Dr. Rob Greenwood

Rural and Regional Development in Newfoundland and Labrador: Emerging Challenges and Opportunities

Presentation to Newfoundland and Labrador Credit Unions’ Director Conference

D R b G d

Dr. Rob Greenwood

Gander, May 28, 2009

Outline Outline

• Defining Rural

• Defining Development

• Geography Matters

• Integrated Approach

• Community Capital

• Organizational Capacity

• Organizational Capacity

• Harris Centre & Knowledge Mobilization

• Opportunities for Collaboration Opportunities for Collaboration

¾ The Population Project

¾ Rural-Urban Interaction in NL

¾ Other?!

There are 4 “Rurals” (at least!)

1.Rural Adjacent (mixed economy; daily commuting to urban)

2.Rural Non-Adjacent (mostly primary resource)

3 R ral Remote (mostl single ind str 3.Rural Remote (mostly single industry,

northern; aboriginal)

4 Rural Amenity (cottage country retirement 4.Rural Amenity (cottage country, retirement

communities, resorts)

CANADA RANKS IN THE MIDDLE OF OECD

COUNTRIES IN TERMS OF SHARE OF POPULATION IN

Norway Turkey

COUNTRIES IN TERMS OF SHARE OF POPULATION IN PREDOMINANTLTY RURAL REGIONS

Austria Greece Finland Ireland New Zealand Sweden

France CANADA Iceland Portugal United States Austria

Italy Switzerland Czech Republic Spain Japan Australia

Luxembourg Netherlands United Kingdom Belgium Germany y

0 10 20 30 40 50 60 70

Share of total population in predominantly rural regions, 1991

Source: OECD. 1996. TERRITORIAL INDICATORS OF EMPLOYMENT: FOCUSING ON RURAL DEVELOPMENT (Paris: OECD), Table 1.1 Canadian data are based on 1986 census division boundaries.

In 2006, 19% of Canadians lived in rural d ll t

CANADA

and small town areas

Yukon Northwest Territories Nunavut

Saskatchewan Alberta British Columbia Yukon

2006 2001 1996

New Brunswick Quebec Ontario

Manitoba 1996

1991 1986

Newfoundland & Labrador Prince Edward Island Nova Scotia New Brunswick

0 10 20 30 40 50 60 70 80 90 100

Rural and small town as percent of total population

Source: Statistics Canada. Census of Population, 1986 to 2006.

Rural and small town refers to the population outside Census Metropolitan Areas (CMAs) and outside Census Agglomerations (CAs).

1996 Classifications

Census Metropolitan Areas Census Agglomerations

Non Census Metropolitan/Census Agglomeration Areas Rural and small town areas

Metropolitan influence zones in Canada

Larger Urban Centres

(showing Metropolitan Influenced Zones (MIZ))

Rural and Small Town areas

Census Metropolitan Areas (CMAs) (urban core of 100,000 or more) Census Agglomerations (CAs) (urban core of 50,000 to 99,999) Census Agglomerations (CAs) (urban core of 10,000 to 49,999)

Strong MIZ Moderate MIZ Weak MIZ No MIZ Territories

(showing Metropolitan Influenced Zones (MIZ))

B

Source: Statistics Canada. Census of Population, 2001. Map produced by Spatial Analysis and Geomatics Applications (SAGA), Agriculture Division, Statistics Canada, 2004

A

A

B

CMAs grow more than CAs and rural

10 Percent change in

g

6 8

10 Percent change in total population,

2001 to 2006

2 4 6

-2 0 2

CMAs CAs All RST

areas

Strong MIZ Moderate MIZ

Weak MIZ No MIZ RST Territories

Larger urban centres Rural and small town (RST) areas

Source: Statistics Canada, Census of Population, 1986 - 2006. Data are tabulated within constant boundaries.

Census Metropolitan Areas (CMAs) have total population of 100,000 or more with 50,000 or more in the urban core and includes all neighbouring towns and municipalities where 50 percent or more of the workforce commutes to the urban core. Census Agglomerations (CAs) have 10,000 to 49,999 in the urban core and includes all neighbouring towns and municipalities where 50 percent or more of the workforce commutes to the urban core. Metropolitan Influenced Zones (MIZ) are assigned on the basis of the share of the workforce that commutes to any CMA or CA (Strong MIZ: 30 to 49 percent; Moderate MIZ: 5 to 29 percent; Weak MIZ: 1 to 5 percent; No MIZ: no commuters).

In the 1980s and 1990s one third of Canada’s rural areas were “dynamic”

United Kingdom

rural areas were dynamic

Ireland Spain Germany Belgium United Kingdom

CANADA Switzerland New Zealand Czech Republic Australia

Greece Sweden France Austria Norway

Japan Netherlands Finland United States

0 10 20 30 40 50 60 70 80 90 100

Percent of predominantly rural regions with employment growth above the national average (i.e. "dynamic" regions)

Source: OECD. 1996. TERRITORIAL INDICATORS OF EMPLOYMENT: FOCUSING ON RURAL DEVELOPMENT (Paris: OECD), Table 2.

