51 Andreas Gramzow Rural development as provision of local public goods

218 Pages·2009·2.25 MB·English

In der Schriftenreihe Studies on the Agricultural and Food A
.
Sector in Central and Eastern Europe werden durch das IAMO G Studies on the Agricultural and Food Sector
r
Monographien und Tagungsberichte herausgegeben, die sich a in Central and Eastern Europe
In der Schriftenreihe Studies on the Agricultural and Food m SSStttuuudddiiieeesssooonnnttthhheeeAAAgggrrriiicccuuullltttuuurrraaalllaaannndddFFFoooooodddSSSeeeccctttooorrr
mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa z
Sector in Central and Eastern Europe werden durch das IAMO o iiinnnCCCeeennntttrrraaalllaaannndddEEEaaasssttteeerrrnnnEEEuuurrrooopppeee
beschäftigen. Wissenschaftlern, die in diesem Bereich forschen, w
Monographien und Tagungsberichte herausgegeben, die sich
steht die Schriftenreihe als Diskussionsforum offen.
•
mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa

R
beschäftigen. Wissenschaftlern, die in diesem Bereich forschen,
u
steht die Schriftenreihe als Diskussionsforum offen. ra
In its series Studies on the Agricultural and Food Sector in Central l
d
and Eastern Europe IAMO publishes monographs and proceedings e Andreas Gramzow
v
focusing on agricultural economic issues specific to Central and e
In its series Studies on the Agricultural and Food Sector in Central lo
Eastern Europe. This series offers a forum to researchers studying p
and Eastern Europe IAMO publishes monographs and proceedings m
this area. e Rural development as provision of local public goods:
focusing on agricultural economic issues specific to Central and n
t

Eastern Europe. This series offers a forum to researchers studying a Theory and evidence from Poland
s
this area. p
r
o
v
is
io
n

o
f

lo
c
a
l
p
u
b
lic

g
o
o
d
s

Leibniz-institut für AgrArentwickLung
in MitteL- und OsteurOpA
ISSN 1436-221X
ISBN 978-3-938584-41-5
ISSN 1436-221X
51
ISBN 978-3-938584-41-5
In der Schriftenreihe Studies on the Agricultural and Food A
.
Sector in Central and Eastern Europe werden durch das IAMO G
r
Monographien und Tagungsberichte herausgegeben, die sich a
In der Schriftenreihe Studies on the Agricultural and Food m
mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa z
Sector in Central and Eastern Europe werden durch das IAMO o
beschäftigen. Wissenschaftlern, die in diesem Bereich forschen, w
Monographien und Tagungsberichte herausgegeben, die sich
steht die Schriftenreihe als Diskussionsforum offen.
•
mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa

R
beschäftigen. Wissenschaftlern, die in diesem Bereich forschen,
u
steht die Schriftenreihe als Diskussionsforum offen. ra
In its series Studies on the Agricultural and Food Sector in Central l
d
and Eastern Europe IAMO publishes monographs and proceedings e
v
focusing on agricultural economic issues specific to Central and e
In its series Studies on the Agricultural and Food Sector in Central lo
Eastern Europe. This series offers a forum to researchers studying p
and Eastern Europe IAMO publishes monographs and proceedings m
this area. e
focusing on agricultural economic issues specific to Central and n
t

Eastern Europe. This series offers a forum to researchers studying a
s
this area. p
r
o
v
is
io
n

