Evidences from Switzerland Ueli Stalder1 and Jörg Wyder2 Swiss Center for Mountain Regions (SAB), Switzerland1 2002 [email protected] [email protected]

Evidences from Switzerland Ueli Stalder1 and Jörg Wyder2 Swiss Center for Mountain Regions (SAB), Switzerland1 2002 Ueli.Stalder@Sab.Ch1 Joerg.Wyder@Gmx.Ch2

Implementation of innovative structures for a sustainable development in mountain areas: Evidences from Switzerland Ueli Stalder1 and Jörg Wyder2 Swiss Center for Mountain Regions (SAB), Switzerland1 2002 [email protected] [email protected]

Keywords: mountains, protected areas, sustainable development, policies, Valais, Switzerland.

1. General Description of the Study Area "Valais" 1.1 Area The Swiss study area comprises the canton Valais (fr) resp. Wallis (ge), situated in the south-west of Switzerland in the western central alps. The Valais is the third largest canton of total 26 cantons of Switzerland and covers 5'225 km2 (13% of Switzerland). It extends up to Italy (200 km), France (90 km) and 4 other Swiss cantons (228 km). Almost the whole area belongs to the basin of river Rhone and it is enclosed by high mountain ranges: The Bernese Alps in the north (with Mt. Finsteraarhorn, 4274 m above sea level), the Massif of Mont Blanc in the south-west, the Penninic Massif in the south and south-east and the Gotthard Massiv in the east. The highest point of Valais is the Pte Dufour (4634 m above sea level), the lowest the bank of the Lake Geneva (372 m). The climatic conditions in the Valais are strongly influenced by the geographical situation in the central alps: It is a continental alpine climate with semiarid zones in the lower areas (< 600 mm rain a year) and snow and glacier covered, humid areas in the mountain ranges (> 3'200 mm rain). Corresponding to the climatical and topographical variety, flora and fauna are very manifold and valuable; the Valais is an area with a very high biodiversity of Mediterranean and Nordic species.

1.2 Land use

In 1997, there were 54% of the whole surface of the Valais nonproductive, 20% agricultural area, 23% woodland and forests and 3% of the area was sealed by settlement and roads. Between 1980 and 1997, the settlement area has increased for 22%, while the agricultural area has diminished about 6% (BFS 2001). The agricultural area consists of arable land and meadows (234 km2), orchards, viniculture and vegetable production (93 km2) and alpine pastures (734 km2). Especially important for export is thereby the wine and fruit production. 1.3 Protected areas and valuable environmental objects

1306 km2 of the whole canton Valais belongs to national inventory of landscapes and natural monuments of Switzerland - more than in each other canton of Switzerland. Special known in this context is e.g. the Aletschgletscher (largest glacier of the alps), the Mt. Matterhorn (Mont Cervin), the Pfynwald (near Leuk) or the delta of the river Rhone in the lake of Geneva.

1.4 Conclusion

After an educational journey in 1761 wrote J.-J. Rousseau of the Valais: "[in the Valais] nature joins all seasons in one moment, all climats at one site, geological strata on same location and let prosper the commodities of mountains next to these of the plains" (UBS 1997).

The topographic, climatic and scenic diversity is as well a characteristic trait and a valuable potential of the Valais as a big challenge regarding a sustainable development of the area.

2. SOCIO-DEMOGRAPHIC CHARACTERISTICS

2.1 Population and Demography

In 1880, the Canton Valais was populated by approx. 100'000 inhabitants. After the Second World War, about 150'000 persons lived in the area, in 2000 there were 276'200 inhabitants (fig. 2.1). But these favourable figures have to be differed:

1. The shifts on the level of districts and municipalities were significant: The centers in the plain (Sion, Martigny, Sierre, Monthey, and Brig) and some tourist municipalities (Zermatt, Verbier, Crans-Montana, Saas Fee, Nendaz etc.) were the winners with a proliferation of population. At the same time, the population in many agricultural municipalities stagnated or decreased in the last 100 years (s. fig. 2.2). 2. In the last century, the natural live birth rate was often higher than growth of population and the Valais was repeatedly an area of emigration (but not in the 90ties!). 3. On various occasions, mainly foreigners left the canton because of economic reasons: E. g. between 1910 and 1920 (crisis in building industry and tourism) resp. 1970 and 1980 (recession after oil-crisis).

Fig. 2.1: Key data of population structure 2000 (BFS/www.statistik.admin.ch) Ct. Valais Ct. Geneva Switzerland Population 276'200 408'000 7'204'100 Foreign people (in %) 16,5 37,7 19,8 Population density (inh. per km2) 53 1'448 174 Live birth rate (per 1'000 inh.) 11,1 11,5 11.0 Death rate (per 1'000 inh.) 8,0 7,7 8,7

Fig. 2.2: Population 1880 - 2000 in selected municipalities of the Valais (BFS/www.statistik.admin.ch)

Municipality 1880 1910 1920 1950 1970 1990 2000 Polit. and econ. Centres: Sion 5'500 7'254 7'642 11'770 21'925 25'336 27'018 Brig-Glis 2'075 3'934 4'512 5'876 8'755 10'602 11'726 Industrial municipalities: Collombay-Muraz 1'073 1'191 1'260 1'598 2'279 4'493 5'373 Chippis 241 887 776 978 1'561 1'635 1'540 Tourist municip.: Zermatt 492 805 740 1'395 3'101 4'225 5'479 Randogne (Crans) 310 695 896 1'616 1'937 2'838 3'044 Agricultural municip.: Liddes 1'267 1'079 983 720 635 620 693 Binn 222 237 184 193 202 163 172 Valais total 100'190 128'381 128'246 159'178 206'563 249'817 276'200

2.2 Level of profession and education

The activity rate and the level of education in the Valais differs not so much from the figures in other cantons of Switzerland. Corresponding to the economic structure, there are less self-employed persons but more qualified and unqualified employees. During the nineties, the number of unemployed persons increased from less than 1'000 p. (1989) to 8'000 p. (1994).

