ࡱ> [5Nbjbj 4ZΐΐV ///8g</O_McccJ` lz||||||$itFJttcc $$$t\ccz$tz$$~cyR/!Nf0O0+#++Ptt$tttttT$|tttOtttt+ttttttttt :CRITICAL ANALYSIS AND ASSESSMENT OF EU POLICY ON MULTIFUNCTIONAL LAND USE ACTIVITIES ON NATIONAL AND REGIONAL LEVEL (Review of EU policies in agriculture, forestry, tourism and environment) EU POLICIES Enlargement Policy (Instrument for Pre-Accession Assistance- IPA) CROATIA (Ramona Franic, AFSZ) Croatia is in the process of becoming a member of the European Union. Part of the accession process is related to Chapter 21 of the Acquis, which deals with regional policy and more specifically to the preparation for Structural Funds. To prepare Candidate Countries for the Structural Funds, the EU has introduced the Instrument for Pre-Accession, which in Croatia started in 2007. Objectives and areas of assistance The Program is conducted through the five components: Assistance in transition and building capacities supports activities aimed on building and strengthening institutional framework for adopting and implementation the acquis communautaire of the EU. Potential beneficiaries of the component 1 are state administrative bodies, public bodies, NGOs, business community and other non-profit organizations. Cross-border cooperation supports activities connected with cross-border cooperation with member-states and states using the IPA program, and are based on long-term program of cross-border cooperation. Potential beneficiaries of the component 2 are cross-border regions, i.e. counties by continental and sea Croatian borders. Regional development support for infrastructural projects in sectors of environment protection and traffic, as well as for programs of support to competitiveness and regional development; this component is continuation of the ISPA program and component of economic and social cohesion of the Phare program. Potential beneficiaries of the component 3 are state administration bodies, public and scientific institutions and business community. Development of human capacities supports measures towards employment, education and training support, as well as social inclusion, financing projects in the field of social cohesion with the purpose of achieving goals of the European employment strategy. Potential beneficiaries for the component 4 are the public administration bodies, public institutions, social partners and non-governmental organizations/associations. Rural development as a continuation of SAPARD program, this component supports preparing activities for participation in the Common Agricultural Policy and rural development. Potential users are local administration units, agricultural holdings/farms, and other business entities, depending on priority measures. The IPARD measures will complement the implementation of the National Agricultural and Fishery Strategy. Based on Act of State Aid for Agriculture, Fishery and Forestry, Croatian Government supports development of agricultural sector and rural areas through national support schemes. National support is focused on wide range of beneficiaries (farmers, non-commercial producers, local self-government, associations and cooperatives, etc.) and wide range of investments. On the other hand, IPARD funds are targeted to limited number of sectors, eligible investments and final beneficiaries. They are focused at viable producers, with clear priority objective to support them in upgrading to Community standards and facilitate their competitiveness. National schemes and IPARD funds in that way complement each other by providing necessary support to different beneficiaries with division of objectives. The IPARD assistance will also contribute to a sustainable and social coherent rural development process consistent with international environmental practices by developing the rural economy, enhancing income and providing and securing employment opportunities in the rural areas to counterbalance disparities between regions and compared to urban areas, as well as to develop and rehabilitee basic rural infrastructure, also in war effected areas. Therefore, one specific objective per priority area has been defined and will be made operational through corresponding measures: Priority Specific ObjectiveCorresponding Measure1. Improving market efficiency and implementation of Community standardsStrengthening and improvement of the agricultural production and market capacityInvestments in agricultural holdings to restructure and to upgrade to Community standards Investments in the processing and marketing of agriculture and fishery products to restructure those activities and to upgrade them to Community standards2. Preparatory actions for implementation of the Agri-environmental measures and local rural development strategiesStrengthening and improvement of the capacity for implementation of obligatory pilot project in Agri environment and Leader based approachActions to improve the environment and the countryside Preparation and implementation of local rural development strategies3. Development of the rural economyCreating better living conditions in rural areas by improving rural infrastructures and promoting business activitiesImprovement and development of rural Infrastructure Diversification and development of rural economic activitiesSupportive measure: Technical assistance, information and publicity campaigns Principles of Assistance Local development support is based on principles of sustainable development and in Croatia is realized through co-financing of the Program of global development of particular local administration units. The principal goal of this program is building institutional capacities via support to local administration units for planning, co-operation and partnership with entrepreneurs and civil society, making grounds for joint work on future projects. Participation of local population and groups interested in policy creation is still weak in Croatia. To ensure progress and prosperity of local initiatives, support to local communities is of great importance. Besides its contribution in preventing depopulation of rural areas and increasing quality and attractiveness of local rural communities, significant contribution is expected in building social and human capacities in rural activities. Those activities contribute to a so-called 'autonomy principle', indicating responsibilities and decisions transferred to a local level. Regarding agricultural production and processing, Croatia still has no minimal obligatory standards that