European Rural Development under the Common Agricultural Policy's 'Second Pillar': Institutional Conservatism and Innovation

Abstract

The EU Rural Development Regulation (RDR) was launched in 2000 as the new 'second pillar' of the Common Agricultural Policy (CAP). The rhetoric surrounding the Regulation emphasised decentralised delivery and a territorial and multi-sectoral focus – relatively new and unfamiliar principles for the CAP. Evidence from a study of RDR Programmes is used to evaluate how this experiment has performed in the initial years, highlighting the need for institutional adaptation to enable effective delivery. The prospects for achieving this are assessed in the light of recent policy developments. Despite the restricted funds available for 2007-13, Member States still have many opportunities to improve the cost-effectiveness of rural development under the CAP.