Rural Development: Definitions Rural Development: Definitions

• Sectoral Development (agriculture fishery

• Sectoral Development (agriculture, fishery, forestry, etc.)

• Diversification (1) building on primary sectors: Diversification (1) building on primary sectors:

capturing linkages (upstream and downstream)

• Diversification (2) into new sectors (tourism, non-resource based manufacturing, “new-

economy”)

• Capacity building (human resources

• Capacity building (human resources,

organizational capabilities)

D l Li k

Development as Linkages

• Direct Linkages

¾ Forward Linkages: "down stream" further processing / value added

processing / value added

¾ Backward Linkages: "upstream" infrastructure, capital goods and producer services

• Indirect Linkages

¾Final Demand Linkages: local consumption and fiscal gains supports traditional services

fiscal gains supports traditional services

¾Fiscal gains allow re-investment in human

resources and infrastructure

Development as Linkages:

G h D l

Growth vs. Development

• Continued Dependence / Vulnerability unless

Linkages from Resource Exploitation are Captured by Rural Areas

Di ifi ti f R V l bl

• Diversification away from Resources Vulnerable unless linkages between Sectors and Firms are Captured

• New form of Staples Trap? High Value Unprocessed

Raw Materials – why capture linkages?

Development as Linkages:

G h M

Geography Matters

Linkages occur within a region and to outside:

Linkages occur within a region and to outside:

• Between buyers and suppliers Between buyers and suppliers

• Where entrepreneurs can meet and share ideas

• Where employees develop skills that add value p y p

• Where specialized infrastructure can meet the needs of the industry:

¾ Required transportation infrastructure

¾ Information Technology supports

¾ Education & Training linkages

¾ Research & Development outreach

z Establish linkages from the region to outside firms, markets, partners

¾ Transportation (Access and Cost) is critical

Clusters: Network Hubs and Business Networks

Business Networks

SME

Educational SME

Institutions Crown

Network Broker

BUSINESS NETWORKS SME

SME SME

SME

NETWORK Financial

Institutions

Institutions

Corporations

Business

A i ti NETWORKS

Co-operation and Collaboration for Competitiveness SME

SME

HUBS Basis of Regional Competitive Advantage Scientific &

Technical Institutions

Associations

Business and

Entrepreneurship C p

SME

SME

SME

Government Agencies

Entrepreneurship Centres Unions

Major Firms

Network

Broker

Cl t h i i

Clusters happen in regions

• Rural producers need to know how they fit in the supply chain

• Need access to urban upstream and downstream infrastructure, services, supplies and customers , , pp

• People live in regions: urban has things rural doesn’t (and vice versa!)

Public policy and governance need to reflect rural urban

• Public policy and governance need to reflect rural-urban

inter-dependence: they don’t

Linking Regional Strategies with E t l O t iti

External Opportunities

Support:

Entrepreneurship New Firm Creation E i i Fi

Develop Regional Infrastructure and Identify

Regional

Existing Firm Expansion Human Resources

Strengths

Creation of Regional Competitive

Advantage

Develop Information

Identify Prospective Investors, Markets

Match Region with Outside

Base and Technology Opportunities

Community Capital

An Integrated Approach:

Linkages between Economic, Social and g , Environmental

• Many types of Community Capital – assets to build on

¾ Natural Capital: resources, ecological supports, quality of life benefits

¾ Built Capital: buildings equipment infrastructure

¾ Built Capital: buildings, equipment, infrastructure, information

¾ Human Capital: skills, education, health

¾ Social Capital: family, neighbours, community, governance

z Sustainable Development requires an Integrated

Approach, understanding and developing all forms of capital

z Community Capacity is the ability to use your assets: do you have the governance tools?

cap ta

The New Regional Economic Development The New Regional Economic Development

Environmental / Resource Stewardship

Infrastructure Development

Strategic

Economic Planning Regional

Economic

Stewardship

Public Participation

R h d

Economic Development

Board

p and

Community Education

Research and Development

Human

Resource Entrepreneurial Business

Resource

Development Development Investment

Organizational Structures for Rural / Regional Development

• Fiscal Resources

• Human Resources

• Leadership

• Skilled Staff

• Community Participation Community Participation

• Legal Authority

• Local Democratic Accountability/Legitimacy

• Geographic Area

• Time

Political Power P liti l Will vs. Political Will

Political Power Federal

Regional Provincial

Political Will g

Political Will

Denzil Doyle

Specialized Knowledge g vs. Local Knowledge

Specialized Knowledge p g

Federal

Regional Provincial

Local Knowledge g

Local Knowledge

N & L Rural Sustainability Challenges N & L Rural Sustainability Challenges

• Primary Resource Industry Restructuring

• Challenging Climates / Impact of Climate Change?

