1

The New Rural Economy Project: 1997-2006

The New Rural Economy Project: 1997-2006

Bill ReimerBill Reimerbill.reimer@concordia.cabill.reimer@concordia.ca

nre.concordia.canre.concordia.ca2006/10/272006/10/27

Tom Beckley

David Bruce

Omer Chouinard

Ivan Emke

Greg Halseth

Bruno Jean

Patrice LeBlanc

Dianne Looker

Diane Martz

Solange Nadeau

John Parkins

Steve Plante

Doug Ramsey

Richard Stedman

Ellen Wall

Derek Wilkinson

Anna Woodrow

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Making research work for youMaking research work for you

•What’s exciting and/or useful?What’s exciting and/or useful? What’s not?What’s not?

•What’s clear?What’s clear? What’s not?What’s not?

•What’s missing?What’s missing?

•How can we improve?How can we improve?

•What do you need to know?What do you need to know?

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What are the differences between the old and new economies?

What are the differences between the old and new economies?

Old EconomyOld Economy

• Homogeneous cultureHomogeneous culture

• Low knowledge Low knowledge demandsdemands

• Resource commoditiesResource commodities

• Simple and repetitiveSimple and repetitive

• Low mobilityLow mobility

• Local relations Local relations importantimportant

New EconomyNew Economy

• Diverse culturesDiverse cultures

• High knowledge High knowledge demandsdemands

• Services and amenitiesServices and amenities

• ComplexComplex

• High mobilityHigh mobility

• External relations External relations importantimportant

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How can rural Canada (re)vitalize?

How can rural Canada (re)vitalize?

• Identify the conditions that have Identify the conditions that have contributed to devitalizationcontributed to devitalization

•Organize assets and resources to do the Organize assets and resources to do the things considered importantthings considered important

This ability to organize is:

Capacity

Capacity transforms assets into valued outcomes

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ASSETS and LIABILITIES

•Economic Capital•Human Skills and Abilities•Social Capital•Natural Resources

OUTCOMES•Economic wealth•Social and political inclusion•Social Cohesion •Environmental security•Social and self-worth•Health•Personal Security

outcomes can become outcomes can become new assets and new assets and

liabilitiesliabilities

PROCESSES

Market

Bureaucratic

Associative

Communal

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Market

Associative Commun

al

R ob sonE con om ic

Jon esS oc ia l

P o lsonP o lit ica l

S m ithP res id en t

Bureaucratic

Normative SystemsNormative Systems

Market-based:Contractual, short-term, supply and demand

E.g. commerce, labour, housing, trade

Bureaucratic-based:Rationalized roles, principles

E.g. government, law, corporations

Associative-based:Shared interests

E.g. recreation, charity, religious groups

Communal-based:Generalized reciprocity, identity, birthE.g. families, cultural groups, gangs

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Cap-à-l’aigleCap-à-l’aigle

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The NRE Sample FrameThe NRE Sample FrameLow CapacityHigh Capacity

LagLeadLagLead

Distant

Adjac.

Distant

Adjac.

Distant

Adjac.

Distant

Adjac.

Local Exposed

Stable

Fluctu-ating

Stable

56169915

45710012

1351612

9454

3018165

198264

4412413251

154627175Fluctu-ating

Global Exposed

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NRE…The Rural ObservatoryNRE…The Rural Observatory

…an International

Network

…an International

Network

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General Observations - 1General Observations - 1

• Rural Canada is diverseRural Canada is diverse

• Primary industries are shedding labourPrimary industries are shedding labour

• Manufacturing and services competitiveManufacturing and services competitive

• Environment more importantEnvironment more important

• Knowledge-intensive employment growingKnowledge-intensive employment growing

• Communication and transportation price fallingCommunication and transportation price falling

• Youth leaving, families returningYouth leaving, families returning

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General Observations - 2General Observations - 2

• Industry has concentratedIndustry has concentrated

•Government services more centralizedGovernment services more centralized

•Rural aging fastestRural aging fastest

•Rural perceived as safeRural perceived as safe

• Immigration strongImmigration strong

•Rural and urban Canada are interdependentRural and urban Canada are interdependent• Social capital is criticalSocial capital is critical

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Social CapitalSocial Capital

•Social capital is as important as human Social capital is as important as human capital for key economic outcomescapital for key economic outcomes

•Social capital is organized in different Social capital is organized in different normative systemsnormative systems

•Social capital most often used in Social capital most often used in combinationcombination

•Available social capital is not always usedAvailable social capital is not always used

• Impacts of social capital vary by contextImpacts of social capital vary by context

Relationships, networks, and associated Relationships, networks, and associated norms that facilitate collective actionnorms that facilitate collective action

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Social CohesionSocial Cohesion

•Perception and behavior-related social Perception and behavior-related social cohesion are not highly correlatedcohesion are not highly correlated

•Relational types of social cohesion matterRelational types of social cohesion matter

