Future of social policy
Doc. 7653
23 September 1996
OPINION[1]
Rapporteur: Mr TELGMAA, Estonia, European Democratic Group
1. Introduction
1. The social well-being of rural people has always depended on the attitude of economic powers and the politically more consolidated part of society: the people involved in industry, services, banking, etc. Nowadays the economic backbone of the social welfare of rural people - the agricultural sector - has reached a crisis. Industry has taken from agriculture most of its tasks; all that it has left to farmers is that part of the work that carries the greatest risk: tractor driving, dealing with poisons, the risk of poor harvests, the rising cost of inputs and the falling prices for produce. In the post-socialist world there prevails an under-estimation of the role and needs of rural people. The social cost of reforms has therefore been unfairly high for them. The difference between the town and the village is growing dramatically. Any further sacrificing of the social interests of the rural population could lead to enormous costs in the future; the whole of society will have to pay for it.
2. In his preliminary notes regarding a new social policy, Mr Hegyi wrote "The special role of rural areas should not be forgotten. Rural life is an ancient example of people working at home; it has a crucial role in environmental projects; and it can become a really Green alternative to urban life. Living seasonally in a city and seasonally in a village can be a real improvement in the quality of life for millions of Europeans. With comprehensive projects less money is required than at first calculated and can be very productive in a personal, a public and an environmental way."
3. The present opinion seeks to highlight the need for a rural supplement to the Assembly's recommendation on the future of social policy.
2. Employment
4. The best social security is employment. Employment in rural areas across Europe varies enormously. In some areas agriculture or forestry or fisheries, or a combination of all three, are the economic backbone of the region; whereas in other areas these primary sectors play a less important role in a diversified rural economy. The overall picture tells us that agriculture, aquaculture, forestry and fisheries employ less than 5% of the active population in some countries, but more than 50% in others.
5. The structure of employment (in these sectors) is somewhat different from that in most other branches of the economy. Firstly, the production system is accounted for through the market price of the end-product, which might be cereals, farm animals, vegetables, milk, etc. In other branches it is normal to add the production costs to arrive at the price of the products - this includes working hours. The price can therefore be influenced by varying the relative importance of the different production costs, including by transferring the production sites. This cannot be done in agriculture. In farming, it is the global farm economy that dominates accountancy and the working hours used for the different tasks or for a particular commodity will not have the same relation to the price of the product as in other branches.
6. Secondly, employment in these sectors can be roughly divided into three categories. The first consists of the permanent work force: owners or tenants and their families and permanent staff. The second group consists of workers that perform seasonal or foreseeable and fairly stable casual work. This work can be performed by local people (schoolchildren, retired persons, housewives, rural "unemployed", etc); or it can be done by migrant workers coming only for the "seasons". These workers normally know where they will work and have contracts. Part of the work is, however, performed within the black market economy. The third category is the precarious work force which can be difficult to characterise. Very often the work is done within the black market economy and a host of categories are involved, some of them living illegally in the host country. The wages are normally very low.
7. There is of course a constant movement between these categories but sadly usually with a downward trend. This trend is contributing to increased rural poverty and migration to the city - especially among young people. Rural poverty is characterised by poorly paid work and underemployment rather than unemployment, as might be the case in urban areas. Rural folk will normally be able to sustain themselves, they cope and make no fuss about things, and yet there may be many simple ways in which rural people could be helped to help themselves out of poverty. One such way is to cater for part-time education and training relevant to the real needs for development and employment, alongside greater encouragement of diversified part-time work.
8. Reform processes in small towns, where the economy and employment are based on a single enterprise, must be handled particularly carefully. Restructuring of the economy of such kinds of small towns can be accompanied by a sudden loss of jobs for the majority of the people, who have no possibility to find immediate alternative employment.
9. There are many functions in rural areas which could positively contribute to the creation of jobs. Among these can be mentioned the upgrading of local shops in market towns, perhaps by according special aid and tax relief. Other possibilities are offered by rural tourism. The expansion of food and raw material processing capacities near production sites would also bring extra employment (value-added). The recognition and upgrading of valuable solidarity functions and voluntary actions of rural communities, like volunteers or family members performing certain health-care tasks, associative work of a cultural or environmental nature, etc. could increase the well-being of rural populations.
10. Targeted development of infrastructure can play a very important role. Favourable communications and transport networks make it possible to work at home. New communication technologies open up contacts to the entire world and eliminate the danger of lagging behind in technical and humanitarian progress.
