INTEGRATED DEVELOPMENT OF AGRICULTURE AND RURAL INSTITUTIONS (IDARI) IN CENTRAL AND EASTERN EUROPEAN COUNTRIES PROJECT UNDER THE EU 5TH FRAMEWORK PROGRAMME Contract number: QLK5-CT-2002-02718 Case study analysis within IDARI Workpackage 3 “Bieszczady’s Local Product” initiative Michal Korczynski Institute of Sociology – Adam Mickiewicz University Poznan, October 2005 1 Contents: 1. Introduction and problem statement ............................................................ 3 2. Objectives of the case study and case study hypotheses ............................... 5 3. Unit of analysis – Presentation of the initiative............................................ 12 4. Methodology and Analytical Framework...................................................... 24 5. Visual presentation of the actors and their interactions................................ 28 6. Determinants, Effects and Processes of Cooperation and Rural Institutional Innovations........................................................................................................ 32 6.1. Role of trust/mistrust and opportunism (social and institutional)........... 32 6.2. Role of communication and learning ................................................... 41 6.3. Role of transaction costs and governance structures of cooperation...... 49 6.4. Role of the State – National, regional, EU laws – and the formal institutional environment on cooperation......................................................... 54 6.5. Role of communities, social networks and informal institutions on cooperation ................................................................................................... 61 6.6. Role of the market and competition in fostering/hindering cooperation . 66 7. Conclusions .............................................................................................. 79 8. References ............................................................................................... 83 9. Annexes ................................................................................................... 85 2 1. Introduction and problem statement The following case study analysis will be devoted to the Bieszczady’s Local Product (BLP) initiative. Mentioned project, which started in October 2003 after receiving funding from The Carpathian Foundation – Poland, is located in microregion which main parts are two administrative districts of Podkarpackie voivodship in south-eastern part of Poland: Bieszczadzki (with capital in Ustrzyki Dolne) and Leski (with capital in Lesko). Within reach of this initiative are 8 communes: Baligrod, Cisna, Czarna, Lesko, Olszanica, Lutowiska, Solina, Ustrzyki Dolne (additionally some actions within this initiative were undertaken in administrative district Sanocki, but because of its different administrative status it will be excluded from the group of analyzed communes). The BLP Project involves local producers from this area who work in one of the three fields: food products, hand-made objects and working of wood. The most specific aspect of the BLP project is the fact it was not invented and initiated by its participants (local producers) but local leaders working in both selfgovernment institutions and non-governmental organizations who have created formal structures (firstly – in the form of 2-year lasting project, secondly – in the establishment of local producers association called “Bies”) for increasing cooperation between producers. Above-mentioned specificity has also resulted in specific key issues which this case study analysis is focused on. The main question is not “If and how participants of the project cooperate and what is the role of cooperation for project establishment”. It should be rather expressed in following way: “Is cooperation actually needed in the BLP project and if yes – in what aspects of this initiative effective cooperation might be observed?”. Addressing the second question has became crucial for this case after initial research within this initiative where relative lack of cooperation (or rather – relative low importance of cooperation as the “success factor”) was identified. It was reason for asking further questions where the most important was: “If the BLP project is example of failure because of difficulties with cooperation or rather it is successful initiative in the spite of weak ties between participants”. These questions were addressed during the research process but also symptoms of more intense cooperation between some particular individuals or groups have occurred (which will be discussed in more detailed way in other part of this report). Third question formulated after first stage of the empirical investigation (but before making conclusions for whole research) was: “What makes BLP project valuable for local producers, in what way they define it and what arguments they use for expressing their motivations for joining the initiative”. These three questions should not be interpreted as research questions (which will be presented in next section). They are rather some kind of pillars of conceptual and analytical framework what means that they structure “the way of thinking” about empirical findings and presenting main conclusion for this research. Before structuring “the way of thinking” about BLP project (which was very important for further actions undertaken during fieldwork research and – in some extent – has influenced structuring research results and conclusions) decision about unit of analysis was made. In background paper where first concept of BLP project research was delivered unit of analysis was defined in compliance with IDARI Workpackage 3 requirements as “system of observable action based around a 3 community/communities cooperating in an area to develop” local/regional product initiative (Korczynski 2004: 5; see also: Annex 1 – Terms…: 4). There was also decided that within this research unit of analysis will be BLP project as structured form of collective action in the field of creating and/or distributing local/regional product (with focusing on food products). But finally unit of analysis within this case study was limited to the group of local producers who live in one of the eight communes which are part of the BLP project (“food products’ condition” was still maintained here). Changing unit of analysis was justifiable because of two reasons: (1) number of participants in whole project was relatively high (over 180 local producers) – such number is more appropriate for quantitative survey research and it was needed to reduce number of interviewees in accordance with selected criterions (2) other case studies within this pillar of IDARI Workpackage are focused on small communities (as it was agreed during “Workshop on Research Methods, Berlin, 14-15 March 2005) and to make all of them comparable similar unit of analysis has to be chosen. Taking above-mentioned into account decision about choosing unit of analysis was made within three steps: 1) Restriction to local producers who are involved in BLP project (formally – in local producers association “Bies” or informally – in “Bieszczady’s Local Product” promotional and training activities) 2) Restriction to BLP project participants who work in the field of food products - focusing on food producers was justifiable because of two reasons: 1) EU institutions activity in the field of regional or traditional products is mainly related to food products, 2) BLP project participants who work in fields of production different than food products not always might be described as “farmers”, e.g. there were groups of artists who migrated to Bieszczady from cities and continue activities from their previous places of living. As further investigation has shown this group was identified as most specific and relatively isolated. Including it to unit of analysis will not be in compliance with general IDARI framework which is focused mainly on agricultural activities and specific rural issues. 3) Restriction to food producers from one commune - selected commune was Baligrod because of the highest number of food producers (12) but with conducting initial interviews it has became evident that for achieving objectives of this research unit of analysis has to be extended: it was not possible to make interviews will all Baligrod food producers. After making attempts of contact with all food producers in Baligrod and conducting all possible interviews following procedure of interviewees selection was used: all food producers within BLP project were identified and interviews were made with those who live in communes which are in the area nearest to the Baligrod commune. This selection procedure was used until number of 20 interviews was reached (which was planned number of interviews in chosen unit of analysis as sufficient and comparable with other case studies within second pillar of IDARI Workpackage 3). In consequence, interviews were conducted with local producers in five communes: Baligrod, Lesko, Olszanica, Czarna, Lutowiska (in the above sequence). 4 2. Objectives of the case study and case study hypotheses On the base of above described problem statement objectives of the case study will be presented in detailed way with strong emphasis to research questions addressed in further research and hypothesis tested during empirical investigation. Objectives of the case study (and analytical framework) are constructed in compliance with general framework or IDARI Workpackage 3 which is presented below. Figure 1. Framework for analysing cooperation and communication COLLECTIVE ACTION Initial Position PROBLEM STATE Communication Process/Triangle SOCIAL INNOVATION & INSTITUTIONAL CHANGE COMMUNITY MARKET COOPERATION NON COOPERATION Alternative Outcomes Source: Murray, Beckmann 2004: 7 Adaptation this general framework to BLP project specificity was presented in previous paper devoted to this case study (Korczynski 2004: 19-20). With new data added1 it is needed to make some corrections in then constructed model to make it more appropriate for data collected with interviews analysis. By using term “more 1 By „new data added” we do not mean data collected in the fieldwork stage of this research but data for “desk research analysis” which was collected after preparing first report but before start of conducting interviews. Of course, after interviews and on the base of the data collected with this method some further corrections seemed to be desirable but it is not allowed (because of methodological rigours) to change analytical framework after phase of collecting data. 5 appropriate” we mean that clarification presented below will help in taking into account all important and specific aspects of the BLP project in stage of analyzing empirical findings. Mentioned corrections will be stated in a way structured similarly to the above model (see Figure 1): 1) Collective action problem – as we stated in previous paper, on general level “collective action problem is related to the local/regional products issue” (Ibidem: 19). It actually means that we will focus on these actions which are undertaken by local producers in the field of their economic activity along with project coordinators actions which might increase or limit efficiency of actions undertaken by producers. Project inventors and coordinators role is crucial in this case because of the fact that without their actions problem of collective action would not appear (or rather – probability of occurring collective action would be relatively less). In other words, collective action was, to some extent, created by “external impetus”, by which we mean project initiators activity leading to develop initiative which target group were local producers in the local area. What is needed to add in this part is clarifying meaning of term “collective” – for this report by collective we mean such actions which involve group of individuals for gaining declared purpose and generate outcomes which affect behaviour of the same as above-mentioned or different group of individuals. In this case of collective action cooperation might occur but it is not needed (if there is no cooperation or failed cooperation is observed it still might be described as collective action if group of individuals is involved). 2) State – as in the above paragraph we have mentioned that BLP project inventors and coordinators actions were “external impetus” for local producers in the region, now me might use the same term to describe role of State in analyzed process. In this case, State activity was some kind of “external impetus” for local leaders, civil servants and non-governmental organizations activists to develop BLP project which is oriented on supporting farmers working in the field of local products. What does “external impetus” mean here? It is simply influence of State institutions on actions of individuals, such as: development institutional framework (by formal regulations, new legal acts), creating new policy priorities, supporting initiatives which are consistent with institutional framework and policy priorities. In more general perspective, by “external impetus” we might even interpret political decisions on Poland’s accession to EU and all operational actions which led to that. All these factors have to be taken into account when we try to fully identify role of State in developing BLP project. But as we will see in section 6 where research findings will be presented this role in BLP project is rather general and on more detailed level it’s more potential than actual. After describing and clarifying importance of “State actor” for our analysis (and before clarifying role of community and market) we should express that it is needed to adapt “analytical triangle” (see: Figure 1) by adding one additional element which is non-governmental organizations along with selfgovernment institutions (which role is very similar in this case). Function of NGOs and self-government for the BLP project is – to some extent – the same as the State institutions but they also have their specificity what justifies including them to analytical framework as distinct actor. In consequence we 6 will have an “analytical quadrant” with State, NGOs, self-government institutions (these two will be interpreted as one collective actor), community and market who all influence process of social innovation & institutional change and interact with each other. 3) Community – without any doubt we might say that community is most important element in above-presented “analytical quadrant”. With both types of analysis proposed in background paper (Ibidem: 7): process-oriented analysis (“How the process of development, conducting and coordination BLP project is taking place?”) and actor-oriented analysis (“How do actors behave and interpret process of development, conducting and coordination BLP project?”) community is main collective actor. By community we mean not only local producers who are involved within the project but all inhabitants who live in the communes participating in this initiative. It is justifiable by the fact that potentially all members of the community might affect or become beneficiaries of this initiative2. This assumption was confirmed in further research when respondents were asked to say what does following statement mean for them: “BLP project made positive change for my local community (it refers to the inhabitants of your nearest area)”. In their answers they have identified process of extending benefits of BLP project for all community. On the other hand when they were asked with following question “Do you think there are some people living within the community who would help the project but are not part of the group currently?” some of interviewees have indicated such persons what means that they see – out of the project participants – some individuals who might contribute to BLP project. Because of that it is not allowed to exclude any of inhabitants of five analyzed communes from “community” category. 4) Market – for this pillar of IDARI Workpackage 3 most important issue is cooperation or non-cooperation, but in this particular case study role of market is highly important. Firstly, it is result of the BLP project specificity – its purpose was to increase local producers potential in their economic activity (in some cases objective was even more basic – it was about supporting producers in becoming active actor in the market as producer and seller). Secondly, successful functioning of BLP project participants in the market might be some form of verification if this initiative was successful. Thirdly, which is rather empirical observation than research assumption, market orientation was very strongly emphasized by local producers and motivation to be more efficient in marketing, distribution and sales activities was most often declared motivation by interviewees who participate within this project. 2 In this paragraph we do not indicate our unit of analysis but rather try to reconstruct existing context which might – positively or negatively – affect the BLP project functioning. That is why nonparticipants of the BLP project (although they are important component of existing identified context) were not included in this research which was focused mainly on the BLP project (its purposes and outcomes, participants’ perspectives, motivations and expectations etc.). But we should emphasize that some of the interviewees who have participated in this research should be interpreted rather as past than present project participants (their involvement is highly limited now and their attitude – passive). 7 5) 6) Social innovation & Institutional change – these two elements are result of actions of (and interactions between) following actors or factors: State, NGOs, self-government institutions, community and market. At the same time, it is “starting point” and field of eventual cooperation or non-cooperation. The context which is “product” of social innovation and institutional change might be also described as institutional environment for all actions which are undertaken within the BLP project. More specifically, we would say that by two above terms we mean: a) Social innovation – collective action in which actors create new objectives, new ways of achieving hitherto existing objectives or new ways of solving conflicts which are important part of “social reality” of the community. Social innovation within community does not demand involvement only its members, it might be result of actions undertaken by actors who are out of the community (“external impetus” phenomenon), b) Institutional change - it is both source and result of social innovation. In first case, institutional change (interpreted as reconfiguration of social norms and values) creates demand for change in individual and group behaviour – actors have to behave in a way which is consistent with new institutional context (otherwise, system of negative sanctions will be started – in the BLP project it would mean e.g. that those local producers who did not became part of the initiative are not invited to particular promotional activities or they are not included in the sales network; of course, it does not mean that these actors are excluded from other project benefits such as general promotion of local products). In second case, change in individuals or group behaviour create modification of system of norms and values to make it more adequate to new activities, attitudes or preferred and dominating ways of action. Cooperation & Non-cooperation – cooperation or non-cooperation are possible outcomes of individual or group actions which are undertaken within new institutional context. In other words, institutional context (in its formal and informal dimension) might be interpreted as supporting or disturbing actions which lead to cooperation between actors. In compliance with general framework for IDARI Workpackage 3 cooperation or non-cooperation is main process which should be analyzed through research and role of particular factors in successful (or failed) cooperation should be identified. These issues will be fully explored in section 6 but here we will only add that two types of cooperation might be distinguished for the needs of this case study analysis (Ibidem: 5): 1) Internal cooperation – cooperation between members of community which objective is to create local product initiative and make it successful one, 2) External cooperation – cooperation between members of community and other (external) actors whose actions strongly affect BLP project participants behaviour and benefits. The above distinction is important because of the fact that it is possible to identify symptoms of successful cooperation only in its one form (e.g. in the case of “closed communities” where strong internal ties create some benefits for community members but 8 at the same time reduce their chance for benefits which are result of cooperation with individuals or groups who are not part of the community3). Analysis which will be presented in section 6 will be structured in standardized way to make its results comparable with other case studies. This structure is presented below along with 1) research questions and 2) research hypotheses. Research questions and hypotheses are based on the IDARI Workpackage 3 framework and case study analysis requirements but to take specificity of the BLP project into account some corrections were made and some questions or hypotheses were added (including those who were presented in background paper related to this case study analysis) or reduced. 1) Role of trust/mistrust and opportunism (social and institutional) RQ1.1: How important is trust in the development of cooperation? RQ1.2: Are high levels of trust an effective means of reducing transaction costs within BLP project? RH1.1: Trust is much more important for the development of internal cooperation than external cooperation where importance of pragmatism and rational choice becomes evident. RH1.2: Where trust in formal institutions is low, high transaction costs are experienced in dealing with State (formal institutions) and actors will rely on informal institutions to solve their problems of collective action. In this part, research questions and hypotheses are related to the issue of trust/trust. The general question refers to the importance of trust in the process of cooperation development. Such question is direct result of assumption that crucial factor (or resource) for developing cooperation is trust between actors participating in the process of cooperation. But it is clear that other “trust-friendly” factors should be taken into accont. Because of that, we distinguish two dimensions of cooperation: inernal and external and high importance of trust we identify especially in relation to first one. In the second case, as some kind of trust substitute pragmatism and rational choice might be interpreted. 2) Role of communication and learning RQ2.1: Is there a process of inclusive collective learning amongst all actors (social learning and sharing mental models)? RQ2.2: In what aspects of collective action process of social learning is most distinct? RQ2.3: What are the main communication disruptions between key actors of analyzed initiative? RH2.2: The more frequent and complete communication between actors occurs, the greater the cooperation is. From desk research analysis related to the BLP project it has became clear that one of the most important objectives of this initiative declared by its conductors was to 3 The above described situation is an example of „negative social capital” which is form of social capital reducing individuals chances for gaining some benefits which are accessible outside the group (Portes 1998). 9 increase level of knowledge and market qualifications among local producers. Because of that, the question is if such collective learning actually occured and might we speak about shared definition of situation in the group of project participants. As needed component of mentioned effective collective learning process of communication will be identified. That is why “communication issue” will be analyzed. Analysis in this aspect will be focused mainly on communication disruptions because of the specific situation in the “starting point” of the project. This specificity refers to following issues: 1) relative lack of communication between local producers in the region before the BLP project, 2) relatively poor development of technologically advanced forms of communication (internet) in the region, 3) remoteness of the area in which the project was developed. 3) Role of transaction costs and governance structures of cooperation RQ3.1: How do transaction costs affect the choice and changes of governance structures? RQ3.2: What is the role of governance structures of cooperation in making BLP project successful for its participants? RH3.1: Governance structures of the BLP project which were developed by initiators and coordinators of this initiative were oriented on reducing most important transaction costs related to economic activities of local producers. RH3.2: Within BLP project role of governance structures is crucial factor for creating benefits for participants of this initiative. In part of the report related to the transaction costs issue there will be an attempt to “reconstruct” process of decision-making on the both producers’ and initiators’ side related to the involvement within the project and the project development respectively. In this case the question is how this process was affected by identified (actual and potential) transaction costs. Important aspect of analysis will be role of governance structures. We assume high importance of this factor mainly because of the fact that the BLP project was established as formal initiative by external actors (partnership of local government and NGOs) and in its most advanced form (Local Producers Association “Bies”) it works in legal form of association. By importance of governance structures we will also mean importance of the BLP project leaders who will be interpreted as crucial element of existing governance structures. There is also hypothesis related to the one of the most important governance structures function – reduction of transaction costs in the field of local producers’ economic activity. As the probably most significant transaction cost would be in this case actions of local producers which are oriented on promotion not only their products but generally – local products. In situation of isolated promotional actions (which were also not very professional and efficient) each actor had to use his/her resources to convince potential customer not only about value of the specific product but also about general – cultural and environmental – colour of the region and value of Bieszczady’s local products. Thanks to the BLP project (and its governance structures, which are in some part “centralized”) such transaction cost was reduced and problem of multitude of similar actions undertaken by different actors was – at least partially – solved. It has caused that particular actors might have focus on their products development and promotion. 10 4) Role of the State – National, regional, EU laws – and the formal institutional environment on cooperation RQ4.1: To what extent can the State and its formal institutions enhance cooperation? RQ4.2: Do participants of the initiative differ in the level of knowledge and interpretation of institutional context? RH4.1: Cooperation within BLP project is not strongly influenced by formal institutional environment related to local and regional products in Poland. RH4.2: Cooperation within BLP project is strongly influenced by low levels of social capital in Poland, due to the actions of formal institutions in socialist times. Local and regional products are included as specific kind of products in legal acts which were adapted in the process of Poland’s accession to EU. Because of that, it seems to be justifiable to assume that high importance of legal environment should be observed in relation to the initiatives working in the field of local products. But in undertaken research we have rather assumed that mentioned importance would be low which is result of choosing other “path” of local products development by the project initiators. The BLP project is focused rather on “soft” context of economic operating, not “hard” context such as legal environment. Besides, in relation to e.g. certification which is most important opportunity offered by present law to local products we should notice that within the BLP project there is no plan to use this opportunity, but rather (at least in the beginning) to create own system of certification. This is another reason for hypothesis saying that importance of legal environment in relation to the BLP project is relatively low. 5) Role of communities, social networks and informal institutions on cooperation RQ5.1: What are dominant motivations for participating in the initiative for particular groups of actors? RH5.1: Cultural capital of the community is interpreted by the BLP project participants as important result of their social embeddedness which creates competitive advantage in relation to other groups out of the region. As most important element of the triangle of informal institutional environment (communities – social networks – informal institutions) which role is crucial for the process of cooperation we identify cultural capital (along with the “social embeddedness” which is the link between individual and cultural heritage of the community). Cultural capital would be then analyzed as the source of competitive advantage for communities involved within the project. Including “social networks” category to our analytical framework would not mean that we will analyze whole group of project participants only as one social network, but also as an aggregate of different social networks which members might have different interests and motivations. Especially the second element will be analyzed to distinguished particular categories (groups) of actors. 6) Role of the market and competition in fostering/hindering cooperation RQ6.1: How does the market environment affect cooperation? 11 RQ6.2: What are the main fields of innovation in the economic activity of BLP project participants? RH6.1: Most of actors involved within BLP project are strongly market-oriented and interpret this initiative as increasing potential of local producers in the market. RH6.2: Most of innovations might be observed in the field of promotion, distribution and sales. Innovations related to the products are limited. The BLP project is strongly market-oriented which is result of the fact that 1) it has been created for individuals operating on the market and also, 2) it has been created in order to increase local producers’ ability to effectively operate on the market. The question is do the BLP project participants actually interpret this initiative as helpful and productive for them in the field of developing their market skills. We will include to this part of the report analysis referred to the process of innovation because of the fact that such analysis will be devoted mainly to the market-related fields of innovation such as: promotion, distribution and sales. We assume that within the BLP project innovation might be observed in these fields rather than in the product itself (which would not be functional and reasonable in relation to the local producers which are strongly based on traditional way of producing). 3. Unit of analysis – Presentation of the initiative As we stated before unit of analysis in this case study analysis means “system of observable action based around a community/communities cooperating in an area to develop” local/regional product initiative”. More specifically we are focused on local producers who are involved within “Bieszczady’s Local Product” project and live in one of the five communes who were under investigation during research. To clarify specificity of this unit of analysis more detailed description of this initiative will be presented below. Selected initiative is located in the Podkarpackie voivodship4 (see below map and territory marked with red colour). 4 All statistical information about Podkarpackie voivodship is taken from the web-site of Office of the Marshall of the Podkarpackie Voivodship: www.podkarpackie.pl or Central Statistical Office: www.stat.gov.pl. 12 Map 1. Location of the Podkarpackie voivodship Source: http://www.podkarpackie.pl/?l=5 Mentioned voivodship was formed after reform of administrative system in Poland in 1999 from three following voivodships: Krosnienskie, Rzeszowskie along with some small parts of two other voivodships: Tarnobrzeskie and Tarnowskie. There are 21 administrative districts within this voivodship and four cities with the same status as administrative districts. Area of this region is 17 926 km2 which is 5,7% of whole Poland’s territory. The number of voivodship inhabitants is 2,1 million which is 5,8% of whole Poland’s population. Registered unemployment rate in 2003 was 16,6%. In the spite of the fact that it is low than Poland’s average rate (which was 18% in 2003) it does not mean that situation on the labour market in the Podkarpackie voivodship is relatively good. It is rather result of relatively big scale of “hidden unemployment” in rural areas (rural areas were 30,3% of total voivodship area in 2003 and this percent is still decreasing in last years). This region is relatively less-developed than other parts of Poland in both economy and infrastructure. In relation to first aspect we might say that gross domestic products per capita in the 13 Podkarpackie voivodship in 2003 was only 71,3% of average GDP per capita for all voivodships. One of the symptoms of weak infrastructure is number of fixed main phone lines per 1000 population: in the Podkarpackie voivodship it is 248,8 and average number for whole Poland is 321,4. Relatively poor economy and weak infrastructure might be one of the reasons for intensity of migration which is higher than in different parts of Poland: internal and international net migration for permanent residence per 1000 population was –1,2 in relation to 0,4 which is average for Poland. As it might be seen on the above map the Podkarpackie voivodship is located in the south-eastern part of Poland. It is borderland with border lines with Ukraine (on the East side) and Slovakia (on the South side). The fact that the Podkarpackie voivodship abuts different states and ethnic groups had important consequences in history of this region and still influences its specificity. In previous centuries this area was part of different states and was inhabited by many ethnic groups as Ukrainians and “Lemkowie” were most numerous ones. After II World War mass people expulsions have taken place and for last fifty years there is small ethnic differentiation with evident dominance of Poles. But former ethnic differentiation still might be observed in the form of differentiation of cultural remainders such old cemeteries, churches, wayside shrines etc. All these material dimension of culture strongly enriches cultural heritage of this region which creates specific “colour” of local culture. Other aspect of specificity (and at the same time – advantage) of this region is clear environment, great number and variety of fauna and flora and beautiful area with mountains (Bieszczady which is used as the name for the local products brand is taken from name of mountain range in the Polish part of Carpathian), green hills, woods and mountain rivers. Awareness of this environmental specificity results in actions which lead to protection of some particular parts of the region. One of the most spectacular projects in this field is International Biosphere Reservation – The East Carpathian Mountains (two administrative districts which are involved within BLP project are also part of this reservation). It is example of cross-border cooperation – “The East Carpathian Mountains” reservation was first reservation in the world which was established by three States. These two types of region’s resources: cultural and environmental in market economy become specific forms of capital which might be used as a source of competitive advantage for the Podkarpackie voivodship. Because of that, one of the priorities for this voivodship development is tourism, especially agro-tourism. Local or regional products development is strongly linked with this as additional element which might attract visitors. Two administrative districts are involved within BLP project – Bieszczadzki and Leski and they are indicated on the below map. 14 Map 2. Location of two administrative districts involved within the BLP project (Bieszczadzki and Leski) Source: http://www.zpp.pl/index.php?path=main/danetel&level=2&wojew=podkarpackie As it might be seen mentioned administrative districts: Bieszczadzki (with capital in Ustrzyki Dolne) and Leski (with capital in Lesko) are on the edge of the Podkarpackie voivodship. It actually means that they are in the most picturesque, but at the same time – inaccessible, part of the region. Comparing these two administrative districts (AD) and describing them as a part of whole voivodship we might say as follows: 1) Area: Area of Bieszczadzki AD is 6,4% of total area of the Podkarpackie voivodship, in Leski AD case it is 4,7%. Bieszczadzki AD is one of the biggest ones in the region, Leski AD is medium-sized. 