Developing the digital economy in France’s rural regions: A new era for telecenters? Bruno Moriset To cite this version: Bruno Moriset. Developing the digital economy in France’s rural regions: A new era for telecenters?. Annual Meeting, Association of American Geographers, Apr 2010, Washington D.C., United States. halshs-00542812 HAL Id: halshs-00542812 https://halshs.archives-ouvertes.fr/halshs-00542812 Submitted on 3 Dec 2010 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. 1 Developing the digital economy in France's rural regions: A new era for telecenters? Dr. Bruno Moriset Associate Professor Université Jean-Moulin – Lyon 3 CNRS – UMR 5600 EVS [email protected] A draft version of this paper was presented at the annual meeting of the Association of American Geographers, Washington DC, 14-18 April 2010, organized paper session: Creative Peripheries. This paper is part of a larger project: Distant Communication Technology and the Economy of Cognition in Peripheral Areas (DISCOTEC) . This project has received a grant from the French National Research Agency (ANR). This paper benefited from field research and interviews by J. Beaufrère, Y. Deschaux, and C. Ramirez, Master students, University of Lyon. The author thanks X. de Mazenod, founder of Zevillage 1, who provided him with useful comments. Abstract As the digital economy is becoming mature, public interest in telework is rising again. Since the beginning of the 2000s, many peripheral communities in developed countries have been showing a renewed interest for telecenters, facilities dedicated to the hosting and nurturing of teleworkers and IT-enabled small firms. These facilities offer IT gear and services that individuals and small enterprises could not afford such as DSL symmetrical telecommunications, a videoconferencing system, secretarial and concierge services. Although they have little macro-economic impact, telecenters are used as "living labs", parts of broader economic revitalization plans which endeavor to widen and strengthen the economic base of the community. Keywords Digital economy, telework, telecenter, rural regions, broadband networks 1 A virtual community dedicated to rural telework, based in Low-Normandy, www.zevillage.net. 2 Résumé L’arrivée à maturité d’une économie numérique a favorisé, dans les années 2000, un regain d’intérêt pour le télétravail. De nombreux territoires ruraux ont mis en place des télécentres, immeubles dédiés à l’accueil des télétravailleurs et des petites entreprises de service. Ces centres offrent des équipements informatiques et des services partagés (salle de réunion, visioconférence, connexion professionnelle à haut débit, service de secrétariat). Bien qu’il n’aient qu’un impact macro-économique limité sur le territoire, les télécentres sont utilisés comme des « laboratoires vivants », éléments de programmes plus larges destinés à élargir et renforcer la base économique des territoires ruraux. Mots clés Economie numérique, télétravail, télécentre, territoires ruraux, réseaux à haut débit. 3 Developing the digital economy in France's rural regions: A new era for telecenters? Since the middle of the 2000s, we are witnessing a revival of public and private interest in telework and IT-based rural development policies. Although the concept was recognized as a global failure in the late 1990s, numerous communities have recently implemented telecenters, or are projecting to do so. The main purpose of this paper is twofold. First, it aims to explain the recent renewal of interest for rural telework and telecenters. Second, in the light of the analysis of current developments in France, it endeavors to provide an assessment of this policy. 1. The digital economy in peripheral areas 1.1. The revival of a powerful rhetoric The relation between information technology (IT) and economic development in the rural regions of developed countries has drawn interest from many scholars (Grimes 1999; 2003; Malecki 2003; Moriset 2000; Rusten and Skerratt 2007). The main problematic of rural IT may be summarized as follows: - Peripheral areas face a structural penalty due to low density and remoteness from main business cities; - Value chains have partly disintegrated and become digital (Malecki and Moriset 2008); - In a "knowledge economy", business can be done "everywhere" (Malecki 2009), and, to a certain extent, it is actually done everywhere. - Therefore, IT applications may be distance-killing tools which promise a "golden opportunity" to rural economies, thanks to the growth of telework. Unsurprisingly, a "powerful rhetoric" has flourished around rural telework (Richardson and Gillespie 2000, p. 199). Forester (1988) writes about "the myth of the electronic cottage". Famous cyber-utopist N. Negroponte (1998) forecasts "a complete renaissance of rural living", and even the end of "the need for cities". Salomon (1998: 34) suggests that telework "offers a romantic image of returning to the pre-industrial family or community- centered society". 