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(CASE STUDY) This Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development _______________________________________________________________________________________ PUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENT DIRECTORATE TERRITORIAL DEVELOPMENT POLICY COMMITTEE Working Party on Territorial Policy in Rural Areas PLACE-BASED POLICIES FOR RURAL DEVELOPMENT CRETE, GREECE (CASE STUDY) This document was approved by the Working Party on Territorial Policy in Rural Areas at its 7th Session on 30 November 2005. For further information, please contact Mr. Philip Wade, Tel.: (00 33 1) 45 24 15 90; Fax: (00 33 1) 44 30 63 88; E-mail: [email protected] 1 TABLE OF CONTENTS Introduction................................................................................................................................................. 4 1/ Context.................................................................................................................................................... 6 1.1 Governance in Greece ....................................................................................................................... 6 1.2 Crete profile..................................................................................................................................... 13 1.3 Agriculture in Greece and Crete...................................................................................................... 27 1.4 Tourism in Crete.............................................................................................................................. 38 1.5 R&D and innovation in Crete.......................................................................................................... 44 2/ Territorial development policies in Greece and Crete .......................................................................... 50 2.1 Regional policy: EU and national strategies.................................................................................... 50 2.2 Agriculture and rural development.................................................................................................. 51 2.3 Tourism and rural tourism policies.................................................................................................. 58 2.4 Innovation policy in Greece and in Crete........................................................................................ 61 3/ Policy implementation .......................................................................................................................... 71 3.1 Regional development strategy and main public actors .................................................................. 71 3.2 Agriculture and rural development.................................................................................................. 78 3.3 Tourism policy implementation....................................................................................................... 87 3.4 Innovation policy implementation................................................................................................... 94 4/ Evaluation and recommendations ......................................................................................................... 97 4.1 Governance of regional development.............................................................................................. 97 4.2 Agriculture and rural development.................................................................................................. 97 4.3 Tourism.......................................................................................................................................... 100 4.4 Innovation...................................................................................................................................... 103 4.5 Summing up................................................................................................................................... 106 BIBLIOGRAPHY....................................................................................................................................... 107 WEBSITES................................................................................................................................................. 111 ACKNOWLEDGEMENTS........................................................................................................................ 113 Tables Table 1. GDP per capita in Greek NUTS II regions, 2001 ................................................................. 15 Table 2. Evolution of GDP of Greek regions, 1996-2001 .................................................................. 16 Table 3. Sector % in total Crete Gross Added Value, prefectures and country totals, 1995 and 200217 Table 4. Economically active/ inactive population by productive sector, 2001 ................................. 19 Table 5. Economically active/ inactive population by productive sector, 2001, in percentages ........ 19 Table 6. Employed over 15 years of age by productive sector, 2001-2004........................................ 20 Table 7. Employed over 15 years of age by productive sector, in percentages, 2001-2004............... 20 Table 8. Employment of persons 15 years and over, 2001-2004........................................................ 20 Table 9. Unemployment Indicators, 2001-2004 ................................................................................. 21 Table 10. Level of education of actual population over 10 years of age, 2001 .................................... 22 Table 11. Number of enterprises and turnover (in million Euros) by Region and Prefecture (2001)... 23 Table 12. Urban-rural population in Crete, 2001.................................................................................. 24 Table 13. Share of Gross Added Value of agricultural production in GDP, 1998-2003 (million ¼ .... 27 Table 14. World olive oil production figures........................................................................................ 28 Table 15. Olive oil imports and exports in Greece, Italy and Spain, 2001 ........................................... 29 Table 16. Agricultural production in Greece and Crete........................................................................ 31 Table 17. Major producers of organic olive oil .................................................................................... 33 2 Table 18. Share of foreign and domestic guests in Greece and Crete, 2001......................................... 40 Table 19. Main Products of the Manufacturing Sector, 2001............................................................... 49 Table 20. Financial support for rural development in Greece 2000-2006 (4 programmes) ................. 54 Table 21. Investment funding at farm and business levels in Greek agriculture .................................. 54 Table 22. Maximum annual financial aid per cultivation for organic farmers in 2003 ........................ 80 Table 23. Organic farming crops acreage receiving financial support in Crete in 2002....................... 81 Table 24. Organic farming crops acreage receiving financial support in Crete in 2003....................... 82 Figures Figure 1. NUT II Regions and Prefectures of Greece ............................................................................ 8 Figure 2. Governance in Crete .............................................................................................................13 Figure 3. Age composition Greece-Crete, 2001................................................................................... 14 Figure 4. Population densities in Crete (2001)..................................................................................... 25 Figure 5. Population change in Crete between 1981 and 2001............................................................ 26 Figure 6. Market position of Greek olive oil illustrated by price differentiation................................. 29 Figure 7. The Cretan Diet..................................................................................................................... 34 Figure 8. Number of tourists in Crete; 1990 -1999 .............................................................................. 38 Figure 9. Monthly tourist arrivals in Crete in 2003.............................................................................. 39 Figure 10. European innovation scoreboard: Greece, 2002 ............................................................... 44 Figure 11. R&D map of Greece ......................................................................................................... 46 Figure 12. Leader Areas and Areas of the Integrated Rural Development Programmes for the Development (OPAAH)............................................................................................................................ 57 Figure 13. OADYK and OANAK...................................................................................................... 75 Figure 14. AKOMM PSILORITIS and Development Agency of Lassithi........................................ 77 Figure 15. Development Agency of Heraklion .................................................................................. 78 Figure 16. Tourism governance in Crete............................................................................................ 89 Figure 17. Public funds allocated to rural tourism in Crete (2000-2006) .......................................... 92 Figure
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