2) Population: Population of Bieszczadzki AD is 1,1% of total population of the Podkarpackie voivodship, in Leski AD case it is 1,3%. In these two administrative districts number of inhabitants is the lowest among all administrative districts within the region. 3) Forests: Forest area in Bieszczadzki AD is 12% of total forest area of the Podkarpackie voivodship (which is the highest percent in whole region), in Leski AD case it is 8,6% (which is the third highest percent in whole region). 15 4) It means that in these two administrative districts is relatively high potential in eco-tourism. Economic activity: Number of entities of the national economy in Bieszczadzki AD is 1,5% of total number of entities of the national economy in the Podkarpackie voivodship, in Leski AD case it is 1,8%. In these two administrative districts number of entities of the national economy is the lowest within whole region which means that officially registered economic activity is relatively rare form of creating income by individuals. As we stated in section 1 research was conducted in five communes: Baligrod, Lesko, Olszanica, Czarna, Lutowiska. Their location is presented on the below maps. Map 3. Location of selected communes within two administrative districts Leski administrative district Bieszczadzki administrative district Source: http://www.zpp.pl/index.php?path=main/danetel&level=3&id_woj=15&id=378 http://www.zpp.pl/index.php?path=main/danetel&level=3&id_woj=15&id=190 Specificity of selected communes might be observed in the below table where data about area and number of inhabitants is presented. 16 Table 1. Area and number of inhabitants in selected communes Area and number of inhabitants in selected communes Area (km2) Number of inhabitants Baligrod 158 3201 Czarna 185 2378 Lesko 112 11506 Olszanica 94 5112 Lutowiska 476 2261 Commune Source: Central Statistical Office As we might see in the above table there are big differences between communes in number of inhabitants and area. Lutowiska is the biggest commune when we take area into account (this commune is even on of the biggest in comparison with all communes in Poland), when Olszanica is the smallest one. Comparing number of inhabitants and area of particular communes very low density of population might be observed, above-mentioned Lutowiska has got the biggest area and – at the same time – the lowest number of inhabitants. Low density of population should be interpreted as important factor for relative difficulties in communication process and limited contacts between inhabitants not only from different communes, but even from the same one. The “Bieszczady’s Local Product” project was initiated by one the participants of the Partnership Group “Green Bieszczady” - Community Centre in Lutowiska. The Partnership Group “Green Bieszczady” is the coalition of the non-governmental organizations, private enterprises, public institutions and other institutions and individuals who collectively work for Bieszczady’s development5. It is one of the Partnership Groups from the network of such coalitions coordinated by the Foundation “Partnership for Environment”. In Bieszczady initiator of the Partnership Group establishment was, along with the Foundation “Partnership for Environment” which launched project “The Partnership Groups for Sustainable Development”, Bieszczady’s Tourist Information Centre in Lesko. In the Partnership Group “Green Bieszczady” over 50 entities were already involved and most important projects, except BLP project, were “Green Bike – Greenways of The East Carpathian”, “Schools for Eco-Development” and “Bieszczady’s Unit of Architecture and Environment”. The “value added” of such initiative is synergy of actions which are undertaken by group members. General objective declared by its participants is to “integrate actions of non-governmental organizations and self-government institutions which were diffuse up to date include in the cooperation process local entrepreneurs, increasing quality of inhabitants life and creating programme for sustainable development of the 5 All information related to Partnership Group „Green Bieszczady” was taken from following web-sites: http://www.bieszczadyonline.pl/index.php?strona=deklaracja&right=index/menu_greenway.php, http://www.bieszczady.info.pl/0,525,0,48,echo.html, 17 region”. The Partnership Group “Green Bieszczady” is not legal entity, it is informal platform for stakeholders cooperation and its base is voluntary work of all members. It is not involved in any political actions, does not have political orientation and there is open access to this group for all who want to collectively work in order to achieve general objective of this project. As we have stated before, Community’s Cultural Centre in Lutowiska (which is one of the institutions participating within the Partnership Group) was initiator of the “Bieszczady’s Local Product” project6. Above-mentioned institution is supervised by self-government on commune tier. In 2002 Community’s Cultural Centre in Lutowiska has applied for funds from “The East Carpathian Foundation – Polska”7 within the “Integrated Development of Rural Areas” programme for establishment of “Bieszczady’s Centre for Promotion and Certification of Local Product” (BCPiCPL). It has received 76 522$ for conducting two-year long project8 which has started in October 2003. Main declared objective of the BLP project was to: create and promote specific brand of local product in Bieszczady which is called “Made in Bieszczady” and increasing competitiveness of such product in the Polish and foreign market along with supporting economic activity of small- and medium-size enterprises” (BCPiCPL 2004: 8). First step which was undertaken within the BLP project was organization of the office in the building given by local branch of Agricultural Property Agency of the State Treasury (which is central government supervised institution managing State-owned property in rural areas). Launched office was equipped with all needed office and computer devices and three persons were hired to work on this project (one coordinator and two assistants). After these initial actions local products stocktaking in two administrative districts (Bieszczadzki and Leski) was started. BLP project representatives interviewed local producers in relation to the following issues: 1) profile of production – product or offer type, names of offered products or services, 2) contact details, 3) qualifications of the producer (courses, trainings, certifications, diplomas etc.), 4) membership in organizations, 5) type and origination of the material which is used in the production process, 6) additional actions – participation in fair and exhibitions, forms of product distribution, 7) forms of cooperation with partners within or outside the branch, 8) promotional activity, 9) demand for trainings and advisory. Besides this information, photo data was collected in order to make possible visual presentation of the regional products in printed materials or web-site catalogue. The result of the above-described data collection was launching the BLP project web-site (www.bieszczady.pl/produkt) with information about 183 producers who participate in the project. Number of them is 6 On the base of data collected through interviews we should rather say the Community’s Cultural Centre in Lutowiska was formal initiator of the project, but informally it was supported by other participants of the Partnership Group “Green Bieszczady”. 7 “The East Carpathian Foundation – Polska” is foundation launched in 1994 by Institute for East-West Studies and Charles Steward Mott Foundation. It works in rural areas in the mountain regions of Hungary, Poland, Romania, Slovakia and Ukraine. Foundation by distributing funds and giving technical assistance within the projects, supports social stability and economic development of borderlands in mentioned countries. 8 The research was conducted in 2004 and 2005 what means that it was during second stage of the project and also after the period of the project which was funded by „The East Carpathian Foundation – Polska”. 18 still growing but at the same time some of the producers become its “passive” members (which means that their only form of involvement is publishing their contact details on project web-site). In consequence, web-site base of local producers includes some of the producers who actually do not already participate in the project and on the other hand there is no information about project newcomers. Regarding the fact that one of the priorities for this project is promotion it is relatively weakly developed aspect of the project9. The products which are catalogued were divided in three main categories (in some cases, the same producer offers different product categories): Food products Hand-made objects Working of wood First category includes, among others, honey and its derivatives, goat’s cheese, bread-stuffs, Bieszczady’s trout. Second type of products includes: sculpture, bas-relief, artistic and applied fabric, pottery, basketry, leather goods, blotting-paper wares, smith’s goods, artistic work in metal, cross-shaped embroidery, crocheting, icons. Third category of products includes: designing and production of furniture, rafter crafting and shingles manufacture, construction and artistic woodwork, toys and applied goods, charcoal burning. After the “stocktaking stage” project coordinators initiated educational and training activities. Trainings were offered to producers who have responded in the first stage of the project and proposed educational activities were undertaken in topics such as: marketing and promotion, gaining funds, formalizing economic activity, forming producer groups / associations and creating rules for local products certification. Such „transfer of knowledge” was important for local producers mainly because of relative lack of basic knowledge in the field of marketing and adequate skills needed to manage a business. The other important problem among local producers within the region is weak communication between them. As we have stated in previous paper: “Some profiles of production are complementary, but in the presence of no exchange of information and cooperation producer’s actions are isolated” (Korczynski 2004: 12). Because of that, important – in the coordinators perspective – result of organized trainings was “creating methods for cooperation and integration of local producers who were diffuse in the extensive area of Bieszczady’s region and did not have opportunity to cooperate and common promotion their, often very unique, products” (BCPiCPL 2004: 8). In series of trainings over 200 producers have participated. Additional form of actions which were undertaken during second stage of the BLP project (“training stage”) were workshops for unemployed people from the region. They were introduced to such fields of production as: pottery, making wooden toys, making candles and wax souvenirs, bee-keeping, lace-making, ceramics. Although it seems to be valuable and productive form of human capital of the region development project initiator and coordinator has stated that is was not very efficient: 9 Regular web-site updates are very important because – as local producers have declared in the interviews – information which is presented on the web-site is very often only form of their products promotion. 19 Professional workshops should be more focused and limited number of persons should participate in them. There were no satisfying effects from hitherto existing series of workshop. (Coordinator1) Along with training activities during second stage of the project promotional actions were undertaken. Of course, previous launching of the BLP project web-site was also form of promotion but quiet passive. In next actions project participants, under coordinators supervision, have extended scope of their promotional activity. Most important part of this was participating in the promotional events. Firstly, on local level – in near cities such as Przemysl, Krasiyczyn, Ustrzyki Dolne, Solina, Olszanica. Further actions were more geographically diverse and most important events in which local producers involved within the BLP project have participated were: “Bieszczady in a small scale” in Gdansk, “Days of Well Neighbourhood” in Ukraine, “Local Products Fair” in Krakow, “International Poznan Fair – Polagra” (which is the biggest food and agricultural products’ fair in Poland) in Poznan and international promotional activities in Athens and Saloniki in Greece. Participating in fair and exhibitions is sometimes linked with other ways of promotion, where competitions seem to be most fruitful (e.g. for last competition organized by Polish Tourist Organization BLP project has sent five products and two of them were awarded which allows its producers to exhibit them in polish embassies and consulates). But such events are not only form of promotion for the BLP project, actually its participants are mostly proud of appearance in national media, e.g. in morning TV broadcast “Coffee or Tea?”. The final of the promotional activities in the second stage of the project was publishing catalogue with information about the BLP project, all involved producers and their offer. The catalogue is edited in very sophisticated way, with beautiful and high-quality photos and it is distributed by producers, BLP project office and other institutions supporting the initiative. Third stage of the BLP project development might be described as the “certification and distribution stage”. Introduction to first aspect was registering logo of the BLP project as trademark in The Patent Office. This trademark (which might be seen on the right side) is reserved for these products offered within the BLP project which are certificated by the Chamber in accordance with established rules of certification. Members of the competition Chamber are regional leaders and external experts and rules of certification are mainly based on the local product definition proposed by the Foundation “Partnership for Environment”: Product or service which is recognized as specific for the region, produced in nonmass and environment-friendly way from materials which are locally accessible. Local product is showcase of the region because it represents regionally specific features (BCPiCPL 2004: 12). Awarded producers might use logo “Made in Bieszczady” for one year since signing agreement on product certification, after this period they might apply for extension of certification period which is considered along with 20 checking quality of the product and compliance with established rules of certification. There are already 10 products certificated. Other aspect of second stage of the BLP project is creating new ways of distribution local products in which launching network of “Bieszczady’s Shops” offering these products seems to be most important. At this moment local products might be bought directly from producers or store in BLP project office. There are plans to open next shops in different parts of the region to make local products more accessible for tourists and increase sale extent. There are also attempts to distribute BLP project participants products with using web-based tools. Above-described “trajectory” of BLP project development where three stages might be distinguished does not mean that after planned period of this initiative (2003-2005) the project is ended. Permanent effect of this initiative is Bieszczady’s Local Producers Association “Bies” which chairwoman is co-author and coordinator of the BLP project Izabela Cicha. At this moment over 50 producers are members of this association10 which main purposes are: 1) working for multi-dimensional and sustainable development of the Bieszczady region in its economic, social, educational, cultural and scientific sense, 2) creating and co-organizing regional and economic policy, 3) working for building civic society, supporting democratic values, tolerance and equation of the opportunities, 4) popularization and supporting regional initiatives which purpose is international cooperation, 5) working for enterprise development within the region, with focus on entities which start autonomous economic activity and small- and medium-size enterprises. Among further plans for actions undertaken within the BLP project the most important seems to be international cooperation, especially with Ukraine, in order to exchange experiences in the field of handicraft and traditional agricultural and food products. Concluding the above description of the selected unit of analysis (initiative launched within the community) we would like to add that, quoting previous paper on this project (Korczynski 2004: 12): “Important assumption was that activization of region’s dwellers will not be based on direct financing and investments but rather on existing potential of individuals and communities. Intention was to release this potential by integration of individual’s actions and common looking for problems’ solutions in the region. (…) Idea for this cooperation is to develop the region in sustainable way and encourage to establish partnerships in the field of launching and promoting local products”. If we interpret this initiative in terms of “transfer of knowledge” we would say that most important knowledge “input” was related to general economic skills of the project participants. It was not needed to create new products because they have already existed as the objectified “incarnation” of community’s cultural capital. What had to be done was to increase producers ability to effectively promote and distribute their products. Such profile will have specific consequences for the process of cooperation (non-cooperation) within BLP project. 10 As we have stated before, in the first stage of the project (“training stage”) over 200 producers were involved. Comparing this number with number of “Bies” association members continuous decrease of number of participants might be observed along with increasing formalization of this initiative. 21 Different categories of actors are (or were) involved within this initiative: local producers, local officials (Community Center which was the initiator of the project is institution supervised by local government), non-governmental institutions (direct funding from NGO was the factor which make project possible, but besides this there are other forms of contacts and more long-term relations with NGOs). Below main actors involved are presented in systemized way (detailed identification of all actors will be presented in section “Visual presentation of the actors and their interactions”): 1) Producers – Individuals who produce local/regional goods in the area of the project. In the previous paper related to this project (Ibidem: 16-17) this group was divided in two main categories: producers who participate in the BLP project and those who do not participate in it. The first group was described in following way: “[it is] main and direct beneficiary of the project, but also their actions and attitudes are condition of possible success or failure of the initiative” and the second one was called as the “litmus-paper” of the initiative’s efficiency. In the research procedure it was decided to exclude nonparticipants from the outset of the research process because of two reasons: a) it would be very difficult (if not impossible) to identify local producers who do not participate within this initiative in any way – stocktaking of local producers within the region which was made as the one of the actions within BLP project was very accurate and it would be very hard to find any “outsiders” in this area who might be described as local producers, b) within group of project participants were producers who might be described as “passive participants” – whose activity and participation is highly limited. They were interviewed and, as we think, they might interpreted as abovementioned “litmus-paper” which indicate barriers and disadvantages of the project. 2) Initiators and coordinators of the initiative – Actors who represent: Partnership Group “Green Bieszczady” (where idea of the initiative has appeared), Community’s Cultural Centre in Lutowiska (fundraiser and formal coordinator of the project) and Bieszczady’s Centre for Promotion and Certification of Local Product (institution established in order to undertake main tasks within the BLP project). In relation to this category of actors we might say about individuals “fluctuations” what means that some of the actors who are involved within one of above-mentioned institutions or organizations is, at the same time, member of different groups, e.g. Izabela Cichy who is main coordinator and co-author of this project is: a) member of the Partnership Group, b) chairwoman of Community’s Cultural Centre in Lutowiska and c) chairwoman of BCPiCPL. Within this group, two additional categories of actors should be distinguished: a) formal initiators and coordinators of the initiative – these actors who represent formal institutions involved within the BLP project (such as Community’s Cultural Centre in Lutowiska) and are formally responsible for actions undertaken in relation to this initiative, b) informal initiators and coordinators of the project – these actors who are involved within the BLP project initiation or coordination through informal cooperation and advisory. Representatives of these both categories were interviewed during fieldwork research. 22 3) Local leaders and coordinators of the project – in previous paper we have identified such category of actors involved within the BLP project. Including this category as key actors was justifiable by the structure of project coordination which was planned. Coordinators have planned to conduct this initiative on the base of network of coordinators who are local leaders of their communities. Their suggested role was to: a) establish and maintain productive relations between producers and project coordinators, b) facilitate internal communication and cooperation in the local subgroups of the project in the participating communes. Eventually, this group could not be identified in the research process. The reason for that was suggested by one of the interviewees who coordinates the BLP project: There are problems, in terms of number of people involved, with creating local leadership centers. Our aim should be reinforce human capital on the local level. (Coordinator2) 4) Local officials – Actions undertaken by this category of actors create institutional context on local level for regional products initiative. Including this category of actors to the analysis was planned to make possible answering two following questions: a) what is the perspective of public institutions representatives in appreciation of the initiative, 2) how they define their role in this. The specificity of the BLP project is that local government representatives who might be identify as involved in this initiative and influencing its functioning are actually its formal participants. It might be described as the delegation of some employees of local government institutions to coordinate the BLP project. Two persons who meet this criterion were identified and interviewed (chairwoman of Community’s Cultural Centre which is local government supervised institution and one of the employees of it). 5) Civil servants on the State level – one of the main assumptions for this research presented in previous paper (Korczynski 2003) was to conduct case study analysis but also include institutional context analysis. It was justified by the assumption about strong influence of institutional context (legal acts, formal regulations and rules for regional products protection etc.) on the BLP project. But after desk research analysis and initial interviews with both producers and coordinators this assumption had to be rejected. At least at the current stage of the BLP project development existing (and still changing) legal framework related to regional products in Poland did not affected this initiative in viewable extent. Analyzed project is not oriented on registering products and certification them with legal categories of regional products. Instead of this, own system of certification was created along with training and promotional activities. Because of this reason, general analytical framework was changed in order to focus mainly on selected initiative (which is consistent with other case studies within second pillar of IDARI Workpackage 3) not legal or formal environment on the State level (see also: Murray 2004: 20). 23 But it would be also not reasonable to totally exclude civil servants on the State level from this research. That is why interview with Ministry of Agriculture and Rural Development representative (Chairman of Bureau of Geographical Indications and Promotion) was conducted and was related mainly to legal aspects of regional products development in Poland. 4. Methodology and Analytical Framework As we have stated before general change in analytical framework was made along with changing unit of analysis. It has particular consequences in methodology of the research related to the “Bieszczady’s Local Product” project. We will be more focused on the level of selected initiative what means that main part of this research will be conducted in the form of case study analysis11. To make this research results comparable with other research outcomes within second pillar of IDARI Workpackage 3 general research framework proposed by C. Murray (2004: 20) where main assumption was as follows: “Although the macro structures within a country or region affect levels of social capital – such as legislation, types of regimes, level of decentralization and level of participation in policy making - the behavioural attributes of individuals requires further exposition, and will be the focus of IDARI research”. Because of that we will focus on the behavioural aspect and conduct research with exploring participants perspective (actors-oriented analysis) with some elements of process-oriented analysis (which lets to overcome problem of incorporating time within research). With such approach general analytical framework for identification of factors affecting cooperation might be adapted. 11 In accordance with requirements of preparing research report it will not be justified why case study approach was chosen as the most suitable and adequate research method within this research. 24 Figure 2. Factors affecting cooperative behaviour amongst individuals Number of Stakeholders/Actors Nature of the problem facing individuals Bounded Rationality & Opportunism Norms Values Cooperative Behaviour Social Learning amongst Individuals Inverse Relationship Social Capital - including trust, mistrust, reciprocity & reputation Communication Structures Dependent relationship Source: Murray 2004: 15 The above analytical framework was base for structuring research process with thematic modules (which were part of the interviews). Structure similar to that used in the research will be also used in the stage of analysis and interpretation of empirical findings. Those elements of the above model which will not be used as the distinguished parts of this report (as e.g. bounded rationality & opportunism) will be used as the categories of analysis within particular six cross-cutting themes of this research. General idea, which is in compliance with the above model was to indicate factors affecting cooperation within the BLP project and identify way and results of this influence. As we have stated in previous section following actors were included in this research: local producers, initiators and coordinators of the project, local officials, civil servants on the State level. Their particular description is provided below (with indicating existing differences within one category of actors): 1) Local producers – within this group following sub-categories of actors were included in the research: a) active participants – producers who actively participate in the BLP project activities and are members of “Bies” association, b) passive participants – producers who were invited to the project and who provided information about their offer to the project base but who do not actively participate in this initiative, c) food producers – as we have stated before, in accepted unit of analysis only food producers are included but there are different profiles of food production which are represented among interviewees: bee-keeping, trout breeding, bakery, mutton, regional alcohol and offering different food producers under general name “regional food”. Besides some of respondents are simultaneously work in different fields, e.g. 25 2) 3) agro-tourism, d) producers from different communes – producers from five communes are represented (Baligrod, Czarna, Lesko, Olszanica, Lutowiska) but most of the interviewees come from the first mentioned commune (which originally was planned as the only commune within unit of analysis), e) producers associated in different groups – the BLP project participants are not only involved in this initiative, they also members of other groups or associations (which are sometimes even more important for them than initiative related to regional products). Within this research one specific group of local producers associated in other organization is represented. It is group of “Rural Home-mistress Club” which members are only women who offer “regional food” for social events such weddings, funerals etc. Five interviews were conducted with representatives of this specific group within the BLP project. Initiators and Coordinators of the project; local officials – these group are presented together because two individuals who were interviewed have represented the above two categories of actors: they were involved (formally) within the BLP project and at the same time have represented institutions supervised by local government12. Other interviewees who might be described as the “initiators and coordinators of the project” have represented nongovernmental organizations involved within the BLP project. Civil servants on the State level – because analysis of institutional context was highly reduced there was no reason to conduct previously planned number of interviews with this category of actors. Interviewee within this category was Chairman of Bureau of Geographical Indications and Promotion who represents Ministry of Agriculture and Rural Development which is, in accordance with new legal framework related to regional products, institution responsible for process of application and registration legally protected categories of regional products. During the research process following methodology was used in order to address all research questions and test research hypotheses: 1) Desk research – it was mainly used in the first stage of research when institutional context was identified and general data about “Bieszczady’s Local Product” was collected. Data collected at this stage was used as the point of reference for further research on the BLP project. Desk research was mainly devoted to legal documents which are formal base for regional products development in Poland at the current stage. Also, documents and materials from institutions working in the field of regional products in Poland (PolishAmerican Project of Local Products’ Development, Polish Chamber of Local and Regional Product, The Foundation “Partnership for Environment etc.) were analyzed. Important source of information analyzed during desk research stage were internet resources. In some cases, this is only platform for dissemination information about the initiatives and their participants and it was needed to 12 The specific case is interviewee described as Coordinator1 who was at the same time coordinator of the project working in Community’s Cultural Centre in Lutowiska and beneficiary of the project as the local producer of the “Sauterowka” (kind of alcohol). 26 2) 3) use this source of information for identifying different than the BLP project Polish initiatives which are oriented on regional products development. In-depth interviews – with this technique most of empirical data was collected. Reason for using this technique is that its semi-structured character allows respondent to partially modify structure of interview and to touch subjects which weren’t included initially. Because of that, some important issues but specific for particular and limited number of actors might appear during interview. Two separate guidelines for interviews were prepared – one for local producers and other one for initiators and coordinators of the project / local officials (they are included in the section “Annexes”). Interview with civil servant on the State level was specific because he was asked to comment some empirical findings, identify existing legal environment in relation to the regional products issue and make his observations on regional products general development. Total number of conducted IDIs: 25 (20 interviews with local producers; 4 interviews with initiators and coordinators of the project / local officials; 1 interview with civil servant on the State level)13. Observation – in every stage of fieldwork research elements of observation were included. During visits in local producers’ farms elements of observation were used in order to identify material outcomes of the BLP project: products’ design, labeling, forms of promotion and distribution etc. Regarding the fact that collected data will be mostly qualitative analysis should be based mainly on qualitative methods. Because of that quantitative (statistical) techniques of analysis will not be used. Second reason for such approach is relatively low number of observations (25) – it will not be possible to conduct statistical operations and techniques of verification with such number of cases. For the needs of this report following procedure of analyzing collected data will be used. In first step analysis will be grouped in sections identifying role of particular factor in the process of cooperation and well functioning of the initiative. In second step, in each section research questions will be answered and hypotheses will be tested. In each case adequate data will be presented as the empirical material which is needed to answer research questions and test hypotheses. Data will be presented in the form of quotations from conducted interviews. In qualitative way of analysis it is justified to present not only conclusions from research but also to present data – it gives more accurate and – at the same time – broader picture of analyzed phenomenon. If statements of interviewees are quiet similar only some of them are presented to give an example on observed ways of argumentation (presenting all interviewees statements would significantly exceed suggested volume of this report). Each quotation will be made with additional information of the interviewee (category of interviewee: producer, coordinator, State official) and number of interviewed person (which help to find additional information about interviewee in annex). 