regulate grounds for good agricultural practice. The Code of best agricultural practice is still developing, taking into consideration conditions applicable to EU member states as stated in Article 39 of the Council Regulation No. 1698/2005 for rural development. Business entities in food production, processing and distribution under the regulation 852/2004 are primarily responsible for food safety and required to continuously keep and monitor procedures and activities based on HACCP principles in each stage of production, processing and distribution of food after primary production. Due to the Food law, food business entities have to realize HACCP principles up till January 2009, expect export plants that already apply their own checking (control) on the basis of HACCP principles. Concretely for the IPARD program, using finances within each component is based on long-term program documents, so-called Action programs (long-term program of cross-border cooperation, long term program for sectors of traffic, environment and regional competitiveness, operational program for development of human capacities). Specifically for sectors of agriculture and rural development, the Plan for agriculture and rural development 2007-2013 is adopted, which sets ground criteria of using means from IPA program, within component 5 rural development. Common eligibility criteria for measures within IPARD programme are: The investment must concern the production of agricultural products covered by the Annex I to the Treaty, Investment must comply with relevant Community standards as specified by Article 170(1) of Commission Regulation (EC) No. 718/2007 at the end of its realisation, Agricultural holding must comply with relevant national minimum standards regarding environmental protection, public health, animal and plant health, animal welfare and occupational safety at the time when the decision to grant support is taken. A prior assessment from environmental and veterinary national authorities on project must be submitted together with the project/business plan. For project of certain size an Environmental Impact Assessment is to be carried out prior to investment according to the Act on Assessment of the Impact on the Environment (compliant with EU directives 85/337/EEC and 97/11/EC, including Annex I and II), The agricultural holding must demonstrate (in the business plan) economic viability at the end of the realization of the investment, A business plan must be made according to the standard requirements of banks for investments. If the main objective of the investment is increase of production, the existing of a market must also be demonstrated in the business plan. Agricultural holding must not have any outstanding liabilities against the State at the moment of applying. Integrated production (primary production and processing) in milk, beef, pig, poultry and egg sector is not eligible for investments under this measure. Some criteria are applied regarding occupational skills and competence, according to agriculture holdings. Regarding specific eligibility criteria, they are defined by sectors: Livestock production sector: all agricultural holdings must demonstrate that manure management is in compliance with the Community standards at the end of the investment; Fruit and vegetables sector: greenhouses (covered by glass or plastic) must have a minimum size of 500 m2 and maximum size 2,000 m2 and agricultural holding must demonstrate the existence of own production of vegetables, by registered production in the Register of Agricultural Holdings at the end of the investment Cereals and oil crops sector: investment in storage and drying facilities must be at least. 100 t up to 1.000 t capacity; agricultural holding must demonstrate existence of own production of grains and/or oil seeds, by registered production in the Register of Agricultural Holdings of at least 20 ha of grains and/or oil seeds at the beginning of the investment. Moreover, priority will be given to investments into new objects, taken by young farmers, taken by ecological producers and realized in less favoured areas. Regarding the measures based on Leader approach, the LAGs selected must in all cases cover territories with sufficient coherence and critical mass in terms of human, financial and economic resources to support a viable development strategy. A LAG shall be an officially registered association based on means of a valid Act on Associations or other appropriate form within the Croatian legal framework. Beneficiaries Measures under priority 1 Final beneficiaries of this measure are agricultural holdings (family farms, crafts and legal entities) defined by Act on Agriculture, registered in the Register of Agricultural Holdings and VAT payers. Measures under priority 2 Final beneficiaries shall be: individual farmers, agricultural co-operatives, agricultural enterprises, NGOs and public institutions which own and/or lease land in the pilot areas. Each beneficiary shall attend a training programme of 15 hours. A certificate of attendance of the obligatory training course will be issued by the training institution. Beneficiaries under the measures based on Leader approach are rural population organized through LAGs. The LEADER approach covers the rural areas of Croatia. Measures under priority 3 Final beneficiaries of this measure are local self-government units: municipalities and cities with up to 10.000 inhabitants according to Census 2001. IMPLEMENTATION OF EU POLICIES ON NATIONAL AND REGIONAL LEVEL CROATIA (Ramona Franic, AFSZ) Implementation of EU policies on national level Review of existing programs (Operational Programs, strategic documents (i.e. National Referent Framework, National Plan for Development, National Plan for Development of Rural Areas, etc), strategies, plans, with a cross-focus on agriculture, forestry tourism and environment Objectives, priorities, measures The fundamental principles of the cooperation between EU and Croatian agribusiness and rural stakeholders are the encouragement of sustainable rural development and the development of forestry, as well as harmonisation of veterinary and phytosanitary legislation, production and business principles. That is why Croatian policymakers put those principles into domestic strategic and operational documents for more than a decade now. First strategic documents (Strategy of agriculture and fishery of the Republic of Croatia, 2002; Action plan for agriculture and rural areas 2003-2005) in their