LEADER European Observatory
The complementarities between rural policies and LEADER+
The Burgenland Objectif 1 Programme
Status : January 2000
EN
INTRODUCTION
There will be only one LEADER+ programme for the whole of Austria, and as the
preparatory work cannot yet be based on EC guidelines, the prospects for LEADER+ in
Burgenland and all over Austria remain very vague. The national programme is coordinated
by a department of the Austrian Ministry for Agriculture. The official programme is not likely
to be published until April or May 2000.
This case study is based on the programme proposal for the objective 1 area Burgenland
(referred to as the SDPP, and the complementary planning document, referred to as the
ComPD) which was presented to the European authorities at the end of 1999. Another
reference document is the interim evaluation report for the implementation of objective 1,
published in 1998 by the Austrian Institute for Spatial Planning (Vienna). Interviews were
also carried out with officials responsible for objective 1 implementation in the Land
governmental department for European affairs and statistics (which acts as the coordinating
unit) and the LEADER programme in the Land governmental department for agriculture.
1) The Burgenland Objective 1 programme
1.1 Burgenland
Burgenland is the most eastern and, since 1921, the "newest" Austrian Land, in that it was
separated from Hungary by plebiscite after WW I. The accession to Austria disconnected this
essentially rural area from the Western Hungarian cities, to which it had been economically
oriented. With 3.966 km2 and 270.880 inhabitants it is a small objective 1 area, classified as
such since Austria’s EU-accession in 1995. A typical feature of Burgenland is its cultural
diversity: There is a Croatian-speaking minority, as well as small Hungarian and Romni
speaking communities.
Apart from its historically peripheral situation, structural problems are accentuated by an
extreme North-South stretch of 160 km along the former iron curtain. There is a long border
with Hungary, with the northern edge adjacent to Slovakia and the southern edge adjacent to
Slovenia. The geographic situation has caused a North-South divide with a GDP per capita of
–15% and a number of jobs/inhabitant of –30% in the Southern part compared to the North.
The Northern part benefits from its proximity to the Viennese basin without sharing
disadvantages such as traffic congestion or environmental degradation.
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Unemployment rates are similar to the Austrian average, but are higher in the South, where
the situation of women in particular has worsened considerably in recent years. This is mainly
due to the closing down and relocation of labour-intensive industries such as textiles.
The opening of the borders with the accession countries, had various effects on the local
economy. Significantly, despite the potential offered by the Vienna-Bratislava-Budapest axis
and the Western Hungarian industrial towns, Burgenland suffers, according to the SDPP, from
a lack of appropriate transport facilities such as roads and railways, connecting it to the major
European growth regions. Road traffic is increasing noticeably, particularly along the transit
line Budapest – Vienna, (+50% per annum between 1990 and 1997).
The objective 1 area as a whole shows a GDP per capita which is 63% of the European
average, GDP per capita in the southern part is only 53%. 9% of Burgenland’s working
population is active in agriculture or forestry, 12% in the construction sector, 61% in services
an 18% in other industries. Commuting has been a traditional way of life for generations and
61% of the commuters work in Vienna (which is 50km from the Land capital Eisenstadt, and
180 km from Jennersdorf, the most southern district) and many of them stay there during the
week.
Tourism seems to be modest by Austrian standards (1,7% of overnight stays), and in the past
has been mostly concentrated around the Neusiedler See in the North (where there is a border
crossing the National Park with Hungary), but is gaining importance in central and southern
Burgenland, due to investments in a number of new spas. Nowadays 30% of overnight stays
occur in the South, 2/3 of them in the traditional spa resort (Bad Tatzmannsdorf).
This North-South dichotomy in also apparent in agriculture: The northern part is specialised
in cereals and wine, the fields are larger in size and earnings are relatively high. The southern
part features mixed farm and forest land, smaller farms and a higher share of part-time
agriculture (87% compared to 73% in the North). Grassland is in sharp decline in both parts,
due to the discontinuation of cattle-breeding.