There are no university and no advanced technical college but several other colleges (e.g. tourism, commercial, teacher training) in the canton. Thus, after the abitur, a great majority of students leave the canton for the universities in Lausanne, Geneva, Bern and Fribourg and only a part of them return after final degree.

2.3 Conclusion • The canton of Valais underwent in the last 100 years a favourable evolution of population. The precondition was a rather rapid structural change corresponding to industrialisation (i.p. industries needing a lot of electric power) and tertiarisation (i.p. tourism) - see below. • Focussed on single municipalities and valleys, the evolution was less harmonious: One the one hand there are "winners", which suceeded to quintuple or even to decuple the population in the last 120 years. On the other hand, small agricultural municipalities underwent a serious emigration which could only temporary be retarded. • Age structure of population as well as the level of education and profession is just now rather balanced and similar to these of whole Switzerland.

3. ECONOMIC STRUCTURE AND PRODUCTION DATA

3.1 Overview

The figures 3.1 - 3.5 show some economic characteristics of the Valais which can be resumed in four points:

• As many other regions, the Valais underwent in the last 120 years a rather fast change from an agricultural to a postindustrial service society. Compared to other rural areas, the secondary sector was (and still is today) very important. • The secondary sector is dominated by three branches which depend on the natural potential of the area for the production of electric power: (1) Production of energy itself, (2) Chemical industry and (3) metal processing (aluminium!). In all these branches, there are some large companies which dominate the labour market. Furthermore, timber processing and building industry have some importance. • The tertiary sector is dominated by tourism, which includes hotels, restaurants and transports and a great deal of trade and commerce (and also of building industry). • The national resp. cantonal income of the canton Valais and the financial power of the cantonal administration are below Swiss average, whereas the taxes are above.

Fig. 3.1: Economic structure 1889 - 1998 in % (SAKW /BFS div.)

Fig. 3.2: The most important employers of Valais 1995 (Egger 2001:20)

Company Location Industry Nr. of employees Lonza Valais Visp Chemical industry 2'600 Ciba-Geigy (Novartis) Monthey Chemical industry 2'500 Alusuisse Chippis/Steg Metal processing 2'200 ETA SA Sion Watches / el.-technics 630 Scintilla (Bosch SA) St. Niklaus El. Implements 500

Fig. 3.3: Jobs in different branches of industry 1990 (SAKW/BFS div.)

Jobs in the... VS: absolute value VS: in % CH: in % ...Primary sector 4'010 3.4% 4.1% ...Secondary sector 37'112 32.7% 31.8% - Timber processing, furniture 3'313 (+) 2.8% 1.8% - Chemical industry 5'718 (+++) 4.8% 1.6% - Metal processing 4'759 (++) 4.0% 2.6% - Electro-technics, engineering 1'437 (--) 1.2% 3.0% - Building 14'644 (++) 12.3% 8.8% ...Tertiary sector 72'378 63.8% 63.9% - Trade and commerce 17'560 14.7% 14.5% - Hotels and restaurants 8'980 (++) 7.5% 4.4% - Transports 3'357 (++) 2.8% 1.5% - Banking business and assurance 3'857 (--) 3.2% 5.6% - Commercial services 5'222 - 4.4% 5.7% - Public adminstration 4'927 4.1% 3.9% Fig. 3.4: Key data of economic Power 2000 (BFS / www.statistik.admin.ch)

Ct. Valais Ct. Geneva Switzerland National income (per inhabitant) in CHF1 33'695 54'866 46'420 ... in euro 22'844 37'197 31'471 Tax burden in % (income of CHF 50'000.-) 7,7% 5% 6,8% Index of financial power (è tax equilibration) 30 130 100

11 CHF is about 0,65 Euro resp. 1 Euro is about 1,5 CHF.

3.2 Agriculture and forestry in the Valais

3.2.1 Agriculture

Featured by a strong proportion of its territory in the mountain area, agriculture of the Valais is made of contrasts. Different agricultural Valais cohabit (s. fig. 3.5 - 3.7): those of the plain of the Rhone, with wine, fruits and vegetables cultures and those of the Alpine mountain with cereals and animal productions.

Fig. 3.5: Yield of different agricultural production lines (Lehmann et al. 2001:6)

Fig. 3.6: Number and size of farms 1985 - 1996 (SAKW 1997)

Fig. 3.7: Livestock 1900, 1961, 1985 and 1999 (Lehmann et al. 2001: 7, suppl.)

Fig. 3.8: Multifunctionnality of agriculture (Lehmann et al. 2001:11)

Economic externalities Each agricultural activity has differentiated territorial effects since it contributes in a different way to employment (direct employment in agriculture or employment related to providers, food processing, trading, transport, etc.) and so the maintenance of a certain level of income within a region. Depending on the location, it can also contribute to the maintenance of an economic activity in the surrounding areas.

Environmental externalities As regards the impact on the (natural) environment, each agricultural activity has a different impact on the maintenance of landscapes, on the protection of natural resources and biodiversity, or even on the prevention of natural phenomena.

Social and cultural externalities Each activity has different interrelations with municipalities and its identity, and contributes to the maintenance of cultural traditions and ancient knows- how. It also contributes to the maintenance of the cultural heritage.