development priorities and objectives gave priority to agriculture as a sector that has to achieve increased productivity and competitiveness mostly by measures of structural reform. These objectives were included in several Operational plans (for development of: i) cattle production, ii) pig production, iii) vegetable production and iv) establishment of permanent crops plantations). However, in those documents it was anticipated the development of rural areas as well, giving guidelines for improvements in agricultural structure, financing agriculture, organizing agricultural markets, protection and preserving cultural heritage, sustainable use of natural resources and harmonized regional development. Considering unfavourable structure of agricultural holdings in the Republic of Croatia (small-size and fragmented family farms with old family members prevailing, weak educational structure of farmers, rarely populated rural areas, lacks in rural infrastructure, inefficient agro-combinats, insufficient development of food-processing industry etc.), the most stressed agricultural policy priorities and objectives were to encourage changes in structural policy through the agricultural land policy, rural development, increasing the size (enlargement) of the family farms, diversification of farm activities, increase the level of farm competitiveness, development of producers' organization etc. During the past period a lot of activities and projects were conducted in the field of agriculture and rural development with the main objective of improvement of their structure and competitiveness. Until the agricultural policy reform from 2003 there was no clear distinction between market-price policy and rural development policy. Also there was no policy programming as in the EU. The 2003 reform created for the first time new models of support in agriculture, and rural development became one of the key issues of agricultural (or rural) policy. Therefore the Action plan for agriculture and rural areas 2003-2005 elaborated measures for improvements the farm structure through the investments into farms and especially through the increased support for less-favoured areas. Regarding environment, measures for sustainable agricultural practice and controlled agricultural land use were suggested. Through the measures of rural employment and education and measures for more efficient farmers' co-operation and more active engagement of local population, it was tried to achieve the increased motivation and consciousness of local communities about their own responsibility for their development. It was also stressed the need for more balanced development of rural areas taking into consideration their regional characteristics. The recent Action plan for agriculture and rural areas 2006-2008 has kept the priorities and objectives as determined in previous documents. Besides objectives of the market-price policies (agricultural competitiveness, stabilisation of agricultural market, prices and income and adjustments to the CMOs), more emphasis was given to the objectives of Achievement of rural competitiveness: improvements in living standards in rural areas, environment protection and physical and social infrastructure in rural areas, and Normative and institutional policies: adjustments to the acquis communautaire, improvements in administration and expert services, research and tools for the EU accession. The most recent strategic document the Strategy of rural development of the Republic of Croatia 2007-2013 set the following development priorities that more or less follow the priorities already set in the former documents: Improvement of agricultural and forestry competitiveness through improvements in the quality of agricultural production and marketing of agricultural products, research, innovations and ICT, improvements in education and promotion of knowledge; Preservation, protection and sustainable use of environment, landscape, natural and cultural heritage via sustainable use of agricultural and forestry land and preservation and renewal of cultural heritage and traditional values; Improvements in the quality of life in rural areas and enlargement of activities of rural economy; More efficient institutional framework via institutional support to the economic activities and increased motivation and consciousness of local communities. Apart from the documents under the responsibility of the Ministry of Agriculture, Fishery and Rural Development, yet in 2003 the Ministry of Tourism has created the strategy of tourism development, "Croatian tourism development by 2010", as a starting document for the implementation of defined strategic goals and the designing of suitable operational plans on lower levels, whose implementation, in turn, shall enable the achievement of the main strategic goal. Besides representing an umbrella strategy for the drafting of local plans of tourism development, it is also one of the key starting points in the process of designing a national strategy of regional development. Two priorities are pointed out directly connected with the agricultural and rural sector: (1) encouraging the production and usage of eco foods and (2) development of particular types of tourism (such as wellness, hunting, excursion, rural, etc.). Beneficiaries of assistance Generally speaking, beneficiaries of the rural development policy are all groups of population in rural areas (farmers, entrepreneurs, craftsmen, workers etc.), meaning that rural policy has to be for the benefit of the entire rural society. Specifically, the beneficiaries of the recent rural policies are: farms that introduce environmental control and food safety standards into their production practices, farms included into Operational programs, farms involved in a program of marketing preparation of farm products, farms producing agricultural and food products with all kinds of origin protection, farmers in less-favoured areas, farms with organic production, farms involved in a program of private forests renewal, local community units involved in programs of renewal of spiritual and material culture, traditional values, local (rural) customs and events, farms that invest into job and income diversification activities, farmers-entrepreneurs, farms having rural tourism activities (especially agri-tourism), farms and local community units investing into renewable energy resources etc. Gaps in the implementation process Capacity of stakeholders Despite the relatively high number