To conclude, great parts of middle and southern Burgenland can be classified as rural
peripheral areas isolated from economic markets. The north of Burgenland is a specialised
rural area, with high-yielding cereal and wine production and a traditional tourism resort
around the Neusiedler See – Fertö bilateral National Park. The effects of urbanisation has led
to the emergence of industrial sites around Eisenstadt and along the Vienna-Budapest axis.
1.2 The previous programming period, 1995 – 1999
The objective 1 programme was characterised by a very broad approach to "create a dynamic
central European region" (SDPP p.49) and the objective to diminish the internal (NorthSouth) disparity. The main focus of the programme was on hard investments in order to create
new development areas and new jobs (more than 7.000), but also human resource
development. The first programming period has definitely led to an investment boom, with
specific efforts to develop the southern part, e.g. the border crossing Austro-Hungarian
business park (Heiligenkreuz-Szentgotthard) or the spa and golf resort of Stegersbach.
However, the programming document states that the lack of high grade transport links have
somewhat hampered the effectiveness of these investments.
Technical assistance (preparation and ongoing support for projects ) is provided by the RMB
(Regionalmanagement Burgenland mbH). The RMB cooperates closely with two other
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structures which provide technical assistance, BABBI (Burgenländische Agrar – Beratungsund Betreuungsinitiative for "5b-type projects" funded by the EAGGF Guidance section) and
the AMS (Arbeitsmarktservice, for the ESF-funded objectives 3 and 4). RMB is affiliated to
the WIBAG (Wirtschaftsservice Burgenland AG), a Land-owned enterprise for economic
development, funding and venture capital.
The LEADER II programme was mainly targeted at rural areas in central and southern
Burgenland. Rural towns were not included. Six local action groups and nine collective bodies
were supported by an agency contracted under LEADER, which was based in the district
town of Güssing. Due to their relatively small size, the LAGs had little or no managerial
experience and the agency in Güssing did its best to combine capacity building, identification
and implementation of projects for the 15 groups operating in the area. As many pre-existing
national and regional funding measures were integrated as co-funding instruments into the
European Community initiative, each project had to be approved by different departments at
Land and Federal level, and at times this proved to be a burden.
Burgenland is an area which is eligible in its entirety under INTERREG II. INTERREG
measures have complemented LEADER (and vice-versa), notably in the two border crossing
nature park areas of southern Burgenland. The majority of the LEADER projects (at the end
of 1998 67 projects were recommended for funding) can be regarded as agriculture
diversification measures, or closely linked to agriculture and rural tourism. Here are some
examples:
Collective management practices in logging and cattle-raising
Special farm products (product development, sales on wheels)
Farmers markets
Village renewal activities
Nature park label and product development
Training for nature park guides
Local agritourism information system
Training and sales promotion for wine growers
Renewal of old buildings for new rural dwellers
Partnerships with universities for local research (UNI-mobil)
Building traditional instruments
Cultural activities
A "tobacco road"
Water mill refurbished to hold seminars
Innovation and sustainable use of orchard meadows
Cooperation between restaurants, farmers and private accommodation owners
These activities have been funded on a larger scale, but with a similar focus, as "5b-type
measures" under the objective 1 programme. Thus, the BABBI technical assistance structure,
managed by officials from the regional Chamber of Agriculture, complemented, but at times
also competed with the efforts of the LEADER agency.
Among the "5b – type projects" there was a strong focus on the use of biomass for energy
production (mostly heating). One of the explicit aims of the previous objective 1 programme
was to create a "centre of excellence for renewable energies" in South Burgenland, with two
poles; one in Pinkafeld (combining a technical high school, a technical college specialised in
construction technologies, and a related technology centre) and another in Güssing, where one
of the largest biomass village heating installations in Austria was erected during the
programming period.