13 Detailed list of interviews is included in the section „Annexes”. On interview was conducted with person who is at the same time participant and coordinator of the project (Coordinator1). 27 5. Visual presentation of the actors and their interactions On the below chart all involved actors are presented along with indicating interactions between them. Actors which positions are marked with grey colour should be interpreted as “key actors” of the process. Vectors of the arrows represent direction of influence. Dashed line was used to present two different categories of local producers. 28 Inhabitants of Tourists the region „Passive” local producers International Biosphere Local producers Reservation „Active” local producers Community’s Cultural „Bies” Association Centre in Lutowiska Bieszczady’s Centre for Promotion and Certification of Local Product Local officials Non-governmental Polish Chamber organizations of Local and Regional Product Ministry of Agriculture and Rural Development 29 In this section of the case study analysis interactions between actors will be identified and described: 1) Local producers – it is key actor of the process because of the fact that it is direct beneficiary of the project. Two different categories might be distinguished which are: a) active participants – producers who actively participate in the BLP project activities and are members of “BieS” association, b) passive participants – producers who were invited to the project and who provided information about their offer to the project base but who do not actively participate in this initiative. Crucial interactions with local producers which might be identified are related to formal institutions which are part of the BLP project (i.e. Community’s Cultural Centre in Lutowiska, Bieszczady’s Centre for Promotion and Certification of Local Product, “Bies” Association). Interactions between local producers and first two institutions are quiet similar – mentioned institutions undertake actions which direct beneficiaries are local producers. But there is also reversed influence – forms and objectives of undertaken actions cannot ignore local producers motivations, preferences and expectations. Interaction between local producers and “Bies” association is different because they are not only beneficiaries but also contributors and co-initiators of this initiative. This is probably the aspect of the BLP project in which local producers are most active and participating (but at the same time it involves relatively small number of local producers). Local producers also interact with inhabitants of the region and tourists. First case is quiet obvious – local producers are also members of the local community. What is specific, successful economic activity of local producers might “inspire” rest of inhabitants to initiate such way of generating income. In second case (local producers and tourists) the latter ones are target group for economic activity of the local producers. But, what is interesting and counterintuitive, very often tourists initiate the contact, not local producers. It happens in relation to those producers whose promotional activity is highly limited. 2) Community’s Cultural Centre in Lutowiska – as we have stated above this institution interacts with local producers. It also cooperates with Bieszczady’s Centre for Promotion and Certification of Local Product, “Bies” Association – these three institutions objectives, ways of functioning and even members are very similar what makes interaction necessary. Functioning of this institution is strongly influenced by two other key actors: local officials (representatives of local government) and non-governmental organizations. In first case, the interaction is affected by the fact that Community’s Cultural Centre is institution under supervision of local government on the commune tier. But there is also interaction between centre and non-governmental organizations such as The Partnership Group “Green Bieszczady” and The Foundation “East Carpathian – Poland”. Their influence was crucial for initiating the BLP project – as we have mentioned before, idea of promoting regional products has appeared within Partnership Group, and mentioned foundation was fund-giver for the initiative. 3) Bieszczady’s Centre for Promotion and Certification of Local Product – we have already described interactions of this institution with local 30 4) 5) 6) producers, Community’s Cultural Centre in Lutowiska and “Bies” Association. But there are also two other important partners of interaction for this institution: Polish Chamber of Local and Regional Product and Ministry of Agriculture and Rural Development. These two institutions affect actions which are undertaken by centre. Polish Chamber of Local and Regional Product is very similar organization to the Bieszczady’s Centre for Promotion and Certification of Local Product but the latter one operates on territory of whole Poland. Without any doubt we might say that some actions of the Chamber might be positive pattern for Bieszczady’s institution. Besides, Izabela Cicha – project coordinator – confirmed in the interview that chairman of the Chamber supports the BLP project. In relation to interaction between Bieszczady’s Centre for Promotion and Certification of Local Product and Ministry of Agriculture and Rural Development we might say that Ministry as the institution of central government affects every initiative which is conducted in the field of regional products in Poland, mainly through creating legal context for such actions. “Bies” Association – “Bies” association position in the map of interactions within the BLP project is almost the same as previously described Bieszczady’s Centre for Promotion and Certification of Local Product. The main difference is that by the fact that its initiators and members are local producers interactions with Polish Chamber of Local and Regional Product and Ministry of Agriculture and Rural Development directly influence producers activities. In other words, there is no institutional “buffer” such as Bieszczady’s Centre for Promotion and Certification of Local Product who represents interests of local producers from the region. Analyzing process of “Bies” Association establishment chronologically we might say that the organization’s main function is to take over these activities which were in the field of competence of project coordinators (who were not local producers but rather “social activists”). Analyzing “Bies” Association from other perspective we might say that thanks to its formal character (it is legally registered non-governmental organization) it increases probability of making the BLP project long-term initiative. Last but not least, as form of community organization (organization which works for the community benefits through actions undertaken by beneficiaries) it involves local producers who – in the first stages of the project – were rather passive as “support receivers”. Polish Chamber of Local and Regional Product – besides already described interactions in which this institution is involved it also affects (and is affected by) actions which are undertaken by Ministry of Agriculture and Rural Development. This interaction is needed because of the fact that these two institutions actually work in the same field (supporting regional products development), only difference is that Polish Chamber of Local and Regional Product is non-governmental organization. Ministry of Agriculture and Rural Development – all interactions in which this actor is involved are already described. It is only needed to add that by Ministry of Agriculture and Rural Development we actually mean Bureau of Geographical Indications and Promotion which realizes Ministry’s duties in the field of protection regional products and promoting general idea of such way of economic activity in rural areas. 31 7) 8) 9) Tourists – we have already identified interaction between tourists and local producers. But tourists also interact with all inhabitants of the region. “Tourism industry” is the most significant field of economic activity in this region and it would probably be difficult to find family where there is no member who is not, at least indirectly, involved in work for tourists. That is why tourists strongly affect economic condition of most of the households in Bieszczady region. Inhabitants of the region – all interactions in which these actors are involved are already described. International Biosphere Reservation – there is interaction between reservation and tourists. It actually means that International Biosphere Reservation might be interpreted as form of attraction for tourists. By this, we might say that this reservation indirectly affect functioning of local producers (by causing increase in number of tourists) but it is difficult to confirm it empirically. In this section we have described actual (not potential) interactions between all actors involved within the BLP project. It might be interpreted as the introduction to presenting empirical findings from conducted research. 6. Determinants, Effects and Processes of Cooperation and Rural Institutional Innovations Analysis within this section will be structured as follows: 1) role of particular factors on the cooperation and rural institutional innovations will be identified, 2) in parts devoted to particular factors research questions will be answered and hypotheses tested. 6.1. Role of trust/mistrust and opportunism (social and institutional) RQ1.1: How important is trust in the development of cooperation? RH1.1: Trust is much more important for the development of internal cooperation than external cooperation where importance of pragmatism and rational choice becomes evident. Making an attempt to answer first research question it is needed to start from identification of actors perspective in relation to importance of trust. Answers received through interviews might be divided in three groups. In first, interviewees declared relatively low importance of trust or low level of knowledge on trust issues: I am only interested in my bee-keeping and promotion, that is all, it is hard to say [do I trust other participants of the BLP project] (Producer1) I don’t know. I don’t have any contact with others (Producer13) This attitude was not specific for those producers who might be described as “passive” ones (whose knowledge in relation to the project would be generally low). First quoted producer is highly involved in actions undertaken within the BLP project (he was also involved in other social activities in his commune such as Union of BeeKeepers and Union of Hunters). How such argumentation might be interpreted? It is 32 probably caused by dominance of pragmatism and interpreting the BLP project as the form of collective action where individuals’ benefits cannot be (positively or negatively affected) by other participants. Of course, if such attitude would be dominant it might threaten whole project efficiency and its participants involvement. But what is significant – difficulties with identifying if interviewee trust other people (the BLP project participants) does not mean that his or her opinion about the BLP project and its outcomes is negative (it has occurred only in one case). In second case, the BLP project participants declared that they trust other producers (or project organizers) but it is difficult for them to more deeply explore this issue or find any arguments for such opinion. It is difficult to say – rather yes. People usually aren’t suspicious. (Producer11) Yes, people should be trusted. (Producer20) In such interpretation people use their general opinions on interpersonal trust and cannot refer it to functioning of the BLP project. They also cannot interpret their experience within the project in terms of trust or mistrust. For eventual cooperation it is not needed to base motivations on experience, if stereotypes strengthen orientation on cooperation14. But the above quoted argumentation might be symptom of relatively rare contacts between participants who cannot say if other producers (particular individuals, not people in general) might be trusted. The third group of answers (number of them was relatively low) has proved that at least for some of the participants trust is important resource for efficient functioning of the BLP project: I might say I trust other [producers]. There were group travels, TV interviews, fair in Solina, exhibitions – there was enough time to meet each other very well. Besides, other producers have invited me to their farms (Producer3) Maybe before there were some doubts, but now only those who are OK stayed (Producer4) In above statements interviewees point some specific circumstances in which trust might occur or recall their previous experience which is the base for trust other participants of the project. In relation to the first opinion it seems to be clear that the BLP project participants are aware that to increase level of trust some investments are necessary as meetings or collective activities within the project. Such investments demand from the participants time, self-initiative or money but they are also helpful in verifying if other persons are trust-worthy and if the producer might rely on partners from the BLP project. On the other hand (Producer4), level of trust might increase mainly by the fact of passing time and changing population of the project participants (by “changing” we actually mean decline in number of participants, but at the same time increase in intensity of involvement of remained producers), such 14 In this case by “stereotypes” we mean simplificated opinions or convictions which come from particular experience (or observation) and are referred to wider spectrum of social phenomena. In relation to the cooperation issue within the BLP project we might say that willingness to cooperation (at least declared) is conditioned by generalized attitude to the cooperation with other people (e.g. if individuals state that “people should be trusted”, their will to cooperate will be relatively high and detailed calculation related to the decision-making process on cooperation will not be needed). 33 process might be described as “crystallization” of the project membership structure. Besides, it is needed to emphasize that in comparison with beginning of the project (about 200 producers involved), at this moment (where we have over 50 producers being members of the “Bies” association) it is much “easier” to trust each other because relations seem to be closer and direct. The fact that most of interviewees did not declare high importance (and high level) of trust between project participants or declared such importance but it was difficult for them to present concrete arguments or examples which would prove this opinion, should be compared with direct answer on question “How would you justify importance of high level of trust for functioning of the BLP project?”. Absolute majority of interviewees declared that such factor is very or somewhat important. How it might be explained? Firstly, it might be symptom of general difficulty with analyzing actions made by producers or other actors in terms of trust along with belief that trust is generally important. Such interpretation is justifiable also because of observed difficulty with answering some questions by interviewees and limitations of linguistic and cognitive competence. Second interpretation is that the participants of the BLP project are convinced that trust is generally important element of social life and valuable resource in relations between individuals but they do not see if the BLP project is specific case where importance of trust is relatively higher/lower and – at the same time – they do not interpret trust as important “regulator” of their relations with other local producers (in other words – they do not think that there are reasons or requirements for trusting other participants of the BLP project in a different way that people in general). Confirmation of such conclusion might be interviewees’ answers for question: “Would you agree with following statement: “I am sure that no other BLP project participant would treat me unfairly”?: One cannot be sure. You never know what is in the person beneath? (Producer3) Oh no. I am not sure. Today different things might happen. (Producer9) I cannot say that – we are human-beings and it might goes in different ways. (Producer12) I cannot say that – people are different and always there might be someone who will do “something”. I cannot guarantee this… (Producer14) It is hard to say. Sometimes, close family might cheat, and with people who you work it is even more probable. (Producer17) I cannot say that. I do not know what other people do (Producer19) As we can see, in answering the above-mentioned question local producers used logic applicable to their general relations will people. They have mentioned generalized opinions about people and contemporary times where people usually do not trust each other. Such argumentation should be interpreted as the symptom of no presence of specific relations with the project participants or reason for treating them in specific, extensional way which might proclaims opinion that it would be difficult to affect one producer’s economic performance by other participant. Confirmation of such hypothesis are answers for question related to consequence of situation when other participants would broke trust or cheat interviewee: 34 (I would do) nothing. I would continue my work. But there were no such situations. (Producer9) I would interpret it as “stupid joke” and that is all. (Producer12) Above-stated kind of calm reactions suggests that in situation of mistrust between project participants there actually will be not affection of economic performance by such behaviour. Of course, these are selected and single opinions but in all interviews there were no answer suggesting that producer’s activity will be negatively affected or disturbed by mistrust appearing. That might be result of belief that other factors or assets more significantly influence functioning of the BLP project participants than trust which cannot give advantage but also its lack does not generate problems for, what is most important for producers, operating on the market, producing and selling products etc. In very few cases producers declared that they might trust other project participants without any exceptions and doubts: I am sure [that no other BLP project participants would treat me unfairly]. We are together, we were growing up together, we live in the neighbourhood. (Producer15) Source of unexceptional trust in this case is fact that producers know each other well which results from living together in the same place for a long period of time. But it should be noticed that in such argumentation there is also no specific attitude or trust towards other participants of the initiative. Producers are not trusted because they are participants of the BLP project, but rather participants of the BLP project are trusted because they are long-term inhabitants of the area. In other words, within the BLP project no “new” trust has originated but initiative rather uses social resources (such trust) which are in wide community in parts of the region where the project is conducted. Much more concrete were project coordinators and local officials answers related to importance and observed level of trust: I think that level of trust is high – creating “Bies” association proves that, it is association with the highest number of members in Bieszczady. (Coordinator3) The result [of trust between project participants) was creating association “Bieszczady’s Wood” (Coordinator4) For coordinators of the project high level of trust is present within this initiative through formalized forms of cooperation. In other words, interviewees from this group state that if people undertake actions in order to cooperate in long-term perspective by creating formal organizations there must be interpersonal trust between them. Of course, such opinion is based on the experience of the project coordinators who know specificity of the BLP project best, but – on the other hand – mentioned examples do not have to prove importance of trust and high level of trust between local producers. As we will see in further parts of this report dominant participants’ attitude within the project was rather passive and oriented on gaining benefits through actions which are initiated by the coordinators. One might suppose that similar situation will be observed within formal organizations which members are 35 local producers (leaders of these organizations are the same persons who initiated and coordinate the BLP project). Because of that it is difficult to interpret these forms of activity as unequivocal symptom of high level of trust. RQ1.2: Are high levels of trust an effective means of reducing transaction costs within BLP project? As we have stated before, it is difficult to unequivocally identify importance of trust and its level on the base of answers which are directly related to the issue of trust. But it does not mean that any positive outcomes of trust appearing cannot be observed. In this section it will be investigated if there are some of symptoms or displays of trust as a mean of reducing transaction costs within the BLP project. The aspect of transaction costs will be more deeply investigated in the section 6.3 which will refer to transaction costs and governance structures issue. In this part analysis will be devoted only to these transaction costs which are reduced by trust. Main objective of the BLP project was to increase participants potential in the field of market. One of the results of such strategy is participating in promotional activities (e.g. fair, exhibitions, events promoting traditional or regional culture). And in this aspect role of trust as factor reducing transaction costs might be observed. Participation in such events generates expenditures from which travel costs are most significant. With this, other transaction costs are connected, e.g. necessity of leaving the farm for the time spent on the event, arrangement of products transportation etc. and in such cases cooperation and trust seems to be needed as factors which might reduce these costs. Of course, the BLP project offers its participants some financial support in order to let local producers offer their products in regional, national and international events but it is never possible to organize financial resources which will be sufficient for all willing to participate in mentioned promotional activities. Solution established by initiative participants is to “equip” those who are going to promotional event with products which are produced and offered by other participants who cannot participate in fair or exhibition. In this case trust is necessary asset to make such form of cooperation work. It is not only matter of offering transportation (then it would not be justifiable to talk about trust), much more important aspect is that producers who do not go to the event have to trust those who go that they not only take the products of the first group to the event, but also will promote them and offer customers with the same intensification as their own products. It is difficult to identify other ways in which trust between participants in the BLP project reduces transaction costs which are related to being involved in this initiative. Two reasons for such situation might be presented. The first one strongly refers to the previous remarks on trust – trust cannot be important “regulator” if many of the participants have difficulty with saying if they trust each other or when issue of trust within the project does not to differ in relation to general interpersonal trust. The second argumentation will be fully and more deeply characterized in section where direct referring to transaction costs will be presented. As we will see in that section there are no high transaction costs for the project participants which would be related to the involvement within the project. They involve within this project to gain some benefits but they do not “invest” much of their resources in such participation and they do not risk much (risk was referred in most of interviews 36 to the nature and environment, not the project itself). Sometimes, they also do not expect high influence of this project for their economic performance which was expressed in answers for question in which interviewees were asked to imagine how their enterprise would be function if they would not involve within the project: There would not be big difference. The BLP is side project for me. (Producer1) It would be the same. (Producer2) It would not change because my product would be still the best in the aspect of its quality. (Producer7) In such situation most often presented scenario was as follows: 1) local producer was informed about the project by its coordinator or local official who was asked by the project coordinators to disseminate information about the initiative among inhabitants of the commune, 2) local producer has decided to involve within the project and has participated in its first promotional and training activities because this form of involvement did not require “investments” on the side of producer, 3) with further development of the project where demand for active behaviour on the side of local producers (e.g. membership in the “Bies” association) was increasing local producers were withdrawing from the project (or we should rather say – that they have stayed within the BLP project but switched from “active” to “passive” category of participants). Generally, we might say that with increasing level of transaction costs most of the participants have limited their involvement. One might suppose that in the case of high importance and efficiency of trust as a factor which reduces transaction costs related to the project percent of producers who actually left the project would be lower. Moreover, one might suppose that if transaction costs have increased those who remain participants of this initiative had to have resources which let them to reduce transaction costs or did not interpret increasing transaction costs as significant disadvantage. RH1.2: Where trust in formal institutions is low, high transaction costs are experienced in dealing with State (formal institutions) and actors will rely on informal institutions to solve their problems of collective action. To test the above hypothesis it is firstly needed to identify if trust in formal institutions is actually low (or, in what aspects and institutions is it low). Then we might search symptoms or confirmations that in these aspects (situations) or institutions local producers try to reduce high transaction costs which are experienced in dealing with State through relying of informal institutions. That is why we will analyze answers for these questions which might be helpful in identifying level of trust in formal State / formal institutions. The interviewees were asked if they trust State institutions now more than in the socialist times. Below some statements in relation to this issue are presented: Then I was young but it was the same, State officials were the same as now. It all depends on the particular Office. Maybe now they try to make their best because they know that they might loose their job. (Producer3) There is no change. (Producer5) 37 It is different in different situations. It depends on institutions and problems. (Producer7) It is difficult to say, in the communism they were cheating us less. As it was stateowned there was more justice than now when there is lot of private entrepreneurs. (Producer8) Then we did not trust and now we also do not trust. (Producer9) It depends on institutions. Today you do not know if you can trust anybody. (Producer10) Institutions nowadays and those from socialism are the same. (…) it is enough if you observe a little bit and it is even worse now. Level of trust [in State institutions] has decreased about 70%. (Producer12) There is lack of trust in everything and everybody. The authorities give people “a crushing blow”. They still promote that they will be better but there is getting worse. (Producer17) Now you do not know who to trust. Then there was more taking care of poor people. Now everybody thinks about his own benefits. (Producer20) From the above group of producers’ statements following conclusions might be made. First, relatively high number of interviewees declare that there is actually no change in their level of trust in State institutions. If assumption about low level of social capital in CEE countries (which is result of socialist times) would be true, such answers would be symptom that there is actually no change in trust-related aspect of negative “heritage” of communism. Of course, it is problem that people do not see positive change in State institutions thanks to the transformation from socialistic to democratic State. But much more dysfunctional is that some of them express opinion that now the situation in this sphere is even worse. One of the participants of the BLP project even said that now State officials “cheat” more – such diagnosis for sure makes distance between people and State representatives bigger and more difficult to overcome. Where above-quoted attitudes dominate then it is very probable that tested hypothesis would be true – people generally do not trust State institutions and they will try to achieve their goals and gain benefits “in the spite” of State institutions (or “out of them”), not with their support. But are there any symptoms that State institutions are interpreted by researched group of citizens as functional and helpful ones? The positive is that – at the least some of – the interviewees said that their trust in State institutions differs in relation to different institutions. It testifies to the fact that they these people do not generalize or base their opinions on their own experience which is not always bad. Besides, one of the interviewees has stated as follows: It is different with trust. Now I trust self-government more than before because now I choose self-government and in the past it was imposed. (Producer13) It would mean that in the lowest tier of government situation is better now than in socialist times. The fact that self-government institutions are generally more trusted than central government institutions was confirmed in the answers for question: “How much do you trust the following…?”. In presented categories of 38 institutions there was distinction between local and central government officials. Of course, the answers were highly differentiated, but there was one regularity: absolute majority of interviewees have estimated their trust in central government officials lower than trust in local government officials (e.g. if interviewee has declared that he/she trusts local government officials to a very great extent, then trust in central government officials was estimated as “to great extent” or lower; the same situation has occurred when interviewees have declared relatively low level of trust in local government officials what means that they trust in them to a small extent, then they have stated that they trust central government officials to a very small extent). Higher level of trust in local government institutions might be explained by the fact that the BLP project participants’ relations with the local government officials are more frequent than those with central government (State) officials) and in the first case judges are based more on the personal experience than on the base of stereotypes and generalized conviction. Besides, for the BLP project participants it was much easier things that local officials have done for them directly than to identify it in relation to central government officials (for some of the producers local officials were those who informed them about the project, invited and assisted them in its first stage). As we have stated before: 1) trust in formal institutions is relatively low; 2) there are differences in level of trust in central government institutions and local government institutions – local government institutions (officials) are more trusted; 3) trust in local government officials is based rather on personal experience than stereotypes and generalizations. Now we might make an attempt to verify if identified low level trust results in actors’ actions which rely on informal institutions. The most distinctive field in which such dominance of informal relations occurs was entering the project by its participants. In this stage of the project development local producers were informed that such initiative is established in the region and they were encouraged to participate in this (possible ways for participation were posting information about the offer on the project web-site and participation in trainings organized within the project). Although some of the local government institutions were involved within the BLP project since its beginning they actually were not active in promoting this initiative. But it does not mean that people who work in local government institutions did not play important role in the process of “recruitment” local producers to this initiative. Some of them had direct contact with inhabitants who might have been interested joining the project and they were encouraging them to participate. In mentioned activity they actually did not represent local government (and they did not base their actions on trust in formal institutions) but worked as individuals who live in the area, have good contact with people and – what is crucial – these people trust in their competence and knowledge. Because of that, at least some of, local officials might be described as “local experts” who are trusted by inhabitants and who might influence their actions. What is specific is that mentioned local officials are trusted rather as “people from neighbourhood”, not representatives from formal institutions. For many of the BLP project participants this group’s activity in promoting the initiative was most important factor which decided of their involvement within this project: 39 At the beginning Mr. “X” has contacted with us has proposed us to enter this programme. Me and my wife had different opinions on this but we have decided to join this project. (Producer7) From him [local official]. He suggested that it is worth to develop and that it would be rather for our sons. (Producer9) Mr. “X” has came, there was short interview, they made some photos. About my fears… I had a long conversation with him – he has convinced me. (Producer10) It was very difficult at the beginning. The village administrator has introduced us because he knows Mr. Oldakowski (…). (Producer14) The village administrator helped us to organize. He came to us and said that we know each other and should develop this [working in the field of local products] (Producer19) Specific example of importance of informal relations which helped to overcome relatively low trust in formal institutions was the case of the project participant who also works in the institution coordinating the initiative: I work in the Commune’s Cultural Centre. When Mrs. Iza was working on the project’s application I was observing this. After this, I have agreed to be researcher in the Lutowiska commune, I have made 22 interviews with local producers. I was very happy that I will have opportunity to promote for myself. (Producer12) In the above quoted statements we might see that in the stage of entering the project the role of informal relations between local producers and local officials was very important15. The secondly mentioned group was active in the field of encouraging people to involve within the BLP project. But although local officials represent formal institutions of local government to be efficient in the process of promoting this initiative they had to use (and base on) not trust in formal institutions but interpersonal trust. In other words, they were trusted by local producers in the spite of the fact that they represent formal institutions (which, as we said before, are poorly trusted by participants of the BLP project). Such conclusion also confirms that strategy of promoting the project which was used by the project coordinators (in which local producers were not encouraged to participate in this through formal institutions of local government but by individuals who work in these institutions but also who are interpreted by inhabitants as those who might be trusted) was adequate. On the other hand, identifying such phenomenon suggests that even if the formal institutions (on both local or State level) are poorly trusted it does not have to mean that they will be inefficient in their relations with society. It actually depends on interpersonal trust between local (or State) officials and all stakeholders. It is especially important in local tier of government where people know each other well and they do not interpret local officials as local government representatives but 15 At the same time it has to be emphasized that in the first stage of the project “word-of-mouth” phenomenon did not actually appear. It is not only result of relatively rare contacts between local producers but it is also consequence of accepted form of dissemination information about the project (project coordinators or their representatives have contacted with absolute majority of producers in local area). Besides, “word-of-mouth” works best in the case of high trustworthiness of person who delivers information – in relation to the BLP project such trustworthiness was much higher between local producers and project coordinators (or more generally – “local experts”) than within the group of local producers. 