•Social cohesion can mitigate economic Social cohesion can mitigate economic challengeschallenges

•Social cohesion is not always under local Social cohesion is not always under local controlcontrol

The extent to which people respond The extent to which people respond collectively to achieve their valued outcomescollectively to achieve their valued outcomes

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The Informal EconomyThe Informal Economy

•Supports the formal economySupports the formal economy

•Primarily used by middle income peoplePrimarily used by middle income people

•Strongly genderedStrongly gendered Women participate moreWomen participate more Self-employment of women increases their Self-employment of women increases their

burden but decreases it for menburden but decreases it for men But only for rural women – not for urban womenBut only for rural women – not for urban women

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ServicesServices

•Service needs and delivery changingService needs and delivery changing Reducing and RegionalizingReducing and Regionalizing Population shiftsPopulation shifts Financial supports changingFinancial supports changing

•How have communities responded?How have communities responded? CommunicationCommunication FinancesFinances PartnershipsPartnerships OrganizationOrganization

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CommunicationsCommunications

•Cost of communication and transportation Cost of communication and transportation fallingfalling

•Presence of media doesn’t mean they are Presence of media doesn’t mean they are usedused

•Locally-oriented communication remains Locally-oriented communication remains importantimportant

•Communication requires multiple venuesCommunication requires multiple venues

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GovernanceGovernance

•Local governance is more than governmentLocal governance is more than government

•New governance = sharing of power, New governance = sharing of power, authority, information among municipal, authority, information among municipal, private, civic sectorsprivate, civic sectors

•Leading sites:Leading sites: Innovative reorganization of assetsInnovative reorganization of assets Multiple uses of assets, multiple outcomesMultiple uses of assets, multiple outcomes

•Local recognition of value of NGOsLocal recognition of value of NGOs

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Environment and Natural ResourcesEnvironment and Natural Resources

•Resource and land entitlements changingResource and land entitlements changing

•Capacity in new conditions is challengingCapacity in new conditions is challenging

•External forces are dominantExternal forces are dominant

•Unit of analysis is criticalUnit of analysis is critical

•Multiple ways to develop capacityMultiple ways to develop capacity

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Building CapacityBuilding Capacity

•Capacity comes in many formsCapacity comes in many forms•Available social capital is underutilizedAvailable social capital is underutilized•Modern technologies provide useful tools Modern technologies provide useful tools

(but they need supports to build capacity)(but they need supports to build capacity)•Government, private, civic sector alliances Government, private, civic sector alliances

strengthen local capacitystrengthen local capacity•Service innovations help, but volunteer Service innovations help, but volunteer

sector has limited capacitysector has limited capacity•Context mattersContext matters

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The New Rural Economy Project: 1997-2006

The New Rural Economy Project: 1997-2006

The Canadian Rural Revitalization The Canadian Rural Revitalization FoundationFoundation

nre.concordia.canre.concordia.ca

www.crrf.cawww.crrf.ca2006/10/272006/10/27

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Round Table QuestionsRound Table Questions

• IntroductionsIntroductions

•What are the 2 most important questions What are the 2 most important questions you have for the researchers?you have for the researchers?

•How are the answers likely to affect your How are the answers likely to affect your decisions or actions?decisions or actions?

•What more do you need to know?What more do you need to know?

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Type of Social Capital used matters for HH Incomes

Type of Social Capital used matters for HH Incomes

($4,000)

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

B C

oeffi

cie

nt

• Adj. RAdj. R22 = .37 = .37• Constant = $9102Constant = $9102• N = 1697N = 1697• Logged values for Logged values for

USE of social USE of social capitalcapital

• P < .05P < .05• Source: NRE HH Source: NRE HH

survey, 2001survey, 2001• Total HH incomeTotal HH income• Market, Market,

bureaucratic, bureaucratic, communal, communal, associative: associative: indexes of types of indexes of types of social capitalsocial capital

• Education of the Education of the respondentrespondent

• HH Size: number of HH Size: number of people in the people in the householdhousehold

Return

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Social relations most often used in combination

Social relations most often used in combination

0

5

10

15

20

25

Bur.-Comm Communal Bureau. M-B-C B-A-C

% u

sed

by H

H

NRE Household survey 2001; 1995 respondents

Return

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Available Social Capital is not always UsedAvailable Social Capital is not always Used

Correlation Correlation (r)(r) Available Social CapitalAvailable Social Capital

Used Social Used Social CapitalCapital MarketMarket BureaucraticBureaucratic AssociativeAssociative CommunalCommunal

MarketMarket .12** .22**.22** .20**.20** -.18**-.18**

BureaucraticBureaucratic .08**.08** .14** .09**.09** .09**.09**

AssociativeAssociative .21**.21** .35**.35** .28**.28** .07**.07**

CommunalCommunal .05*.05*

NRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of siteNRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of site

Return

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Context Matters (Metro Adjacency)Context Matters (Metro Adjacency)Correlation (r)Correlation (r) Available Social CapitalAvailable Social Capital

