Progress Assessment of LEADER+ implementation

in Lithuania

International Scientific ConferenceEU Support for 2007-2013: New Challenges and Innovations for agriculture and food industry

27 – 29 May 2009

E. Ribašauskienė, Dr. Ramutė Naujokienė861130211, erika@laei.ltLithuanian Institute of Agrarian Economics

The implementation of LEADER+ type measure in Lithuania was based on the principles defining the unique nature of the LEADER programme:

- partnership,

- territorial approach,

- Integrated approach,

- principle „from bottom to top“,

- innovations,

- cooperation and communicability.

Key legal acts regulating the implementation of

LEADER+ type measure in Lithuania :

- SPD for Lithuania of 2004–2006, and the Supplement;

- Orders of the Minister of Agriculture defining guidelines for the implementation of LEADER+ type measure.

SPD provides for the application of the model combining two alternatives offered to the new EU member states for the implementation of the LEADER+ initiative.

The meaninng of the model is:

- first – taking preparatory actions for the implementation of the initiative (institutional and methodological preparation, establishment of local action groups and the activities);

- second – the implementation of pilot integrated local development strategies prepared on the territorial basis.

Local action groups and rural communities in Lithuania

800

1200

1300 1300 1300

406

210

3010

0

200

400

600

800

1000

1200

2000 2001 2002 2003 2004 2005 2006 2007 2008

The number of rural communities

48

51

46

35

32

29

25

30

35

40

45

50

55

2004 2005 2006 2007 2008 2009

The number of LAGs

The activities of LAGs as of institutional structures cover over 99% of the rural territory of Lithuania. On 28 December 2007 the LAG Association “Network of local action groups” was founded uniting 41 local action group (i.e. 80% of all LAGs).

Source: Ministry of Agriculture, LIAE

During the period of SPD the priority was given to the activity

“Acquisition of skills”. Training is actively organised for members of rural communities and LAGs in relation to the acquisition of skills and competences, in developing partnerships, administrative and financial management:

n 39% of the support were allocated for the implementation of projects under the activity “Acquisition of skills”,

n support was provided to 41 project for strengthening the capacities of LAGs,

n 29 LAGs received financial support for the implementation of the key document of the LEADER+ type measure - for drafting of the integrated pilot strategy. 27 LAGs prepared and submitted pilot integrated strategies for assessment.

20

6 6

3

1 1 0 0

27

10

0

5

10

15

20

25

30

The

improvement of

life quality in

rural areas

The most

appropriate

utilization of

natural and

cultural

resources

Increasing the

value of local

production

Application of

technical and

scientific

knowledge

In total

unit

10 pilot integrated strategies were selected. For the implementation of each strategy up to EUR 147 thousand were allocated.

Source: Ministry of Agriculture.

Regional distribution of the selected LAGs

VVG ,,Pajūrio iniciatyvos”Aukštaitijos bendruomeniųasociacijos VVG

Joniškio r. partnerystės VVGŠiaurės vakarų Lietuvos VVG

Dzūkijos VVG

VVG ,, Švenčioniųpartnerystė”

Kelmės krašto partnerystės VVG

Visuomeninė organizacija Ukmergės VVG

Pagėgių ir Jurbarko r. sav.VVG ,,Nemunas”

Šalčininkų r. VVG

Improvement of life quality in rural areas

Preservation of natural and cultural resources

The development of local production

Source: Ministry of Agriculture.

320 local projects were supported through the implementation of pilot integrated strategies, i. e. 72%

of the submitted number of projects.

Main reasons for refusing funding to local projects:

n Rejected because of missing required documents during the administrative inspection;

n Funding refused because of improperly fixed documentation on land ownership and other property;

n Rejected because of inadequate standard of provisions and priorities;

n Administrators of the implementation of local projects refused from funding themselves because of unacceptable conditions, lack of means, etc.

The implementation of pilot integrated strategies united for the common goal various entities operating

in the territory.

n Communities, community centres, committees, unions………………………………………………….............................................192

n Natural persons, farmers, SME, business associations……………................37n Educational

establishments…................................................................................................28n Municipality administrations, neighbourhoods...............................................11n Directorates of regional parks and forestry units.............................................7n Health and leisure time clubs……….................................................................22n Elderly care homes, organisations of the elderly and the disabled ................3n Centres of culture and craftsmen, museums and libraries,

information centres, etc…................................................................................20-----------------------------------------------------------------------------------

Local projects in total….................................................................................320

Source: NPA.

Non-profit projects prevailed – 90% of all projects.

40% of funded local projects were related with the development of attractive living conditions and the environment, including the

activation of rural population.

66Creation of conditions for mobilizing social communication among rural population (renovation or establishment of community centres, acquisition of equipment for common use

320Local projects in total

8Integration of the disabled or socially vulnerable individuals into the community activities

13Support to ethnographic craftsmen by promoting their initiatives adding to the attractiveness of the area

24Promotion of the development of entrepreneurship in the community, in particular among women

29Provision of tourism and recreational services utilizing and protecting natural and cultural local resources

33Support to young persons in rural areas

38Educational events aimed at mobilizing rural inhabitants and motivating to protect the environment, cultural and natural heritage

42Promotion of regional culinary, crafts and ethnic-cultural heritage, production of traditional and unconventional articles, crafts and organic products for sale

67The development of attractive living conditions and the environment (renovation/establishment of recreational zones and centres, introduction of basic services)

NumberSubjects of local projects

Source: NPA.

Indicators of the LEADER+ type measure as approved by SPD were implemented in the main, and some even

outreached.

2327120Total number of created/retained jobs

1,7 k.186110Number of created additional or retained jobs

3,6 k.72852000Number of trained beneficiaries

1,4 k.107Number of supported LAGs

90 2730Prepared strategies

2,1 k. 385180Number of supported training courses

%/k. AchievedPlannedIndicator

Source: NPA.

Analysis of the LAG survey revealed that key problems of the

LEADER+ type measure were the following:

n Management of financial flows (the compensatory principle of providing financial assistance is particularly unfavourable for the implementation of community projects);

n Too little support is allocated, and the mechanism of its provision is very complicated;

n Complicated documentation;

n Public purchase requirements are not adequate to the allocated support;

n The capacities of the LAG team and the possibilities are not growing in proportion to their duties and expectations, what hinders to explore fully the advantages given by the LEADERinitiative.

Recommendations for addressing the issues:

n Aiming at the implementation of the LEADER principle of integrity, it could be reasonable to define proportions of the recommended support between the projects of social and economic nature, between expenditure on the acquisition of skills, communication and the publicity;

n To create possibilities for the communities in getting loans with state guarantee: to provide for a possibility in the Regulations of the Rural Credit Guarantee Fund of granting guarantees for the implementation of local non-profit projects under the local development strategy;

n Simplify (by avoiding complicated formulations) the documentations of local projects;

n Prepare recommendations for the assessment of the activities of LAGsand rural communities as organisations.

Possible threats for the LEADER method as in Lithuania as in the European Union :

n Major obstacle in the development of the LEADER method is insufficient understanding of the method and its complicated administration;

n Limited capacity of LEADER to implement the integrated local development strategy and keep the activeness of rural population in the future becomes obvious;

n LEADER is now in such situation that should either be revised by allocating more resources for the implementation of public interests, or stop at the previous old and safe procedures and gradually lose the “accelerating” role in addressing key issues of rural development.

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