40 rather as “people from neighbourhood” who are “familiar” with inhabitants of the local area. 6.2. Role of communication and learning RQ2.1: Is there a process of inclusive collective learning amongst all actors (social learning and sharing mental models)? RQ2.2: In what aspects of collective action process of social learning is most distinct? Before we try to make an attempt to identify eventual process of inclusive learning amongst all actors of the process we would like to emphasize that one of the main purposes of this project was to increase level of participants’ competence and knowledge in relation to market skills and qualifications. That is why such important aspect of this initiative were trainings in marketing, sales and entrepreneurial skills etc. And in relation to this it might be said the process of collective learning has appeared (for some of the participants it was even the most valuable result of their involvement within this project). But in this section we are rather interested in these “lessons” who were received by the participants from other participants. In other words, this part of report will be devoted to things which were learned by local producer not through formally organized trainings but rather through observation, talks and all informal relations with other project participants. Only in relation to this we might say about actual “social learning” which is based on social and mainly informal interactions (in relation to organized trainings it would be rather “education process” than “social learning” process). Analysis in this part will refer to two particular aspects: 1) What interviewees have learnt about other participants of the BLP project through involvement within this initiative? 2) What is the most important thing that participants have learnt through participation within the BLP project? In relation to the first issue most often stated opinion was that participants have learnt that in their nearest area are so many interesting people who work in the field of local products or people: We learn new things which are happening in the Bieszczady region, e.g. “The Bread Fest”. They introduce their customers to us and we do the same thing. I am also a teacher and these people might be invited to school – we might hand down the tradition to posterity. Although we live here for a long time we learn new things. (Producer3) [I have learnt] many interesting things… One does not know that there is something like that [local production] (Producer4) That there are people who are resourceful… (Producer5) I did know about many people who busy themselves producing local products. (Producer7) [I have learnt about] people. Different things: good and bad ones. (Producer8) Some of the producers were changing their qualifications in order to offer product for which there will be demand. (Producer11) 41 That there are such enthusiasts, jut as us, who do different things and they want to act. And they appear in different cities and on different meetings. (Producer14) That there are so many people who are talented, who can do something. Sometimes it is surprising. (Producer15) From the above statements two main conclusions might be stated. Firstly, thanks to the participation in the BLP project many of the region’s inhabitants have learnt about people who also live in this area and do very similar thing in the field of their economic activity. Through participation in local producers’ initiative it has became clear for interviewees that: 1) there is big diversity of local products’ kinds in their region, 2) there are many individuals who work in the field of local products, 3) there is particular “profile of personality” among, at least some of, the local producers in the Bieszczady. In relation to first aspect, we might say about educational influence of the BLP project on their participants. Cultural diversity is one of the biggest advantages of the region but it actually creates benefits if people are aware of it. That is why the BLP project is very valuable in this field - it shows the richness of the cultural heritage of the region not only to the tourists (or generally – people from outside of the region), but also to these who live here but their knowledge related to local/regional culture is quiet limited. Besides, one might notice that in this educational aspect the BLP project creates opportunities for more formalized and wider activities, such as school events where local products from the region might be introduced to the children. But the BLP project helped its participants not only in learning about their region’s cultural heritage but it has also proved that this heritage is very vital – some of the interviewees stated that they did not know that so many people in this region producer and offer local products. Such observation is also important in terms of psychological support” – “if many people do things which is similar to my work it proves that such work does make sense” (it also means that “if there are so many people work in similar field, I know to whom I should go if I had some problems or difficulties in my economic activity”). But besides getting knowledge about diversity of profiles of production it is very important that the BLP project participants have learnt a lot about the people: their attitudes and personal attributes. It might be very fruitful for further cooperation and relations between inhabitants of the region. The most often declared observations might be justified as the positive ones and they compose general profile of local producer who is resourceful, talented, active and enthusiastic persons. Of course, such picture might be idealistic but let us notice there was also the element of realistic judge of the local producers – one of he interviewees has declared that he has learnt both good and bad things about his colleagues. The above conclusion lets us interpret the BLP project as the functional and favourable initiative which helped local producers to know each other better. But on the other hand – and this is second conclusion made on the base of quoted opinions – it proves lack of interpersonal contacts between local producers before the project. Most of the project participants did know about other local producers before (or – more specifically – did know that there are so many local producers in their region). It shows how such initiative was needed but of course it does not mean that more intense relations and cooperation follow knowledge about people who work in similar fields. 42 As the supplement to the above analysis it should be emphasized that in two cases interviewees have declared that they have not learn anything or very little: There were not any “revelations”. (Producer1) I have not learnt anything – there were no meetings, nothing at all. (Producer10) These answers were made by those who might be described as the “passive” participants of the project. And because of their passiveness it was difficult for them to gain any knowledge about other participants. The above-quoted producers were not well-informed about the project and the second quotation proves this – the interviewee declares that there were no meetings which is not true statement but it proves that his knowledge about functioning of the project was highly limited16. In relation to RQ2.1 and RH2.1 the perspective of the project coordinators should be also investigated (the process of “social learning” includes all participating actors). In some part their declarations related to question “What they have learnt about other participants of the project” were similar to those who were presented by local producers: I have learnt the technology of honey production and handicraft techniques. (Coordinator2) It was like contact with my imagination about these people and then with reality – that there are so many products, and these people were hiding until now, they were in “trenches”. And now we are able to see them. (Coordinator3) But for one of the coordinators participation within the project was opportunity to make more specified observations: [I have learnt about] their problems, that not all of them are ready for taking a risk. People have to be versatile, from such local production it is difficult to live. Now it is rather domestic handicraft but it might be on the bigger scale. (Coordinator4) From this statement it is clear that “social learning” which has occurred within the BLP project might be “starting point” for further supporting local producers in this region. Even for the project coordinators the local products were some kind of “terra incognita” before the project initiation but through involvement in this they have learnt better what is the stage of present development of local products in the Bieszczady and what are the desired directions of its further development. The second question related to the process of collective “social learning” within the BLP project was as follows: “What is the most important thing that participants have learnt through participation within the BLP project?”. The young people should rather learn something (…). Everyone is working individually. (Producer1) [I have learnt] the cooperation in wider group of people. (Producer4) 16 We do not judge in this place if mentioned relative lack of information about the project was caused by the producer and limited willingness to involve within the project or rather coordinators inefficiency in keeping him informed. 43 [I have learnt] to share products with others. (Producer7) I have learnt that my honey is very good – some people sent it to analysis and proved that it is not-polluted. (Producer8) I have met interesting people. I have learned how to live in such community. New experiences. In some moments I was feeling that I am starting to live in full sense of this word. My husband as he saw me he did not believe that it is me. (Producer12) [I have learnt] cooperation with higher number of people, in the group and the involvement in all of this and responsibility – it is necessary to do my best to be as it should be. (Producer14) Good cooperation between people. (Producer18) Man is learning for whole life. I try to take many things in – I go somewhere, look how it is made or prepared. It gives me lot of satisfaction. (Producer19) If someone does not learn, he died. (Producer20) Answers for mentioned question are much more diversified than it was observed in previous case and they might be divided in two groups. First one contains answers which are actually some kind of “mottos” which refer to the process of learning. In their statements, interviewees have declared importance of learning and gaining knowledge about new things. It is hard to disagree with most of the presented “mottos” but we should be aware that it does not mean that all of them are really used in interviewees actions. In other words, if there were no specific examples of actual learning given one might suppose that local producers are convinced that it is important to permanently learn new things but not necessarily proofs for such actions would be found in their economic activity. But there were also answers who identify things which were learnt by the BLP project participants. From the group of these answers most of them have referred to the issue of cooperation – the interviewees have declared that they have learnt, in general sense, “how to cooperate”. It might seem to be strange if we refer these answers to our conclusion from previous section that it is difficult to find convincing examples of actual cooperation between participants. How it might be explained? Some explanation is that interviewees mistake “cooperation” for “collective action”. In the second case where individuals do something within the group they affect other individuals’ actions but it does not have to mean that they plan, and actually do something together with taking others’ interests and attitudes into account. To make it more viewable – if someone was participating in the BLP project which is form of collective action it does not mean that he/she was cooperating with other participants (e.g. if producers go to the fair to promote their products it does not have to be example for cooperation if they go there because they were invited by the coordinators and the coordinators have organized the travel but it will be example for cooperation if the producers have communicated and agreed that they will go by one car or that one producer will take all the products to his/her car). Because of that it would be probably more appropriate to say that the BLP project participants have learnt how to behave in the case of “collective action” which involves other individuals, or even – how to behave in public situations where other people judge someone’s behaviour. Such element of learning is very important and valuable but it 44 should not be identified as referring to the cooperation issue (it should be rather identified as the necessary “starting point” for further learning on “how to cooperate?). The above conclusion does not mean that all statements which are related to the process of learning on “how to cooperate?” should be corrected. It rather limits the process of cooperation’s learning to these participants between whom actual cooperation has appeared, such group is e.g. the members of “Bies” association. On the other hand, some interviewees have declared that they did not learn anything. From their argumentation we might suppose that such answers were made mostly by these producers whore are production-oriented. They focus on their production, they have broad experience in their field of production and, in their opinion, it would be difficult for them to learn something new. It is probably true that after 20 or 30 years of working in particular field of production it is difficult to “surprise” the producer with something new (which refers to the production process) but, at the same time, there are probably other things which might be learned by these producers (e.g. in relation to promotion or distribution). That is why the fact that their lack of learning should be interpreted as the failure of the initiative (without judging if the reasons of this failure might be reduced by the project initiators and coordinators). Similar question was asked to the project coordinators. Their answers were not diversified so much: [I have learnt] humility, I also have opened on different things. I had problems with contacts with other people. Now I know that people expect something from me and I try to cope with this. (Coordinator2) [I have learnt] the ability to cooperate with people, ability to compromise, humility. (Coordinator3) It is important that this project is also interpreted by the coordinators as the fruitful for them. Maybe this is the reason of the fact that even after completing the project in its planned time frames (2003-2005) some actions are still undertaken by the coordinators and they did not give up this initiative. Concluding our analysis related to the RQ2.1 and RQ2.2 we might say that the process of inclusive collective learning (in which both producers and coordinators of the project were involved) has appeared. Much more intense “social learning” was identified in relation to learning “about other participants of the BLP project” than other issues. The most often declared result of such collective learning was gaining knowledge about local producers who live in the region. Because of that, the BLP project might be interpreted as the initiative who let its participants to “detect” each other. The question is if identified process of learning was actually “collective” or rather all participants have learned some new things separately. Actually, in most of the observed cases the second interpretation might be applicable, but there ar also some symptoms or displays of actual “collective learning”. It refers mainly to the situations or initiatives who have participatory component. Generally, from the project coordinators’ perspective very important aspect of generating process of learning was to involve participants in undertaken actions and encourage them to active participation. In the project initiatives such as: group meetings, workshops, courses and trainings (along with collective participation within promotional 45 activities) collective learning might be interpreted as the result of the physical presence during mentioned meetings and interactions between actors. Because of that, one might say that “collective learning” would mean “learning which apper within and through the groups and interations between project participants”. RQ2.3: What are the main communication disruptions between key actors of analyzed initiative? The first potential disruption which should be indicated is the remoteness of the area where the BLP project is located (it was mentioned and fully described in the section 3). The interviewees were asked how they judge importance of this fact (geographical distance between participants) and does it influence (more specifically – limit) the process of cooperation. At the same time, answering the question local producers mentioned that the problem might be that the project headquarters (where the coordinators operate) is located in Lutowiska: The location [of the project headquarters] is not very good, it is far from here to Lutowiska, but there is contact by phone. (Producer1) The more far the distance is, the cooperation is less intense. (Producer2) If it would be closer, the meetings will be more often. (Producer14) For the above-quoted interviewees the long geographical distance is important in a way that it negatively influences contacts between participants. The problem of communication disruption in this case is twofold. Firstly, it is difficult to contact between participants if they live in remote areas (not only in the same city/village, but even not in the same commune). Secondly, for some of the participants the problem is that they have limited access to the project coordinators by the fact that their office is located in Lutowiska. Analyzing geographical location of the coordinators’ office this problem will be most significant for those producers who live in western communes of the Podkarpackie voivodship (e.g. Baligrod). The problem of long distance as the communication process disruption was also indicated by the project coordinators: This is problem, not everyone is mobile. (Coordinator2) Such disruptions are being reduced. (…) Internet – it would make communication better and save time. It is not the access only because it is getting better but the lack of skills and habit of using Internet. It is also the fear of computer. (Coordinator3) It is actually disruption. That is why at the beginning of the project there was an idea to establish two locations [of the project headquarters] (Coordinator4) The interviewees not only identified the long distance between them as the problem, some of them also mentioned some ways which are used in order to limit the eventual problems which are caused by long geographical distance. If we plan to meet somewhere it is not very big problem – people give a ride to the other ones, but the roads are very bad. (Producer3) The meetings are in different cities in order to limit the “distance barrier”. (Producer4) 46 It is limitation but if I go to the Communal Office in Lutowiska I always go to them [project coordinators] or they come to me to know something new. (Producer8) It is different now – there are mobile phones, internet. The office has got access to the internet, some of the participants also has got it. What is most important is phone – the distance does not influence contact. (Producer12) It is not very important – if it is needed we call people together. (Producer15) As we can see ways for reducing problems which are result of the geographical distance are established by both participants and coordinators. In first case – we mentioned it before – people communicate each other in order to collectively organize travel for project meetings and trainings. It is example not only of cooperation which purpose is to limit communication disruptions but it also proves economic rationality of the producers – if people travel together it is more rational economically than if each individual would go separately. Besides, some of the producers (Producer8) search contact and information by themselves. We might suppose that such activities are limited to those participants who are most active within this project. Some of the interviewees also mentioned that existing geographical communication barriers might be reduced by technological innovations. But the project coordinators also undertake actions which lead to limit negative influence of long geographical distance. The meetings of the project participants are organized not only where the headquarters is located (Lutowiska) but in different cities each time. It allows high number of local producers participating in these meetings – even if they avoid one or two meetings because it is organized far from their city or village, they will attend one of the subsequent meetings organized in their area. But among opinions in which long distance between project participants is interpreted as the communication disruption there were also statements in which this fact was interpreted as neutral for functioning of the project: Of course the distance in Bieszczady was, is and will be long but people got used to this and it should not be barrier in interpersonal contacts. (Producer7) I have never thought about this… No it rather does not limit cooperation. (Producer10) But the long distance between participants and between participants and project coordinators is not the only one disruption in contacts and communication. The others which were mentioned by interviewees were forms of disseminating information: There should be written information. (Producer6) or frequency of organized meetings: To rare meetings, but I think that it will be better. (Producer7) The coordinators have emphasized additional problem in communication within the BLP project – it is relatively rare use of technologically advanced channels of communication, especially Internet and e-mail. The usefulness of this communication tool is most significant in relation to all information updates which 47 appear between direct meetings which are organized in the two- or three-month period. The limitation of this communication disruption is very difficult and it cannot be overcame by the local producers by themselves, it rather depends on technological development of the region and creating of culture of using Internet. At this moment, Internet infrastructure is very poorly developed in the Bieszczady and we also have to remember that many of the BLP project participants are elder people for whom it is very difficult to become familiar with Internet (or computer, generally). The interviewees were also asked about particular kind of communication disruption which is linked with specific attitude of some of the project participants. The question was related to the participants who intentionally withhold the information. Absolute majority of the producers does not see such problem within the project. It proves that within this initiative participants do not create competitive advantage on the base of such resource as information – if they gain some information which is useful and valuable for other participants they share it. One of the interviewees also indicated one of the reasons what makes withholding the information non-profitable: If we work together the costs are distributed. What I will gain if I did not pass the invitation [for the event] to other persons (…), if I went I look for the people in order to distribute the costs… and the company is great then. (Producer12) Concluding this section which was related to the communication disruptions we might say that the most important problem seems to be geographical distance between the project participants and coordinators. There was some group of the interviewees who stated that this problem does not very negatively influence contacts and information transfer but, on the other hand, such disruption is very difficult to reduce, especially in the case of Bieszczady where technologically advanced enhancements of the communication process are poorly developed. To the above paragraphs one additional observation should be made which refers to the role of project coordinators in the process of communication – their dominant position within the project might be also observed in this aspect. The project coordinators are main (and in some dimensions) one and only sources of information for the project participants. It is not related only to the “content” of educational and training activities where central position of the project leaders is relatively obvious. It also refers to the interpreting coordinators as the “key informers” for project participants in different dimensions of operating on the market e.g. gaining EU funds. From such perspective project coordinators are not only “leaders” in the meaning of conducting the initiative but also having certain level of authority. Certain position of project coordinators in the communication structure is the result of other two reasons. Firstly, project leaders have needed resources to disseminate information related to the initiative. These resources are highly differentiated: from technologically advanced devices to dense social networks of contacts which allow to disseminate information among many different actors. Secondly, governance structures of the project are designed in a way which prefers coordinators as some kind of “sociometric stars” which role is crucial for “information flows” between local producers. But in the phase of the project framework planning there was an intention to develop network of local leaders who would be “link” 48 between project coordinators and local producers. As one of the interviewed coordinators mentioned it has became failure because of the lack of such individuals in the local area. In this situation central position of project coordinators should be identified as functional and reducing existing “structural holes” in the communication structure of the project. But besides mentioned symptoms of central position of project coordinators in the communication structure and one direction of “information flows” (from coordinators to participants) we should also express that there are also some situations in which communication between local producers has appeared without intervention from leaders. It always refers to actions on operational level such as finding shared transport for going to the exhibitions or meetings. In these situations dissemination of information does not involve project coordinators and it limits to the local producers. But we should be aware that the above-mentioned form of communication would be be always highly-limited as the number of communication “nodes” of social networks of the project participants is limited and the scope of them is very “local”. 6.3. Role of transaction costs and governance structures of cooperation17 RQ3.1: How does transaction costs affect the choice and changes of governance structures? RQ3.2: What is the role of governance structures of cooperation in making BLP project successful for its participants? RH3.1: Governance structures of the BLP project which were developed by initiators and coordinators of this initiative were oriented on reducing most important transaction costs related to economic activities of local producers. RH3.2: Within BLP project role of governance structures is crucial factor for creating benefits for participants of this initiative. Transaction costs related to economic activities are usually very difficult to identify. In this case we were actually interested in two dimensions of transaction costs. The first one was referred to the general economic activity, the second one – to the involvement within the BLP project. In relation to the second one we might say that most of the interviewees have declared that they did not have to “sacrifice” or resign anything in order to become part of this project (it might be indirect symptom of relatively passive involvement within this project). From these interviewees who declared some “investments” which they had to make the most often was time – the local producers have declared that such activities as participation in internal meetings of the project, trainings but also in external events such as fair, exhibitions or media appearance is very time-consuming. Probably this is one of the reasons which makes that some of the participants who were within this initiative since its beginning do no involve in all activities – we have to remember 17 By the fact of difficulty with empirical investigation of transaction costs we do not divide empirical questions and hypotheses in this section and make general analysis in relation to all four questions and hypotheses discussed in this part. The objective is to make general picture of role of transaction costs in the BLP project development and describing dominant ways of reducing them. 49 that most of the producers live in rural areas where there is no clear distinction between time of work and leisure time and sometimes it is very difficult to leave the farm even for few hours. On the other hand, the fact that only time (not money) has to be invested in order to gain some concrete benefits should not be actually interpreted as transaction cost but rather as a “little price” for relatively valuable advantages. Other transaction cost which was related to involvement within the project (and also is connected with time-consuming form of this initiative) is problem of disturbing “family life” by participating within activities such as trainings or promotional travels. But even in this case this cost seems to be ambiguous. As one of the interviewees said: The family was hurt a little bit. But besides this, it gave me lot of satisfaction, I have taken rest from work and family life. (Producer12) Such transaction cost was most important in the case of women who participate within this project (most often declarations similar to the above-quoted were made by women who are members of the “Rural Home-mistress Club”). Let us notice that active participation within this project was difficult for women because of the fact that it was not consistent with traditional role assigned for woman in this region. But for some of them transaction cost which is related to sacrificing home duties was also the advantage of the initiative because it has helped them to become more autonomous and let them to be fulfilled (this issue will be also discussed in section 6.5). In relation to the transaction costs of conducting economic activity for local producers in the region we might identify as the most important the costs of individual involvement in actions which are needed to effective economic performance: promotion and distribution18. In relation to promotional aspect we might say that producers had to promote their products separately in situation where there was no common brand or image which might be used in the process of promotion. Of course such individual and isolated actions were expensive and, very often, inefficient. Because of that, one of the most important objectives of the BLP project was to integrate promotional activities and increase efficiency of these actions which are undertaken individually. In relation to the distribution issue the idea of the project coordinators was to create distributional network where group of local products would be offered. The objective was to convert existing form of distribution (where producer offers the products directly to the customers who come to the farm) in more efficient and wider way where the profitability is also higher. The question is if these objectives related to the reducing most important transaction costs have influenced governance structures of this initiative. Analyzing the governance structures of the BLP project we might say that its two forms might be distinguished: formal and informal (these two forms have often intermingled each other). In first form formal governance structures are result of such regulations as 18 Only in case of production individual actions are more beneficiary than collective ones – this is specificity of local products where non-mass production is preferred. 