O t Mi ti / A i P l ti / D i F tilit

• Out Migration / Aging Population / Dropping Fertility Rates

• Dispersed Population / Remote from Markets / Dispersed Population / Remote from Markets / Transportation Challenges / Fuel Costs

• Urban “disconnect” from Rural

• Slash and Burn Culture / Non-existent Land Use Planning

• Sustainability / Continuity of Vision Strategies

• Sustainability / Continuity of Vision, Strategies

N & L Rural Sustainability Strengths / Opportunities

• Authenticity / Culture

• Rural-Urban Linkages

• Atlantic Gateway?

• Immigration / Guest Workers?

• Immigration / Guest Workers?

• North Atlantic Partnerships

• Maturing municipal sector

¾ Integrated Community Sustainability Plans

¾ Regional Cooperation / MNL-NLREDA MOU

• Collaboration Collaboration

¾ Public Policy & Governance

¾ Sectors: Primary Sectors, Manufacturing,Tourism/Culture / Heritage g

¾ Universities & Colleges

Harris Centre Mandate Harris Centre Mandate

• Established October 2004

• Coordinate and Facilitate the University’s Activities Relating to Regional Policy and Development

Development

• Advise on Building the University’s Capacity

• Identify Priority Themes and Projects relating tto:

• Teaching

• Research

• Outreach

• Emerging role: Honest Broker

Harris Centre Values Harris Centre Values

The Harris Centre

aspires to live up to the reputation of Leslie

reputation of Leslie

Harris, in whose honour the Centre is named:

• Integrity

• Independence

• Transparency p y

• Collaboration

• Practical Application

Knowledge Mobilization:

Knowledge Mobilization:

Harris Centre Perspective

• What is Knowledge Mobilization? What is Knowledge Mobilization?

• Collaboration in knowledge production and sharingg

• Engage stakeholders to define issues / needs / opportunities; pp

• Involve partners in knowledge generation;

• Ground-truth findings to inform conclusions; g ;

• Dissemination / application have many

champions… p

Harris Centre Harris Centre

Knowledge Mobilization Programs and Initiatives

• Public Presentations

• Invitation-only Sessions

• Targeted Research Funding

• Knowledge Exchange

• Packaging Research to Meet Needs

• Regional Workshops

• New Opportunity Identification: “one-pagers”

• On-line Inventory

¾ Yaffle.ca

The Population Project:

Newfoundland and Labrador in Transition Newfoundland and Labrador in Transition

• Population Change Impacts

• Access to Labour: large projects, knowledge workers, health sector, succession planning, immigration & guest workers

& ff

• Health & Family: long-distance commuting, effects on families, quality of life, spending patterns

• Community: rural sustainability, volunteer burn out,

i b t i h d

growing gap between rich and poor

• Governance: national political influence, municipal sustainability

• Umbrella project; Private Sector Funding

Rural-Urban Interaction in NL: Understanding

d M i F ti l R i

and Managing Functional Regions

• Identify and map (GIS) linkages between

communities in “regions”, particularly urban and rural relationships

rural relationships

• Assess governance mechanisms used to manage these relationships, identify gaps, investigate

alternatives alternatives

• Assess the contribution of community linkages to sustainability and create a “regional development capacity index”

capacity index

• Knowledge Mobilization: collaboration,

communication, application

Population Pyramid Characteristics

D Al i Si D t f G h M i l

Dr. Alvin Simms, Dept. of Geography, Memorial

Functional Regions: Labour Centres

D Al i Si D t f G h M i l

Dr. Alvin Simms, Dept. of Geography, Memorial

Journey to Work Patterns y

Dr. Alvin Simms, Dept. of Geography, Memorial

Industry Concentration Index y

Dr. Alvin Simms, Dept. of Geography, Memorial

Employment Dependency Index Employment Dependency Index

Dr. Alvin Simms, Dept. of Geography, Memorial

C l i

Conclusions:

• Non-resource economic opportunities critical to supporting resource sector

G

• Economic Development ≠ Population Growth

¾ Productivity gains essential

• Development still requires wealth creation

¾ Propulsive industries: exports p p

• Community Capital: Utilize all Assets

Conclusions: Local & Regional O i ti N d t C ll b t Organizations Need to Collaborate

• Pool Organizational Capacities within Regions

¾ Improve Rural – Urban Governance Tools

Cl if R l d R l ti hi

• Clarify Roles and Relationships

• Establish Common Vision

• Evidence-based Strategic Planning Evidence-based Strategic Planning

• Build Trust

• Run with Champions p

• Tap into outside resources: governments, university, college, industry associations (on tap not on top!)

tap, not on top!)

We Have So Much To Work With We Have So Much To Work With…

• We have a distinctive culture, authentic places, and a shared sense of identityy

• We are part of the best country in the world

• We can build capacity within our province and We can build capacity within our province and create partnerships outside

• The world needs more of Newfoundland and

Labrador

Thank You!

Thank You!

• Comments? Comments?

Questions?

• Questions?

• Opportunities?

robg@mun.ca

www.mun.ca/harriscentre

Yaffle.ca