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1.3. Changing framework conditions for the new programming period 2000 - 2006
According to the SDPP (p.54):
the experiences of the previous programme show the importance of focusing on a few
clearly-defined strategic objectives. Technical assistance shall be streamlined to create
real "one-stop-shops" for applicants.
training and human resource measures shall be more closely linked.
the promotion of EU funding opportunities shall be strengthened.
although investments in roads and other transport facilities is not included in the new
programming document, a Land master plan for transport is under way and strong efforts
will be made to seek funding especially for faster road links to and within Burgenland.
in relation to the border situation, EU enlargement must be viewed as a major challenge
and a critical task in terms of preparing entrepreneurs and workers for new opportunities
and a more competitive environment.
 the National Action Plan for Employment (NAP) with its four targets: a) Improved
integration of the long-term unemployed, handicapped people and young people in
general; b) Promotion of entrepreneurial spirit and culture; c) Structural adaptation of
employers and employees; and d) Gender equality, will be fully integrated into the new
SDPP.
the reorientation of the CAP under the "Agenda 2000" and the uncertainties facing the
new round of WTO negotiations make it necessary to improve the market orientation and
international competitiveness of agricultural entreprises, to adapt allowance schemes and
funding structures to WTO standards and to integrate environmental targets into them.
1.4 General aims and strategies in the objective 1 programme 2000 – 2006
The overall development aims are:
to consolidate the development of Burgenland to become a modern, central European
region,
 with regard to EU enlargement: To prepare the EUREGIO West/Nyugat Pannonia
(composed of the Burgenland and the Hungarian Komitats Györ-Moson-Sopron) and the
adjacent Slovakian and Slovenian areas to become one economic and living space in the
future.
to reduce intraregional disparities within Burgenland.
These aims will be achieved by
raising Burgenland’s economic productivity.
significantly improving the economic structure in terms of technology and qualifications.
 equal opportunities for men and women.
The proposed means to achieve these aims are:
greater technology orientation.
 greater focus on SMEs and support for new entreprises.
 support for networking and cooperation between enterprises.
 continuing globalisation of the local economy.
the use of advanced technologies for ecological restructuring and a corresponding
positioning of Burgenland’s economy.
Again the programming document refers on the importance of investments to connect
Burgenland to European transport networks (p.56), which will have to be undertaken
alongside the implementation of the objective 1 programme.
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The following targets have been set, some of them have been quantified and others have been
presented in a more general manner:
increasing GDP from 71% to 77% of the EU-average.
 creating or saving 5000 jobs in crafts, industry and tourism, especially in information
technologies and specialised economic services.
creation of 6 centres of excellence for technology transfer.
creation of 700 new enterprises.
 reducing the economic performance gap of the peripheral areas (central and southern
Burgenland) by 4%.
 encouraging private initiatives and investment through public investment.
 increasing the number of high quality beds in tourism by 400. Increasing the number of
overnights stays in health tourism by 4%.
raising women’s participation in employment by 2%.
 protecting natural resources for sustainable social and economic development.
There will be a different thematic focus in each of the nine sub-regions of Burgenland. 6 of
them (4-9) are situated in the rural peripheral central and southern part, some of them are
dispersed (e.g. nr. 6 and 8):
4 Oberpullendorf: Centre of excellence for light metal processing.
5 Lutzmannsburg-Tatzmannsdorf: Spa area to be upgraded with modern facilities.
6 Südburgenland: European centre for renewable energies.
7 Stegersbach-Jennersdorf: Another spa area with golf.
8 Grosspetersdorf-Heiligenkreuz: Industrial sites connected to the automobile cluster and
the axis Graz (AT) – Szentgotthard (H).
9 Lower valley of Pinka and Strem: Agritourism in and around the "Weinidylle" nature
park.
The SDPP mentions five strategies for achieving these goals:
 ensuring competitiveness by linking up to European transport networks.
 preparing for EU enlargement by adapting to structural change (employment,
qualifications...).
networking and marketing.
 Development centres of excellence and activity.
 In relation to rural development and the CAP: Diversification of agricultural and forestry
activities.
With regard to horizontal aspects, the programming document mentions gender equality and
environmental concerns. The document explicitly refers to the "political aims and options for
the EU territory" of the European Spatial Development Concept. (ESDC).