50 the rules for products certification or the statute of the “Bies” association. The problem is that in both cases formal governance structures have got limited influence on the project participants – there is relatively low number of producers whose products are certified and there is only over 50 producers who are members of the “Bies” association19. But informal governance structures are related to all project participants in all stages of its development. That is why we will focus on these informal governance structures which objective was to limit most important transaction costs. Informal governance structures of the BLP project were based on (and caused by) the role of the leaders within this initiative. In different parts of this report we emphasize importance of the project coordinators for success of this project (in its different aspects). Unless the interviewees were asked about the role of leaders only in one question, perceiving their role as crucial for creating benefits for the producers has appeared in answers for many questions. What is interesting in the mentioned question relatively high number of participants has declared that there is no “leader” of the initiative. Such contradictory might be explained by different interpreting terms “coordinator” and “leader” by the participants. The leader might be interpreted as someone whose leadership is based on the authority and coordinator builds his/her position on competence, knowledge and organizational skills. But in the case of the BLP project these two categories actually intermingle each other, especially in relation to the Mrs. Izabela Cicha who is the director of the “Commune’s Cultural Centre” in Lutowiska and supervisor and coordinator of the BLP project – she might be described as both leader and coordinator in full meaning of these words (similar situation is with Mr. Przemyslaw Oldakowski from Foundation “Partnership for Environment”). Important role of leaders (whose actions are interpreted as the form of governance structures) was identified in relation to different aspects of the project: entering the project by participants, functioning within the project, involving in the activities which are undertaken in this initiative. Specific example of crucial role of the project coordinators is solving conflicts between local producers. Generally, the interviewees have declared that there are rather no conflicts within the initiative20 but they were also asked what would they do in hypothetic situation of conflict, to whom they would go first. Most of the BLP project participants have indicated project coordinators or the “board” (of the “Bies” association) – they interpreted these categories as the most appropriate for solving conflicts within the initiative: The board. (Producer3) I would start from the “chief”. (Producer5) 19 The „Bies” Association was created by the group of most active local producers along with project coordinators. Main purpose was to ensure long-term character of the project and make its results more sustained. There are no particular conditions related to becoming member of this association (as in the procedure of certification where specified requirements were designed), but at the same time it is part of the BLP project which involves relatively small number of participants. 20 It should be interpreted as the functional but, on the other hand, it also might be symptom of relative lack of cooperation between participants and strong relations between them – conflicts occur only in situation of identifying difference in interpersonal contacts or in situation when one’s performance is negatively affected by actions of other individuals. 51 Firstly I would call Mr. “X” and he would inform me [what should I do]. He knows a lot about this. (Producer9) To the people who have started this programme, to the organizers. (Producer11) “The board”, “the chief”, “the organizers” might be interpreted as the most trusted and most resourceful persons within the project and aspect of solving conflicts is only one example of this. The other example might be: a) communication process within the initiative – the project coordinators were identified as “sociometric stars” and also they were most often described as the communication “initiators”, b) the fact that most of the interviewees were not able to identify formal rules of functioning the project – they were actually focused on the coordinators ability to solve problems than on using existing formal ways, such as the organization statute, for problems solutions). Crucial role of the project leaders in the governance structures of the project is based on their two characteristics: 1) they are perceived as the people with knowledge and competence, 2) they are perceived as people who want to do “something” productive for the region and community and who are trustworthy. In relation to this it is interesting that relatively high number of participants said that the BLP project does not have the leader – it is difficult to explain such phenomenon but it might be caused by fact that project coordinators are perceived by local producers not as those who “lead” them, but rather those who “help” them. If we agree that role of leaders (as the basic element of the project governance structures) is definitely crucial for the project functioning we also have to agree with following conclusions made on the base of collected data. Firstly, leaders are responsible for creating benefits for the participants in high extent. It might be explained on general level – the group of project “leaders” has started this initiative and make it profitable for its participants. To be more specific – the project initiators and coordinators have designed it in a way which helps to reduce most important problems in economic performance (it will be proved in our further analysis of producers’ motivations for participation within the BLP project). They have focused on these aspects and spheres which might be indicated as the most important reasons for relatively poor performance of local producers in this area up to date. The fact that most of participants declare that the project has made their individual (but also community’s or region’s) situation better is the most significant proof of this. The second conclusion is related to the fact that important role of the project coordinators (as the element or aspect of governance structures) results in rather passive attitudes of the local producers – the dominant attitude is “reacting” on coordinators’ encouragements or suggestions than active working on the problem solutions21. In other words, we might say that – at least in some part – the reason which caused the launching of the BLP project (passiveness of the local producers in the region) is sustained by the accepted form of functioning of this initiative and its governance structures. The participants still are more “beneficiaries” than “activists” of the BLP project. 21 From the opinions of one of the project coordinators we might say that only in the “Bies” association which members are the most active participants of the project the local producers take responsibility in projecting ways of further development of the initiative. 52 Above-described aspect of the governance structures seems to be ambiguous for further functioning of the project. Thanks to the actions undertaken by group of the project initiators and coordinators the concrete benefits for local producers might be observed. Without any doubt we might say that most important transaction costs related to working in this field and barriers of development of economic activity were or are being reduced. But on the other hand, such significant basing the initiative on its “leaders” is relatively risky because it actually means that eventual leaving the project by the coordinators (for any reasons) would result in its end – it is very difficult to imagine at this moment that local producers would be able to autonomously coordinate and manage the BLP project. Because of that desired direction of further project development should be converting its form from typical non-governmental organization (with formal structures, hierarchy and “external leaders” who work for the community benefits) to community-based organization (where the community tries to create benefits by itself with using resources which are in disposal of the community members). The “Bies” association where the governance structures are, in some extent, changed in comparison with the first forms of functioning the BLP project proves that more active and self-reliant actions of local producers is possible but still has to be supported. High importance of project coordinators for well functioning of the project was proved in the above paragraphs but one should reverse the question of project coordinators role for the initiative ans ask: “What is the personal gain for the project initiatiors from their involvement within the initiative?”. From their statements we might conclude that dominant motivation was related to the will of working for general benefits of the community. Such motivation comes mainly from their involvement within different social activities in the region and “third sector” organizations which are focused on development of the Bieszczady mountains in the spheres of culture, economy and environment. For the group of the – as we might say – “social activists” initiating the BLP project was some kind of the continuation of their previous actions undertaken within different non-governmental organizations. Besides such motivation which is part of general orientation on involvement within community-profitable initiatives we might also identify some specific benefits for project coordinators which are recognized by themselves as non-intentional. The most important one is similar to other project participants perspective (many of them expressed that thanks to the participation within the project they have became aware that in their local area are many people who work in the field of local production of food or hand-made objects): through becoming part of the BLP project it has became evident for initiative coordinators how many inhabitants from the region might be described as “local producers” because of the specificity of their field of work. Such phenomenon which might be called as “awareness effect” is probably one of the most important benefits for project coordinators (but mentioned benefit – as we have stated before – should not be interpreted as limited only to project initiators: it refers also to local producers who have seen – thanks to the project – how differentiated is cultural heritage of their region and how “lively” it is). Concluding part of the report related to the role of project coordinators it is needed to focus on eventual measurable benefits for them which were created by the BLP project. We should emphasize that – on the base of information collected through undertaken research – as opposed to the local producers the coordinators 53 are not beneficiaries of the initiative in terms of calculable benefits. As the exception, the case of main coordinator and co-author of the project from Commune’s Cultural Centre in Lutowiska should be indicated but here we say not about personal benefits but something which might be called as “institutional benefits” (benefits related not to the individual but to the mother institution of one of the project coordinators). The question is if benefits identified in relation to the project coordinators might be sufficient attraction for this group in next years of the project functioning. At this moment there are “soft” kinds of attraction for them rather than calculable ones. But it does not mean that they would totally leave the project soon – they have decided to initiate the project as the form of realizing their passion not in order to gain financial profits – such motivation should be interpreted as provision for leaving the BLP project (even if they would not be involved formally, they probably will be in touch with local producers and support their actions). 6.4. Role of the State – National, regional, EU laws – and the formal institutional environment on cooperation RQ4.1: To what extent can the State and its formal institutions enhance cooperation? RH4.1: Cooperation within BLP project is not strongly influenced by formal institutional environment related to local and regional products in Poland. Formal institutional context seems to be very important for development of local products in Poland. Unless local produces are strongly embedded in the tradition supporting institutional environment which has made their development more intense has appeared in last years along with the process of Poland’s accession to the European Union and law harmonization. By accepting EU law in relation to the local products Polish government has created favourable institutional environment for local products development. This environment might be briefly described as follows: In relation to the legal context, there are two key legal acts. In the EU law the key legal act is Council of European Union’s decree nr 2081/92. The decree introduces two categories: “protected designation of origin” and “protection of geographical indication”, which guarantee the products including them in the protected products register. One has to be remember that by this decree we protect the name, not the product itself. Second legal act is the „Registration and Protection of Names and Indications of Agricultural Food Products and Traditional Products Act”. This act is mainly regulation of competencies identifying Polish institutions which are responsible for realization of the legacies of the EU decree. In this case it is Ministry of Agriculture and Rural Development which is responsible for accepting and judge of the applications for regional products registration. In compliance with general rule of relations between State and EU law, Polish law is supplement of the EU law. (State) The interviewee from the Ministry of Agriculture and Rural Development has not only identified legal context of local products “market” in Poland but also has interpreted it as favourable and supporting further development of such kind of production in rural areas: 54 Currently the law decidedly favours development of regional products. It is not only the guarantee of registered products and those which are included in the register. The law clearly defines sanctions for those producers who “cheat”. It is the legacy which the producers wanted to include in the act. Moreover, current law not only favours development of regional products, but also encourages to expand such activity (…). (State) The question arises if the legal environment in the above-described shape also favours and supports the BLP project. There is one important difference between products defined in legal acts and local products which are offered by the participants of this initiative – for the most of the local producers there is no intention for registering their products in accordance with rules established by Polish and EU law. Besides, in relation to the certification system which is created by legal acts one might say that there is also “weak connection” between this and the BLP functioning because the latter one has established its own system certification (in order not to protect the products but to promote them more effectively). The role of State in the BLP project and the process of cooperation within this initiative was also not very important in relation to financing the project. The funds for the project were gained not from State institutions or EU funds but from the nongovernmental organization programme (The East Carpathian Foundation) which aim was to support initiatives in the Bieszczady region. But of course, by talking about role of the State on the EU, national or regional level we do not only mean creating legal environment or financing the initiative but also other ways of support (or, on the other hand – disturbance). The Role of State institutions might be also described in terms of applied policy which might: 1) support, 2) disturb, 3) does not significantly influence the BLP project functioning. The third category is most adequate to the State influence on the BLP project. But as we will see in further part of this report Ministry of Agriculture and Rural Development plans to initiate actions which will support such initiatives as the BLP project. RQ4.2: Do participants of the initiative differ in the level of knowledge and interpretation of institutional context? In relation to the issue of difference between project participants in their knowledge and interpretation of institutional context the aspect of knowledge might be analyzed only indirectly because during interviews there was no direct investigation related to the level of knowledge about particular elements of the institutional context of local products development in Poland. On the base of collected data we might say that absolute majority of interviewees did not mention any aspects of existing institutional context in Poland in this sphere although there were some questions in which such reference to such issues would be adequate. But much more significant symptom that their knowledge in this area is limited was confusing different institutional contexts and interpreting the BLP project as a form of EU support within the framework of structural funds. In that situation some consequences might be identified from which the most important were unjustifiable expectations related to the BLP project coordinators, e.g. financial support – demand for such support was declared (in relation to the BLP project) with argumentation 55 suggesting that interviewee interpret this initiative as EU initiative or initiative functioning within the structural funds or agricultural subsidies “logic”. We might state that the BLP project participants’ knowledge on institutional context specific for local products is highly limited if we interpret “specific context” as the context which is designed by two above-mentioned legal acts regulating local products development and protection in Poland. Two consequences of such situation might be indicated. Firstly, as we have stated in other parts of this report dominant position of the project initiators and coordinators as the “sources of knowledge” and experts was observed. In other words it is not necessary for individual producer to know specific legal context for local products in Poland if his/her economic activity, undertaken actions or made decisions are strongly influenced by knowledge and authority of project coordinators. But on the other hand – and this is second potential reason for relative lack of knowledge related to institutional and legal context – observing ways of conducting economic activity by the BLP project participants suggests that such knowledge is not only unnecessary but even inadequate. Making comparisons between institutional context in which local producers from the BLP project operate and legal environment which was mentioned by State official as crucial for successful local products development in Poland it becomes clear that there are separate contexts. More important for this initiative participants are general rules for conducting economic activity in Poland or bureaucracy which occurs in gaining EU funds than specific regulations in the field of local products. It is result of relatively small scale of production of individuals involved within this initiative – legal opportunities offered by State or EU institutions are designed rather for large-scale producers for whom protection of their product in all EU countries is important because of their offensive entering foreign markets. For the BLP producers much more useful is “soft support”22 in increasing marketing skills or effective distribution network, but in these areas it is difficult to receive any help from State institutions (in some part this relative passivity of State institutions in this field was reason for initiating the BLP project). But the fact that participants’ level of knowledge about institutional context is limited it does not mean that local producers do not have their personal opinions in relation to this. They just base their opinions on fragmentary information and because of that their opinions, judges and expectations might be interpreted as weakly linked with actual competencies and abilities of State institutions. The issue of mentioned expectations was especially investigated during the interviews – reason for such approach was to collect data which would allow to compare local producers’ expectations with actual actions undertaken by State institutions (on the local or central level). For some of the interviewees the State institutions are interpreted mainly as financial donor: Of course, [I expect] subsidies to my field. If there was no support, there is no chance… (Producer4) It should support but it does not because it does not have money. (Producer15) 22 By “soft support” we mean mainly transfer of knowledge which is opposite to creating favourable legal environment or direct financial support. 56 We all wanted them [the State institutions] to support us and help us – if there is no money, it is very difficult. (Producer17) The above expectations are justifiable as a reaction for poor economic condition of many local producers. In some extent, it is also result of former privileges which were established for some groups during socialist times. Good example are honey producers who were receiving financial support from the State for sugar purchases (it is needed substance for honey production). In last years such support was ended what made operating in this field of production less profitable. On the other hand, these expectations even if they are justifiable in some extent they cannot be realized by the State institutions. First reason is related to limited financial assets of the State which is not able to financially support all categories of local producers. The second reason refers to the fact that direct financial support very often petrifies passive attitudes of beneficiaries – there is no pressure on them to make some innovations, reduce costs, find new ways of sale and distribution etc. That is why the BLP project coordinators have decided not to support financially the local producers but rather offer them some intangible resources which would help them in making their economic condition and performance better than before23. But it should be clearly emphasized that expectations related to financial support are not only the “heritage” of the communism years and State policy from those times. Similar logic of expectations is offered by EU policy and its institutions. One might suppose that currently local producers will address their financial expectations to the EU, but such phenomenon was not confirmed by research results. In expectations related to the EU and judges of Poland’s accession to EU the interviewees were much more “mature” and did not limit only to financial forms of support: [I expect] more good things. It will be possible to export and travel without any limitations24. (Producer3) There is big influence [of EU]. There is increasing demand for such products, but it will not happen in short period of time. I rather expect from myself than from institutions. (Producer11) In the EU everything is in the right place, they know what they want and where they go. (…) Since the beginning of the EU there are some rules, some principles, we do not have this in Poland. (Producer12) Regardless of the specific opinions presented above the more general and much more important conclusion is that Poland’s accession to EU is judged as factor which positively affects local producers’ activities. The interviewees are also aware that such kind of product as local product which is relatively new in Poland is something on which is relatively high demand in countries of EU. On the base of this observation the BLP project expect similar “trajectory” of local products market development in Poland. 23 As we know from other parts of this report such approach and way of support does not have result in absolute increase of producers’ activeness. 24 In this case the interviewee was not talking about tourist travels but opportunity to go abroad in order to participate in international promotional events. 57 Very important opinion related to the EU institutional environment was presented by interviewee “Producer12” – it takes into account the fact of functioning of EU which is based on specific set of rules. By saying that in Poland the institutional environment is not as much well-ordered as in EU, this interviewee actually expresses the expectation that in near future Poland will get closer to the EU model. The question is if formal regulations regulating local products protection and promotion which were mentioned in this section before will be interpreted by local producers as clarifying this situation or making it even more obscure. But with Poland’s accession to EU some risks are connected. This issue was mentioned not by local producers but by one of the project coordinators (Coordinator4) who has stated that there is competition within EU between producers from different countries and supporting such initiative as the BLP project would not be favorable for other countries. What might be added to this opinion is that in order to limit this kind of risk support of State institutions is needed. It does not have to be (or even it should not be) direct financial support but rather actions leading to increasing potential of local producers and their competitive advantage. And such expectations and preference were also declared by the interviewees: There is no direct ways of support and because of that every form of promotion is needed. (Producer1) Some years ago Commune’s Offices organized Agro-Bieszczady (in cooperation with Agricultural Advisory Offices). It was fantastic event lasting few days, there were presentations, exhibitions, concerts. Now it is lacking of such events, even foreign tourists were coming. There were also speeches and trainings. (Producer3) They should promote Bieszczady more intensively in order to develop agro-tourism. (Producer6) In these opinions the interviewees declare that they expect support in the field of promotion their activity. Let us notice that such expectations are very similar to the profile of the BLP project what might be interpreted, in some part, as the result of involvement within this project – local producers have became aware how important for successful economic performance is intense and effective promotion. The presented expectations are related to the actions which should be undertaken by the State institutions on local level, but one might suppose that similar expectations will be addressed to central government institutions and officials. In relation to this, it should be emphasized that Ministry of Agriculture and Rural Development plans to launch campaign which will promote “regional products” in general meaning of this word, but also by “List of traditional products” and with support of Marshall Offices in all voivodships plans to support development of these products which are not registered and protected by law (it is the situation in which the BLP project participants are at this moment)25. After undertaking these actions by the State it is very probable that above-quoted opinions will change into positive judges of State institutions activities in the field of local products. As we have seen, two main kinds of expectations were presented by local producers involved within the BLP project: financial and promotional. But we should 25 It will be more deeply characterized in section 6.6. 58 also express that besides the group of interviewees who were able to identify and state their specified expectations there was also high number of the BLP project participants who are convinced that State institutions should support local producers but they did not have idea what kind of support it should be. By summarizing all these opinions we might say that absolute majority of the BLP project sees in the State institutions partner which should support local producers regardless of the form of this support. RH4.2: Cooperation within BLP project is strongly influenced by low levels of social capital in Poland, due to the actions of formal institutions in socialist times. One of the major assumptions of theoretical framework of the whole IDARI research is that State actions in socialist times have resulted in low levels of social capital and that such situation strongly affects the process of cooperation. Analyzing the process of cooperation within the BLP project we have made an attempt to identify if local producers actually agree with the statement that in socialist times the cooperation was disturbed or even not possible because of the State actions. To answer this question the interviewees were asked if they think that such initiative as the BLP project could have been possible in socialist times. The opinions of the interviewees were ambiguous, most of them thinks that now is much better time and conditions for such projects and general cooperation between people: It would be much more difficult to conduct it, the State was managing everything. (Producer3) I do not think if it would be possible [launching such initiative]. The police would be here very soon. (Producer5) The people’s attitude has changed – now it is easier to come to an understanding. (Producer9) The political situation is different – now people are more inclined to cooperation. (Producer10) Now people are more open, they trust each other more. (Producer11) We have been waiting then if someone told us something, that it is inappropriate… The most important was that our will to do something better was limited. (Producer12) I think that it was not possible – everyone was doing own things at own home. (Producer17) As we might see, the interviewees share the opinion that cooperation was much more difficult in socialist times and, in consequence, it was limited. Let us notice that State actions leading to decrease levels of social capital are only one of the, but it has to be admitted – the most often, presented reason (e.g. police actions, invigilation, dominant role of the State). But of course, presented reasons which were focused on people’s attitudes should be also interpreted in terms of State activities. General problems in individuals’ attitudes which were identified by the interviewees were as follows: fear of involvement in activities which were not coordinated by the State and passiveness which was result of the State dominance. 59 The question is if there was actual change in individuals’ attitudes which were mentioned as the specific for socialist times. In relation to first aspect (fear) one might confirm that this problem is not present anymore in Poland – the situation where people are afraid to undertake their actions in community because they are afraid of State response is specific for “police States”, as Poland was in socialist times. At this moment, it cannot be taken into account as a barrier of cooperation or factor which negatively affects this process. Much more influencing and still affecting individuals’ attitudes and behaviour is second element of socialism “heritage” – passiveness. For some people passiveness was not problem or their personal autonomy limitation, but rather as their “privilege” and advantage which makes their life easier. In socialist times such attitude was very often and it was even supported and intensified by the State (it was favourable situation for communist State to make people rely mainly on State institutions and their decisions). Unfortunately, in some groups (and farmers or individuals living in rural areas are one of these) mentioned attitude is still present – individuals still expect from the State not only support but even guarantee of some benefits and their strategy of “survive” is to address their needs to the State institutions. The problem is that after political and economic transformation in Poland State’s competencies and abilities (especially the latter ones) were highly limited and State cannot response for all individuals’ expectations. In such situation the “attitude of expectation” is sometimes directed to other institutions or organizations, e.g. nongovernmental organizations. The BLP project is good example of how individuals rather “react” than “act” and rather try to gain some benefits from the initiative in which they are involved than create such opportunities for their own benefit. The question is if such attitude should be interpreted as dysfunctional or accepted as temporary phenomenon which will be less significant in next years together with progressing development of market economy in Poland which, at this moment, is institutionalized in formal institutions but its principles are not always present in people’s actions and attitudes. In relation to the BLP project we might say that form of this project which was designed by project initiators in some part enforces individual attitudes, but on the other hand it was designed with taking existing situation in the region into account. And after two years of the project functioning some positive changes might be observed – in its beginning number of the participants was the highest (about 200 local producers), now it is much lower but, at the same time, local producers who are members of the “Bies” association (about 50 local producers) might be described as the most active, who participate not only in activities conducted by the BLP project coordinators but also formulate goals, discuss preferred directions and character of further actions, make suggestions on the project improvements etc. In relation to this group of local producers the BLP project is not only success by the fact that it supports their economic performance (such conclusion refers to most of the project participants), but also because of change in their actions and converting their attitudes from passive to relatively active and constructive. Such positive evolution, at least some, of the local producers should be identified as one of the most significant outcomes of the project which also makes more probable that results of this initiative will not be short-lived. Among the interviewees’ declarations about possibility of conducting the BLP project in socialist times there were also some opinions in which local producers have 60 stated that there is actually no relation between specificity of those times and chances for projects like this one: Of course, why not. Political system does have limited influence on such “unions”. If people want to call together and do something for the others’ well-being they would do it even if authorities oppose. (Producer7) There are some women who work in the “Rural Home-mistress Club” since communism times and they tell the stories that in those times there was no phones, but by “gossiping” everyone knew what to do. Many people were active then. (Producer19) From these two opinions the second one is especially interesting and informative. In this statement the interviewee actually refutes our hypothesis about low levels of social capital in socialist times suggesting that social capital was crucial resource in those times (we interpret mentioned “gossiping” as a form of communication in which social capital, along with its component – trust, is demanded). In this case, necessity of social capital was justified not by political conditions but relative lack of technological advancement, but it might be also explained as the demand created by political and economic system. In such interpretation high level of social capital was form of reducing “irrationality” of social system (along with its sub-systems: political, economic, legal etc.) by individual or collective actions. At this moment, social system has became much more “rational” (especially in the sphere of economy) and much more important has became ability to adaptation to new institutional framework. 