o
f

lo
c
a
l
p
u
b
lic

g
o
o
d
s

ISSN 1436-221X
ISBN 978-3-938584-41-5
ISSN 1436-221X
51
ISBN 978-3-938584-41-5
Rural development as provision of local public goods:
Theory and evidence from Poland
Studies on the Agricultural and Food Sector
in Central and Eastern Europe
Edited by
Leibniz Institute of Agricultural Development
in Central and Eastern Europe
IAMO
Volume 51
Rural development as provision of local public goods:
Theory and evidence from Poland
by
Andreas Gramzow
IAMO
2009
ACKNOWLEDGEMENTS
This thesis is the final outcome of my postgraduate research work at the Leibniz-
Institute of Agricultural Development in Central and Eastern Europe (IAMO) in
Halle (Saale), and it would not have been possible without the contribution of many
people.
My deepest gratitude goes to my supervisor and colleague Martin Petrick, who
supported me always with valuable advice and motivated me at various stages of my
dissertation. Even during his one-year research stay in the U.S. as well as during
my research stay in India, Martin provided me with fruitful comments on my
research work, and always at short period of time. I am grateful to my co-reviewer
Peter Weingarten, who already supported me when I started to work at IAMO as
graduate assistant. Peter accepted me as Ph.D. student and contributed remarkably
to the success of this thesis. I will never forget the great discussions we had
in his office. Further thanks go to my second co-reviewer, Michael Kirk, and to
Gertrud Buchenrieder, who both contributed valuable comments to this disserta-
tion.
I received great support from my colleagues at IAMO, both from the scientific and
the administrative departments. Thanks for the wonderful atmosphere! I am par-
ticularly grateful to Henriette Stange for sharing an office with me for more than
three years where we became very close friends. Many thanks also go to the second
generation of doctoral students at IAMO, Christoph Sahrbacher, Hauke Schnicke,
Oliver Jungklaus, Marten Graubner, Patrick Zier, Amanda Osuch, Martin Damgard
and Olaf Heidelbach, for the inspiring discussions about scientific and non-scientific
subjects. Further thanks go to Jim Curtiss for editing this thesis and talking with me
about music as often as possible as well as to Peter Schmiediche who also contribu-
ted to the final version of the text.
The empirical research of this monograph was carried out with the support of nume-
rous people: I wish to thank Jakub Ciołkowski, Ewa Sitkiewicz and Piotr Krośniak
for their interpretation as well as for introducing me to the Polish culture and history
and becoming my friends while spending time together in Polish rural areas.
Many thanks also go to Urszula Budzich-Szukała, Jarosław Kuba, Marek Ząbek,
Alicja Mędrek, Marek Romaniec, Zdzisława Hołubowska and Kinga Boenning
for their kind cooperation.
II Andreas Gramzow
In its early stage, the research benefited very much from the inspiring discussions
with Sebastian Koeber, Martin Schulze, Volker Jahn and Thomas Farack during
the long nights we spent together in our flat.
An important step towards the finalization of this thesis was my research stay at
the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in
Patacheru, India. Here I could refresh my mind and find further inspiration to carry
on with this work. I wish to thank MCS Bantilan, KPC Rao, VLS Ramakrisha and
Siddu for supporting me during my studies and field trips. Special thanks go to
my Lutheran friend Valentine J Gandhi for talking with me about everything under
and above the sun while sharing a small office room. I wish to thank all you guys at
ICRISAT campus for the great time we spent together.
Last but not least I wish to thank my wife Anne for her support and understanding
in the last two years and for encouraging me particularly in the final stage of this
dissertation.
This monograph is dedicated to my parents Christian and Margitta Gramzow,
who supported and encouraged me at every stage of my life and who taught me to
"look not at the things which are seen, but at the things which are not seen: for the
things which are seen are temporal; but the things which are not seen are eternal"
(2 Cor 4, 18).