Pluriactivity Agriculture in the Valais, nowadays, is before all a secondary activity. In 1990, 26'171 people were working in the agriculture in Wallis. 16% only as a principal activity (people spending at least 1' 500 working hours per year on the farm) and 84% (= 20% of all employees) as a secondary activity (in comparison; 42% in Switzerland). Most of these "pluriactive" people are employees or workman- farmers in big enterprises of the plain, but also in craft enterprises in the mountain. This resulted in very complex interrelations between the economy, the people and their environment in mountain regions. It gives roots to a decentralised occupation of the territory, a slow down in rural exodus and in depopulation of villages when farmers can't live any more only of their farming activity. A secondary agricultural activity, even reduced, can be a reason to stay in the village and to accept the constraints of this way of life.

Multifunctionality of agriculture Since the 1990's, the expectations of society towards agriculture have changed a lot. Food security is not any more the only concern, other demands are made clear (s. fig. 3.8).

3.2.2 Forestry

Forestry in the Valais has as well as agriculture several functions:

1. Production timber (for building industry, furniture, energy) 2. Protection Protection against avalanches, rockfall and landslides 3. Tourism Forest as an area for spare time and recreation/sports 4. Aesthetic function Forests as an important element of mountain landscape 5. Ecological function Forests as a habitat for plants and animals Since 1902, a rigorous legislation has protected the forest in Switzerland and it is only possible to lumber forest areas by way of an exception. This legislation was and is still important and appropriate in the agglomerations between Geneva and Zurich. However, in mountain regions we have a problem of an increasing forest area. In particular in bad available areas timber production has no longer a economic sense. This is dangerous in so far, as the protection function of old forests is often reduced compared to maintained forests.

In the last fifty years, the timber production in the Valais has varied between 70'000 and 150'000 m3. This volume is smaller than what grows in one year. Since some years, the market conditions have not been favourably for the wood of the Valais: (1) the industrially produced timber of foreign countries is much cheaper, (2) some heavy gales implicated a supply surplus and (3) wood as energy source is much more expensive than fossil fuels. Nevertheless, timber processing and furniture are important branches in the economic structure of Valais.

3.3 Tourism

3.3.1 Tourist offers

In the Valais the capacity of accommodation amounts to about 230'000 beds and has rather been stable since the beginning of the eighties (s. Fig. 3.9). Compared to other tourist regions as the canton Graubünden (Grisons) with St. Moritz and Davos, the supplementary accommodation (holiday flats) is very important; in addition to the holiday apartments for rent, there are about 130'000 beds which are for private use only and therefore don't appear in the statistics. Nearly 40% of the whole capacities are situated in the six largest destinations. In the last 20 years the level of comfort in the hotels has considerably risen: In 1982, 33% of the available hotel rooms had neither shower nor bath, in 1996 the rate was 11,5%.

Fig. 3.9: Accomodation capacities 1982 and 1997 (Wallis Tourismus 1998)

VS VS VS in In

1982 1997 % Grisons Available beds in hotels and health 34'000 36'000 15% 26% establishments Supplementary accomodation 214'000 197'000 85% 74% - Beds in holiday flats 138'000 130'000 - Capacity of camping 35'000 35'000 - Beds in accomodation for groups 31'000 32'000 Besides accommodation, cable ways are the main branch of tourism. About one third of all Swiss cable ways and mountain railsways are in the Valais. The number of cable ways has stagnated the last twenty years. But the capacity and the quality not only of the cars but also of the ski pistes have been updated with big private and public investment (e.g. production of artificial snow). The continuos problem of about two third of the cable way companies in whole Switzerland and in the Valais is the insufficient auto-financing and an excessive indebtedness. A profound turn around of many companies will be imminent in the next years.

3.3.2 Tourist demand

More than 50% of all overnight stays in the whole Valais are in supplementary accommodation (s. Fig. 3.10). In the French part of the canton this rate is even higher. Regarding sustainable development this is a problem insofar as the land use of supplementary accommodation is rather high and the added value for the municipalities limited.

In opposite to whole Switzerland, where overnight stays stagnated between 1980 and 2000, the trend in the Valais is favourable. Only from 1981 to 1983 and from 1994 to1995 was a regression as a result of a disadvantageous rate of exchange and of climatic reasons. Because the number of hotel beds decreased, the level of occupancy rose during these periods. In 2000 the occupancy in the Valais was about 43% (CH 42% - s. Fig. 3.11).

Between 1982 and 1996 the rate of Swiss guests became more important whereas the rate of foreign guests stagnated. In 1996 about 48% of all the hotel guests were Swiss. In the last three years, however, the rate of foreign guests has increased in particular in the famous destinations such as Zermatt, Verbier and Crans-Montana.

Fig. 3.10: Overnight stays in different kinds of accomodation (Egger 2001:25)

Fig. 3.11: Occupancy and other key data of the hotel industry in different tourist regions in the year 2000 (STV 2001)

Av. beds Overnight stays in mio O. s. per inhabitant* Occupancy in % Swiss Foreigners Total Valais 26'300 1.8 2.4 4.2 13.5 43.3 Grisons 33'400 2.8 3.2 6.0 32 48.8 Geneva 13'000 0.4 2.0 2.4 7 49.3 Switzerland 219'000 14.0 19.9 33.9 5 42.3

* Figures for 1995 (Egger 2001:24)

3.3.3 Economic and socio-cultural significance of tourism

In the last decades tourism has become the most important industry both for many municipalities and for the whole canton Valais. Three evidences of this statement:

1. Development of population;

Since the fifties the population of tourist municipalities has increased, whereas the population of industrially dominated regions has stagnated and agricultural municipalities even have decreased (s. fig. 2.2). 2. Economic significance; According to several studies more than 35'000 jobs in the Valais (= 32%) directly or indirectly depend on tourism (UBS 1997 / Wallis Tourismus 1998). The added direct and indirect value of tourism is estimated about 5,4 billions CHF (= ca. 25% of the national resp. cantonal income, s. Walliser Bote 2001). 3. Public infrastructure, cultural significance and quality of life; The numerous and various offers in the domains of sport and culture (e.g. Fondation Gianadda, Festivals of Verbier and Ernen, Golf Event of Crans-Montana) are very important for the tourists as well as for the quality of life of the resident population.