The following sectors have been identified and broken down into measures:
Programme areas
1 Crafts and industries
2 Research, technology and innovation
3 Tourism and Culture
4 Agriculture, Forestry and Nature Conservation
5 Human Resources
6 Technical Assistance and Evaluation
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According to the ex-ante evaluation which is attached to the programming document, the
share of public expenditure (EU, national and Land levels) shows the following changes, in
comparison with the previous period:
1 - 5% for crafts and industries
2 + 0.3% for RTI
3 - 1.7% for tourism and culture
4 - 2.2% for agriculture, forestry and nature conservation
5 + 6.9% for human resources
6 +1.1% for technical assistance
The considerable changes in Nr.5 and 6 notably would suggest that the next period will be
marked by a shift to "soft investments" accompanying, integrating and making more effective
the "hard investments" which were implemented between 1995 and 1999.
Let us now take a closer look at: The compatibility of the objective 1 programme proposal
with the specific features and requirements of the LEADER+ programme.
2) Specific features of LEADER in the mainstream programme
In the SDPP, the last of the five general aims highlights the diversification of agricultural and
forestry activities as "supporting measures" to the CAP (SDPP p.78).
Rural development is highlighted under area 4 (p.80; agriculture and forestry and nature
conservation) which covers Article 33 measures. Area 4 is divided into 3 chapters:
1 Agriculture and forestry: This chapter outlines the strategy, focussing on environmentally
sound production (referring to both integrated and organic production methods), vertical
and horizontal integration and technical assistance.
2 Rural development – diversification, nature conservation: This chapter is subdivided into
the two components (diversification and nature conservation) and it is only the
diversification chapter which makes explicit reference to Article 33 of EC regulation
1257/99.
3 Fishery and aquaculture (new in this programming period).
In the next section we will examine the extent to which the seven so-called "specific features
of the LEADER approach" have been introduced into the "mainstream" programme, by not
only referring to the very limited chapter 2 of sector 4 (which is only two pages long), but the
programme as a whole.
The area based approach
As described above, the programming document refers to nine sub-regions with different
development approaches and hence, perspectives. However, the distinctions seem to
follow on from the investments made in the recent past rather than guide investments
towards the specific features of the areas themselves. The distinctions stem from "pilot
investment projects" such as the spa resorts around Stegersbach and Jennersdorf and the
border crossing business park of Heiligenkreuz-Szentgotthard. We can say that the
regional differentiation is at least partially based on criteria not typical of the LEADER
approach.
In the chapter entitled "effects of past regional policies" (SDPP p.47) the document makes
reference to the specific Austrian type of "endogenous regional development" which was
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introduced during the 1980’s and which is seen as a predecessor of the LEADER
approach. It was originally designed for rural peripheral areas threatened with
depopulation. Furthermore, the text refers to the "classical instrument of investment
funding" which was applied simultaneously with the endogenous development approach,
and to the shift to technology and innovation orientation, accompanied by increasing
globalisation efforts, during the 1990’s (p.48). The historical reference to "endogenous
regional development" is not repeated further on in the programming document. Without
stating it explicitly, it is presumedly the last "trend" (technology and innovation) which
influences its strategic orientation.
Under area 4 (agriculture...) we can identify a strategic distinction between North
Burgenland, where the focus on intensification and specialisation (cereals, wine) will be
maintained, whereas the central and southern parts are considered too weak to compete
with European production structures. The declining population in these peripheral areas is
another concern which leads to the conclusion that local value-added links have to be
developed by integrating agricultural and non-agricultural activities and services.
The nature conservation section refers to production methods compatible with protected
areas, which is particularly important in areas close to the national park and nature park,
where infrastructures, special limited cultivation methods, marketing of local products etc.
will be eligible.
The bottom-up approach
The programme proposal was developed by five working groups (one for each sector)
over the course of 20 meetings, held between June 1998 and September 1999. They
included officials of government departments, social and institutional partners and
experts. The WIBAG participated in each group, with the exception of the group for
sector 4, which was composed of the agricultural department of the Land government, the
agricultural chamber and a representative from the national Ministry. According to the
SDPP (p.116), other Land government departments have been consulted on a regular
basis.