4 However, rural telework is not pure utopia. Some IT-enabled business is performed in rural areas. J. Kotkin (2000) explains why and how some members of the American creative class depicted by R. Florida (2002) are moving to much desired, rural areas. Beyers and Lindahl (1996) analyse the phenomenon of “lone eagles and high fliers” living and working in rural places. Clark (2000) and Moriset (2003) have matter-of-factly analyzed IT- enabled rural businesses, including home-based telework. In 2000-2001, the dot.com bubble bust and the subsequent economic downturn wiped out the media and public interest toward IT-related rural issues, in particular telework. Nevertheless, we are witnessing since the middle of the 2000s a revival of public and private interest toward telework and IT-based rural development policies. Several indicators reveal this tendency. Governments have asked for reports in the field of telework (Ferhenbach et al. 2009, Morel-à-l'Huissier 2006), digital planning, and sustainable local development (DIACT, ACIDD 2009). Legislators have recently passed or submitted new laws aimed at favoring telework and IT-based economic development, especially in rural areas. On 8 April 2009, the French Parliament issued a new law aimed at the development of telework. Other countries show similar examples. On 28 October 2009, US Congressman Tom Perriello (Virginia's 5th district) introduced the “Rural and Small Town Telework Tax Credit Act" (Bill, H.R. 3627). Recent documents show that the classic rhetoric of rural telework is stronger than ever. The home page of the SoloSoho 2 portal, in the green community of Gers (south-west of France) is telling in this regard: a woman is sited on the tiles, with a laptop on her knees, a cat curled up under her legs, children toys (including a farm tractor, by coincidence) lying on the floor, sunflowers in the corner (www.soho-solo-gers.com, accessed 9 September 2010). It is easy to understand that the worker on the picture is a mother of young children, precisely the favorite target of the pro-telework rhetoric. This picture endeavors to recall that telework eradicates the stress of urban, long commuting, is family-friendly, and is likely to reduce fuel consumption and carbon emission. As Handy and Moktarian (1996) pointed out, "telework promises something for almost everyone". 2 For Small Office – Home Office 5 Figure 1. The home page of the SoloSoho portal, www.soho-solo-gers.com The revival of the telework rhetoric, notably in the rural context, stems from several factors. The late 2000s have seen the rise of environmental issues and the inflation of energy prices (in mid-2008, crude oil peaked at $180 per barrel, from $20 in the early 2000). In 2008, the world economic downturn has added new favorable conditions. It is worth noting that since the beginning of the crisis, the digital economy has been present in all recovery programs, bail out plans and other French "Grand Emprunt" (Juppé and Rocard 2009). Telework, and notably rural telework, have had their part. Western economies are in great need of creating jobs. Because rural labor pools are less costly, telework is considered as a valuable alternative to offshoring. Meanwhile, the Internet society and the digital economy have become mature. In the late 1990s (the years of the dot.com bubble), the Internet society was still in the infancy. E-commerce was negligible, computers and telecommunications were expensive, and broadband for households and small businesses was almost non-existent. The profound change most Western countries have faced during the passed decade must be considered 6 plainly. From 2000 to the beginning of 2010, internet subscriptions in France (a country of 26 million households) rose from five to 20 million. In the same period, the share of broadband access rocketed from 5 to 97 percent (data: ARCEP 3). Long distance telephone has become free of charge. Electronic shopping has become routine. Therefore, there is some reason to consider that the level of "IT-readiness" of the country is far higher than in the 1990s. The end of the 2000s has probably marked a turning point. The following fact is revealing: according to S. Oziol, director of the Economic Development Agency of Lozère (a deeply rural community), for the first time in history, the General Council spent in 2009 more money for telecommunications infrastructures and digital programs than it did for roads".4 1.2. Rural telework: widening the economic base of local communities Peripheral areas are characterized by a narrow economic base. Employment in farming and manufacturing has suffered from an endless decline. Public services are cutting jobs.