of strategic and operational documents that try to set the priorities and objectives and to elaborate measures for their realisation, it seems that there are some obstacles in this process. Regarding the capacity of stakeholders, some research and practice itself show that, regarding the stakeholders in the process, the main problems arise from the following reasons: administration often work unprofessional, weak co-operation between different levels of stakeholders (state administration-local administration-farmers and other final beneficiaries of the proposed measures), lack of entrepreneurial spirit of the majority of Croatian farmers (as a consequence of long-term central planned policy towards farming from the past period), lack of experience and engagement through the 'bottom-up' approach, lack of initial capital necessary for starting the job and/or take part into different national measures of production and rural development programs, or unfavourable financial conditions even under the support programs, low interest for taking part in programs due to complicated paper-work or unsolved problems of land ownership. Additionally, it's necessary to ensure the coordination of the policy of rural development with programs within the regional development policies, since the responsibility for those two policies is divided between several ministries (the Ministry of Agriculture, Fishery and Rural Development, the Ministry of Regional Development, Forestry and Water Management, the Ministry of the Sea, Transport and Infrastructure). Administrative capacity Considering the importance of economic activities of public sector under the responsibility of the Ministry of agriculture, fishery and rural development, this Ministry has the leader role in creation and realisation of the rural development policies. It has to be stressed, however, that its development priorities and programs have to be harmonized with entire development network that includes other ministries and public administration bodies at the state and local level. The most important are: the Ministry of Economy, Labour and Entrepreneurship (development of SMEs in rural areas), Ministry of Regional Development, Forestry and Water Management (regional development policy, infrastructure, forestry), Ministry of the Sea, Transport and Infrastructure (transport connection, electronic communication, infrastructure), Ministry of Environmental Protection, Physical Planning and Construction (environmental issues, spatial planning), Ministry of Science, Education and Sports (improvements in education system in rural areas, with a special emphasis on informal education), Ministry of Culture (preserving and control of biodiversity and integrity of eco-systems and landscapes), Ministry of Health and Social Care (strengthening the system of health protection and social care in rural areas), Ministry of Tourism (tourism development in rural areas). Further, under the responsibility of counties, cities and municipalities there are government bodies (departments or services) responsible for the development issues, including rural development. In most of the counties there are institutions like county development agencies, entrepreneurial centres (supporting the SMEs via consultancy services, spreading information, vocational training and promotion of entrepreneurship), technological centres and other institutions for solving economic and other development issues at county and local levels. These institutions have also developed the certain level of partnership and cooperation with the central government bodies. Usually the initiators of these institutions are counties, cities and municipalities. In this moment the policies and programs of rural development of different institutions and public administration levels are not adequately harmonized and coordinated. Institutional capacity Due to its complexity and long duration, the process of rural development also requires multi-sectoral approach where, besides public sector, the business and civil sector have important roles, especially at the local level. Local development initiatives will be more effective if they are established on the basis of complementary cooperation of all three sectors. The civil society organizations are established via their activities in the field of education and informal education (training) directly or indirectly connected with rural development (about strategic planning issues, project application in line with EU funds requirements, project cycle management, community organisation etc.). The business sector is established as an inevitable stakeholder in development projects at all levels. Usually it has the role as an investor on the basis of private-public partnership, introducing innovative business approach, support to good business practices etc. With the purpose of integration of institutional structures involved in the process of rural development, it is necessary to take activities as: definition of priority areas at national, regional and local levels (taking into consideration the county regional operational programs and the projects of general development of the cities and municipalities), strengthening financial and human resources available at the central government level for realization the rural development policy, better coordination of the institutions' roles in the process of realization of new programs and measures that have impact on rural areas, coordination of implementation of regional and rural development policies, implementation of the EU standards in regional and rural development programming, strengthening the local and regional administration capacities regarding the efficient use of available financial and human resources, strengthening the regional and local organisations and institutions (associations, NGOs, social and economic partners), and their joint engagement in preparation and implementation of programs and rural development measures at local level. Legislative framework Regarding the legislation adjustment, Croatia has been preparing for the EU membership since the period before it became the official candidate. The process started in 2001 with adopting the umbrella low the Law on agriculture setting up the objectives of agricultural policy that involve not only the ensuring of food security for domestic population and promotion of agricultural competitiveness, but also the preserving of natural resources by promotion of sustainable (especially organic) agriculture