6.5. Role of communities, social institutions on cooperation networks and informal In this section of research report we will focus on the BLP project participants’ dominant motivations for participating in this initiative. But we will also investigate problem of crucial resource for this project success, which is cultural capital. RQ5.1: What are dominant motivations for participating in the initiative for particular groups of actors? We have already reconstructed main objectives of the BLP project – it is increase of local producers’ skills and potential related to successful operating on market. Such increase demands mainly training but also creating opportunities for more effective sale of local products. That is why the project activities are focused on such issues as: effective marketing, wide distribution, recognizable “brand” of Bieszczady’s local products etc. In this part we will investigate if participants’ motivations were similar to the project main objectives. The participants’ motivations were identified through their answers for question “What was the main reason for you to become participant of BLP project?”. Absolutely dominant answer is similar to general project objectives and emphasizing importance of strictly economic advantages related to the involvement within this initiative: Products promotion, meeting other producers and thinking how to sell our products. (Producer3) 61 Financial profits. (Producer8) I hope that this project will help us in this [enterprise development]. I hope that there will be some advertisements, photos. (Producer9) Because of wider advertisement. One might gain certificate and today tourists come and look for something specific. (Producer11) It is one and only way for promotion of thins which I do. Thanks to the BLP project I came into being on Bieszczady’s market but only here. My drink has created a sensation on fair in Poznan. Without this project I would not be able to go anywhere, promote [products] and know other people. (Producer12) To popularise and promote Bieszczady. Most important is to inform tourists what kind of food they might find here, what we offer them. (Producer15) That is how we started to promote our food. First travel was to Warsaw, then we were in Rzeszow in the Marshall’s Office. That is how have promote ourselves. We were even in Germany. (Producer17) Such significant dominance of market-oriented motivations might be identified as functional in relation to the project objectives. This market-oriented attitude will be investigated and analysed in more detailed way in next section, in this part we will present two possible explanations of participants’ focusing on economic profits from involvement within the BLP project. Firstly, it might prove high adequacy of established initiative to existing needs of local producers of the Bieszczady region. In this interpretation awareness of importance improvements in economic performance would be something on which the BLP project has answered with its components such as trainings or promotional support. But there is also other interpretation which makes influence of the BLP project on individual attitudes much more significant. Strong market-orientation might not be reason for establishment of the BLP initiative but its result. By this we mean that thanks to the participation in activities conducted within the BLP project local producers have became aware that for economic success they have to make some important improvements in their performance (and these improvements have became possible because of gaining new skills and knowledge through involvement within the initiative). It is difficult to decide what interpretation is more appropriate and better explains actual influence of the BLP project on local producers’ attitudes and actions (to decide it two surveys will be needed – before and after the BLP project initiation). But on the base of opinions of the project coordinators second interpretation seems to be more probable. As the project initiators have stated main motivation for their decision about the project establishment was relative lack of local producers’ basic skills which are demanded in the market. Besides motivations strongly related to economic performance and benefits there was also other kind of reasons which induced people to participate within the BLP project: Thanks to this project I have developed myself not only as a producer, but also as a human. (Producer12) 62 I like such activity. I like social activity. One might know other people or learn new things. (…) It is some kind of entertainment and meeting new people. (…) I can go out from home and be with other people (Producer14) [If I did not involved within this project] I would be as a “homebody”. (Producer18) I like it, I love it and until I feel equal to doing this I will do this. There are no benefits I do it from my good intentions and will of cooperation… Maybe satisfaction. (Producer19) I carry on welfare work since I was young person. (Producer20) From the above quotations two kinds of motivations might be identified – social and psychological, but similar in them is their non-economic character. By social motivations we mean individual’s inclinations for doing something for public benefit and involve in activities where cooperation is demanded. The BLP project offers opportunity for such actions without any doubt. Declarations of willingness to work for community, at least in some cases, are confirmed by local producers’ actions. “Producer20”, besides participating in all project activities, offers her farm (she also works in agro-tourism field) for meetings organized within the project. If we interpret the BLP project as opportunity for “social activists” to realize their motivations for working oriented on public benefits it would actually mean that BLP project (besides its economic favours for local producers) also creates intangible advantages for community members. Of course, it has to be strongly emphasized that such motivation was declared by limited number of the interviewees. Some of indicated motivations might be described as “psychological” ones which means that participants who declare them have found the BLP project as a way for their personal development or even “changing their live”. What is interesting and specific, such motivations were presented only by women who participate within the project (especially those who are also members of “Rural Home-mistress Club”, but not only). It would mean that, besides other the BLP project outcomes, it might be interpreted as the initiative which makes possible for women to change their traditional role which is dominant in the community. Women, who are usually not responsible for securing household’s welfare find “niche” for their activities. The distinctive feature of the local producers who identify such psychological motivation as the most importantis that they have stated that they did not gain any benefits from this initiative (in terms of economic benefits). RH5.1: Cultural capital of the community is interpreted by the BLP project participants as important result of their social embeddedness which creates competitive advantage in relation to other groups out of the region. The above mentioned hypothesis will be actually investigated in next section where we will analyse different sources of competitive advantage which were declared by the interviewees. In this part we would like to emphasize importance of such resource as cultural capital for the BLP project success (and, in general, successful local products’ initiatives). By presenting general analytical framework based on “cultural capital” term we would like suggest that BLP project is initiative in 63 which existing community’s resource (cultural capital) is commodified through individuals’ reflexivity which is stimulated by external agents (project coordinators)26. For operationalisation of “cultural capital” term Pierre Bourdieu’s (1986, pp. 243-248) approach will be called. For Bourdieu cultural capital might exist in its three forms: a) embodied – long-lasting dispositions of the mind and body, b) objectified – cultural goods, c) institutionalized – form of cultural capital which is guaranteed and certified by particular institutions (mainly from system of education). For our analysis first two forms of cultural capital are most adequate. In the first one, cultural capital will be individual’s disposition to act in particular way, e.g. to take care of traditional way of producing goods. Second form (objectified) of cultural capital is, in some part, result of active using embodied form of cultural capital, but also should be interpreted as point of reference for “cultivating” cultural capital in its embodied form. In Bourdieu’s definition important is that cultural capital is in individuals’ or group’s disposal but value of specific components of cultural capital is determined by socio-economic institutional context. But analyzing cultural capital does not only relate to its value but also to the way of its using. Three main strategies of groups and individuals’ “cultural capital management” might be distinguished: a) abandoning cultural capital b) “passive using” cultural capital c) “active using” cultural capital For our further analysis third strategy is crucial. One of the form of “active using” cultural heritage is the commodification of cultural capital. Cultural capital does not always is used for economic purposes, sometimes it gives non-economic advantage for the community (e.g. more integration of the group). Cultural capital commodification should be interpreted as the process in which object, idea, symbol etc. (all of them might be “emanation” of cultural capital) becomes “commodity” with specified exchange value. But why we should think about commodification as an “active using” cultural capital? Mainly because of the fact that people in order to commodify their cultural capital actively (re)interpret it and make it “active” object of their reflexivity. They count, calculate, try to sell or buy components of cultural capital and – in consequence – they think about it, analyze, look for some of its specific features etc. Cultural capital changes then its main function: from mainly ceremonial and rather passive to daily experience and object of active interpretation. The result is that cultural capital is not only social and cultural environment for individuals, but it’s rather situation where people “interact” with their cultural capital or use it for their own purposes (in this case - economic purposes). Above described process is presented below. 26 This part of research report is mainly based on excerpts from paper on relations between cultural capital and sustainable development (Korczynski 2005). 64 Figure 3. Commodification of cultural capital – conceptual framework Institutional context Social capital / socio-cultural capital Economic capital Individuals Reflexivity Market Cultural capital >> Commodification of cultural capital Groups / Society Reflexivity In order to apply the above model to our case study analysis we might say as follows: a) Cultural capital is crucial resource for creating local products – most of commodities which are offered by the BLP project participants is form of “objectified” form of the community’s cultural capital. Cultural capital, interpreted in this way, is in disposal of both individuals and community (groups/society). b) Cultural capital was commodified in the form of local products before the BLP project establishment what means that individuals’ reflexivity which converts cultural capital in commodities (local products) has started before. The problem was that process of commodification was not completed – local products were put on the market (were offered to potential customers) but it was not effective in terms of creating economic profits. c) Because of the above mentioned situation second stage of reflexivity has appeared. This reflexivity was caused by external agents through the BLP project – local producers were informed and trained in the field of basic economic skills what make their economic performance potentially more effective and profitable. d) With using owned cultural capital and new resource (human capital: new skills and knowledge) local producers involved within the BLP project might have successfully completed process of their cultural capital commodification. By this we mean that they put their products in the market in an innovative way and effectively converted their cultural capital in economic capital. The above four-stage process was prepared on theoretical, not empirical, base. But if we take our research findings into account we see that for, at least some of, the BLP project participants such process has been successfully completed. Confirmations fur such observation might be found in participants’ answers for 65 question on the meaning of sentence “BLP project has made positive change for me”. Most of the interviewees have declared that thanks to the participation within the project their economic performance has became more effective and profitgenerating. And even if the local producers did not present in their answers significant economic benefits they have declared that this project has increased their potential to be more competitive on the local products’ market. 6.6. Role of the market and competition in fostering/hindering cooperation RQ6.1: How does the market environment affect cooperation? RH6.1: Most of actors involved within BLP project are strongly market-oriented and interpret this initiative as increasing potential of local producers in the market. The specificity of the BLP project mainly refers to the fact that it is oriented on increasing market potential of local producers. As we have stated before, the main purpose of the project financed from the grant received from The Carpathian Foundation for years 2003-2005 was to make local producers in the region more competitive and support them in the field of adaptation to market economy and institutional context in which local products are important aspect of rural areas development. The confirmation of such market-oriented profile of the project are declarations of the BLP project coordinators: The main motivation was fact that Bieszczady are “local products basin” and advantage of the project is promotion which local producers could not afford. Yes, it would be opportunity to promote. (Coordinator2) We were aware that here in Bieszczady many people live who are talented which create something and they have huge potential. In this region agriculture rather does not have chance to develop: the soil is very weak and many people are not landowners but former employees of state companies. And because of that local product and eco-tourism are two appropriate ways to well-being. All the more because we have noticed that our assumptions are consistent with communes development strategies which we analyzed. (Coordinator3) It was about non-agricultural activity, here such economy does not work – farms are fragmented and less remunerative. [Such project] might be economic support for talented people who are doing something. The are some people who are very well qualified but produce only occasionally. It was an attempt to call their attention to the fact that if the product is good it might be offered. (Coordinator4) As we see from these statements “starting point” for the project was observation that: 1) the region is poorly developed in the field of economy, 2) the region is mostly rural but because of the objective limitations (such as “weak soil”) focusing on the development of agriculture would not be reasonable, 3) there is human potential in the form of talented and creative producers who produce but rarely offer and sell their products, 4) to some extent focusing on local products development is consistent with local governments policy. The conclusion was that what should be done is to generate “transfer of knowledge” which is needed for effective economic activity, but also establish institutional form of support for local producers and integrate isolate actions, e.g. promotional or distributional. In other 66 words, in the beginning of the BLP project there were “local producers” who had offer but this offer was not actually placed on the market and was not effectively sold to potential customers. It was quiet obvious for the project initiators that without support which comes from “external agents” it is rather improbable that local producers will be able to change their situation. It is also interesting that from its beginning the BLP project was not focused on searching totally new ways for region development and its inhabitants economic activity but rather for searching ways of development in respect with existing cultural specificity of the region and individuals human capital (their qualifications, skills and knowledge). Additionally with taking care of environmental aspect of production such strategy might be described as supporting sustainable development of the Bieszczady region. It is also quiet instructive for general Polish transformation from “socialist” to “market” times – very often discourse related to this transformation was strongly focused on the fact that individuals (or whole groups) skills and attitudes which were adequate and needed in former context now are mostly useless. In some cases, it has resulted in people’s helplessness and inactivity, the BLP project proves that it is possible to convert “potential weaknesses” in “actual strengths”, not only in economic sense, but also in psychological way (which was more deeply elaborated in section related to the participants motivations, mainly in relation to the members of “Rural Home-mistress Club”). Two additional conclusions should be made in relation to above-quoted statements and both refer to opinion of Ministry of Agriculture and Rural Development representative. Firstly, as one of the coordinators said – “our assumptions are consistent with communes development strategies which we analyzed”. It proves consistency uniformity of project coordinators and local civil servants and officials views in relation to the direction of economic development of rural areas in the region and sources of such development which lay in the region’s cultural and environmental specificity. But such approach is also consistent with perspective presented by Ministry representative. In below statement he has indicated reasons for competitive advantage of these voivodships who are – in his opinion - leaders in Poland in the field of local products development27: Firstly, there is tradition in these regions, more specifically – cultivating of this tradition […]. Secondly, such reason is for sure level of technological development of agriculture. Where farms are big-landed, there tradition falls. On the other hand, where farms are small and less-remunerative, there tradition is sustained. And, as we know, in mentioned voivodships [Malopolskie, Podlaskie, Podkarpackie, WarminskoMazurskie] there are small and strongly fragmented farms. (State) This opinion confirms other opinion expressed by the BLP project coordinators that local development based on local products (as in the BLP project) supports process of converting regional limitations of big-scale and technologically-advanced agriculture development into sources of increasing local potential of small-scale and based on traditional technology production in non-agricultural fields. That is why such profile of production might be especially recommended by those regions where 27 In interviewee’s opinion leading voivodships in Poland are: Malopolskie and Podlaskie. The Podkarpackie voivodship (in which the BLP project is located) was mentioned as third one. 67 is relative lack of advanced technology, financial capital and conditions for effective development of agricultural production. But what is needed – and this aspect is also emphasized by the interviewee – is to have tradition and cultural specificity in the region on which local products are based and from which they originate. Without such “asset” it would be impossible to successfully establish local products because specificity of these commodities actually lies in their traditional value. Besides the BLP project coordinators declarations confirming importance of market’s role in this initiative similar confirmation might be found in statements of producers who participate within the project. Such similarity is important because of the fact that it means that there is general uniformity of preferred directions of project development and its purposes between coordinators and participants28. It allows us to confirm hypothesis 6.1 – additional reasons for this hypothesis confirmation might be found in previous section of this report where main motivations of the actors were discussed: these motivations were also strongly market-oriented. But in hypothesis 6.1 there is also part related to the interpreting this initiative as “increasing potential of local producers in the market”. It is actually question of influence of the BLP project on economic performance of its participants and that is why it partially refers to the research question 6.1. Most of the project participants declare that they gain economic favours from participating within this initiative and these favours might be grouped in following categories: 1) training, 2) broader and more effective promotion using different promotional channels 3) creating opportunities for wider distribution. These favours were analyzed in previous section on participants motivations – there we identified all motivations for both becoming and remaining participant of the BLP project. Motivations which referred to economic performance were most often (with exception to the “Rural Home-Mistress Club” members). It confirms that for most of the participants the BLP project might be interpreted as the initiative which increases their potential. It actually means not only that their actions are more efficient thanks to the involving within the project but it also means that through participating within it they started to undertake actions which were new in their economic activity conducted before (Internet promotion, selling products to foreign customers etc.). In the below analysis we will focus on particular aspects of relation between market environment (with different aspects of functioning on the market) and cooperation (by which we mean participating within the BLP project as the form of collective action). These relations and ways in which market environment affects cooperation will be divided in three parts: 1) scope of the market that local producers involved in the project operate on, 2) competitiveness of offered product and its sources, 3) promotional activity, 4) risk related to economic activity. In relation to the first issue, on the base of collected data we might state that most of the BLP project declare that they operate on local market. For some producers such situation (which might be interpreted as the limitation of further development) seems to be functional: It is most economical for me to sell in my apiary (Producer1) 28 In this project where its success strongly depends on the initiative coordinators such uniformity is crucial for efficient achieving common goals. 68 Of course, although most of producers operate only on local or regional market, there are some examples of operating on national or even international market29. It is mainly result of coming into contact with customers during fair or exhibition, but also it is effect of promotion in Internet which is possible (in most of the cases) by participating within the BLP project. But even for those who operate on international market it is not dominant way of their products distribution: Occasionally foreign tourists buy my products but it is not intentional and systematic action which I undertake. (Producer2) In cases such as the above one it is rather local selling products to foreign customers than operating on international market. Actual and fully developed operating on international market demands “offensive” searching for national or international customers. That is why in situation of selling products to tourists who come to the village where producer lives will be rather form of operating on local, not national or international market. But at the same time producers which are involved in the BLP project are aware that thanks to the Poland’s accession to the EU there is real opportunity to wide scope of the market which they operate on (it was discussed in the section related to the role of formal institutional environment). It means that participants see potential in developing their economic performance in order to offer their products to wider group of customers. In relation to the affecting scope of the market that local producers operate on by the participation within the BLP project most of interviewees declared that there was no change or the observed change was not very significant: I had some phone-calls from people who found information about my product on the web-site. (Producer11) It should not be interpreted as the failure of the project because it is not always possible for some producers to operate on national or international market where distributional network is needed. That is why for some producers there was rather change in scale of production not sale: Scope [of the market] did not change, but my production has increased. (Producer10) It is probable that change in the scope of the market that local producers operate on will change after establishment of the BLP project own distributional network but this is task for the next stage of this project. We also have to be aware that for some of the BLP project participants working in the field of producing and selling local products is their additional way of gaining income and they are not interested in making scope of the market that they operate on wider or increasing their production – they are satisfied with current scale of their economic performance even if it is only local and the number of products is relatively small. Besides, there 29 By national or international scope of the market we mean not only offering products to customers who come from different parts of Poland or other countries but only undertaking actions which are form of “offensive” searching for national or international customers. That is why in situation of selling products to tourists who come to the village where producer lives will be form of operating on local, not national or international market. 69 are some formal limitations related to the scope of market that local producers operate on: In further perspective there is also “western” market but there are still limitations such as certificates and licenses. (Coordinator1) The above statement was one of the very few where formal institutional context influence was mentioned – in this case it is interpreted as the obstacle for entering new markets by producers who are involved within the BLP project. Generally the coordinators’ opinion in relation to the scope of the market that the BLP project participants operate on is similar to producers’ perspective – it is usually local market but there are some examples of operating on national or international market: There are two ladies who regularly go to France [with their products]. In some part it is result of the project. (Coordinator2) The “brand” is noticeable in the voivodship and in some points also on the national level (Coordinator3) Individual producers operate on the national market (Coordinator4) In the first statement it was expressed by the interviewee that entering international market by local producers is the result of the actions undertaken within the BLP project. Such relation was also stated by the same interviewee in other part of the interview: Thanks to the Poznan [All-Polish Agricultural Fair “Polagra” in Poznan] we were able to emerge. (Coordinator2) Second dimension of relations between market and cooperation within the BLP project is competitiveness of offered product and sources of eventual competitiveness. The first aspect is the opinion of the producers on the competitiveness of their products – most of the interviewees declared that they find their offer as the competitive in relation to similar products which are on the market. Only in some individual cases interviewees said that their product is not competitive and two ways of argumentation might be observed in such answers. The first one refers to the fact there are “many” similar products or producers in similar field of production (e.g. bakery) and high number of similar products on the market makes difficult to gain success. But on the other hand, some producers who identified their products as not competitive have stated that the reason for this situation is fact that there are not many products of similar kind in the market which might be symptom of relatively low demand on such products. Concluding these observations we might say that in first case particular product is not competitive in relation to many similar products placed in the market and in second case it is not competitive in relation to the general market offer where different kinds of products (more specifically – food products) might be found by customers. But as we have stated before, in the majority of the producers opinions one might find declarations of competitiveness of offered products. The question is what are the main sources of this competitiveness. Most of the reasons for competitiveness expressed by interviewees were related rather to the specificity of the region than specificity of the particular product: 70 Clear environment (Producer1) Taste and good quality of the water (Producer2) Specific climate - clear and not-polluted, specific flora. Climate which favours making the best honey-dew. (Producer4) My product is unusual because my pond is located near to the forest and it is the clearest pond “on earth” (Producer7) Our advantage is good trout from water which comes from the forest. (…) healthy fishes. (Producer9) Its advantage is that it comes from Bieszczady’s area. (Producer11) These products are “ours”. They are produced to the country, typical “country food”. They are tasteful and people are delighted. (Producer14) When producers identifiy the source of product’s originality and competitiveness in specificity of the region or not-polluted environment then it is difficult to increase mentioned competitiveness. What might be done is to intensify promotional activity to effectively communicate such advantages of the product. It is another argument for focusing on promotion activities to make situation of local producers in Bieszczady better. At the same time, it is worth of notice that inhabitants of the area where the BLP project is established in very mature way identify what is their advantage and strength in the market and they also follow in appropriate way the process of Polish (but it actually refers to all Europeans) customer’s “maturation” – in previous decades the main or even only criterion for buyers was price but now – with increasing ecological and cultural awareness – the are people who could even pay high price for products which are usually defined as local, regional or traditional. It is consistent with remark made by representative of Ministry of Agriculture and Rural Development: There is group of customers which is willing to pay more for better quality of the product. And it does not refer to better quality in terms of complying with norms but traditional character of the product. (State) There were very few of other argumentations from which the most significant was the following: This is “homely” food, we come back to what our mother and grandmothers were doing and it is popular. (Producer18) It comes from the country. Our parents and grandparents did this way and now it comes back to us. (Producer19) Two above identified sources of “competitive advantage”: environmental / cultural specificity of the region and embeddeness of local producers in community’s tradition are similar in one aspect – possibility to influence them is limited. What might be done is to accept it or adapt to it and use it in appropriate way in economic performance. But it would very difficult (if not impossible) to radically increase “competitive advantage” which originates from such sources. It means that competitiveness of local products in Bieszczady would increase only if other of its sources would be found and used (e.g. better promotion, combining products with services such as agro-tourism etc.). Maybe because of that interviewees had difficulties to identify in what particular aspects participation in the BLP project increased competitiveness of their products in viewable way unless most of them 71 declared such increase. Also, the collective aspect of “competitive advantage” occurs here – if the competitiveness of the products comes from culture or environment (not from unique skills of producers or their creative ideas for new products) then all of the producers have the same opportunity to use such defined competitiveness. Using such arguments enables to create common “brand” (as the BLP “brand” and label) for all products and reduces costs for promotion – the advantage or each product does not have to be presented, it is enough if belonging to specific group of Bieszczady’s products is indicated (then not only producers and their offer are promoted but also whole region with its cultural and environmental specificity). But it has to be emphasized that common “brand” as the source of competitive advantage is quiet ambigous issue. On the one hand, it – without any doubt – increases ability of local producers to compete with other producers from different parts of Poland who did not establish collective forms of operating on the market. Besides advantages in relation to “cost cutting” in the field of marketing participants for the BLP project build credibility of their products which are offered under common “brand”. But on on the other hand, there is – at least potentially – important problem which might be consequence of accepted form of products internal certification. Products offered by local producers who participate within the initiative might be certified through system of certification established only for regional producers. The problem is that such form of certification and products labelling which refers to regional level might not be well recognized on national or international level. Another problem is that at this moment in Poland national promotional campaign has started which purpose is to promote EU legal system of local and traditional products registration. The question is how people who will be aware of these regulations will respond to non-EU and non-State systems of certification. Just in one case interviewee expressed that quality of the product and, in consequence, its competitiveness depends mainly on work of the producer: Product is well-prepared because if I make something I try to make it good. (Producer15) Third dimension of market’s role in the BLP project is related to the promotional activity of its participants. Local producers were asked what ways and channels of promotion they most often use. On the base of collected data we might distinguish two “strategies” of promotion: active and passive. Active strategy of promotion means that producer not only informs about the product those who are interested but also tries to find potential customers on his/her own and arouse their interest in his/her offer: I live next to country road and I have put there information board. Now, some people call and order products. (Producer1) Mainly internet, this is where people now look for information (Producer2) Leaflets, direct sale. (Producer3) Advertisements in newspaper (12 advertisements in a row) (…). (Producer6) Cards, spoons for single use, little samples – if someone tasted always came back. Even when the price was higher [in relation to other products] they always came back and said – “Your honey is more expensive a little bit but it tastes good. (Producer8) 72 There are some periods when I reduce the price, so called “promotions”. (Producer10) Label on the jar and information board next to the road. (Producer13) During every event we talk about what we do. (…) We have web-site. (Producer14) If there is some event and we are invited then we go there… or if there is some picnic. (Producer19) As we can see, many different ways and channels of promotion are used by the BLP project participants. It proves awareness of importance of being active in the field of promotion. Some of mentioned actions which already are undertaken by the BLP project participants might be interpreted as the result of their involvement within this initiative (e.g. internet promotion, participation in many kinds of promotional events). It is valuable that these producers effectively use such opportunity as participation in project which allows them to increase their promotional potential and promote as the group of local producers which offer products under common brand. But much more valuable is that at least some of the participants try to individually promote their products. On one hand, it might be interpreted as the failure of the cooperation within the project because some of its participants initiate separate actions in order to increase their outcomes. But on the other hand, such activity means that these producers are personally well-adapted to operate on free market and they will handle even after the end of the project30. Specific form of active promoting products (for some producers it is even most effective way of promotion) is recommendation of the products by other producers or customers: Talk with customers is also very important because they pass information about the products to other people. (Producer3) The best way of promotion is when one passes information to the other – if one checked the products he would recommend it to the other one. (…) Other colleagues helped us a lot – they were giving our address to the tourists. (Producer6) The best advertisement is that one man will tell the other one about our product as the good product. (Producer7) I have got permanent customers and they recommend my products to their friends. (Producer11) Such ways of promotion is strongly based on social capital which owners (disposers) are either producers or its customers - the wider their social network is, the promotion is more efficient. Promotion which uses “word of mouth” does not seem to be very innovative but it helps to establish group of customers who are permanent (not “accidental”) and who are convinced about the product advantage. For local producers who cannot afford expensive ways of promotion it is also very adequate form of dissemination information about their products because it does not demand high expenditures. It is also very interesting how some of the producers are able to use their customers social network to promote products (we have to 30 To some extent it also might be interpreted as the positive result of the BLP project which made local producers aware of importance of effective promotion and trained them how to promote effectively. 