3.4 Energy production and other important industries

Chap. 3.1 shows the importance of the secondary sector for the economic situation of the Valais. Since the First World War and just now, the Valais is as well a rural and tourist region as a canton of industry. The main reason is the hydropower that means the possibility to produce rather cheap electric energy. Based on this energy, there are some rather big companies in the domains metal processing and chemical industry (s. fig. 3.2). Fig. 3.12: Hydroelectric power 1970 - 1991 in kWh (Egger 2001) year Switzerland Valais Valais in % 1970/71 32'800 9'700 30% 1980/81 50'200 10'400 21% 1990/91 55'400 10'500 19%

Fig. 3.13: Economic significance of hydroelectric industry in 1992 (Egger 2001)

Produced electric energy (p.a.) 9'800 mio kWh Consumption in the Valais (p.a.) 3'600 mio kWh Consumption rest of Switzerland or abroad (p.a) 6'200 mio kWh Volume of investments 4 - 5 billions CHF2 Building costs (total) 14 - 15 billions CHF Jobs in the energy production 900 p. Induced Jobs in other industries 7'400 p. Support and replacements (p.a.) 60 mio CHF Taxes and fees (p.a.) 96 mio CHF

21 CHF is about 0,65 Euro resp. 1 Euro is about 1,5 CHF.

3.5 Conclusion

Prima facie the economic structure of the Valais is balanced - better balanced as in many other mountain areas. Nevertheless there are problems, e.g.:

• The second sector is dominated by metal processing and chemical industry. These branches are rather sensitive to economic cycles and are dominated by some big enterprises. These enterprises on their part are widely controlled by international concerns. The question is, how long the location "Valais" is competitive on the international level: There have already been some crises and there are signs of new problems. E.g., the canton had on various occasions to abate some taxes. • The tourism industry is the dominant branch in the tertiary sector. Its primary problems are (1) the sensitivity to exchange rates and international security, (2) the increasing international competition, (3) the climatic change (winter tourism), (4) the un-integrated structure of the branch (many inefficient small enterprises), (5) the difficulties to fund the (re-) investments i. p. in hotels and cable ways and (6) the substandard wage level resp. the difficulties to find well trained staff. • Just now, seminal industries like biotechnology, telematic or commercial services are rather weak in the Valais. • The challenges in the first sector are (1) to distinguish the products (è e.g. still ¾ of the produced wine is Fendant, a budget-price wine with a limited potential of market), (2) to promote the quality of the produced foods, (3) to better integrate agriculture and tourism and (4) to steer the structural change in a sustainable direction. However, the future of the agriculture will depend very much on the further agricultural policy of the confederation (s. below). • This review of the economic situation in the Valais seems to be rather negative resp. pessimistic. But experiences in last centuries show that on various occasions, people in the Valais has been talented to find new solutions in view of economic challenges.

4. POLICIES

4.1 Political System (confederation, canton, municipalities)

The political system of Switzerland has three official levels: The Confederation, the 26 cantons and the municipalities. Characteristic is (1) the strong position of the cantons and municipalities in comparison to the confederation (principle of subsidiarity), (2) the stability of the political conditions (power of the different parties) and (3) a rather low quota of the public expenditure (measured by the GNP).

It is not possible in this case study to treat all the policies of the different levels which are significant for a sustainable development of mountain areas. We know the importance of e.g. the policies of energy, transport or - last but not least - of the army for the canton of Valais. Nevertheless we pick out some policies of a special relevance for the mountain landscape in the Valais: The agricultural policy, the tourism policy and the measures for regional development in a narrower sense.

4.2 Relevant Policies (overview)

4.2.1 Agricultural policy3

Swiss agricultural policy is primarily a matter of confederation (and not of the cantons). It has been going through a period of deep changes an it now aims at orienting the agricultural sector according to criteria related to sustainability and competitively. The first step forward was taken in 1992 implemented direct payments allowing on the one hand to differentiate the prices policy and the income policy and on the other hand to remunerate the services provided by agriculture for society and for the environment.

3Primary source of this chaptre: Rognon & Stucki (1998). Direct payments are distributed in five different categories depending on their main objective and on the tasks they aim at accomplishing. The percentages of each of these four categories of direct payments in comparison with the total direct payments for the year 1995 for Switzerland - which amounted to 1.9 Billion CHF - are indicated below in Italics.

• The complementary direct payments are awarded to compensate for various services for society and to ensure sufficient agricultural incomes in a complementary way to the market earnings. (41.3%) • The compensatory allowances for difficult conditions aim at compensating for production over costs related to difficult conditions for farming and at improving the farmers' incomes in the less-favoured areas (mountains and hills). (21.6%) • The environmental direct payments are used to remunerate specific environmental services. In this way they indirectly compensate for lower production yields and over costs resulting from this more extensive way of farming. (16.1%) • The direct payments for production contribute on the one hand to better target the production within the agricultural sector and to ensure the parity of incomes between the different fields of activity. On the other hand they are awarded to ensure the distribution and sale of products and to promote their quality. (13.9%) • The direct payments with a sociopolitical objective for small farmers and agricultural employees with children. (7.1%)

Since 1993, when article 31 of the agricultural law came into force, the amounts awarded have strongly increased. But Wallis, with relatively small average surfaces per farm and a rather high percentage of distinctive cultures, only benefits from small amounts in comparison with other Swiss regions. It is noticeable that the information provided to farmers plays a particularly important role in such a development which is based mainly on own initiatives. As regards the other direct payments, the average contribution per farm is of 7'430 CHF. In the Valais in 1995, while it is on 12'180 CHF for Switzerland in average.