and the care for rural areas and rural values. Other important law is the Law on agricultural land (2001, 2008), which regulates that the local government (municipalities and cities) has the responsibility to directly manage the agricultural land in the state ownership. These local administration units have the right and the duty to prepare the Program of disposal with agricultural land in the state ownership (sale, tenure and concession), due to the guidelines within the "Strategy of management with agricultural land in the state ownership" and "Standards and conditions for realization of the agricultural land privatisation". Accession Economic Program 2005-2007 and National Program of the Republic of Croatia for the EU Accession that is prepared each year provide the general legislative framework for shaping the agricultural and rural policy in harmonization with the EU policy. The already mentioned Strategy of Agriculture and Fishery, together with the Law on Agriculture and the Law on state support in agriculture, fishery and forestry define specific sectoral legislative framework and concrete measures for agricultural, forestry and wider rural sector. The latest defines four models of agricultural and rural support (production support, support for capital investments in agriculture, income support and rural development support model), spreading the objectives of agricultural policy and transform it into rural policy. There are lot of other acts and documents that arrange the agricultural and food production issues, like: the Law on organic production of agricultural and food products, the Wine Law, the Food Law and the Law on GMOs. There are also numerous acts in the field of environmental protection and protection of nature, biodiversity and landscape diversity, physical planning and protection of cultural heritage in rural areas. The most important are the Law on environment protection, the Law on air protection, the Law on protection of nature, the Law on physical planning, the Strategy of physical planning of the Republic of Croatia, the Program of physical planning of the Republic of Croatia, the Forestry Law, the Law on water and National plan of affecting environment etc. There are also specific regulations that arrange actual issues of rural and regional development, such as the Law on hilly-mountain areas, the Law on islands, the Law on areas under the special state concern (taking care on LFSs, but also on areas affected by recent war) etc. Implementation of EU policies on regional level (NUTS 2 and NUTS 3) CROATIA (Ramona Frani) Review of existing programs and strategic documents (i.e. Regional Development Strategies, Municipality Development plans, District Development Plans, etc), with a cross-focus on agriculture, forestry tourism and environment Objectives, priorities, measures Istria is the westernmost Croatian region, and historically and development-wise stands out within Croatia. With respect to its economy, Istria is one of the most developed Croatian regions. Since EU assistance was mostly directed to aiding the war-affected regions, it is interesting to analyse the position of Istria (it was not war- affected) with respect to the ability to obtain funds from EU programmes and to the channelling of these funds. There are several factors that are important for the participation of a region in the projects of Interreg III: Inter-regional cooperation because in this way it is easier to find partners from the EU member states for submitting a project within the initiatives. Istria signed documents on cooperation with four regions in Italy, one region in Hungary, one in Austria and one in Romania. Currently in preparation and harmonization are certain forms of cooperation with regions of Poland, the Russian Federation, Romania and Italy; The inclusion of Istria in the work of the Assembly of European Regions (AER). The County has participated in it since 1994 (a precedent the first region from a country that at the time was not a member of the Council of Europe). This enabled the County to participate not only in the work of the AER, but also in the programmes: Centurio, Eurodysee, Summer School; Being informed about the legislative framework relating to mutual cooperation in neighbouring countries Through the projects of cross-border cooperation, the following concrete priorities and objectives were pointed out: determination of present situation and future direction of local and national urban development strategy; creation of national olive roads and their integration into a unique Mediterranean olive route, promoting the international cooperation and inclusion of the southern EU and non-member states with the aim of socio-economic cohesion, regional development and exchanging experience in the field of olive growing; sustainable rural tourism marketing plan (a handbook which will provide the plan implementation details to the project partners), coherent branding strategy and network joining guidelines set forth and implemented, with a purpose of increasing the revenue opportunities for local economic activities (crafts, food shops, restaurants, lodges); development of specific skills and know-how for institutional and public actors/stakeholders, private organizations, NGOs and businesses on how to take advantage on existing potential; the main objective is to enhance the economy generated from rural tourism activities by more intensive utilization of endogenous resources in maritime and mountain rural areas, to develop the abilities of local actors in programming, entrepreneurial activities etc.; creation of a supply chain for energy from olive residues; promote the creation of a facility using olive residues for energy; identifying a methodology for the establishment of a suitable energy facility fuelled by olive residues. Beneficiaries of assistance Through the above mentioned programmes, the beneficiaries are widely spread from the local community stakeholders to the respective ministries. At the regional/local level, the beneficiaries of assistance are family farms dealing with olive and olive oil production, agri-touristic households (agri-tourism), rural tourism operators (family farms, small tourism-related business entities), institutions in the field of cultural activities, local and regional administration bodies, rural development agencies and entrepreneurs and other public institutions. Gaps in the implementation process Capacity of stakeholders Istria was able to include