Used Social Used Social CapitalCapital MarketMarket BureaucraticBureaucratic AssociativeAssociative CommunalCommunal

MarketMarketNAdjNAdj .36** .40**.40** .43**.43** -.31**-.31**Adj.Adj. -.09**-.09** -.08* -.07*-.07* -.16**-.16**

BureaucraticBureaucraticNAdjNAdj .19**.19** .18** .18**.18** nsnsAdj.Adj. nsns ns nsns .13**.13**

AssociativeAssociativeNAdjNAdj .42**.42** .53**.53** .52**.52** -.22**-.22**Adj.Adj. nsns .09**.09** nsns .17**.17**

CommunalCommunalNAdjNAdj .11**.11** .11**.11** .14**.14** nsnsAdj.Adj. -.18**-.18** -.08**-.08** -.22**-.22** nsns

NRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of siteNRE HH Survey (N=1849) ** p<.01; * p<.05; Social Capital Used within 30 minutes of site

Return

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Context MattersContext Matters

Index of Associative Social Capital

highlow

Est

imat

ed M

argi

nal M

eans

60000

50000

40000

Exposure

Local

Global

HH Income by Associative Social Capital and Global Exposure The use of social capital

increases HH incomes

…but not if exposure to the global economy is low

Public expenditure on associative social capital will have higher impact in

globally exposed sites

NRE HH Survey 2001 (N=1698) Adj. R2 = .04

Return

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Perception vs. Behaviour-based Indicators

Perception vs. Behaviour-based Indicators

MarketMarket BureauBureau Assoc.Assoc. ComnlComnl TotalTotal

Community Community CohesionCohesion

.10.10 .11.11 .25.25 .18.18 .24.24

Psychol. Psychol. CohesionCohesion

.09.09 .12.12 .25.25 .17.17 .24.24

Attract-Attract-ivenessiveness

.14.14 .08.08 .09.09

Neighbour-Neighbour-linessliness

.13.13 .08.08 .15.15 .20.20 .21.21

All correlations significant at .01 level (2-tailed)

All correlations significant at .01 level (2-tailed)

NRE HH survey, 1995 respondentsNRE HH survey, 1995 respondents

Return

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0

2

4

6

8

10

12

Market Bureaucratic Associative Communal

employment health home care

Return

SoCo and Household ChangesSoCo and Household Changes

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SoCo mitigates external contextSoCo mitigates external contextFluctuating Economy

Market-based SoCo

Bureaucratic-based

SoCo

AverageHH Income

Global with Bureaucratic or Local with non-

Bureaucratic

-$7,000

+$4,500 -$680

+$2,000

External factors have significant effects

Social cohesion can mitigate these effects

The relations are often conditional

$47,000$47,000

Return

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SoCo not all under local controlSoCo not all under local control

Market Bureau. Assoc. Comm. Variety

Global Economy

High High High

Stable Economy

Low Low Low Low

Metro Adjacency

NotAdjac.

Capacity Low Low Low

Return

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Participation in the IE by Employment(social activities only)

Participation in the IE by Employment(social activities only)

30

40

50

60

70

None Emp 1 FT 1 FT/1 PT Both FT

min

/ d

ay

Urban Rural

Employment ConnectsEmployment Connects

Nonemployment IsolatesNonemployment Isolates

Return

33

Participation in the IE by IncomeParticipation in the IE by Income

160

180

200

220

240

< $10K 10-19K 20-39K 40-59K >60K

min

/ d

ay

Urban Rural

Mid incomes

Mid incomes

participate most

participate most

Return

34

Participation in the IE by GenderParticipation in the IE by Gender

0

100

200

300

Men Women

min

/ d

ay

Formal HH Prod. ExchangeReturn

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IE by Employment and GenderIE by Employment and Gender

100

150

200

250

300

350

unemp self-emp paid

min

/ d

ay

Men Women

Self-Self-employment is employment is

additional additional burden for burden for

womenwomen

Return

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IE by Employment and Location(women only)

IE by Employment and Location(women only)

180

200

220

240

260

280

300

320

unemp self-emp paid

min

/ d

ay

Urban Rural

Self-Self-employment employment

reduces reduces burden for burden for

urban women urban women onlyonly

Return

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% Media Used for Financial, Employment, or Living Changes

% Media Used for Financial, Employment, or Living Changes

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

newspaper TV bulletins radio books magazines internet other

% U

se M

edia

financial employment living

Newspapers and Internet used most oftenfor financial, employment, living changes

NRE Household Sample – 1995 cases

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Use of Media by HH ChangesUse of Media by HH ChangesFinance/

Employmt/Living

Arrangment

Health Child care

Home Care/

Education

Personal achievment

Newspaper * * *TV * *Bulletins * *Radio *Books * * *Magazines * *Internet * * * * *

NRE Household Sample – 1995 cases