The only explicit reference to a “bottom-up” approach in the programme document is the
SME symposium, held on 1 July 1999, where entrepreneurs had the opportunity to express
their wishes and concerns in various workshops.
The general public was informed shortly after finalisation of the programme proposal
(media, Internet etc.).
With regard to the programme targets and measures themselves, no reference to a
“bottom-up” approach is made.
The partnership approach
The programme is based on a partnership between governmental and non-governmental
institutions at the Land level, as well as close links with national Ministries.
According to the interim evaluation report, the experiences of LEADER II at local level,
showed that the chosen territorial units did not allow for operational, self-sustaining
structures. The evaluators even recommend that new operational units be formed, with a
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transition to „thematic collective actors“ (p.87 of the interim evaluation report 1998).
Whilst the local action groups were mainly made up of municipal associations, the
collective actors consisted of agricultural or tourism associations already existing in
central or southern Burgenland. Unofficial sources say that these structures will be altered
to create a broader and less restricted area operating base for local partnerships.
However, there is no political or organisational discussion about development
partnerships, with the exception of area 5 (human resources), which stipulates territorial
employment pacts under measure 5.1: "avoiding unemployment". The call for territorial
pacts follows the national action plan for employment (NAP) and the objective 3
programme, which is referred to (p.35 of the complementary planning document).
Interestingly enough, five of the seven LEADER specific features are referred to in 5
lines:
"..(the measures) are multisectorial and global and they are based on the explicit
consent of all the partners to the concept as a whole and to every single step. The
project decisions shall be taken - whenever possible - according to the bottom-up
principle, they are always oriented towards partnership and they shall incorporate an
innovative character for the respective area."
However the location and types of arrangements for territorial pacts are not defined as yet.
The two indicators mentioned refer only to an increase of the input efficiency and
sustainability (p.37 of the ComPD).
Area 5 also mentions the support of "local employment initiatives" (p.36) and their
potential to create new jobs and new businesses, and finally to improve "the quality of the
location within the respective area". These initiatives are not described in more detail.
The innovation approach
There is a strong emphasis on innovation, in relation to research and technology (see title
of area 2). SMEs shall be given support to facilitate innovation (p.79 of the SDPP),
particularly through technical assistance, training, pilot projects and provision of risk
capital. Technology and centres of excellence (concentrating on the "strong points" of
telecommunication and energy technology), business incubators and start-up assistance
are planned, along with further internationalisation, production and marketing networks,
links with technical colleges (existing and new ones) and investment by external firms, "in
order to increase the share of enterprises in Burgenland acting on a greater scale".
Innovation is also referred to in the rural development chapter, but not in any great detail.
"Restructuring, innovation and cooperation in the agricultural and para-agricultural
sphere" (general targets under chapter 4.2. rural development – diversification, nature
conservation; p.30 of the ComPD).
The multisectorial approach
While the entire programming document is founded on a sectorial approach, in chapter 2
of area 4, rural development is "embedded" in the agricultural sector. Of course, rural
development goes beyond sectorial limits, and this can be seen in the general aims of area
4, where the document stipulates a "targeted development of the rural area" (p.95 of the
SDPP).
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These linkages are mentioned in the sectorial part (chapter 4.1), when it refers to a "strive
for quality" and "nearness to nature" (p.96) which must be viewed in terms of linkages
with health tourism and in terms of environmental protection (chapter 4.3).
Of course, rural development and more spatial references are made in the diversification
section of chapter 4.2, e.g. "new forms of organisation of horizontal cooperation”,
possibly going towards vertical cooperation, to "production partnerships with tourism,
leisure economy and processing industries"; "income alternatives from production and
exploitation of renewable resources, e.g. by energetic use within and outside agriculture or
as a basis for industrial production" (p.98).
However, these traces of multisectoriality are limited by the target indicators in the
ComPD: the number of beneficiaries will amount to 5 000 persons, of whom 4 000 will be
farmers and 2 000 of those will be full-time farmers (almost half of all full-time farmers
currently in Burgenland). Around half of the beneficiary farms will be situated in
disadvantaged areas or areas with restrictions due to nature protection measures.