itself in the process of preparing project proposals because the county administrators were well educated, they were well informed about the EU and the possibilities of getting access to EU funds. Some of the employees have been educated in the area of European studies. Istria has wide-ranging cooperation with other regional entities in the neighbouring countries. Thus the officials knew where to look for an opportunity to have Istria involved in different projects. The very important fact is that Istria was not affected by the war, so it did not face the same problems almost all the other counties did. Istria has consistently wanted to move ahead and it has opened the door (shown the way) to other counties in participation in Community Initiatives. Other counties may want to learn from the Istria experience because the county has achieved significant results. The most important is the willingness and desire to do and develop some common project in cooperation with other regional entities from abroad. All local authorities must understand that the EU wants local government units to show that they are able to cooperate with each other. Only in this way can they have access to the limited Community Initiatives funds. The stakeholder community in the Istrian Region is varied. Territorial cooperation is mostly carried out by the regional and local self-governing units, regional and local public institutions (i.e. Chambers of Commerce, the Istrian Development Agency and universities) and NGOs. EU Regional policy instruments, initiatives and EU programmes in general are the centre of attention of all interested stakeholders who have expressed a strong will to be included in the programming phase of the IPA instrument for Croatia. The majority of the stakeholders of the region active in international territorial cooperation were included in the INTERREG initiative, IIIA Neighbourhood Programme Slovenia Hungary Croatia 2004-2006, Adriatic New Neighbourhood Programme or IIIB CADSES and in decentralised cooperation programmes. The Istrian region has a long history of involvement in cooperation with foreign regions and has been very successful in achieving in EU initiatives and programmes. The region has signed cooperation agreements with 11 European regions (and 1 Chinese region!) and is a member of a number of international institutions, including the Assembly of European Regions, the Conference of Peripheral Maritime Regions of Europe, the Institute of the Regions of Europe, the Assembly of Wine-Producing European Regions and the Association of European Border Regions in planning. The County council for the European integration In the Istria County the Council for the European integration is active since 2000. The working responsibility of the Council is cooperation with the Ministry of Foreign Affairs and European Integration in the field of support to realization of programs of popularisation of European idea at local level, gathering data and providing initiatives about projects potentially acceptable for financing from the available EU funds. Their activities are directed towards providing information for citizenship about European integration process. Administrative and institutional capacity Local development strategies prepared by LAGs and approved by the IPARD Agency form the frame of local actions to be undertaken (conducted). The content of individual projects will be defined locally by local applicants and will be in compliance with local development strategy. That calls to an administrative procedure that includes local recommendation of LAG. Administrative procedure for Leader will be next: The applicant for local project submits the application to the IPARD Agency in compliance with acceptable terms set out in the frame of the relevant measure (measure 4.3.1 or 4.3.2). As a part of the application, the applicant will include a letter of recommendation from LAG which indicates that the project is in compliance with local development strategy. IPARD Agency will conduct acceptability assessment and rank the applications in compliance with regulations of underlying measure. The letter of approval or refusal will be given to the applicant by the IPARD Agency with a copy to LAG, Project implementation begins. IPARD Agency will perform planed and random on-the-spot controls of strategies and projects that are in progress. Payment requests are submitted to the IPARD Agency, than project is completed. Project is completed. The experience of Istria shows that regional and national authorities are not well coordinated in cooperation with other regions. The national authority is not sufficiently included in the implementation of project obligations, the result being that a bad image of Croatia is produced. It appears that at the macro level we are not ready to use the opportunities that are opened up through participation in programmes and projects of the EU for stimulating regional development. The case of Istria has shown that a lot can be done even in the current phase and that we can participate in projects, even though Croatia is not an EU member. This case should be instructive for other counties in Croatia. The employees of Istria County went through various kinds of training about the basics of the EU and also about the ways in which it is possible to participate in different projects. The County has very good connections and qualitative cooperation with regions from some EU member countries and this is a good prerequisite for obtaining access to the EU funds. Participation in projects is the result of county efforts. They should not expect that the national government will participate in EU programs and projects and that it will indirectly include them in projects. The prerequisite is that counties should establish international cooperation with equivalent local government units from EU member states and should also have qualified public servants capable of meeting the demands of the project. Legislative framework The passing of a National Development Plan (or equivalent documents) as a long-term indicative implementing document of the Strategy for Economic Development is a prerequisite for successful use of regional and other development programs. In 2009 Croatia has no National Development plan, but equivalent documents are Strategic Development Framework 2006-2013 and Framework for strategy harmonization. In Istria there are several important documents that arrange and regulate development of Istria as one of the