDC

Party

Excursion “Best Practice”

Consultations, training “on the job”

Workshop - 1 day in area + stakeholder

Screening of docu-ments, interviews

Formulation of basic elements (“bones”)

Workshop (1-2 days) on elaboration of a

RDC/LDS

Search for expertise if needed

A strategy is not an operational plan

Public meetings, hearings, councils

Integrative workshop if working groups

were formed

Workshop ½ day confirmation

Possibly “full” and “light” version

Decision in the council: document and budget

52

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 pri-

vate sector and the civil society.

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 organ-

isations. The representatives would be legitimated by the interest group or the organi-

sation, they represent. Individuals are allowed to be members.

Example of a LAG composition:

Total Men Women Young people Elderly people Public sector Private sector

No 27 18 9 2 2 12 15

% 100.00% 66.67% 33.33% 7.41% 7.41% 44.44% 55.56%


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)

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 estab-

lished “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 Innova-

tion 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.

4

54

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 ques-

tion 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 gen-

erate 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.

Advantages and disadvantages of different legal forms of RM

Advantages + Disadvantages -

RM integrated in

public administration

Qualified staff in various sectors Not neutral being one stakeholder

Political back-up and power Not necessarily the best professionals

Better access to budgets Efficiency?

RM as (registered)

association

Members from all sectors of

civil society can join

Responsibility?

Liability

Rather easy to establish Little political commitment

Objectivity – better chances to mobilize Easy to influence – long time for decision-making

Financial sustainability

RM as Ltd. – limited

liability company

Clearly known legal status Membership not as open as association

Financial flexibility Can be seen as consultancy with private interest

Focus on economic activity

economic efficiency

Tax burden and book keeping demands



Photograph credits: Dr. S. Weizenegger

4

56


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.

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.

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 Topic/issue Detailed steps Who is responsible? Material/ equipment

10:00 Welcome

address

Welcome

Don’t forget

minister

Mladen Microphone,

desk

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

ToRs for the exchange of experiences on local/regional

development strategies/concepts

ToRs for the elaboration of an event management plan



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?


BMVEL (2004): Actively Shaping rural development. Guidelines for integrated

rural development. Federal Ministry for Consumer Protection, Food and Agricul-

ture, Federal Republic of Germany, Bonn.

DFID (2003): Tools for development – A handbook for those engaged in develop-

ment activity. Department for International Development (editor.). London. http://

webarchive.nationalarchives.gov.uk/+/http://www.dfid.gov.uk/Documents/publi-

cations/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.

4

58

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 - Stake-

holder-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


59

Module 5

Inward and Outward Regional Marketing


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

60

Introductory presentations Meaning of regional marketing

Branding of products and services

Regional profile

EU regulations on geographical indications

61

Group work and exercises 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

66

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?

68

Reference material ppt on geographical indications

Factsheet: “European policy for quality

agricultural products”

68

60


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 brand-

ing and marketing in South Eastern Europe

discuss the possibilities of networking between South East European countries in

the development of regional brands.

The contents of the topic should contain the following parts:

Introduction: meaning and understanding of regional marketing

Inward and Outward Regional Marketing

Module 5

Regional marketing is an important instrument for Regional Manage-

ment 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 aware-

ness building and outside public relations and location marketing.

Learning objectives

Contents

Module 5 | Inward and Outward Regional Marketing


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.

in German:

in English:

What is meant?

reference:

Regional- Regional- marketing vermarktung

regional marketing

marketing marketing of of regions regional products

mostly geogra- also freely defined phically defined “regional products”“land of miracles” but also:

EEC regulation on the protection of geo-graphical indications and designations of origin for agricultural products and foodstuff (509 + 510 2006)

Traditional speci-ality guaranteed

T.S.G.

Protected Geo-graphical Indica-

tion P.G.I.

Protected Desig-nation of Origin

P.D.O.

How to join forces?

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 iden-

tity. 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 mean-

ings 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 counter-

movement to face the mentioned globalisation and give it a more human,

social and cultural dimension.


Time

5

62

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 impor-

tant 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 scruti-

nised 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 geographi-

cal criteria play an increasing role.



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 sec-

ond or third best option.

The introduction into the “instruments” can be done in a very lifely and interac-

tive 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 company’s individual products. In additon, the protection of a geo-

graphical origin can be issued (on national and European level).

To address the question on what a geographical indication (GI) really is, the follow-

ing 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 Euro-

pean retailer and supermarket reality.