For measure 4.2. the total budget amounts to EUR 61,77 million. If we presume an equal
distribution between the future beneficiaries, we calculate 20% of that amount (EUR
12,354million) for non-agricultural beneficiaries in rural areas (approximately EUR 100
per inhabitant of southern and central Burgenland, presuming that 85% are not active
farmers).
The networking and transnational cooperation approach
Networking and transnational cooperation is a strong pillar of the first programme area:
"An essential strategic focus is the intensification of the international orientation of
Burgenland’s economy" e.g. by supporting SMEs in "cooperative marketing efforts" and
"in their search for partners even across frontiers" (SDPP p.79).
Apart from political aims (towards the vision of a central European economic area) and
the above-mentioned business approach, there is no reference to networking regions,
either urban or rural.
New ways of financing
There has been no financial autonomy or partial autonomy of collective actors or
LEADER action groups below the Land government level, which retained the power to
decide about funding for individual projects. The RMB and the LEADER agency played
an important role in the preparation, ongoing assistance and pre-selection of projects.
Management structures of the LAGs were either non-existent or very basic. In nature park
areas the RMB provided a manager for the local groups for the implementation of
INTERREG-funded projects.
A change away from a centralised approach is not anticipated in the new
period.
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3) Links and complementary features with LEADER+, EQUAL or other Community
Initiatives
3.1 Links to LEADER
Area 6. Technical assistance and evaluation stresses the importance of an extension and
intensification of support in information and implementation. The RMB will complement its
information network by BIC, EUREGIO and finally LEADER action groups to actively
involve more people in all parts of Burgenland. The LEADER agency in Güssing shall
become the third additional information centre apart from the offices in Eisenstadt and
Oberwart (p.50 of the ComPD).
The rural development chapter (4.2.) does not make any reference to LEADER.
3.2 Links to EQUAL and to other community initiatives
The targets and measures of area 5 are repeatedly set in relation to the national action plan for
employment and the objective 3 programme, as well as to EQUAL and the future territorial
pacts which will be implemented "in parts of Burgenland". To "concentrate funding efforts"
the community initiative EQUAL will focus on people "removed from the labour market"
(p.38 of the complementary PD).
There is no explicit reference to either URBAN nor INTERREG, although the latter will serve
as the main instrument for forging the EUREGIO West/Nyugat Pannonia in terms of
institution building, infrastructure, environmental protection and business development. In the
INTERREG II period many hard and soft investments have been concentrated in the AustroHungarian national park Neusiedler See – Fertö (IUCN II) and the two border crossing nature
parks in South Burgenland.
4) Institutional mechanisms
The department for European affairs and statistics, directly affiliated to the Land governor of
Burgenland, plays the coordinating role in close cooperation with the national funding
authorities and other departments on the Land level. This department also acts as a monitoring
unit. It organises separate coordination meetings for each fund (EAGGF-Guidance, ERDF,
ESF) with the participation of the respective national ministries, the social partners and Land
government representatives and with the occasional support of experts. Following
examination and approbation of the proposed projects, the coordination committee
recommends them to the funding authorities. As a practical arrangement and in order to save
time and costs, committee meetings are held on the same day for Objective 1, LEADER and
INTERREG.
The Land government department for financial administration and accounting is responsible
for the reimbursements, acting in close cooperation with the coordinating administration.
The often complicated combination of national funding measures for co-financing the EC
contributions within the framework of the SDPP, has contributed to a high level of
administration and to delays in approval and funding. This shall be improved by streamlining
national co-financing and more anticipative coordination in the next period.
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Contact :
SCHLÖGL Franz
LEADER-Kordinationsbüro Güssing
Hauptplatz 7/2
A - 7540 GÜSSING
Tel: +43/3322/44190
Fax: +43/3322/44190-4
E-mail: office@leaderguess.co.at
Written by Robert Lukesch – January 2000
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