most advanced Croatian region, its rural development and diversified but sustainable use of its resources: Regional Operational Programme (ROP) of Istria County for the period 2006-2010 Regional Operational Programme (ROP) is a plan-programmed procedure and a mean for a more efficient and successful Istria development management. Its a common procedure used by the European Commission to improve regional, county and candidate countries for EU accession development. ROP contains clearly distinct and defined visions, contains four strategic goals, by which it will be accomplished: Competitive economy, Development of human resources and a high social standard, A balanced and a sustainable development, Recognisability of Istrian identity. The ROP contains all society segments, its focus is on economy and its development, apropos creating the added value by what we will create postulates for the development of other segments. The focus point is on knowledge, which will ensure development of new technologies, innovation implementation and development of products and services with an increased added value. In other words, new dimension is surely gained with University of Pula founding, initiating research institutions in the industry, Brijuni Riviera project, construction of a new hospital and a series of other projects, by whose realization will Istria as a region maintain and improve its recognisability. The significance of rural development is recognized in the ROP. Like, in the frame of strategic goal 1. Competitive economy as a priority indicates Stimulation of small and medium enterprises and creating postulates for economy investment, as well as Sustainable environment farming development with traditional basics and fishery development accompanied by following measures: Improvement of fishery and agriculture development infrastructure; Development of rural space; development of rural enterprising; development of agro tourism; Valuing and improvement of autochthon products and Fishery development. Also, in the frame of the strategic goal 4, recognisability of Istrian identity is accompanied by following priorities: Preservation of biological and landscape diversity in a development function (measures of valorisation and protection of natural values and Fortifying the nature protection institutions); Preservation of cultural heritage in a function of development (measures: Founding and networking the institutions important for cultural development and recognizable Istrian identity; Preservation of material and non-material cultural heritage as well as Education for fostering of Istrian identity and its recognisability Development of multiculturalism (measure: Improvement of national minority institutions and organizations work) Each individual measure has been additionally elaborated by defining its operational goal, its content and procedural activities, its stakeholders responsible for implementation, as well as its implementation success indicator. Strategic Programme for Rural Development of Istrian County (20072013) is a strategic plan-programmed document and a mean for a more efficient and successful management of agricultural, fishery and rural area development. Main promoter of the Strategic Programme for Istria County Rural Area Development (20072013) project is AZRRI Agency for Rural Development of Istria, as well as Directional department for agriculture, forestry, hunting, fishery and water management of Istria County. Based on the Republic of Italy Legislation 84/01 the Tuscany Region through its Agency for rural development of Tuscany (ARSIA) ensured the financing of the Strategic Plan for Istria County development. Activities in Italy (Tuscany) and Republic of Croatia (Istria) are co-financed by that programme, linked to the making of Rural Development of Istria strategy which has been done for the first time according to LEADER approach in Republic of Croatia, the so called "bottom up" approach. Analyses of rural space situation of Istria County were performed in the years 2006 and 2007 After that followed a discussion between all significant factors in the area with a goal of defining rights, obligation and jurisdictions, as well as defining the LAGs Local Action Groups (areas and participants) and based on that activities identification of County measures, priorities and strategic programmes and possibilities of their realization can be conducted. Rural space of Istria was defined by mentioned activities according to European criteria. The strategy precisely defined and planed activities of all subjects in the rural area of Istria. After the Programme development follows the phase of implementation. Based on the set goals in the Programme of rural development different subjects must implement the initiatives estimated by the Plan. The very implementation of Strategic programme depends on coordination quality between the individual, local development carriers through Local Action Groups and other entities. In the following period by the year 2013 AZRRI will valuate and monitor project implementation, and after two years, review the Programme implementation by agreed principles and submit a report to the Municipality and Assembly of Istrian County along with the proposal of further activities. Municipality and Assembly of Istrian County will, based on the received report and further activities proposal, adopt necessary decisions related to the very Strategy development. Goals of the Strategic Programme for Istria County Rural Area Development To illustrate current situation in agriculture, fishery and rural areas (geographical characteristics, socioeconomic situation, demographic structure, education national and county subsidy system, agricultural production and industry, institutional frame), To determine rural areas in the County of Istria (according to EU and OECD criteria), SWOT analyses in agriculture, fishery and rural areas, To define vision, determine strategic goals , priority intervention areas, measures and development programmes, To define LAGs (prepare rural communities for adoption and implementation of local rural development strategies as well as integrated rural development strategies through local partnerships LEADER approach), To define rights, obligations and jurisdictions as well as valuating method and monitoring of project implementation and financing on county and local level. Tourism master plan Master plan for tourism development for Istria 20022010 is consisted of two phases. In