A “collection” of instruments for the pro-

motion of regional marketing is impor-

tant! But first the region itself has to be

properly defined!

5

64

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 Guar-

anteed) to promote and protect food products. The differences compared to brands are:

BrandCOMPANy ORIGIN

GIGEOGRAPHICAL ORIGIN

Place of production Not fixed Fixed

Risk of enterprise Risk is carried by the owner of the brand

Risk is carried by the whole group

Decision-making process Can be very simple Might be complex

Acquisitional potential Image of the brand needs high investment

Positive Image of a region or country reduces investment

Experience A lot of experts Few experts, so far

Brand vs. geographical origin

A PDO (Protected Designation

of Origin) is the term used to

describe foodstuffs, which

are produced, processed

and prepared in a given geo-

graphical area using recog-

nised know-how.

In the case of the PGI (Protected

Geographical Indication) the geo-

graphical link must occur in at

least one of the stages of produc-

tion, 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 tradi-

tional character, either in the

composition or by the means

of production.

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”.

In addition the three types of GI at European level need to be explained:

The UAP Consumer expects benefit

Product

USP UAP

ingredi-ences

tech-nology

use personal benefit

social benefit

objective benefit subjective benefit

market research

Sou

rce:

Th

ied

ig (2

00

7)



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 sec-

ond 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!

Designation of origin Geographical indication

and / or

and / or

P.G.I.

production

processing

finishing

and

and

P.D.O.

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

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 product’s name?

A group of producers has to define the product according to precise criteria for

specification.

5

66


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.

Protection and registration of a “brand”:

Protects producers and consum-

ers from misuse and imitation

Increases the publicity of the

region and the product

Promotes regional identity areas

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 Euro-

pean Union will inform those in the Union who are interested.

If there are no objections, the European Commission publishes the protected prod-

uct name in the Official Journal of the European Union.

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

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 stake-

holders.

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?

68

5.4 Self-test


Powerpoint presentation on geographical indications and its context in Europe

Factsheet: “European Policy for Quality Agricultural Products”, January 2007

What are main elements for regional marketing?


How can the protection of a regional product be done?

What are the important features of the EU type of branding?


69

Module 6

Local and Regional Economic Promotion


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

70

Introductory presentations Background and context of LED/RED

Objectives and tasks

Instruments for LED/RED

Organisational structures

71

Group work and exercises Reflection on own experiences

with LED - RED (what is possible in what context?)

Comparison of advatantages/disadavatages of dif-

ferent instruments in various country situations

76

Self-test 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?

77

Reference material GTZ-Publication on Regional/Local Economic

Development in SEE

http://www.mesopartner.com/

http://www.worldbank.org/urban/local/toolkit/

pages/home.htm

78

70


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.

Local and Regional Economic Promotion

Module 6

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.

Objectives

Module 6 | Local and Regional Economic Promotion



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

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 group-

work 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.

A first necessary clarification deals with the terminology of “local and regional eco-

nomic 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 Develop-

ment (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.

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 condi-

tions“ (not the same!) in all parts of the country is laid down in the German constitu-

tion (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).


Time

“LED is the process by which public,

business and nongovernmental part-

ners 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

Contents

6

72

In that context also LED/RED should be seen as part of services of general interest: “pro-

vision of jobs” (like the basic needs as part of ‘Daseinsfürsorge’). 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 opportuni-

ties (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 Devel-

opment 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 “equiva-

lent 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 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.

What policies can support LED/RED?

Policies with an orientation on

growth


stability


economic balance

Policies aiming at sustainability



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 exer-

cise 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 man-

ner. 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 partici-

pants come up with more ideas on appropriate instruments.

6

74

Even outside the local/regional level, there might be additional important aspects hav-

ing 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



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)

Depending on the experience of the particpants, additional explanations may be given

about specific terms and instruments – without going into every detail of an instru-

ment. This topic could easily cover another seminar.

The combination of instruments (as an integrated approach) is in many situations pos-

sible and recommendable. Depending on the creativity of the regional management

body, there is a whole range of additional new instruments, which could arise depend-

ing 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 administra-

tion 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-opera-

tion 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 deci-

sive role.

Start-upnewly created business/enterprises;

newcomer; need special advice/sup-

port during start, in the beginning

(1-2 years) of business

One stop shopa place/office (in the administration)

where all the necessary papers/per-

mits for starting a business are taken

care of

One window / service doorproviding the needed services

6

76

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.