4.2.2 Tourism policy

Confederation Just now the tourism policy of the confederation is (regrettably) very weak and there are in fact only some single measures as:

• The financial support to the national destination marketing "Switzerland Tourism" (with about 40 mio CHF p.a. between 2000 and 2004). • The financial support to the Swiss Tourism association, the national umbrella organisation for tourism policy, whose purpose is to promote the Swiss tourism industry • The financial support to the Swiss Hotel Credit Society (SGH), an organisation to fund the investments in the hotel industry (a revision of the "hotel loan law" is in discussion, provided is a last support of 20 mio CHF p.a. for SGH between 2003 and 2007) • The "InnoTour-Programme" which aims to promote innovation and cooperation in tourism (between 1997 and 2001, with about 4 mio CHF p.a. for innovative projects)

Canton Valais

As shown, tourism is one of the most important branch in the economy of the Valais. So it's clear that the tourism policy in the canton has a long tradition and a special signification.

Since 1996, the canton has a modern law on promotion of tourism. This law regulates (1) the tourism policy measures of the canton itself, (2) the task sharing between the administration, the cantonal umbrella organisation "Wallis Tourisms" and the private tourism industry, (3) the financing of the tourism policy by taxes and subsidies, (4) the vocational training. In the last years, the emphasis of the tourism policy has been:

• The destination building resp. the reorganization of the partial very small (and inefficient local tourist organisations (e.g. "Goms Tourism" instead of dozens of local organisations) • The initiative "Valais excellence" to promote the quality of tourist offers in the Valais (a specific qualitiy management system for tourist branch) • Some substantial studies about the importance of tourism for the economy of the Valais and about the needs and opinions of the guests • A concept "tourism 2010" for a sustainable and prosperous tourism in the Valais • Some regional projects as the Tourist Service-Center Upper Valais (s. chap. 5.2 and 5.3) • Furthermore a special fund for tourist investments is in discussion. Main reasons for this proposal are the difficulties of the hotel branch and the cable way companies to finance their investments and the fear of big foreign groups which could control the tourism in the canton.

4.2.3 Regional policy

"Regional policy" in Switzerland means first of all some measures of the confederation to improve the economic situation and to stimulate the development of mountain regions. In the last twenty years, these instruments have been revised several times and recently a new phase of revision has started. For the Valais, the most important instruments of regional policy are (www.seco.admin.ch): Law on investment in mountain areas ("Investitionshilfegesetz IHG" from 1974 resp. 97);

This law aims (1) to increase the competitive position of mountain regions, (2) to maintain the decentral settlement and the socio-cultural diversity, (3) to better use local potentials, (4) to promote a sustainable development and (5) to encourage co-operation between municipalities and regions. For this, the confederation grants loans without or with low interests. The geographical scope of the IHG are 54 mountain regions (with about 1'200 municipalities) resp. about two third of the whole country with about one quarter of the Swiss population. Loans can be given for projects and programmes, which includes investments for "hard" infrastructure e.g. in the domains transport, education, health, tourism/recreation, energy/water etc... These loans are financed by a fund with about 1, 6 billion CHF. From 1974 to 1999 more than 7'000 projects could be funded with about 2,4 billions and the whole volume of investments of these projects was about 16,4 billions (whole Switzerland).

In some evaluations in the 90ties has been ascertained the high quality of the IHG to increase the economic situation of mountain areas and to establish inter-municipality-cooperation-structures in form of the IHG-Regions (s. chap. 4.3).

The Regio plus programme to promote the structural change in rural areas from 1997;

The Regio plus program for rural and mountain areas aims to fund innovative projects. It is very similar to the LEADER Programme of the EU and should flank the IHG. In opposite to the IHG, only "soft" projects (conceptions, organisational resp. institutional schemes) are supported. Just 2001, 77 projects are funded with about 30 mio CHF (s. www.regioplus.ch).

The Regio plus Programme can be denote as a provisional arrangement: Only 70 mio CHF are authorised for the period 1997 - 2007 and it was a political quarrel about the programme. However, the programme has in our opinion a great potential to establish innovative structures for the sustainable development of commumities and regions. In this context it is remarkable that just now, many projects with cultural, ecological and / or social goals has been submitted. This is partial in contrast of the law itself: There is intended only to fund projects, which will finance itself after 3 - 5 years. First evaluations (e.g. Stalder 2001) shows, that only few of the projects will attain this goal and many others (also very valuable projects) will probably disappear, when the sourcing by the confederation phases out.

The law on granting of guarantees in mountain regions from 1976; This law aims to finance guarantees for small and medium sized enterprises in the 54 mountain regions. Based on this law, the Swiss society for industrial bonds assumes bonds of max. 500'000 CHF resp. 2/5 of interests for credits during max 6 years.

The law on the benefit of regions with economic problems from 1995;

This law roots in the recession in the 70ties, when mainly the watch and the textile industry in some regions had big problems. It permits the confederation to fund projects of private enterprises which create resp. maintain jobs by granting loans and reducing taxes.

The INTERREG Programme (INTERREG I - IIIb);

Switzerland and mostly of its cantons participate in the European programme INTERREG. For the Valais this measure opens different interesting opportunities to enlarge the relations to regions in Italy (Valle d'Aosta, Piemonte) and France (Savoye, Bassin lémanique).