3. Effects of the international environment on social policies
11. The particular nature of the accountancy for production in the agriculture, forestry and fisheries sectors can have positive as well as negative effects on rural economy and employment. It is, however, a matter of urgency to take full account of environmental and social factors when establishing trade rules for agricultural and other primary sector commodities. It cannot be right that trade rules should contribute to rural social and environmental decline. It cannot be right that prices will be independent of the social and environmental "costs" of production. Production must respect the principle of subsidiarity.
12. The question of a living countryside is a question of society. It cannot only be a function of the technical problems of how to organise trade. The role of a state must be based on this understanding and must be concrete and decisive.
4. Financing of social policy
13. Many social and cultural functions of rural society could be entrusted to the local community itself with an agreement of support by central government (daily payments, tax relief). There is a need to integrate policies for the promotion of rural areas in Europe. Such an approach has been proposed by the Parliamentary Assembly of the Council of Europe through a model for a European Charter for Rural Areas (Recommendation 1296 (1996)). This text recommends that a plan for the development of the countryside should be based on regional factors, support local initiatives and rely on endogenous development in every way possible. Social policy must not discourage individual initiatives for job creation by making life for the unemployed too comfortable, but the social buffer capacity to avoid poverty and unnecessary suffering must exist. The people should not fall into so-called unemployment and poverty traps, from which the way out is extremely difficult. In rural society self-help and family or community solidarity were important elements of life. The validation of these functions could decrease central bureaucracy and social costs.
14. The urban centres must understand that keeping the territory and landscapes in order is not something that happens by itself, it must be paid for.
5. Other integration factors essential to social policy
15. Human capital (people with their diverse skills) is the most valuable asset in rural community as elsewhere, and developing and maintaining it should have top priority. Schools in rural areas must therefore be maintained to guarantee equal access and entitlement to education. These schools should be organised in accordance with local requirements and should fully adapt and develop new educational technologies. A policy guideline to the model European Charter for Rural Areas dealing with education, training, research and awareness-training recommends that:
- Decentralised education and further education opportunities should be promoted and geared towards future job opportunities; school children and apprentices in the countryside (boys and girls) should be given the same educational opportunities as those from urban areas.
- Technical and vocational courses in rural areas at primary, secondary and higher levels, should be developed and expanded. Teams of specialised instructors should be set up and provision should be made for appropriate training programmes, especially in agriculture, forestry, aquaculture, fisheries, rural crafts and advanced technologies, and in general in all the branches of activity necessary for successful rural planning and development.
- Programmes should be developed to enhance the respect for the natural environment and for the appreciation of the historical and cultural heritage of rural areas as well as the significance for society of rural areas.
16. In another guideline, the model Charter states that "the positive aspects of rural society, and in particular of traditional family life, should be preserved in order to favour the development of young people and their integration into the community".
17. Self-help and independence were traditional strengths of rural communities and should continue receiving support, but this should not lead to isolation of rural areas - one of the reasons behind rural decline and poverty. Communication infrastructures must therefore be provided, including new communication technologies which should be equally accessible to rural and urban dwellers.
6. Conclusions
18. The difference between employment in agriculture, aquaculture, fisheries and forestry as compared to other sectors, such as car manufacturing or transporting goods, must be recognised in all relevant policy areas. The relationship between production methods and the environment as well as the social aspects of work and unemployment must find expression in social policies.
19. Social policy must protect against poverty and suffering but must also encourage individual creativity and responsibility in society. A costly institutionalisation of social policy should be avoided.
20. The long-term well-being of society is dependent on decentralised settlement and a living countryside. Future social policies must recognise and support the assets of rural life by giving the same access to education and health services as in urban areas. It should promote the values of traditional family life and solidarity, as expressed in traditional rural communities.
21. It is true that the purely economic indicator - the GNP - no longer properly reflects reality. Taking into account the deepening difference in social welfare in town and villages, a better indicator could be the Human Development Index proposed by UNDP and determined separately for the town and the countryside.
Reporting Committee: Social, Health and Family Affairs Committee (Doc. 7634).
Committee for opinion: Committee on Agriculture and Rural Development
Origin: Doc. 7375 and Reference No. 2090 of 29 May 1996.
Draft opinion approved on 23 September 1996.
Secretary to the committee: Mr Lervik.
[1] By the Committee on Agriculture and Rural Development.