Advisory competence Like above, skills in this field are not necessarily avail-

able in a public administration and sometimes have to

be hired from outside.

Decison-making

authority

When it comes to decision-making on promotion meas-

ures (especially if these are involving costs) the respon-

sible authority has to be clearly identified! This is rele-

vant for formal (e.g. district councils, chambers, ...) as

well as for informal groups (clubs, initiatives)

Seriousness 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.

Flexibility 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, understand-

ing, motivation, etc.)

Partnership 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 part-

nership with people from public sector and civil-soci-

ety is essential.


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 presenta-

tion 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. Partici-

pants have to split in subgroups according to their countries of origin. In groups they

may work on the following tasks:



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).


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 ?


How can the organsiation for LED/RED look like ?

What are general, important features for starting LED/RED in a regional manange-

ment context?

6

78


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 Man-

agement

Local Economic Development (LED), a powerpoint presentation by PACA

based on experiences by GTZ in Indonesia: http://www.red.or.id/


79

Module 7

Project Cycle Management and Logical Framework Approach


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

80

Introductory presentations 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

81

Group work and exercises Experiences on failure and success in

project planning


Elaborate a sound project document:

group work in several steps

90

Self-test Commonly used terms in PCM, Logframe & PPM

Tools for analysis

Difficulties in implementing the PCM approach

How to formulate the own project proposal

92

Reference material Further reading material and websites are listed

on page 92

92

80 Module 7 | Project Cycle Management (PCM) and Logical Framework Approach (LFA)



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

Project Cycle Management and Logical Framework Approach

Module 7

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.

Objectives


know how to use PCM instruments for situation analysis, planning and imple-

mentation

reflect the appropriate use of management instruments and learn from the expe-

riences 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 hori-

zontal 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 practi-

cal 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.

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 sup-

port 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 gener-

ally 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 termi-

nology 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 chal-

lenges for the project management and steering. Usually projects in Regional Rural

Development are characterised by:


Time

Contents

7


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.

Management, managing structuring social processes in order to achieve

pre-determined objectives (several functions

involved)

Project a process of providing inputs over a limited

period of time containing a group of actvities

Programme a series of projects, where all objectives con-

tribute to an overall common objective (linked

together in a sector, sub-sector, region)

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 Coopera-

tion 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 effec-

tiveness is ongoing, one should know that the tools for project planning and man-

agement 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.

1 Use of Logical Framework Approach

to analyse problems

work out solutions

2 Production of good quality key-documents for structured and well informed deci-

sion-making

3 Consulting and involving key stakeholders as much as possible

4 Keeping a clear focus on the project purpose

sustainable benefits for intended target group

5 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 inter-

related. Problems in the implementation phase can occur because a wrong under-

standing of the situation existed.

Clarification of terminology

Key PCM-Principles


For a more detailed introduc-

tion into PCM including an

outlook on the tools used during the anal-

ysis, 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 organi-

sation 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.

7


PCM and Logical Framework Approach

Analysis

Evaluation Planning

Implementation

Analysis Phase Identify stakeholders

Identify problems

Derive objectives

Select strategy

Planning Phase Define the logical frame of

the project

Specify activity schedule,

milestones, responsibility

Specify resources from

the activity schedule

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 log-

frame approach includes various tasks within the analysis and planning stage (Euro-

peAid 2004, p 60):

ANALYSIS PHASE PLANNING PHASE

Stakeholder analysis - iden-

tifying and characterising

potential major stakehold-

ers; assessing their capacity

Developing Logical Framework

Matrix - defining project struc-

ture; testing its internal logic

and risks; formulating meas-

urable indicators of success

Problem analysis - identify-

ing key problems, constraints

and opportunities; determining

cause and effect relationships

Activity scheduling - determin-

ing the sequence and interde-

pendence of activities; estimat-

ing their duration, and assign-

ing tasks and responsibilities

Objective analysis - develop-

ing solutions from the iden-

tified problems; identifying

means to end relationships

Resource scheduling - from the

activity schedule, developing

input schedules and a budget

Strategy analysis - identifying differ-

ent strategies to achieve solutions;

selecting most appropriate strategy


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 Envi-

ronmental Impact Assessment) and the application of working techniques that pro-

mote 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 behav-

iour 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 expecta-

tions 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 analy-

sis 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 atti-

tude towards the project idea and their possible influence. Once this scheme is intro-

duced 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).