4.2.4 Examples for further relevant "green" policies

Agenda 21 (Confederation, canton, regions, Municipalities)

In the last years, confederation as well as some cantons (e.g. the Valais) and municipalities has begun to establish an Agenda 21. Just now, there are interesting projects on different levels, but perhaps, the opportunities of the instrument "Agenda 21" for a sustainable development of territorial unities has not been realised enough.

Swiss Fund for Landscapes (as an example for a semi governmental organisation)

On the occasion of its 700th birthday, the Swiss Confederation implemented a Swiss Fund for Landscapes. This fund awards a support for measures aiming at safeguarding and maintaining rural traditional landscapes. Beneficiaries can be (1) cantons, communes, other local authorities and independent institutions of public law resp. (2) legal entities of private laws. The support can represent, depending on the size of the project, up to 80% of direct costs and exceptionally the total direct costs. To achieve its objectives, the FSP relies on a basic amount of 50 million CHF. The receipts come from interests of this fund and from donations. Until 1996, Wallis has benefited from a support of more than 4 million CHF (800'000 in the form of loans and 3'200'000 CHF without recovering outlay) distributed on more than 60 projects. The decree, which was limited to the period 1991-2001, has been extended to 2001.

4.3 Excursion: The IHG-Regions as Development agencies With the law on investment in mountain areas (IHG - s. above) the confederation has also supported the accruement and the activities of the so called "IHG-Regions". Normally IHG-Regions are associations of about 10 to 30 municipalities with a regional center. For example in the Valais exist 8 IHG- Regions: Goms, Brig, Visp, Leuk, Sierre, Sion, Martigny and Chablais (valaisan et vaudois). Elements of the regions are (1) the general assembly with the delegates of the members, (2) the board of directors and (3) the agency with a executive director and a secretariat (total about 0,5 - 2 workplaces).

At the beginning the main task of the IHG-Regions was to submit and to coordinate the investments which have been partial funded by the confederation. In recent years, the tasks have became more and more expanded and today, well established IHG-Regions can be called as regional Development Agencies (DA) with an integrated approach to regional development. Their role can be summarised as follows:

1. to elaborate (resp. to revise) a strategic development plan 2. to initiate and coordinate projects of regional development ("hard" infrastructures as well as "soft" organisational projects) 3. to promote the region as location for business, habitation, tourism, culture etc. 4. to promote the collaboration between municipalities and 5. between different public and private organisations in and outside of the region

Generally speaking, IHG-Regions resp. their agencies are rather flexible, with well-qualified and motivated staff and established connections to administrations of different levels as well as to private enterprises and NGO's. But on the other hand, there are rather wide differences between the several IHG-agencies.

The different IHG-regions of the Valais are in a slightly ambivalent relation among each other: They co-operate as well as they compete. However, this situation may be in practice not so bad for the development of their areas...

On the level of whole Switzerland exists an association of all the 54 IHG- Regions. It is called "CoSeReg" and organises events for exchange of experience and vocational trainings. Furthermore, it aims to defend the interests of the members in political questions. In this domain it cooperates closely with the Swiss center for Mountain Regions (SAB).

4.4 Conclusion

In Switzerland with its four languages, two religions and its manifold topography the principle of subsidiarity is very important and deep anchoraged. Over the decades, a very complex system has been established to balance power between confederation, cantons and municipalities. This system has its considerable advantages (e.g. stability, self-responsibility, diversity, solidarity) but it is not easy to modernize. Furthermore, there are some tendencies for bureaucracy resp. to shift problems from one level to the others and back again.

Currently there are some efforts to simplify the connections between the confederation and the cantons with a new sharing of tasks. The political discussion about this subject is very intensive, because there are many interests to take in account (last but not least the interest of administration units to maintain it.)

However, a sustainable development of the Valais will only succeed if (1) the three political levels well cooperate and (2) the substances of the notion "sustainable" are better considered in all political measures. Under these circumstances and in view of globalisation of society and economy, new innovative structures as e.g. the IHG-Regions or some Regio Plus projects are promising approaches for a new relation between politics, economy, and private society and - as hope - nature.

5. SPECIAL PROJECTS (GOOD PRACTICES AND NOTABLE FAILURE)

This section of the report contains some exemplary projects of regional development. The first chapter deals an innovative partnership between tourism and agriculture and the second a tourist project. In the third you find a special event as a starting point to further activities for a sustainable development and an actual scheme for a regional park.

5.1 Partnerships between tourism and agriculture: La Corbeille d'Entremont

La Corbeille d'Entremont was initiated in the middle of the nineties in the seven municipalities of the "Entremont" (Val de Bagnes and Val d'Entremont) south of Martigny. The parties involved were tourist and agricultural associations, private enterprises, the associations for economic development of the two valleys and the municipalities. The starting point was an increasing tourist demands for high-quality, natural and original foods one the one hand. On the other hand, the mountain agriculture had the necessity to find new markets for their products. La Corbeille (the basket) aimed to build a new bridge between the regional offer and the tourist demand and to increase the added value in the region. Furthermore the intention was to let benefit the agricultural circles of the experiences of tourism industry in marketing and communication. Financed one half each by the confederation (Regio plus) and the involved circles (82'000 CHF total), an own trademark was registered in 1997 and since then, various activities in marketing has been made. • In the final report for the Regio Plus program is written (s. www.regioplus.ch): • A primary objective of the Corbeille was to promote the regional agricultural foodstuff. Today (2000) the population and the guests know the trademark and the products and it have a rather good image. • The volume of the sold (and labelled) foodstuff increased (in particular cheese, berries, honey, sausages) and thus it was possible to maintain jobs in agriculture and handicraft. • Furthermore the publicity and the discussion about regional products were important as well for the confidence as for the communication between the involved circles and new projects could be started. • The association "La corbeille d'Entremont" was created in 1999, and in 2000, the activities could be financed by the contributions and a small part of sales of the members.

