3.2.5. The scope and range of the Cork principles ¹

The idea from the Conference was that there should be a single 'Integrated Rural Development' programme for each rural 'region', and this also links (although not necessarily so) with the concept of the Single Rural Fund which was widely discussed at Cork, if not explicitly called for in the Declaration. The issue of the role of small towns and villages and mention of village renewal is also significant given their place in diversified rural labour markets and service provision. However, important questions remained about how rural regions are going to be defined and delimited for policy purposes, and how these will relate to urban areas with which they have important (but not necessarily mutually reinforcing) economic and other relations. Moreover, the conference failed to unite the interests of agriculture and other rural partners.

Ideas agreed in the Cork Declaration seem to be broadly right in principle. However, there appears to be no grassroots for rural lobbying comparable with agricultural and environmental lobbying. The failure is both political and institutional. Political failure is perceivable through lack of intellectual support on rural development issues between Brussels and national ministries. Institutional failure is a result of the alienation of senior policy officials from academic life and from practice on the ground. Decentralisation of institutional structures has a major role to play in reducing failures and mobilising the rural population ².

Not even the Commission itself is unanimous upon the issue of rural development. Views of the main players, DG VI and DG XVI differ significantly. The issue of competence within the Commission plays a crucial role on both levels - EU and national. Different standpoints of DG VI and DG XVI were clarified at the Cohesion Forum (Brussels, April 1997) ³. The principles of rural development agreed in the Cork Declaration mostly did not find their way into the Cohesion Forum concluding documents (Annex 2). Therefore it must be stressed that rural policy is an essential part of regional policy. In this view, which stresses 'growth-pole' and 'trickle-down' ideas, there is no conflict between urban and rural. However, rural areas should not be regarded just as a synonym for decline, but as areas with actual and potential comparative advantages and a wide array of development perspectives.

Factors which represent or reinforce comparative advantage in today's globalised world are various - economic and non-economic ⁴. It not just cheap labour that is in abundance in the world market; information is getting increasingly accessible at decreasing cost. It must be assumed, in a world of decreasing barriers and mobility of capital, information and skills, that competitive advantage in areas where the (real) cost of labour is high will increasingly depend upon attributes or assets of a region or country which are not mobile. These will include elements of economic, social and environmental 'capital' which are particularly associated with specific countries and/or regions and which underpin or reinforce particular 'qualities' of goods or services produced in those localities. Thus, Scotch Whisky, Irish Music, Roquefort Cheese, Parma Ham, Shaker Furniture, Harris Tweed are globally recognised brands which rely upon a predominantly rural set of images, demonstrating a way in which regional identity plays a prominent role in creating a comparative advantage in the world market.

1. Outcomes of the European Conference on Rural Development, held in Cork (Ireland) in November 1996 are summarised in the Cork Declaration (Annex 1).
2. The question about absence of rural lobbies is complex. Not only conflicts between the interests of agricultural and regional policies, but also other factors such as opposition of national financial ministries to increase government spending, have to be taken into consideration. Clearly the importance of sectoral agricultural policy has reinforced the strength of the agricultural lobby, whilst the growing importance of regional policy is strengthening regional policies. The rural lobby remains highly fragmented.
3. Bringing together more than 1200 people with responsibilities in the field of economic and social cohesion policy in the EU, the Cohesion Forum (Brussels, 27-30 April 1997) organised by DG XVI attempted to pave the cornerstones of the future regional and cohesion policy. Indeed, the Agenda 2000 proposals on regional development and cohesion policy reflect the principles agreed on the Cohesion Forum.
4. Non-economically quantifiable factors, such as social capital, play a prominent role in creating regional comparative advantages. The case of HIE support for Gaelic language and cultural investment can serve as an example of building of comparative advantages through local capacity. On the other hand, non-economic measures can have indirect negative effects on local economies (e.g. closing down of the local school).