7


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 com-

plete, 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

Analyse - describe the objectives

Effects

Causes

general

detail

general

detail

Decreasing income of artisanal fisherfolk

Decreasing fish stock

Low price received by artisanal fisherfolk in

the village

Destruction of coral and mangrove habitats

Illegal fishing

methods

Processed fish is of bad

quality

Limited access to market

Effects

Causes

general

detail

general

detail

Income of artisanal fisherfolk increases

Rate of decline in fish stock arrested

Price received by artisanal fisherfolk

increased

Coral and mangrove habitats

conserved

Incidents of illegal fishing

reduced

Quality of fish processing

improved

Access to markets

improved


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.

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.

7

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 (logic of intervention)

IndicatorsHow can the achievements

of the project be measured?

Sources/means of verificationWhere can evidence be found

for the formulated indicators?

Important assumptionsWhat external condi-

tions are important for

the project’s success?

Development goalWhat impact will the

project have in the target

“group” situation?

Project purposeWhat immediate effects

will the project have on

the behavior of the target

group?

Outputs, resultsWhat is the project

going to achieve?

ActivitiesWhat is the project

going to do?

Means: inputs and costs

How much will the project cost?


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 Objectively verifiable indicators Sources of verification

Assumptions

Overall objective

Income of artisan fishermen increased

The normal income of 75% of the 3600

fishermen members of the fish co-oper-

atives in region X has increased by 25%

at the end of the project. The number

of radios and motorcycles increased in

the area.

Enquiry

among mem-

bers of the

co-operatives

Project purpose

Prices received by artisan

fishermen increased

By the end of the project the prices for

one ton of processed fish paid to the

small fishermen organised in co-oper-

atives in region X has increased: for

mackerel by 20%, for sardines by 35%,

for salmon with 25%.

Statistics and

accountability

of the different

cooperatives

The production costs

will not increase faster

than the inflation.

Results

1. Quality of fish processing improved

The quantity of processed fish not

accepted by the market decreased by

10% after 1 year and by 50% at the end

of the project.

Records of the

co-operatives

The government

remains in favour of

the development of the

artisan fishery sector.

2. Access to markets

improved

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

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 co-

operatives in the national fishery board

2.3 Organise advertisements for the products

of the cooperatives

Means

5 processing units

4 training sessions (10 days) for 5 people

3 cold chains

10 leadership training

advertisement

Costs

150 000

40 000

300 000

50 000

total 540 000

88


Logframe and evaluation criteria

Logframe

Overall objective

Purpose

Results

Activities

Situation

Evaluation criteria

Impact

Effectiveness

Efficiency

Relevance

Sustainability

A good indicator should be ....

SMART

Specific to the objective it is supposed to measure

Measurable either quantitatively or qualitatively

Available at an accaptable cost

Relevant to the information needs of managers

Time bound 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.

Activity scheduling

Resource scheduling

7



7.3.1 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 experi-

enced 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.


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 repre-

sents the base for further discussion on the intervention strategy.

After the exercise, a possible discussion in plenary may be helpful to identify the les-

sons 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 visual-

ized 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 devel-

oping 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 pres-

entations. During the discussion of the group work, details of the project can be clari-

fied. The logic of the intervention needs to be proven.

7


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?


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 für 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)

93

Module 8

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


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

94

Introductory presentations Example of a financial mix for regional projects

Presentation: Principles of fundraising

Difference: Sponsoring - donation

Principles of regional funds

95

Group work and exercises Group work: Sponsoring concept

Group work: financing concept for a selected

project

103

Self-test Alternative means for financing regional projects

Steps to elaborate a financing strategy

Difference between sponsoring and donation

Advantages/disadvantages of PPP

103

Reference material Links to EU programmes

Aktives privates Kapital für die Region erschließen:

Instrumente und Beispiele (Hg. Bühler, 2009)

Leader-Forum 2/2005

104

94 Module 8 | Project Budgeting and Funding: Co-finance, Private Public Partnership


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 alterna-

tive financing means,

stimulate regional stakeholders for fundraising or sponsoring activities in their

current projects.

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?

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

Module 8

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, fun-

draising, sponsoring, in-kind contribution, Public-Private Partner-

ship (PPP), and Regional Fund.

Objectives

Guiding questions


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.

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:


Time

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)

8


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 eco-

nomic 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

Public Sources

Public financing sources are:

the European Union

the government

the province

the municipality.