the first phase, a master plan will be elaborated for each of the seven tourist clusters which include following documents: Tourism development model; Competitiveness plan; Possibilities and needs of investment; Marketing plan; Implementation plan. Master plan "recognizes" the differences between units clusters, whose specifics will be formed into new products which must be competitive on the market and complement between themselves. After a series of researches, analyses, workshops, future of new Istrian tourism in a form of six coastal clusters plus one in the inland was determined. There are seven clusters defined momentarily in Istria: 1. Umag  Novigrad; 2. Pore ; 3. Vrsar  Funtana; 4. Rovinj; 5. Labin  Rabac; 6. Istrian inland and 7. Pula  Medulin. Brijuni Islands are a special cluster predicted for elite tourism. Master plan includes plans for each cluster particularly, and finally, a master plan for the whole area of Istria. Master plan has such a mission to serve as a negotiation context and a lever for a new tourism development, which is a common practice in other countries in the region. With this plan we determine the faith of Istrian tourism for the next thirty or so years. Just as the todays image of Istrian tourism was determined thirty years ago. An image that must be changed according to todays expectations of world tourism standards. Programme of golf development as an element of Croatian tourism development strategy, 1999. Considering that this programme is in compliance with the Croatias Programme of Environmental Design, as such presents an element of its environmental design Strategy. Each proposition for golf course construction is analyzed so it can justify its purpose and meaning as a sports object as well as a tourist-recreational object. In the basics the golf is discussed as a form and a need of modern tourist supply, just like it developed in other Mediterranean countries. Therefore the basic starting point is that tourism represents the only market realistic basic for golf development. Everything forenamed represents basics of proposed environmental and market established allocation of golf courses, as well as other ground criteria. This Programme, besides golf courses sites choosing of significance for the Republic of Croatia proposes implementation presumptions and institutional, as well as organizational procedures for accomplishment of the very Programme. Also, activities of monitoring the decisions adopted and quality control are proposed. REFERENCES COUNCIL REGULATION (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 2006/144/EC: COUNCIL DECISION of 20 February 2006 on Community strategic guidelines for rural development (programming period 2007 to 2013) Conference: "Europe's rural areas in action: Facing the challenges of tomorrow" 16 -17 October 2008, Limassol, Cyprus http://ec.europa.eu/agriculture/events/cyprus2008/index_en.htm COUNCIL RESOLUTION of 15 December 1998 on a forestry strategy for the European Union (1999/C 56/01)  HYPERLINK "http://ec.europa.eu/agriculture/fore/forestry_strategy_en.htm" http://ec.europa.eu/agriculture/fore/forestry_strategy_en.htm COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Reporting on the implementation of the EU Forestry Strategy  HYPERLINK "http://eur-lex.europa.eu/LexUriServ/site/en/com/2005/com2005_0084en01.pdf" http://eur-lex.europa.eu/LexUriServ/site/en/com/2005/com2005_0084en01.pdf COUNCIL REGULATION (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA)  HYPERLINK "http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf" http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf REGULATION (EC) No 1080/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Regional Development Fund  HYPERLINK "http://www.eufunds.bg/docs/ce_1080%282006%29_2en.pdf" http://www.eufunds.bg/docs/ce_1080%282006%29_2en.pdf REGULATION (EC) No 1081/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Social Fund  HYPERLINK "http://www.eufunds.bg/docs/ce_1081%282006%29_2en.pdf" http://www.eufunds.bg/docs/ce_1081%282006%29_2en.pdf COUNCIL REGULATION (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund  HYPERLINK "http://www.eufunds.bg/docs/ce_1083%282006%29_2en.pdf" http://www.eufunds.bg/docs/ce_1083%282006%29_2en.pdf COUNCIL REGULATION (EC) No 1084/2006 establishing a Cohesion Fund  HYPERLINK "http://www.eufunds.bg/docs/ce_1084%282006%29_2en.pdf" http://www.eufunds.bg/docs/ce_1084%282006%29_2en.pdf EU Funding for Environment A handbook for the 20072013 programming period. 2005. WWF World Wide Fund for Nature (formerly World Wildlife Fund), Frankfurt am Main, Germany. COMMUNICATION FROM THE COMMISSION. Agenda for a sustainable and competitive European tourism. 2007 INNOVATION IN TOURISM HOW TO CREATE A TOURISM LEARNING AREA? The handbook Developing thematic, destination-level and regional tourism knowledge networks. European Commission Enterprise and Industry Directorate-General, Tourism Unit. 2006. References Croatia: COMPART project, INTERACT programme (2006). Building Partnership in ENPI and IPA Cross-border Cooperation. Synthesis of the regional reports on the stakeholder and benchmarking analysis. Frani, Ramona and }imbrek, T. (2003). Premises for the inclusion of agriculture in the process of Croatian accession to the European Union. In: Croatian Accession to the European Union. Economic and legal challenges (Katarina Ott, ed.). Institute of Public Finance and Friedrich Ebert Stiftung, Zagreb, p. Kersan-`kabi, Ines (2005). How prepared is Croatia to access European Union regional policy funds? The case of Istria. In: Croatian accession to the European Union. Towards the challenges of negotiations (Katarina Ott, ed.). Institute of Public Finance and Friedrich Ebert Stiftung, Zagreb, p. 241-270. Republic of Croatia, Ministry of Agriculture, Fishery and Rural Development (2008). IPARD Programme. Plan for Agriculture and Rural Development. Zagreb. The Republic of Croatia, Ministry of Tourism (2003). Strategy of Croatian Tourism Development up till 2010. Zagreb. University of Zagreb, Faculty of Agriculture (2002). Action plan for agriculture and rural development 2003-2005 Draft. Prepared for the Ministry of Agriculture and Forestry. Zagreb. University of Zagreb, Faculty of Agriculture (2005). Action plan for agriculture and rural development 2006-2008 Draft. Prepared for the Ministry of Agriculture, Forestry and Water Management. Zagreb. University of Zagreb, Faculty of Agriculture (2008). 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