73 remember that basic condition for such recommendation is satisfying quality of offered products, in other case it is less probable that people would recommend their friends buying particular product). In this way of promotion wide social network is crucial factor for success but trust between someone who recommends and the other who is “receiver” of such recommendation is also very important. By successful promotion we do not mean only passing the information from one person to another, but passing information which convinces to buy recommended product and process of convincing is strongly trust-dependent. Besides active ways of promotion, some its passive ways are also used and they might be described as “waiting for customer and giving him all needed information”. If we take fact of the remoteness of the area into account it is evident that such promotion is relatively inefficient. But on the other hand it is enough for some producers who do not plan to increase their sale extent. Specific form of passive way of promotion is participation in promotional activities within the project from which web-site and the catalogue seem to be most significant. In addition to all these ways of local products promotion we should add promotional support from State institutions which will come in this year. Representative of the Ministry of Agriculture and Rural Development stated that: When I think about creating regional brand it seems to me that it should go in two ways. On one hand brand is specified name which is under protection. But just as important as this is creating EU logo [of regional products] (…). That is why we decided to initiative in August-September campaign which promotes this logo and informs about regional products. (State) Mentioned campaign will be devoted to regional products which are registered in compliance with EU law but without any doubt it will support general development of local products in Poland. Besides, Ministry plans actions related particularly to these products which are not formally protected by law. For these products “List of Traditional Products” was established: Placing product on such list does not give right to its protection, but in this case the objective is to identification of existing products and promotion of them. That is why there are no restrict requirements. “List of Traditional Products” is perfect tool of identification and promotion of the products on the national and regional level. On the regional level there is crucial role for Marshall Offices which take care of identification of the products in the voivodship. The Marshall Offices will edit catalogues of such products in the region. The catalogue on national level will be edited by Ministry of Agriculture and Rural Development. In addition, we plan to establish internet portal with information about products from the list. (State) Of course, actions which are undertaken by the Ministry will not promote the BLP project but by promoting general idea of “regional products” and presenting their value and importance for rural development it will support promotional activities of both local producers involved within the BLP project and its coordinators. At the end of analyzing two ways of local products promotion (active and passive) we should clearly identify the first one as dominant in the group of producers who were interviewed. It might be described as one of the examples of the BLP project success and at the same time it gives an answer for research question 6.1 showing that awareness of promotion necessity might intensify 74 willingness to cooperate (in order to reduce costs of promotion) and establish collective ways of promotion. But at the same time it should be expressed that some of the “active” forms of promotion which were identified in this research are actually its passive forms. It refers mainly to participation in fairs and exhibitions – during these events producers “actively” promote their products, but in most cases they only “react” for invitation from the organizers and coordinators of the BLP project who find such events and are responsible for all logistic and organizational aspects of participation. The producers role is limited to decide to go, “be there” and convince guests or viewers that their products are worth of buy. Last aspect of market’s role in the BLP project which analyzed in this report is related to the risk in economic performance conducted by local producers. Risk in natural element of all economic activities and it is impossible to totally avoid it, the question is how risk is defined and where it is located by actors. First group of “risk factors” is general and actually might be applied to all fields of economic activity: There is no guarantee of income. (Producer1) We are afraid of import of Chinese honey. (Producer3) The health might become impaired. (Producer4) Everyone incurs risk. I am afraid that companies do not pay on time and I do not pay on time too. (Producer10) These types of risk are difficult to reduce – the only fully effective way of reducing them would be giving up economic activity. By deciding to operate on the market and becoming its active actor local producers become liable to suffer from such threats. It is functional that, at least some of them, are aware of risk inseparably linked with economic performance. Mentioned “risk factors” do not make group of local producers specific in any way - they are shared by most of Polish entrepreneurs, but there are also some of the factors which refer mainly to this group, or even to some particular groups among local producers: Lack of water (Producer2) We are afraid of bees disease. (Producer3) There might be few tourists. (…) Weather (Producer6) Other people’s actions, undesirable actions of thieves – they steal fishes. And the otters also filch some fishes. (Producer7) We are most afraid of drought, because it results in crisis – fishes are not sufficiently oxidized. (Producer9) In relation to kinds of risk which are identified above high vulnerability of local producers might be observed – they actually cannot avoid these threads as they depend on nature, environment or other people’s actions (thieves, tourists etc.). The case of environmental risk is especially interesting in this case. As we have stated before, one of the most important sources of “competitive advantage” of the Bieszczady’s local products is environmental specificity of the region, now it seems that it is also one of the main risks. In both cases local producers are rather not able to increase (competitiveness) or limit (risk) influence of the environment and nature. Such dependence on nature and its positive and negative influence is another symptom of traditional character of the production within the BLP project – such 75 vulnerability is specific for traditional ways of production where control on natural factors is quiet limited. Some of mentioned risks are difficult to reduce by single producer or even group of the producers and the question is if participation in the BLP project might be effective way for reduction of any risks. Some remarks in relation to this issue were made by interviewees: There is always some risk – someone from outside might enter but because of the fact that we are in this project we might collectively act in such situation. (Producer11) It is actually only case where analyzed initiative is identified as helpful in reducing risk related to economic activity. In some extent, it is result of the fact the mentioned “risk factors” are generally difficult to control or reduce. For some of the participants there is no risk in conducting economic activity – they could not identify even one “risk factor”. What is interesting, absolute majority of such answers was made by members of “Rural Home-Mistress Club” who declared that they do not see any risk in their economic performance in the field of local products. At the same time (as we have stated in part devoted to the BLP project participants motivations), these producers’ main motivation was not economic but rather social or psychological. The fact that that they are not profit-oriented and working in the field of local products is not their dominant source of income makes their attitude quiet different from the rest of participants. It does not mean that the are not any “risk factors” in this group actions, it rather means that its members define their involvement with different categories such as joy, satisfaction or selfachievement (not profit, competitiveness or efficiency) which are usually not justified in terms of risk. RQ6.2: What are the main fields of innovation in the economic activity of BLP project participants? RH6.2: Most of innovations might be observed in the field of promotion, distribution and sales. Innovations related to the products are limited. Second aspect of analysis in this section refers to the element of innovation in economic performance of the BLP project participants. The main investigated issue in this part is field of eventual innovations which are undertaken by local producers. On the base of collected data hypothesis 6.2 will be tested. This hypothesis was constructed with taking specificity of the local products into account. As we supposed in designing methodological framework (and confirmed in the research) local products might be interpreted as the objectified form of community’s cultural capital and tradition. Because of that, to sustain value of these products it is needed to limit innovations in the products (or its components) and ways of its production. But on the other hand, to make economic activity in the field of local products more effective in relation to the previous actions it is needed to innovate in such aspects as promotion, distribution, sale. In hypothesis 6.2 two elements might be distinguished: 1) dominant fields of innovation (it is also strongly related to answer for research question 6.2), 2) limitation of innovation related to the products. Regarding the first aspect of 76 mentioned hypothesis we might say that for group of producers who declared some innovations absolute majority was related to the promotion, distribution, container design etc. It means that above-mentioned fields of innovation might be identified as dominant among the BLP project participants: The container and leaflets we are changing. (Producer3) The container – I paint bottles by myself. I also make stoppers on my own. (Producer12) Innovations in such sphere are next dimension of the increase of marketing (and generally – economic) awareness of the project participants – they start to know that elements which are not aspect of the product itself but rather relate to its visual presentation and promotion are very important and sometimes might be even crucial for efficient sale. The positive is that for some of the producers (Producer12) limited financial resources are not obstacle for making innovations, they try to overcome them by their creativity and own work. In the local products market where hand-made elements are consistent with general “image” of the products (where there is no mass production and technological advancement of the production process) such creativity is even more valuable. In relation to the second aspect of hypothesis 6.2 we might say that some of the producers confirmed that specificity of their products does not allow to make innovations in the products, its features or components: Improvements? In honey [production] it is impossible. (Producer1) There are no changes. We traditionally produce our trout. (Producer2) It is impossible to change anything. (…) Components must be traditional. (Producer3) We cannot influence on our products – everything depends on bees and environment. (Producer4) The above statements prove rationality of the local producers – they are aware that one their biggest advantages is traditional way of production and constant character of the product. But at the same time we should clearly distinguish no innovation in the product specificity from taking care of increasing quality of the offered products. Unless among interviewed producers there were no declarations of innovations in relation to the products quality, such opinions appeared in interviews with the project coordinators where two groups (bee-keepers and potters) were mentioned as those where improvements of products quality might be observed. In next stages of the local products market development in the Bieszczady’s region (not only within the BLP project) it will be important to increase producers awareness in relation to the products quality and convince that “traditional” does not always has to mean “low quality”. The one and only example of declared innovation related to the product refers to the producer of mutton who said that he makes some “crossings” between different races (Producer5). But we have to emphasize that mentioned producer was generally specific and different in his opinions and attitudes than other project participants. It might be result of the fact that his field of production is very specific 77 (there are no other mutton producers within the project) and, at the same time, his product is actually not typically local or traditional kind of product. If we say about product innovations it is rather offering new products (or new categories of products) than making improvements in already offered ones: Some time ago we were only selling honey, now we also sell “propolis” or “honey pollen”. We also offer candles made of honey which are health-friendly. (Producer8) There are still some innovations, new assortment. (Producer10) Although above interviewees were talking about products and innovations related to them it is more adequate to interpret such innovations as the form marketing innovations because innovation in these cases was not result of reflection on the product but rather on the offer. Undertaking some innovate actions was behavioural “answer” not for the question “How can (should) I change the product?” but rather “How can (should) I change my offer?”. The answer usually meant adding new products to the producer’s assortment. But always in such case, new offered products were somehow related to the primary produced commodity what makes offer coherent but, at the same time, diversified. Specific case was family of trout-breeders who also work in the field of agrotourism. They declared only making innovations in relation to the second aspect of their economic activity not in the sphere of local producers: People are more interested in better conditions (…), more people come and check directly what are the conditions [in the farm]. That is why it is needed to permanently develop – I have just built summer-house, roundabout, swing. It is needed to take care and you cannot move back. To be competitive you have to make the conditions better. (Producer6) Similar strategy was presented by other trout-breeder: I conduct my activity for 5 years and I did not change anything, but I think about some restaurant or place where I would fry fishes. (Producer7) Probably it is not justified to look for specific reasons which caused occurring such opinions among trout-breeders. But in the above statements it is quiet clear that innovation is interpreted as a way of developing enterprise and increasing economic potential. These producers who present such attitude should be identified as those who are most “offensive” in operating on the market and, in consequence, who have chance to make their work most successful. Such direction, where innovation is interpreted as the needed element of further development and increasing competitiveness is very desirable for all local producers. It is also symptom of mature market attitude where the primary goal is not to “survive” but develop and improve. At the end of analyzing aspect of innovations undertaken by the BLP project participants specific “paradox of innovation” will be presented: If some lady will remembers something from “old times”, how she cooked, then we try to do this. (Producer14) 78 In this case term „paradox” means that innovative element is taken from the past – traditional knowledge which is transferred by some of the community elder members to the younger ones. Without any doubt, such innovation is very valuable because sometimes it is only way to sustain traditional culture of the community or make it vital – by incorporating them to the market and economic activity. The above-mentioned fields of innovation are strongly related to economic field. It is very difficult to indicate symptoms of social innovation which would not refer to strictly economic aspects of actors actions. On the base of collected data one might say that such situation is caused mainly by the fact of focusing the project on the activities increasing market potential of local producers. Besides, as we have stated before – governance structures of the project were designed in a way which does not support innovation from the project participants but rather identifies them as passive receivers of different kinds of support (mainly – training and advisory). In other words, there was no pressure on project participants to undertake actions which might be described as “social innovation”. But it will be interesting to observe and analyze eventual process of social innovations origination in near future of the project where main actor would be “Bies” Association. In this organization role of local producers will be (or should be) much more significant what means that they will not only respond to external actions or initiatives dedicated to them, but also will design and establish their own ideas. It means that probability or social innovation origination will be much higher. Of course, the fact that it will be more probable does not have to mean that such innovation will be observed – it depends on next actions of producers who are part of the “Bies” Association. We might say that – at least in some extent – it will be form of verification of hitherto existing forms of support and it will help in answering the question if the BLP project participants are ready to work not only as “participants” but also “coordinators” or “social innovators”. 7. Conclusions In presented case study analysis the “Bieszczady’s Local Product” initiative was investigated. We have focused on particular factors’ role on eventual cooperation and well functioning of the project (by which we mean that it creates benefits for its participants). In order to identify and present specificity of this project in relation to mentioned aspects we used data collected through in-depth interviews with local producers, project coordinators (from both local government institutions and non-governmental organizations) and State official representing Ministry of Agriculture and Rural Development. Additionally we have used information gained through desk research analysis. In the above considerations we have answered research questions and tested research hypotheses. But in introduction section of this report we also asked additional questions which structured our analysis within this report: 1. Is cooperation actually needed in the BLP project and if yes – in what aspects of this initiative effective cooperation might be observed? 2. If the BLP project is example of failure because of difficulties with cooperation or rather it is successful initiative in the spite of weak ties between participants? 79 3. What makes BLP project valuable for local producers, in what way they define it and what arguments they use for expressing their motivations for joining the initiative? These questions will also structure closing section of this report in which main conclusions are presented. Ad. 1 On the base of collected data we have emphasized that cooperation within the BLP project is rather limited which is one of the most significant features of this initiative. What does it actually mean? The form of this project and its governance structures which were designed by project coordinators before its establishment were focused not on increasing local producers’ willingness and ability to cooperate but on supporting them in their economic actions. And in this way it was interpreted by local producers – they mainly interpreted it as a situation in which someone (or some institution / organization) wants to support them, not to convince them to involve in process of cooperation between local producers in the Bieszczady region. Observing different forms of activities conducted within the project it is difficult to identify actions undertaken by local producers, most of them are initiated (and managed) by project coordinators – local producers actually “participate” not create them. Such passive attitude should not be unequivocally interpreted as local producers’ disadvantage, it is rather form of their adaptation to existing form of the BLP project and its governance structures. On the other hand, project coordinators in designing of its framework have based on their knowledge and experience in the field of work and cooperation with inhabitants of this area. That is why designed and implemented shape of the project is probably highly adequate to social context of this region and dominant people’s attitudes. The above mentioned empirical findings do not mean that within the BLP project any displays or symptoms of cooperation cannot be identified. It woud rather mean that cooperation – if appears – refers to limited number of actors (such as in the initiative of “Bies” association where cooperation is most evident and intensive but – at the same time – it involves relatively small number of participants). We should also add that analyzing development of this project in last two years on one hand it might be stated that intensity of cooperation is still increasing but on the other hand decrease in number of project participants and change in the structure of this project (from highly informal initiative which gathered individuals only for training or promotional events to association “Bies” which is formal nongovernmental organization) might be observed. Such evolution proves that at least some of the local producers from the region might take leadership over project initiators and effectively manage this in next years. Ad. 2 To fully and accurately answer this question it is needed to clearly indicate criterions used to decide if the BLP project was success or failure. If we assume that it would be success only in situation of cooperation occurring that we would have to interpret this initiative as failure. But if measurement of success would be actual improvement of individuals economic condition and increasing their abilities to be active and effective actor on the market then the BLP project is success without any 80 doubt. It was confirmed by interviewees opinions related to eventual change caused by participation within this project – economic performance has became, in most of the cases, more profitable thanks to the actions which were result of being part of the BLP project. Such conclusion also shows where symptoms of innovation caused by the BLP project have appeared – in new ways of promotion, distribution and sale of local products offered by the BLP project participants. Local products, which competitive advantage is strongly based on cultural on environmental capital, not only does not require innovation but also eventual innovation might reduce their value. That is why the BLP project was focused on innovations leading to effective sale of, tradition- and environment-friendly products. To resource which was already owned by local producers (cultural capital) other form of resource was added by which we mean human capital with such components as: knowledge, skills and qualifications. The above mentioned empirical findings also explain why most of the participants interpret their involvement within the BLP project as profitable even if ties between local producers are rather weak. The benefits which they were looking for were economic and strongly related to operating on the market and such aspects as trust or cooperation were not considered as important both conditions and objectives of joining the initiative. Ad. 3 Answer for this question was actually made in previous paragraph – motivations of actors involved within the BLP project are strongly market-oriented. Such orientation refers to both project coordinators (who planned to increase economic potential of local producers in order to make their economic performance more profitable) and local producers (who became aware that without some basic improvements their economic activity will be less competitive). But to such conclusion one remark should be added – way of generating economic profits which is supported by the BLP project is also functional for cultural and environmental specificity of the region. Local products, to be attractive for customers (which are mainly tourists) have to be deeply rooted in such specificity and take care of it by its cultivating and making vital. That is why supporting economic activities which are focused on local products might be strategy for locally initiated sustainable development of the region of Bieszczady mountains. At the end of this conclusion let us notice that for some of the participants the BLP project was found valuable because of other than market-oriented reasons. The most specific motivation was presented by group of women who are local producers working within the “Rural Home-mistress Club”. They have declared that they actually did not gain any economic (financial) benefits but it does not mean that they see no profits gained through involvement within the BLP project. For them being part of this initiative was opportunity to develop personally and work with other people. They have suggested that involvement within this initiative has allowed them to change their hitherto existing social role (“homebodies”) for active and selfrealizing working within the group. At the same time, the interviewees from this group were most optimistic in justification of the project functioning. It means that BLP project has influenced the community in more diverse way that only economic and market-oriented. 81 Of course, there is general and – at the same time – significant question related to the future of the initiative. In this report an attempt to present the BLP project in dynamic way was made. We have distinguished different stages of the initiative development. In the last one crucial element is “Bies” association which members are most active local producers along with some project coordinators. The process of origination of this organization coincide with coming end of the planned stage of the project (which was financed by The Carpathian Foundation). At this moment we might identify following opportunities and threats for the BLP project. The most important opportunity is that we might observe gradual delivery of the project management from coordinators to – at least some of the – producers. General logic and structure of “Bies” association is significantly different from previous structure of governance present within the initiative (local producers are involved in more intensive way). One might say that mentioned “delivery” might be interpreted as disadvantage because it does not involve all project participants. But for such interpretation it should be emphasized that even limited number of active project participants still might generate productive outcomes for the rest of local producers. These outcomes would especially refer to the field of promotion – if general promotion of the project and local kind of products would be successful than it would positively affect all local producers within the region. But there is also important thread for the nearest future of the BLP project – it refers to limited resources such as knowledge, experience and financial means. In relation to knowledge and experience there is question of the sufficiency of competencies and qualifications of project participants to continue well functioning of the initiative even after previous coordinators’ resign. Until now, all organizational aspects of the project functioning were in the hands of highly limited number of project coordinators and it might be difficult to take over from them (but such “take over” is needed in order to make the BLP project more “community-involving”). As the limitation of this threat social ties between producers and coordinators might be identified – it is very difficult to imagine that past coordinators would totally leave the project without any support and advice for local producers). Much more difficult to overcome might be problem of limited financial resources (which would be result of the end of the period of financing the project from The Carpathian Foundation funds). Without sufficient financial capital some of the project functions would not be fullfilled (such as: promotional activities, trips to exhibitions, development of sales network etc.). If these functions would not be fullfilled, the process of leaving the project would start (participants would not see even potential profits coming from the initiative) and it would probably result in the end of the project. Because of that, the most important task for the nearest future should be active fundraising (involving local producers and project coordinators) in order to gain funds needed for fullfilling at least basic functions of this initiative. The funds should come from external sources because neither local producers nor local governments are not able to collect all needed money. Durability of the project and its results depends on ability to collect mentioned financial capital – without successfull gaining funds it will be impossible not only to create stable organization supporting local producers witihin the region but even some of the already created positive outcomes might become slipped opportunities. 