European Union

Government

Province

District

Community / municipality

Enterprises/ companies

Private persons

In-kind contribution

Donation

Foundation

Fund raising

Sponsoring

Regional fund

Project budget

Public sources Private sources Mixed forms Public private partnership


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 hav-

ing 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 subsi-

dies 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, dona-

tors 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 dif-

ferent 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 ques-

tions about the project, purpose, costs, use of means etc. As an orientation some “fun-

draising 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?

8


Step 2. Project development

The starting point is a project idea or proposal. It has to be clearly formulated. There-

fore 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 pub-

lic, 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 dif-

ference 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.


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 intro-

ductions 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

donor’s perspective about “what is the added value for the sponsor”?

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 region’s situation,

are legally forced to invest money in the region,

can be motivated better for regional engagement as they have many personal con-

tacts to regional stakeholders.

Sponsoring

What is your product / project? Describe your project concisely

What do you need? Financial support?

Goods?

Services?

Who can be a sponsor? Select the sponsor properly –

does he suit your project?

What can you offer to the sponsor? Consider the value added

for the sponsor

How are your resources calculated

(personnel, time, money)?

What resources are needed?

Good preparation and planningSponsoring concept

8


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 founda-

tion capital from citizens.

A regional foundation of citizens can just promote initiatives or projects or is work-

ing 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),


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 “high-

tech” 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 inten-

tion 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 compa-

nies 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 lim-

ited 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.

8


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 pri-

vate 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.


In-kind contribution

With in-kind contribution a project can decrease costs for example for the construc-

tion 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 peo-

ple have the will and motivation to spend their spare time in order to support a com-

mon 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.


8.3.1 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

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?



Documents: Most of the documents are in German language

Bühler, Josef: Finanzierungsquellen für Non-Profit-Organisationen, in:

Deutsche Vernetzungsstelle LEADER+ (Hg. 2003): Fördermittelakquise-

Alternativen zu LEADER, p. 29-40. Bonn.

Bühler, Josef: Aktives privates Kapital für die Region erschließen:

Instrumente und Beispiele. LAG Wirtschaftsraum Schraden e.V. und

LAG Märkische 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

105

Module 9

Network Management


Objectives, content, time Clarify what a network is and why networks

are needed in Regional Development

Analyse different types of networks in the con-

text of Regional Development / Management


Key factors for successful networking and

role of Regional Management

106

Introductory presentations 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

107

Group work and exercises Knives and glasses exercise

Group work on stakeholder analy-

sis (participants’ practical examples)

Group work on networks from par-

ticipants’ context

111

Self-test Networks to promote RRD

Different types of networks & implications for RM

Relevant questions for a stakeholder Analysis

Key success factors

114

Reference material 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

Bürgerkommune NENA

www.nachhaltige-buergerkommune.de

114

106 Module 9 | Network Management


Learning objectives are that participants will be able:

to understand the importance and benefits of networks and networking for a suc-

cessful 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 develop-

ment 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.


Introduction: What is a network and why do we need networks?

Types and examples of networks


The role of Regional Management and key factors for successful networks.

Network ManagementModule 9

In Regional Development and Regional Management, networks are

tools to achieve a sustainable and interdisciplinary regional develop-

ment by connecting relevant actors and activities (economy, capac-

ity 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.

Objectives

Content


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 anal-

ysis related to real participants‘ examples (group work – ½ 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 Manage-

ment) For deepening a group work on participants’ examples could be added (½ day).

A network in regional development is a social structure made up of individuals or inde-

pendent organizations which are connected by one or more links such as common inter-

est, common project, knowledge, relationships of beliefs.

The co-operation between network members is for a specific purpose/specific pur-

poses and can apply to different areas. To become a continuous and sustainable relation-

ship the network must produce benefits to its members. These benefits are expected

by generating synergetic effects through the exchange of knowledge, the using of com-

plementary 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 today’s envi-

ronmental, social and economic challenges. In many cases integrated and coordinated

planning approaches and co-operation are required. Relevant actors from different sec-

tors 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: hierar-

chies 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.


Time

9

Why do we need networks?

Boundaries of institutionalised

planning

Complex ecological, social and eco-

nomic problems

Growing relevance of regions

Lack of information and transpar-

ency

Need for coordination

Benefits through co-operation and

innovation


9.2.2 Types and examples of networks

Steering

network

Local Action Group Basic decisions

for RM

Discussion and

decision about

projects and goals

Cross-cutting

network

Guiding vision

(“Leitbild”)

Integration of dif-

ferent sectoral

action fields

Project network Cooperation (and

financing?) to imple-

ment a project

Bundeling of

capital/human

resources

Network of

innovations

Exchange of know-

how in one branch

Develop new prod-

ucts, projects

Co-operation of

different levels/

sectors of a branch

Interregional/

international

network

Project co-operation Exchange of

information and

experiences

(To get extra funds

for co-operation)

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 co-

operation.