5.2 Projects with a tourist focus: Tourist Service-Centre Upper Valais

With the project "Informations- und Gäste-Servicezentrum Oberwallis" (tourist service-centre upper Valais) the tourist circles of the region Brig - Aletsch - Oberwallis try since 2000 to improve the coordination of their different activities in Marketing and Information. There are four objectives on the common agenda:

• Improvement of the Quality of services for the guests with special regard to information • Development of common activities and offers, organisation of common events • Optimization of the tourist structures (associations and their jobs), virtual networks • Expansion from a tourist service-centre to a centre for regional marketing in general

On a long term there is provided a new tourist tax as financial basis for the new centre. For the moment, the clarifications and concretion of the idea is financed by the confederation (ca. 240'000 CHF) and the involved partners (e.g. IHG-Region, municipalities of Brig, Naters, Blatten etc., railway corp., cable ways, tourist associations).

The background of the project is the building of destinations in whole Switzerland in regard to improve the efficiency of tourist marketing. The "world heritage" (s. below) will be a special challenge and - hopefully - a catalyst for the project.

5.3 Further projects

Sion 2006 "Sion 2006" has been the title of the candidature of Sion and the canton Valais for the Winter Olympics in 2006. In June 1999, the Olympic committee refused this candidature and Turin (It) was selected as scene. But Sion 2006 has been more than a dream of a more or less sustainable mega-event in the tourist Valais: Sion 2006 was the initial point of a controversial and serious discussion about both, the future of the Valais and the relevance of the notation "sustainable development". At the beginning of the project "Olympics" (about 1997) there was a rather strong opposition: Not only had the WWF argued against the Olympics as an ecologic and - for longer periods - economic nonsense. Furthermore there was a quarrel between the different destinations in the canton about the exact scenes of the games.

The promoters responded at an early stage to these fears. A very intensive discussion began as well in politic circles as in media and public. In 1999, the results were

1. An optimised dossier of candidature, which was judged best in the official evaluation of the Olympic committee, 2. A common enthusiasm and a very well support for the project in the population of the Valais and of whole Switzerland, 3. A "charter for a sustainable development" and an Agenda 21 for the Valais, 4. A "foundation for a sustainable development of mountain regions".

However, the shock was huge when the candidature of Sion 2006 was refused in summer 1999 and there was a genuine risk to break down all the efforts for a more sustainable development. Fortunately many of the efforts were more sustainable as the Olympics would be (!). Indicatives of this statement are (1) the foundation for a sustainable development which plays today an important role as platform and as promoter for the "international year of mountains 2002" in the Valais as well as in whole Switzerland. (2) Sustainability became more presentable in politic and economic circles and agendas of the canton and (3) new networks could be established and old blockades could be overcome.

UNESCO World Natural Heritage Jungfrau-Aletsch-Bietschhorn4

The Great Aletsch glacier is the largest glacier of Europe. It is surrounded by a heavily glaciated, largely unspoilt high-alpine landscape of outstanding beauty, which bears striking testimony to alpine orogenesis, shaped by the Ice Ages. The variety of different rocks and soils and the broad climatic spectrum, ranging from oceanic to continental, create the conditions for fascinating examples of contemporary biological and ecological developments, such as glacier forelands with their characteristic successions. A variety of ecosystems and animal and plant municipalities have become established in a relatively small area - a significant habitat for the preservation of alpine biodiversity. However, the region is not simply a natural landscape but also serves as a basis for economic activity. But in contrast to tourist activities, agriculture and forestry are largely confined to peripheral areas.

4Primary source of this chapter: http://www.weltnaturerbe.ch (2002).

In this situation, the project "UNESCO World Heritage" has following goals:

• The diversity, individual character and beauty of the region and the variety of natural and near-natural ecosystems and ecosystem complexes are to be preserved for current and future generations, bearing in mind the region's recreational and economic value. • All species of wild fauna and flora native to the region, including their biological municipalities, are to be conserved in populations viable in the long term and are to be nurtured if necessary. • Economic use is to be guided by the carrying capacity of natural systems. Man is a welcome visitor, paying due regard to natural hazards and the sensitivity and need for protection of natural resources. Appropriate infrastructure is to be maintained and if necessary expanded in line with the capacity of natural systems to tolerate use. • The unique research station Jungfraujoch is to be preserved and developed for scientific research at the international level. In addition to the activities at this site, scientific and especially socio-economic studies relevant to the environment would be desirable in the rest of the region. • Local inhabitants and visitors are to be informed and made aware of the region's value, uniqueness and beauty.

A review should take various areas into account, including in particular the original goals (were the right goals set?) and degrees of attainment (have the measures led to the achievement of these goals?).

The UNESCO has accepted the candidature of the region Jungfrau-Aletsch- Bietschhoren in December 2001. Next steps will be (1) to set up a responsible agency and different boards and work groups and (2) to assure the funding of the project (probable in part by Regio plus).

Further Regio Plus - projects

Since 1997 when the Regio plus-program of the confederation has started, the Valais is the canton with the highest part of submitted projects (s. www.regioplus.ch). Following reasons can be presumed for that (theses):

1. Quite a few unresolved, structural problems in agriculture, tourism and some industrial branches (weak market position in comparison with other Swiss regions and abroad). 2. A special tradition of public-private partnership in the canton and a particular (quite "mythological") significance of regional collaboration in the French part of Switzerland. 3. Development structures in form of the mostly very active and professional agencies of the IHG-Regions (and stimulating competition between this regions). 4. Well-established connections to the confederation administration (and perhaps a special capability to fetch the funds of the confederation...).