82 8. References Annex 1: Terms of reference – guidelines for IDARI Workpackage 3 (Pillar 2) – Contract 1 (2004) Berlin: Humboldt University BCPiCPL (2004) Made in Bieszczady – Bieszczady’s Local Product Anthology. Presentation of regional products and its creators. Lutowiska Bourdieu, Pierre (1986) The forms of capital. In: J. G. Richardson (Editor), The Handbook of Theory: Research for the Sociology of Education. Greenwood Press, New York, Chapter 9, pp. 241-258 Korczynski, Michal (2004) Cooperation in and between communities – creating a local or regional product in Poland for example “Bieszczady’s Local Product” initiative. Background paper on research project within IDARI Workpackage 3, Poznan-Berlin: IDARI-Humboldt University Korczynski, Michal (2005) Cultural capital as a source and result of sustainable development: the case of local products' initiative in Poland. „Conference Proceedings – 6th International Conference of European Society of Ecological Economics „Science and Governance. The Ecological Economics Prespective”, 14-17.06 2005 (CD-ROM) Murray, Catherine (2004) Social Capital and Cooperation in Central and Eastern Europe - A Theoretical Perspective. Berlin: Humboldt University Murray, Catherine; Volker, Beckmann (2004) Description of Workpackage 3: social capital, governance and rural institutional innovations - an elaboration of concepts. Discussion paper, Berlin: Humboldt University Portes, Alejandro (1998) Social capital: its origins and applications in modern sociology, Annual Review of Sociology, Vol. 24, pp. 1-24 83 9. Annexes Annex 1 List of interviews ID Symbol Field of production Institution represented 1 Producer1 Honey, Bee-keeping N/A 2 Producer2 Trout breeding N/A 3 Producer3 Honey, Bee-keeping N/A 4 Producer4 Honey, Bee-keeping N/A 5 Producer5 Mutton N/A 6 Producer6 Trout breeding/Agro-tourism N/A 7 Producer7 Trout breeding N/A 8 Producer8 Honey, Bee-keeping N/A 9 Producer9 Trout breeding N/A 10 Producer10 Bread-stuffs N/A 11 Producer11 Bee-keeping N/A 12 Producer12 Infusion of fruits steeped in alcohol N/A 13 Producer13 Honey, Bee-keeping N/A 85 14 Producer14 Regional food N/A 15 Producer15 Regional food N/A 16 Producer16 Regional food N/A 17 Producer17 "Proziaki" N/A 18 Producer18 Regional food N/A 19 Producer19 Regional food N/A 20 Producer20 Regional food/Agro-tourism N/A 21 Coordinator1 N/A Local government – Community's Cultural Centre in Lutowiska - Local government – Community's Cultural Centre in Lutowiska 22 Coordinator2 N/A - NGO – Partnership Group “Green Bieszczady” - NGO – Foundation "Partnership for Environment" - NGO – Partnership Group “Green Bieszczady” - NGO – Bieszczady’s Wood Association 23 Coordinator3 N/A - NGO – “For Kids of Bieszczady’s School” Association - NGO – "Partnership for Environment" Foundation 24 Coordinator4 N/A - NGO – Partnership Group “Green Bieszczady” 25 State Ministry of Agriculture and Rural Development N/A 86 Annex 2 Interview guidelines (version for interviews with local producers) INTRODUCTION The following research is conducted by Adam Mickiewicz University’s Institute of Sociology within international research project funded by European Commission. This project is titled IDARI and refers to different kinds of initiatives which are undertaken in rural areas in CEE countries. One of the selected initiatives in Poland is „Bieszczady’s Local Product” (BLP) project. In this case research is mainly based on in-depth interviews with local producers who participate in the project. The objective of these interviews is to get to know opinions and attitudes of participants in relation to BLP project. The research is conducted in cooperation with Community’s Cultural Centre in Lutowiska which is institution coordinating the project. Research findings will be presented at international level (publications and scientific conferences) which undoubtedly will help in popularizing activities undertaken by local producers from Podkarpackie voivodship. We would like to thank you for your help in conducting this research and assure you that research results will be presented in overall way and remain all interviewees anonymously. INTERPERSONAL TRUST 1. What was the main reason for you to become participant of BLP project? What main benefits does activity within BLP Project gives you? 2. Did you know other participants prior to becoming involved with the activities of the BLP project? How many participants did you know before? How long did you know these people? In what capacity did you know them? 3. Do you think that other participants of BLP Project can be trusted? Why do you think this way? Can you identify goodwill amongst the group, or are some people suspicious of each other? 4. What would be your reaction if participants within the project broke your trust or cheated you? Did this happen in the past? If yes, could you briefly describe that situation? 5. Have you had any problems in dealing with any project participants in the past? If so, please explain. How do you judge these problems with cooperation at this moment? How does this affect your behaviour toward them? Have you heard of any similar problems between other participants of the project? 6. Are you satisfied with working with other members of their community for this initiative? If yes, what are the main reasons for your satisfaction? If not, why do you remain within this project? 7. What expectations do you have of people within the project? Do your expectations differ for different participants of the project? What do you think others within the project expect of you? 8. Would you like new people join BLP project? Will you be inclined to cooperate with them? 87 9. How do you judge importance of geographical distance between participants of the project? Does it limit process of cooperation? TRUST IN STATE INSTITUTIONS 10. Do you expect support for BLP project from public and state institutions (government, self-government)? Should government or self-government support local producers? If yes, in what way? Do you think that present activity of public and state institutions favour further development of BLP project? 11. How do you judge influence of Poland’s accession in EU for further Development of BLP project? Would you expect – in relation to your economic activity – more appropriate actions from Polish or EU institutions? 12. What experience have you personally had with dealing with state agencies and institutions? How do you judge eventual cooperation? SOLVING CONFLICTS WITHIN THE PROJECT 13. Did you observe any conflicts within BLP project between participants of the project or between participants of the project and project initiators/coordinators to date? If yes, what was the field of this conflict and how it was solved? If not, what potential fields of conflict would you indicate what are the most common differences between people that cause conflict/problems within the group? Do you think that BLP project participants would handle solving this conflict? 14. Are there any formal mechanisms of solving problems, potential conflicts or arguable issues within BLP project? If yes, what are these mechanisms? If not, do you think that establishment of such formal ways of solving conflicts is desirable? Which ways do you find as most appropriate (establishment of set of formal rules, deciding arguable issues by voting, excluding people who break formal rules etc.)? Why did you choose these ways? 15. Who would you go to first if you experienced a problem within the project, situation that you would not satisfied with or feel harmed? Would you consider going to someone outside the project to find assistance in relation to this situation? If yes, who would it be? Why did you choose this person or institution? BLP PROJECT PARTICIPANTS’ MOTIVATIONS 16. Could you briefly describe how did you become involved with the project? What were your main sources of information about BLP project? Did you have any fears related to the BLP project at the beginning of your involvement in this initiative? If yes, what kind of fears did you have? Did you have any hopes related to the BLP project at the beginning of your involvement in this initiative? If yes, what kind of hopes did you have? 17. Could you identify most important problems associated with your involvement in this initiative which occurred at the beginning? How did you overcome these problems? Would you say that these problems were specific or typical also for other participants? 18. Is there something that you had to resign or sacrifice in order to become part of BLP project? If yes, could you briefly describe it? Do you think that it was worth to resign or sacrifice this for becoming part of BLP project? 88 19. Could you say how would your economic activity look if you weren’t involved within this project? 20. Would you join BLP project again if you were asked for making such decision after some time of being part of this initiative? Could you substantiate your answer? 21. Do you think that some people within the group are benefiting disproportionally from their involvement in actions which purpose is to make BLP project functioning better? If yes, why does this happen? Do you think that all people involved in the group are equally committed to the objectives of the group? If not, what kind of objectives – different than group’s objectives – do some of project participants have? 22. Do you think that you through your membership within the BLP project you benefit more than some other people who work in similar field but do not participate in this project? If yes, what benefits or advantages would you indicate? 23. Would you agree with following statement: “I am sure that no other BLP project participant would treat me unfairly”? If yes, what is the reason for this? If not, what would you do if you thought that someone was treating you unfairly within the group? 24. On the base of your present knowledge and experience, what would you change in functioning of the BLP project in order to make it more profitable for all participants? Do you think that other participants would agree with your suggestions? 25. What do following statements mean for you: a) BLP project made positive change for me. b) BLP project made positive change for my local community (it refers to the inhabitants of your nearest area). c) BLP project made positive change for the region where I live (it refers to the part of Podkarpackie voivodship where BLP project is conducted). COMMUNICATION 26. How frequent do you meet with other participants of the BLP project and discuss issues relating to the project? Do you think that this frequency is enough or maybe these meetings are organized too often. If the frequency is not enough what would you indicate as the reason for this situation? Would you be willing to give up more of your time fore these meetings and discussions? 27. What are the most frequent topics of your talks with other people involved in the BLP project? Are there any topics which are not discussed (or discussed not very often) and you think that they should be discussed? 28. Overall, would you describe you as a person who is well-informed about issues related to BLP project? Do you think that you are better- or worseinformed than other participants of the project? What is the reason for this situation? In relation to what kinds of information do you fell best- and worstinformed? 29. Are you able to identify and indicate person who is best-informed in relation to the BLP project and takes care to keep other participants 89 well-informed about issues which are important for the project? What is the reason for this situation? Do you positively judge this person’s actions? 30. Do BLP project participants’ meetings are planned and organized in advance or rather spontaneously hold? If they are organized – who is the organizer? What locations (buildings) are used for the meetings? 31. What is the mode of communication most frequently used between project participants (verbal, telephone, letters, e-mail etc.)? Do you find mentioned modes of communication effective? Would you like to communicate with people involved in the project in different way? If yes, what different way of communication would you suggest? What is the reason for this suggestion? 32. What problems in the field of communication and transfer of information do you find as most important? Do you think that there is a chance for any improvements in relation to these problems (communication barriers)? 33. Do you think there are some people within the group who withhold information? If yes for what reason – do you think they withhold information? How do you judge such behaviour? 34. Do you think there are some people living within the community who would help the project but are not part of the group currently? If yes, for what reason? Who are these persons? 35. Do you have contacts with similar group(s) of local producers out of the BLP project? If yes, what do these contacts refer to? Did you hear about other BLP project participants having such contacts with other local producers groups? 36. Do you think that contacts and cooperation with other groups of local producers might be favorable for you and your community? Why do you think this way? What advantages might be gained through such external cooperation? 37. Can you identify specific groups, organizations or individuals with whom cooperation should be initiated (it refers to those who are not cooperate with BLP project participants so far)? Why did you choose these groups or individuals? What kind of benefits might be gained through such cooperation? COLLECTIVE LEARNING 38. Do you think that all of the group members know each other well? What do you actually mean by the qualification “know well”? 39. What have you learnt about the other participants of the BLP project through involvement within this initiative? Have you changed your behaviour as local producer thanks to the cooperation with these people and participation in the BLP project? If yes, what changes do you think about? Have you changed your attitude to community where you live thanks to the participation in the BLP project? 40. What would you consider the most important thing that you have learnt, through your participation in the BLP project? Do you think that you would learn this anyway and participation in the project was not needed in this case? 90 41. Do you think that all members of the group have the same opinions about the direction that the project/initiative should take? If not, does it cause any conflicts or rather BLP project participants tolerate different ideas and visions of further development of the project? Are these ideas discussed and deliberated within the group of participants of this initiative? ROLE OF STATE AND PUBLIC INSTITUTIONS 42. Do you think that this initiative could have been possible in times of communist state? If not, why do you think this way? Do you think that people’s attitude toward each other and their willingness to cooperate have changed since socialist times? If yes, could you give some examples of such changes? Do these changes influence functioning of BLP project? If yes, could you briefly describe this influence? 43. Do you trust the state institutions more now than in socialist times or less? Why? What kinds (types) of institutions do you think about? 44. Did you vote in the last local elections? Did you vote in the last national elections? What was the reason for this? 45. How does accession to the EU affect people’s behaviour within BLP project? Do you think that more friendly for BLP project are Polish or EU institutions? Why do you think this way? ROLE OF LOCAL COMMUNITY AND SOCIAL NORMS 46. Could you identify and indicate all individuals and institutions which you find as important for BLP project functioning? Could you briefly describe what is the importance of each mentioned person or institution? 47. Do you think that people in your area cooperate well with each other? If yes, what does this cooperation refer to? If not, what is the reason for this situation? Do you think that people in your area are frank to each other? 48. Does group of local producers participating in BLP project have got its leader? If yes, who is the leader? If not, do you think that leader should appear or be indicated by BLP project participants? 49. Are there cliques existing within the BLP project which isolate from other participants and limit contacts with rest of the producers? If yes, what is the reason for this situation? How does it influence functioning of BLP project in your opinion? ROLE OF MARKET AND COMPETITION 50. What is the scope of the market that you operate on? Is it local, regional, national or international? Have you changed scope of the market that you operate on after becoming participant of BLP project? 51. Do you think that your involvement within this initiative made your offer more or less competitive? In what way? Do you think that you offer competitive product (or service)? Could you briefly describe most important advantages and disadvantages of your product? 52. Do you see any risk in your economic activity? What does this risk refer to? Are you afraid of competition from other local producers? Do you observe other local products and try to use their ideas in your activity? What kinds of ideas? 91 53. What ways of your product promotion do you use in your economic activity? Do you think that these ways are sufficiently effective? 54. Do you make (or made in near past) any changes in your product (or products)? If yes, what kinds of changes do you think about and why did you decide to make such improvements? If no, what is the reason that you do not make any improvements in your product(s)? QUESTIONS ASKED AT THE END OF THE INTERVIEW TO ALL INTERVIEWEES: 55. Generally speaking, would you say that most people can be trusted, or you can not be too careful in dealing with people? Why do you think this way? 56. How many different social organizations (associations) are you involved in (including recreational groups, religious groups, voluntary organizations, non-governmental organizations, governmental organizations etc.)? 57. How much do you trust (on a scale from 1 to 5)31 the following: Local government officials in your commune National government officials (voivodship, governmental institutions and agencies) The European Union (its institutions and officials) Organizers and coordinators of BLP project Other local producers participating in the BLP project For what reason did you choose these particular answers? 58. If there was a problem within your community which required different people coming together to solve it (inhabitants, politicians, civil servants, entrepreneurs etc.) how likely do you think they would be successful? Very likely Somewhat likely Neither likely nor unlikely Somewhat unlikely Very unlikely For what reason did you choose this answer? 59.If a community project does not directly benefit you, but has benefits for others in the community, would you a) be willing to contribute money (Yes or No)? b) willing to contribute time (Yes or No)? For what reason did you choose this answer? 60.What are your main sources of information about what the government (both local and national) and the EU is doing? Relatives, friends and family (‘word of mouth’) Community bulletin board 31 1=To a very great extent 2=To a great extent 3=Neither to a great nor small extent 4=To a small extent 5=To a very small extent 92 Local market/local shops Community or local newspaper National newspaper Radio Television Internet Community leaders Groups or associations I am involved with Business or work colleagues Government agencies Political parties I am involved with Non-governmental organizations I am involved with 61.What are your main sources of information about what is happening within your community? Relatives, friends and family (‘word of mouth’) Community bulletin board Local market/local shops Community or local newspaper National newspaper Radio Television Internet Community leaders Groups or associations I am involved with Business or work colleagues Government agencies Political parties I am involved with Non-governmental organizations I am involved with In case of questions 6 and 7 possible options for answer should be presented to interviewee. Interviewee should be asked to pick (for each question separately) three most important sources of information? 62.How would you rank the relative importance of the following factors affecting well functioning of the BLP project? High levels of trust within the community Past experiences of all stakeholders with working together Having a highly motivated group of people/community who are willing to cooperate Having good communication between all actors Keeping well informed and having enough information to make decisions Actors understanding each other and sharing the same objectives Involvement of governmental agencies in the process Active involvement of the local community 93 Market driven incentives for cooperation In case of question all options for answer should be presented to interviewee. Interviewee should answer following questions: - Does particular factor generally refers to the BLP project - If yes, how interviewee judges importance of this factor for well functioning of the BLP project (with using following scale: Very important, Somewhat important, Neither important nor unimportant, Somewhat unimportant, Not important at all) 94 Annex 3 Interview guidelines (version for interviews with coordinators) The following research is conducted by Adam Mickiewicz University’s Institute of Sociology within international research project funded by European Commission. This project is titled IDARI and refers to different kinds of initiatives which are undertaken in rural areas in CEE countries. One of the selected initiatives in Poland is „Bieszczady’s Local Product” (BLP) project. In this case research is mainly based on in-depth interviews with local producers who participate in the project and other people involved within the project. The objective of these interviews is to get to know opinions and attitudes of participants in relation to BLP project. The research is conducted in cooperation with Community’s Cultural Centre in Lutowiska which is institution coordinating the project. Research findings will be presented at international level (publications and scientific conferences) which undoubtedly will help in popularizing activities undertaken by local producers from Podkarpackie voivodship. We would like to thank you for your help in conducting this research and assure you that research results will be presented in overall way and remain all interviewees anonymously. GENERAL ISSUES 1. How would you describe your role within the BLP project? 2. Could your describe initial stag of the BLP project development? Who was the originator of the idea? 3. What are the most important problems in the field of conducting such project currently? 4. How do you imagine this project in next 1-2 years? 5. How do you judge process of local products’ development in Poland? 6. What do local producers in Poland mostly need at this moment (what kind of support do they need)? INTERPERSONAL TRUST 7. What was the main reason for you to involve in the BLP project? What main benefits does activity within BLP Project gives its participants? 8. Did you cooperate with other participants of the project before? If yes, what was the field of this cooperation? How many participants did you know before? How long did you know these people? In what capacity did you know them? 9. Do you think that participants of BLP Project trust each other? Why do you think this way? 10. What would be your reaction if participants within the project broke your trust or cheated you? Did this happen in the past? If yes, could you briefly describe that situation? 11. Have you had any problems in dealing with any project participants in the past? If so, please explain. How do you judge these problems with cooperation at this moment? How does this affect your behaviour toward them? 95 Have you heard of any similar problems between other participants of the project? 12. Are you satisfied with working with other members of their community for this initiative? If yes, what are the main reasons for your satisfaction? 13. What do you think other BLP project participants expect of you? What expectations do you have of people within the project? Do your expectations differ for different participants of the project? 14. Would you like new people join BLP project? What might be the productive “input” from these persons for the project? Do you think that there is good opinion about the BLP project in the region? 15. How do you judge importance of geographical distance between participants of the project? Does it limit process of cooperation? If yes, what are the ways for overcome this problem? TRUST IN STATE INSTITUTIONS 16. Do you expect support for BLP project from public and state institutions (government, self-government)? Should government or selfgovernment support local producers? If yes, in what way? Do you think that present activity of public and state institutions favour further development of BLP project? 17. How do you judge influence of Poland’s accession in EU for further Development of BLP project? Would you expect – in relation to your economic activity – more appropriate actions from Polish or EU institutions? 18. Is there a cooperation within BLP project with other non-governmental organizations? If yes, what is the reason for this cooperation? If not, what is the reason for no undertaking such cooperation? SOLVING CONFLICTS WITHIN THE PROJECT 19. Did you observe any conflicts within BLP project between participants of the project or between participants of the project and project initiators/coordinators to date? If yes, what was the field of this conflict and how it was solved? If not, what potential fields of conflict would you indicate what are the most common differences between people that cause conflict/problems within the group? Do you think that BLP project participants would handle solving this conflict? 20. Are there any formal mechanisms of solving problems, potential conflicts or arguable issues within BLP project? If yes, what are these mechanisms? If not, do you think that establishment of such formal ways of solving conflicts is desirable? Which ways do you find as most appropriate (establishment of set of formal rules, deciding arguable issues by voting, excluding people who break formal rules etc.)? Why did you choose these ways? 21. Who would you go to first if you experienced a problem within the project, situation that you would not satisfied with or feel harmed? BLP PROJECT PARTICIPANTS’ MOTIVATIONS 22. Did you have any fears related to the BLP project at the beginning of your involvement in this initiative? What specific fears did you have? Did you have any hopes related to the BLP project at the beginning of your 96 involvement in this initiative? If yes, what kind of hopes did you have? And what were the fears and hopes of other participants? 23. What are the most important problems and barriers of entry for new participants of the BLP project? 24. Would you involve in the BLP project again if you were asked for making such decision after some time of being part of this initiative? Why did you choose this answer? 25. Do you think that some people within the group are benefiting disproportionally from their involvement in actions which purpose is to make BLP project functioning better? If yes, why does this happen? 26. Do you think that all people involved in the group are equally committed to the objectives of the group? If not, what kind of objectives – different than group’s objectives – do some of project participants have? 27. Do you think that you through membership within the BLP project producers benefit more than some other people who work in similar field but do not participate in this project? If yes, what benefits or advantages would you indicate? 28. On the base of your present knowledge and experience, what would you change in functioning of the BLP project in order to make it more profitable for all participants? Do you think that other participants would agree with your suggestions? 29. What do following statements mean for you: a) BLP project made positive change for local producers. b) BLP project made positive change for local communities in the communes where the project is conducted c) BLP project made positive change for the region (it refers to the part of Podkarpackie voivodship where BLP project is conducted). COMMUNICATION 30. How frequent do you meet with other participants of the BLP project and discuss issues relating to the project? Do you think that people would be willing to give up more of your time fore these meetings and discussions? Do you think that this frequency is enough or maybe these meetings are organized too often. If the frequency is not enough what would you indicate as the reason for this situation? 31. What are the most frequent topics of your talks with other people involved in the BLP project? Are there any topics which are not discussed (or discussed not very often) and you think that they should be discussed? 32. Do BLP project participants’ meetings are planned and organized in advance or rather spontaneously hold? If they are organized – who is the organizer? What locations (buildings) are used for the meetings? 33. What is the mode of communication most frequently used by you to communicate with other project participants (verbal, telephone, letters, e-mail etc.)? Do you find mentioned modes of communication effective? Would you like to communicate with people involved in the project in 97 different way? If yes, what different way of communication would you suggest? What is the reason for this suggestion? 34. What problems in the field of communication and transfer of information do you find as most important? Do you think that there is a chance for any improvements in relation to these problems (communication barriers)? 35. Do you think there are some people within the group who withhold information? If yes for what reason – do you think they withhold information? How do you judge such behaviour? 36. Do you think there are some people living within the community who would help the project but are not part of the group currently? If yes, for what reason? Who are these persons? 37. Do you have contacts with similar group(s) of local producers out of the BLP project? If yes, what do these contacts refer to? Did you hear about other BLP project participants having such contacts with other local producers groups? 38. Do you think that contacts and cooperation with other groups of local producers might be favorable for participants of the BLP project? Why do you think this way? What advantages might be gained through such external cooperation? 39. Can you identify specific groups, organizations or individuals with whom cooperation should be initiated (it refers to those who are not cooperate with BLP project participants so far)? Why did you choose these groups or individuals? What kind of benefits might be gained through such cooperation? COLLECTIVE LEARNING 40. Do you think that all of the group members know each other well? What do you actually mean by the qualification “know well”? 41. What have you learnt about the other participants of the BLP project through involvement within this initiative? Have you changed your behaviour as local producer thanks to the cooperation with these people and participation in the BLP project? If yes, what changes do you think about? Have you changed your attitude to community where you live thanks to the participation in the BLP project? 42. What would you consider the most important thing that you have learnt, through your participation in the BLP project? Do you think that you would learn this anyway and participation in the project was not needed in this case? 43. Do you think that all members of the group have the same opinions about the direction that the project/initiative should take? If not, does it cause any conflicts or rather BLP project participants tolerate different ideas and visions of further development of the project? Are these ideas discussed and deliberated within the group of participants of this initiative? ROLE OF STATE AND PUBLIC INSTITUTIONS 44. Do you think that this initiative could have been possible in times of communist state? If not, why do you think this way? Do you think that 98 people’s attitude toward each other and their willingness to cooperate have changed since socialist times? If yes, could you give some examples of such changes? Do these changes influence functioning of BLP project? If yes, could you briefly describe this influence? ROLE OF LOCAL COMMUNITY AND SOCIAL NORMS 45. Could you identify and indicate all individuals and institutions which you find as important for BLP project functioning? Could you briefly describe what is the importance of each mentioned person or institution? 46. Do you think that people in your area cooperate well with each other? If yes, what does this cooperation refer to? If not, what is the reason for this situation? Do you think that people in your area are frank to each other? 47. Are there cliques existing within the BLP project which isolate from other participants and limit contacts with rest of the producers? If yes, what is the reason for this situation? How does it influence functioning of BLP project in your opinion? ROLE OF MARKET AND COMPETITION 48. What is the scope of the market that local producers involved in the project operate on? Is it local, regional, national or international? Do you think that scope of the market that local producers operate on has changed after becoming participant of BLP project? 49. Do you think that involvement within this initiative made local producers’ offer more or less competitive? In what way? 50. What ways of product promotion are most often used in economic activity by BLP project participants? Do you think that these ways are sufficiently effective? 51. Do BLP project participants make (or made in near past) any changes in their product (or products)? If yes, what kinds of changes do you think about? If no, what is the reason that they do not make any improvements in their product(s)? QUESTIONS ASKED AT THE END OF THE INTERVIEW TO ALL INTERVIEWEES: 52. Generally speaking, would you say that most people can be trusted, or you can not be too careful in dealing with people? Why do you think this way? 53. If there was a problem within your community which required different people coming together to solve it (inhabitants, politicians, civil servants, entrepreneurs etc.) how likely do you think they would be successful? Very likely Somewhat likely Neither likely nor unlikely Somewhat unlikely Very unlikely 54. For what reason did you choose this answer? 99 55. What are your main sources of information about what the government (both local and national) and the EU is doing? Relatives, friends and family (‘word of mouth’) Community bulletin board Local market/local shops Community or local newspaper National newspaper Radio Television Internet Community leaders Groups or associations I am involved with Business or work colleagues Government agencies Political parties I am involved with Non-governmental organizations I am involved with 56. What are your main sources of information about what is happening within your community? Relatives, friends and family (‘word of mouth’) Community bulletin board Local market/local shops Community or local newspaper National newspaper Radio Television Internet Community leaders Groups or associations I am involved with Business or work colleagues Government agencies Political parties I am involved with Non-governmental organizations I am involved with In case of questions 3 and 4 possible options for answer should be presented to interviewee. Interviewee should be asked to pick (for each question separately) three most important sources of information? 57. How would you rank the relative importance of the following factors affecting well functioning of the BLP project? High levels of trust within the community Past experiences of all stakeholders with working together Having a highly motivated group of people/community who are willing to cooperate Having good communication between all actors 100 Keeping well informed and having enough information to make decisions Actors understanding each other and sharing the same objectives Involvement of governmental agencies in the process Active involvement of the local community Market driven incentives for cooperation In case of above question all options for answer should be presented to interviewee. Interviewee should answer following questions: - Does particular factor generally refers to the BLP project - If yes, how interviewee judges importance of this factor for well functioning of the BLP project (with using following scale: Very important, Somewhat important, Neither important nor unimportant, Somewhat unimportant, Not important at all). 101