The members of this network make the basic (strategic) decisions in the manage-

ment 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 participa-

tion 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 network-

ing 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 exist-

ing 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-opera-

tion 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

Different types

Cross-cutting network

Project network

Steering network


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, sup-

port 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 implementa-

tion 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 dis-

trict 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 infor-

mation 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 adminis-

trative 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.

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 inter-

ests 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 success-

ful outcome.

A thorough stakeholder analysis graph may give a clear picture how to involve stake-

holders 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.

Innovation networks / learning networks

Interregional / international networking

9


Stakeholder Analysis Graph

Early and regular communication with interested parties can ensure that they under-

stand 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 develop-

ment process. Nevertheless, the Regional Manager can only accept the network man-

agement itself in selected key areas (e.g. steering network, elaboration of local develop-

ment concept …). In most cases Regional Management will play a “midwife role”: ini-

tiation 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

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 contrib-

ute to the process/project?

How important is the contribu-

tion?attitude/interest

B = participate A = cooperate

D = inform C = participate

high

low

influ

ence

/pow

er women


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


9.3.1 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

9


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 other’s

skills

Help each other Need to have know-how

and manager

Not afraid to fail Analyse the situation

Each group member

has the chance to try

Confidence to achieve Competition Learning by doing Where are they?

Try many options Improve understanding

the rules

Follow the instruction

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

Understanding

of instruction

Starting without dis-

cussing the plan

No experience

What is of importance for a productive team work?

Respect each other’s

idea

Helping each other Understand each other Trust each other Patience

Commitment Encourage each other Common vision Believe it is achievable Good atmosphere


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 (½ 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.

9


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?


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 Bürgerkommune NENA

www.nachhaltige-buergerkommune.de

115

Module 10

Information and Communication Management


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

116

Introductory presentations 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

117

Group work and exercises 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

122

Self-test 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

124

Reference material Please see the deatailed list of reference

material on page 124

124

116 Module 10 | Information and Communication Management


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 struc-

ture, 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 dia-

logue and exploration of new ideas and insights adds additional dimensions. Informa-

tion and communication are the means to develop guiding visions, find problem solu-

tions, make decisions, share responsibility and enhance ownership and transparency

in a Regional Rural Development process.

Information and Communication Management

Module 10

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 communica-

tion - a central task of Regional Management.

Objectives


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 exam-

ples for an information strategy. To refer to this field of soft skills, a huge number of

publications is available.

10.2.1 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 pin-

board 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 follow-

ing visualization is an input for discussion and self-clarification.


Time

10


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 strate-

gies based on the decisions who to involve, in which way and to what extent.

Module VII, Module IX


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.

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 inter-

est 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 pin-

board 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 compro-

mising 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 release’s importance or relevance and choose for them-

selves whether or not to read past the first paragraph.

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 informa-

tion for editorial follow-up (contact

person, address, phone, email, web

address)

boilerplates should maintain con-

sistency

10


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 Introduction and orientation - getting to know each other, expectations, objectives

2 Gathering and structuring topics – card collection, agenda, called-out responses,

brainstorming …


10

3 Selecting topics by setting priorities

4 Handling the topics in the order of their importance

5 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, par-

ticipants/target group and activity plan (when, what, who, ...) are a topic to add here and

to be worked on in a group work.

122


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 experi-

ences/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 ...”.


10

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 develop-

ment 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 communica-

tion tools?

d. Considering limited resources for the communication management, which meas-

ures 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 proc-

ess 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 Topic/issue Detailed steps Who is responsible? Material/ equipment

10:00 Welcome

address

Welcome

Don’t forget

minister

Mladen Microphone, desk

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. What happened/happens

b. Where

c. When

d. Who is involved

e. Why/how it happened (if possible or necessary)

Plus: what other information is given?

The group results are shared and discussed in plenary.

ToRs for planning a moderated event


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 com-

munication?

What are the steps of the moderation cycle?

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.


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

125

Module 11

Capacity Building -Becoming a Learning Region


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

126

Introductory presentations What is a “Learning Region” and why to become one?