6. ISSUES AND PROBLEMS VIS A VIS SUSTAINABILITY

The sixth chapter tries a synthesis particularly with regard to the implementation of innovative structures for a more sustainable development of mountain areas resp. of the Valais as the Swiss test area. This synthesis differentiates (a) problems, strategies and tools resp. (b) the level of projects and the level of policies to encourage projects.

1.) Level of innovative projects / structures

Problems Possible strategies Tools (examples) Available political Reduce claims (e.g. regional, Abandon regional planning programmes are too agricultural or environmental targets like e.g. protection of ambitious resp. have policy) cultural landscape, decentral not enough resources settlement, organic (funds, human capital) production... to succeed Increase resources (e.g. Enlargement of programmes to regional or environmental secure public goods ( convince policy) political circles...) Low efficiency may All transfers have to be linked Tools of new public lead to bureaucracy with well known and management measurables objectives Difficulties of the more resp. more specific Cooperation with local programmes to meet information of new target chambers of industry and other branches than groups commerce and other tourism and organisations agriculture (few New specific programmes advanced vocational training projects in branches with a high added programmes for research & value) development The follow up of the Sustainable programmes to Periodical target agreements projects is often encourage sustainable between the stakeholders unsatisfactory (e.g. projects / structures! Regio plus) Other tools of new public man. Projects which only Sustainable programmes to Periodical evaluations with the fetch money from the encourage sustainable possibilty to impose sanctions programmes instead of projects / structures! resolve problems (s. Adequate self-financing of e.g. Tappeiner 2001) private enterprises

Credits instead of nonrepayable contributions Divergent impacts of Vertical coordination of the Target agreements between the the different political policies (between confeder., different political levels measures canton, region, municipalities) Horizontal coordination (bet- target agreements between the ween different policies, e.g. different policies, flexible tourism and landscape policy) allocation of responsibility In some policies the Modification of existing Bottom up and / or top down?!? substance of the programmes (e.g. IHG) (both ways take much time) notion „sustainable" New specific programmes for Bottom up and / or top down?!? isn’t considered a sustainable development of (both ways take much time) enough mountain areas

2) Level of policies

Credits instead of nonrepayable contributions Divergent impacts of Vertical coordination of the Target agreements between the the different political policies (between confeder., different political levels measures canton, region, municipalities) Horizontal coordination (bet- target agreements between the ween different policies, e.g. different policies, flexible tourism and landscape policy) allocation of responsibility In some policies the Modification of existing Bottom up and / or top down?!? substance of the programmes (e.g. IHG) (both ways take much time) notion "sustainable" New specific programmes for Bottom up and / or top down?!? isn’t considered a sustainable development of (both ways take much time) enough mountain areas

REFERENCES

BFS (1995): Kantonsprofile. Bundesamt für Statistik, Neuchatel.

BFS (2001): Bodennutzung im Wandel - Arealstatistik Schweiz. Bundesamt für Statistik, Neuchatel.

BFS (2002): Kantone und Städte der Schweiz. Statistische Übersichten 2000/2001. Bundesamt für Statistik, Neuchatel. Cosinschi M. (1994): Le Valais - Cartoscopie d'un espace régional. Edition Payot, Lausanne.

Egger (2001): Wirtschaftsgeographie des Wallis. Unveröffentlichter Entwurf eines Lehrbuches. SAB, Brig.

Hofer K. and Stalder U. (2000): Regionale Produktorganisationen als Transformatoren des Bedürfnisfeldes Ernährung in Richtung Nachhaltigkeit? Geographica Bernensia P 37, Bern.

Lehmann et al. (2001): Auf dem Weg zu einer nachhaltigen Walliser Landwirtschaft. IAW-ETHZ / Kanton Wallis, Lausanne / Sitten.

MeteoSchweiz (2001): Annalen 2000. Bundesamt für Meteorologie und Klimatologie, Zürich. Rognon P, Stucki E. (1998): Agriculture der montagne et environnement naturel. Contribution à l'étude EUROMONTANA. IAW, Lausanne.

SAKW (1995, 1996, 1997): Das Wallis in Zahlen. Statistisches Amt des Kantons Wallis / Walliser Kantonalbank, Sitten.

Stalder U. (2001): Regionale strategische Netzwerke als lernende Organisationen - Regionalförderung aus Sicht der Theorie sozialer Systeme. Geographica Bernensia G 68, Bern.

STV (2001): Schweizer Tourismus in Zahlen (2001). BFS/STV, Bern.

Theler Ch. (1996): Innovationen in der Oberwalliser Landwirtschaft. IAW/ETHZ, Zürich.

UBS (1997): Das Oberwallis - Lebens- und Wirtschaftsraum. UBS / PLANVAL, Brig.

Wallis Tourismus (1998): Tourismuspolitik des Kantons Wallis - Horizont 2010. Unveröffentlichter Entwurf eines Grundlagenpapiers.

Walliser Bote (2001): Tourismus: Ein Viertel des Walliser Kuchens. Article in: Walliser Bote of 12/6/2001, Brig.

WEB PAGES (consulted in March 2002) http://www.regioplus.ch: Homepage of the confederation about the regio plus program and the submitted projects. http://www.statistik.admin.ch: Homepage of the Swiss federal statistical office.

http://www.seco.admin.ch: Homepage of the State secretariat for economic affairs. http://www.vs.ch: official website of the Canton of Valais.

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Notes to readers

This article is the part of the project called Innovative Structures for the Sustainable Development of Mountainous Areas (ISDEMA). A paper prepared for the Thessaloniki seminar. 17-18 March 2002