Hamburg, in July 2009

Andreas Gramzow
TABLE OF CONTENTS
Acknoledgements................................................................................. I
List of tables.......................................................................................... VII
List of figures........................................................................................ VIII
List of maps.......................................................................................... IX
List of abbreviations............................................................................ X
Monetary equivalence.......................................................................... X
1 Introduction............................................................................................... 1
1.1 Current situation in Polish rural areas..................................................... 2
1.2 Policy action on rural development in Poland.......................................... 7
1.3 New rural paradigm of rural development policy.................................... 9
1.4 Lacking provision of public goods as a reason for developmental
problems in rural areas............................................................................... 11
1.5 Resulting research questions and organization of the monograph......... 13
2 Rural development as provision of local public goods: A theoretical
perspective.................................................................................................. 15
2.1 Description of local public goods in rural areas....................................... 15
2.1.1 Taxonomy of public goods in rural areas............................. 16
2.1.2 Public infrastructure............................................................. 18
2.1.3 Human capital...................................................................... 19
2.1.4 Cultural landscape................................................................ 21
2.1.5 Favorable conditions for local businesses............................ 22
2.2 Theories explaining the lacking provision of public goods...................... 24
2.2.1 Welfare economics theory and market failure..................... 25
2.2.2 Property rights theory........................................................... 28
2.2.3 Constitutional economics theory.......................................... 32
2.2.4 Confrontation of the three theories...................................... 38
2.2.5 Normative institutional economics theory and the
social dilemma as a method of analyzing local public
good problems in rural areas................................................ 44
IV Andreas Gramzow
2.3 Three governance structures facilitating exchange among individuals..... 49
2.3.1 Market approach and privatization...................................... 50
2.3.2 Government regulation........................................................ 52
2.3.3 Community governance....................................................... 55
2.3.4 The three governance structures as complements in
institutional arrangements.................................................... 58
2.4 Summary...................................................................................................... 62
3 Methodology.............................................................................................. 64
3.1 Research paradigms and strategy.............................................................. 65
3.2 Case study research and data collection................................................... 68
3.3 Selection and description of the case studies............................................ 69
3.3.1 Selection............................................................................... 69
3.3.2 Description of the case study regions.................................. 71
3.3.3 Further preparations for the case study................................ 73
3.4 Empirical research methods....................................................................... 74
3.4.1 Guideline interviews............................................................ 75
3.4.2 Other qualitative and quantitative techniques used
for data collection................................................................. 79
3.4.3 Qualitative content analysis................................................. 80
4 Rural development as provision of local public goods:
An empirical analysis in rural Poland..................................................... 84
4.1 Local public infrastructure – A telephone cooperative in
Dolina Strugu............................................................................................... 84
4.1.1 Telecommunication systems and rural development........... 85
4.1.2 Barriers hampering inhabitants from a joint provision
of a telephone infrastructure................................................ 86
4.1.3 Founding a telephone cooperative in Dolina Strugu............ 88
4.1.4 Success factors and limitations............................................ 89
4.1.5 Conclusions and prospects for further initiatives................. 91
4.2 Improving market access for peasant farms and preserving
local cultural landscape – A public-private marketing partnership
in Dolina Strugu.......................................................................................... 94
4.2.1 Lacking market access for peasant farms and an increasing
neglect of the cultural landscape of Dolina Strugu............. 94
4.2.2 Barriers hampering farmers from common marketing
initiatives.............................................................................. 96
4.2.3 "Chmielnik Zdrój" – A public-private agricultural
marketing partnership.......................................................... 99
Rural development as provision of public goods V
4.2.4 Success factors and limitations of "Chmielnik Zdrój"......... 102
4.2.5 Impact of the initiatives on the local and regional
development......................................................................... 105
4.2.6 Conclusions on "Chmielnik Zdrój"...................................... 107
4.3 Development of human capital and a favorable business
environment in Dębrzno............................................................................. 109
4.3.1 Lack of human capital and unfavorable conditions
for businesses in Dębrzno.................................................... 110
4.3.2 Factors hampering the improvement of local
human capital and local business conditions....................... 112
4.3.3 Initiatives to overcome developmental constraints
on the local level.................................................................. 114
4.3.4 Initiatives to overcome development constraints
on the regional level............................................................. 116
4.3.5 Success factors and limitations............................................ 118
4.3.6 Impact of the initiatives on local and regional
development......................................................................... 123
4.3.7 Conclusions on the initiatives starting from the
association in Dębrzno and the "Partnership of the
Northern Necklace".............................................................. 127
4.4 Improving conditions for local businesses in Bałtów............................... 130
4.4.1 Unfavorable conditions for businesses in the Bałtów
commune.............................................................................. 130
4.4.2 Reasons for lacking cooperation between local
inhabitants of Bałtów........................................................... 133
4.4.3 Endogenous initiatives to provide a local tourism
infrastructure........................................................................ 135
4.4.4 Success factors and limitations............................................ 138
4.4.5 Impact of the initiatives on the local and regional
development.......................................................................... 143
4.4.6 Conclusions on the local development initiatives
starting from Bałt and Delta................................................. 148
4.5 Summary...................................................................................................... 150
5 Conclusions................................................................................................ 153
5.1 Theoretical conclusions............................................................................... 153
5.2 Empirical conclusions................................................................................. 157
5.3 Policy recommendations............................................................................. 161
5.4 Outlook for further research...................................................................... 164