Types of capacity building

Capacity building activities: Examples

127

Group work and exercises 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?

132

Self-test 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

133

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

133

126 Module 11 | Capacity Building - Becoming a Learning Region



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

Capacity Building -Becoming a Learning Region

Module 11

Life long learning has become a key feature for development in the 21st

century. Originated in business management, the concept of “learn-

ing organizations” was developed more than 20 years ago (see the out-

standing 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.

Objectives



Introduction: What is a Learning Region and why do we need to become one?

Types of capacity building

Capacity building activities: Examples

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).

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 acciden-

tal 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 edu-

cative 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 Learn-

ing Region is the sum of all systematic efforts of capacity building in a given region.


Contents

Time

11

128

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 region’s endogenous potentials. Regional Development depends mainly

on this endogenous potential and it needs the support of regional institutions, stake-

holders 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 build-

ing as an educational task for Regional Management.

11.2.2 Capacity Building

The building of capacities in its three dimensions: knowledge, skills and social/emo-

tional 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 country’s human, scientific, techno-

logical, 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 21’s 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 under-

standing, 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 relation-

ships between the different organizations and sectors (public, private and commu-

nity).

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

Module 11 | Capacity Building - Becoming a Learning Region


In the respective model above three types of Capacity Building (CB) can be distin-

guished:

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 author-

ity 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.

11

130

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 stakehold-

ers, 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 exam-

ples have been collected.

Directive

Analytical Consultative

Types of learning

Learning dimensions

Learning levels

Knowledge

(cognitive)

Skills

(practical)

Attitude

(affective)

Individual skills, knowl-

edge & attitude

Organizational

improvement Regional Rural

Development



For the strengthening of the local and regional stakeholders and initiatives a modera-

tion/facilitation training can be offered. The following example was successfully imple-

mented 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 Man-

agement in the whole of your region. Participants of the training become multipli-

ers 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 pre-

condition 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

11

132

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):

Women’s Agenda 21

Initiate and moderate an Agenda 21 working group with the main topic of “empow-

erment/strengthening of women”. The participating people can concentrate on

women’s issues like equity.

Family-Network

Offering a series of seminars and workshops concerning relevant topics of famliy

life, e.g. concerning different phases of children’s 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, voca-

tional 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.


11.3.1 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?



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?


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

11

134 Module 11 | Capacity Building - Becoming a Learning Region

135

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

136

Introductory presentations M&E in regional processes

Accountancy and transparency:

the REGINA example

Formulation of performance indicators

Local involvement: training for

moderation and M&E

137

Group work and exercises Group work:

Reflection on own examples and experiences

with M&E (procedures, forms, results)

145

Self-test 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

145

Reference material EU Handbook for PCM

Managing for Impact in Rural Develop-

ment - A guide for project M&E; IFAD,

146

136 Module 12 | Monitoring & Evaluation of Regional Development Processes


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.


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

Monitoring & Evaluation of Regional Development Processes

Module 12

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 partici-

pation.

Objectives

Contents


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.

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 pro-

gramme/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.

In real life M&E is often misused as a control instrument. Instead of control instru-

ments M&E should be seen as a learning instrument for improvement.

The manifold issues of M&E in Regional Development processes contain the follow-

ing main steps:


Time

Defining the issues, contents

Controllingthe process and procedures

Reportingprocedures (to whom, what)

Assessingof results, findings

Re-directing based on the learn-ing experience

top-down

control

function

bottom-up

learning

function

M&E

12


The important sources for M&E and relevant issues to be considerd are given in the

following chart.

defining controlling reporting assessing redirecting

higher level plans promotion

guidelines political pro-

grammes

implementation records and individual project accounts

regular meetings of project steering boards/committees

all kinds of plan reviews

Regional Development Concepts guiding visions objectives/

projects

regular invento-ries, field visits

financial audits on-site controls

intermediate or mid-term evaluations

Logframe for indi-vidual projects (indicators)

staff/team meet-ings (daily/weekly/monthly)

steering groups project progress

reports to all kinds of donors

performance/quality man-agement sys-tems (ISO ...?)

own surveys self-evaluation external evalua-

tions (resources and time)

research / Master or PhD-Thesis

multistake-holder views

“mirror” peer review

12.2.2 Example for accountancy and transparency: the REGINA process

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: report-

ing 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 sup-

port of the stakeholders themselves. Therefore, Regina GmbH and the Agency for Vil-

lage and Rural Development/School of Good Governance developed a capacity build-

ing system for citizens how to organize and facilitate moderated meetings and working

groups. The details can be found in module 11.

