Case Studies Introduction Delivering SME policies in remote areas of the EU: from good practices to more effective development models By Claudio Cappellini Spokesman of "SMEs, Crafts and Professions" Category of the EESC 7 th May 2010 Kempinski Hotel, Gozo (Malta) European Economic and Social Committee Various Interests Group (III)
Index 1. SMEs as key actor for the improvement of rural area inclusion and cohesion. 2. Less-favored areas in EU-27. 3. Mountain areas data. 4. Rural areas data. 5. Community support for rural development 6. Focus on EU information society policies and SMEs. 7. Internet infrastructure. 8. Growth in DSL rural coverage. 9. Some e-inclusion critical factors. 10. Sustainability of Public-Private Partnerships (PPPs) in deploying e- services in the rural areas 11. Possible solutions of the problem on the common policy level. 12. Some EESC Opinions on this topic. 2
SMEs might be a key to the improvement of remote/mountainous areas social and economic inclusion since: SMEs are more acquainted with the demand-supply situation in the localities, and are eager to solve problems in the most effective way; Are both actors of services market in the vulnerable areas, but may act as mediator between the authorities and local populations in order to improve the understanding of the local needs and their satisfaction; Due to their scale SMEs apply individual approach to the problem solving and satisfaction of local demand which is crucial for the remote/mountainous areas since the situation varies from region to region with their specific features. 3
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Mountain areas In 2002 in the 15 Member States, mountain municipalities cover 39.9% of the area and have 17.8% of the population, for the 12 acceding and accession countries the figures are 22.4% and 17.6% respectively, and for Norway and Switzerland 91.3% and 76.2%. With regard to medical, education services lack of easy physical access is often compounded by the fact that populations are small and spread over relatively large areas. To gain university-level education, the brightest young people have nearly always had to leave their home region. New information and communications technologies (ICT) are mitigating against this aspect of peripherality. Data from the final report on Mountain Areas in Europe: Analysis of mountain areas in EU member states, acceding and other European countries, January 2004 5
Rural areas In the EU-27 rural areas (predominantly rural and intermediate regions) represented 90% of the territory and 56% of the population in 2006. Even if economic activity tends to be concentrated in more urban areas, rural areas generate 43% of the Gross Value Added (GVA) in EU-27 and provide 55% of the employment, these shares being larger in the new Member States (70% and 79% respectively). The employment rate is slightly lower in rural areas for EU-27 as a whole (64.8% in predominantly rural areas against 66.5% for all areas in 2007). Data from the report on Rural Development in the EU, 2009 6
The Source: report on Rural Development in the EU, 2009 7
Focus on EU information society policies and SMEs: ensure that as markets and technology are changing fast, nobody is excluded from the digital society (Neelie Kroes) deliver sustainable economic and social benefits from a Digital Single Market based on fast and ultra fast internet and interoperable applications, with broadband access for all by 2013; access for all to much higher internet speeds (30 Mbps or above) by 2020, and 50% or more of European households subscribing to internet connections above 100 Mbps.( Europe 2020 Communication) ensure to the consumers in remote and rural areas or those on a low income access and use of basic telecom services (EU Universal Services Obligation) 8
The Source: report on Rural Development in the EU, 2009 9
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Some e-inclusion critical factors: Rural area - 23% of people in rural areas do not have access to fixed broadband networks. Vulnerable groups - only 10% of people over 65 in Europe use the internet. (http://ec.europa.eu/information_society/activities/einclusion/docs/ageing/cip_projects.pdf) Digital literacy - Significant gaps remained between the EU-27 average population (59% have minimum digital literacy level) and some groups, notably people older than 65 (only 17% digitally literate), economically inactive (27% digitally literate), with low education (35%) (Europe's Digital Competitiveness Report, Brussels, 04.08.2009, SEC(2009) 1103) Efficiency the existing infrastructure might not function efficiently or that it is equally accessible to all the appropriate social groups. Improvements can be 11 achieved by informing people and applying e-learning
Sustainability of Public-Private Partnerships (PPPs) in deploying e-services in the rural areas: 1. Share benefits and risks of both sectors. 2. Improve cost-effectiveness of the projects funded. 3. Increase investment in public infrastructure in order to deliver the e-services. 4. Reduce public sector risk by transferring to the private partner those risks that can be better managed by the private partner. 5. Deliver capital projects faster, making use of the private partner s increased flexibility and access to resources. 6. Increase the accessibility of public sectors to the services provided. 12
Possible solutions of the problem on the common policy level: Mixed financing of the projects; Involvement of small enterprises in the PPP in the field of e-services; Monitoring the effectiveness of universal services obligations in particular in e-services in remote areas of the EU; Concentrating aid/support on rural/remote areas and vulnerable groups of the societies both on national/regional and European levels; Support national and local digital inclusion projects as well as the micro-projects of communities and organisations that assist people experiencing difficulties in grasping technology tools. 13
Some EESC Opinions on this topic 1.Opinion of EESC on The Internet Of Things TEN/342, Mr Retureau. 2. Opinion of EESC on Advancing the Internet TEN/351, Mr McDonogh. 3. Opinion of EESC on Ideas on the universal electronic communications service TEN/353, Mr Hencks 4. Opinion of EESC on Telemedicine TEN/378, Mr Bouis. 5. Opinion of EESC on Internet of Things An Action plan for Europe TEN/407, Mr Rudzikas. 6. Opinion of EESC on Interoperability solutions for European public administrations (ISA) TEN/361, Mr Pezzini. 7.Opinion of EESC on Electronic communications networks TEN/327-329, Mr Hernández Bataller.