M&E in Regional Processes

Curriculum for the training


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 exam-

ples 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

Example of staff/team and steering

group meetings

12


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 disposal facilities

› Number


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. Geißendör-

fer) 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 part-

ners, like the RM team, the board of directors, steering groups, etc.


M&E checklist for Regional Management Processes

Aspect 1Participation 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)

Full agreement

Partial agreement

Neutral Partial disagreement

Full disagreement

Full agreement

Partial agreement


Full disagreement

Aspect 2Objectives 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 adminis-trative structures.

A systematic controlling at project and strategy level is established and pragmatically implemented.

Others … (to be added)

12


Full agreement

Partial agreement


Full disagreement

Full agreement

Partial agreement


Full disagreement

Aspect 3Resources 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 implementa-tion 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.


Aspect 4Project 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 responsibili-ties clearly attributed.

Regional characteristics, customs and heritage receive special attention.

Project financing is making full use of own regional resources and external promotion funds.



Full agreement

Partial agreement


Full disagreement

Full agreement

Partial agreement


Full disagreement

Aspect 5Project 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.


Aspect 6Networking

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.


12


Full agreement

Partial agreement


Full disagreement

Full agreement

Partial agreement


Full disagreement

Aspect 7Knowledge management and promotion of innovations

Regional knowledge, skills and experiences are systemati-cally 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.


Aspect 8Attitude 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.


Adapted from: Handbuch Erfolgreiches Regionalmanagement – StMLU 2003


12.3 Group work and exercisesThe 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 shar-

ing 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.


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 appli-

cable 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?

12



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

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?

Dec

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InWEnt - Qualified to Shape the Future

InWEnt - Internationale Weiterbildung und Entwicklung gGmbHCapacity Building International, GermanyFriedrich-Ebert-Allee 4053113 Bonn, GermanyPhone +49 228 4460-0Fax +49 228 4460-1766www.inwent.org

Natural Resources and Biodiversity DivisionLindenstr. 41, Zschortau04519 Rackwitz, GermanyPhone +49 34202 845-0Fax +49 34202 [email protected]

InWEnt – Capacity Building International, Germany, is a non-

profit organisation with worldwide operations dedicated to human

resource development, advanced training and dialogue.

InWEnt works together with people in key positions, assisting

them in shaping change processes in their own countries. Our

capacity building programmes are directed at experts and execu-

tives from politics, administration, the business community, and

civil society. InWEnt qualifies people who pass on their knowledge,

thereby working towards long-term, structural change.

Our ClientsAs an organisation of international cooperation, we are commis-

sioned by the German federal government, the German business

sector, and the German Länder or federal states and make an

important contribution to an equitable and sustainable develop-

ment. 60 percent of all our programmes are implemented at the

request of the Federal Ministry for Economic Cooperation and

Development (BMZ). In addition, we conduct programmes for

other German federal ministries. We are also working in coop-

eration with German companies in public private partnership

projects.

On an international level, InWEnt works together with the

European Union, the World Bank, the International Monetary

Fund, the World Trade Organisation, and the United Nations.

Our Programmes The programmes for people from developing, transition and indus-

trialised countries are tailored to meet the specific needs of our

partners. InWEnt offers practice-oriented advanced education and

training, dialogue sessions, and e-Learning courses through our

own internet platform Global Campus 21®. After the training

programmes, our participants continue their dialogue with each

other and with InWEnt via active alumni networks.

InWEnt provides support for the activities of the German busi-

ness sector in developing and transition countries. We are increas-

ingly focusing on the successful model of public private partner-

ships (PPP) that can be designed to incorporate economic, social,

and environmental goals.

InWEnt also prepares experts from the field of international

cooperation for their time abroad. By offering exchange pro-

grammes and arranging scholarship programmes, InWEnt thus

provides young Germans with the opportunity to gain professional

experience abroad.

Our OfficesInWEnt gGmbH is headquartered in Bonn. In addition, InWEnt

maintains fourteen Regional Centres throughout the German

Länder, providing convenient points of contact for all regions. Our

foreign operations in Beijing, Cairo, Hanoi, Kiev, Lima, Mana-

gua, Manila, Moscow, New Delhi, Pretoria, São Paulo, and Dar es

Salaam are usually affiliated with other organisations of German

Development Cooperation.