Handbook of territorial & local development strategies Chapter 4 - Cross Sectoral Integration

Introduction

The category of non-urban areas is very diverse, ranging from villages and small and medium size towns to the urban periphery, and includes rural and also remote territories (see Introduction).

The priority themes that characterise non-urban areas, both in terms of challenges and opportunities, are multiple and varied, pertaining to geographic, demographic, social, economic and environmental dimensions. They are often interlinked with each other. Given this complexity, it is worth asking which priorities are most tackled by territorial development strategies.

CLLD strategies could be programmed under one thematic priority, and as such it is challenging to identify the themes addressed in these strategies. The non-urban ITI strategies cover a wide range of investment priorities, with a particular focus on natural and cultural heritage (in 37 % of the strategies); energy (in 36 % of the strategies); health and social inclusion (in 28 % of the strategies); ICT applications for e-government, e-learning, e-inclusion, e-culture and e-health (in 27 % of the strategies); mobility and transport (in 27 % of the strategies).

When looking at keywords used in the description of the strategies, several terms appear more consistently in comparison to the Sustainable Urban Development (SUD) strategies – regardless of how often they are used. These include: jobs and skills, health, social inclusion, integration of migrants and refugees, research and innovation, youth, social innovation, smart specialisation. These keywords are particularly frequent in CLLD strategies, whereas their distribution is similar in both non-SUD and SUD ITI strategies. In any case, terms linked to social inclusion, jobs and skills as well as to innovation (research and innovation, social innovation and smart specialisation) are more common and relevant in non-SUD strategies.

Territorial development literature and European policy documents such as the Territorial Agenda 2030, the new Leipzig Charter and the ‘Communication on the long-term Vision for the EU’s Rural Areas’ have argued that these challenges can only be effectively tackled using an integrated place-based approach. In fact, integration has been and still is a key dimension of the EU cohesion policy.

Within this context, integration is understood as the coordination between policy areas (cross-sectoral integration), between different levels of government and stakeholders (multi-level and multi-stakeholder governance) and across different territorial scales and areas (territorial integration) (Fioretti et al., 2020). Cross-sectoral integration refers to this first dimension of integration where society and government is organised in policy sectors of expertise, decision-power and funding. Cross-sectoral integration aims at breaking these ‘silos’.

The benefits of implementing a cross-sectoral approach are well-studied and generally acknowledged across Europe. Overall, it brings long-lasting benefits and results at the local level by ensuring: coherence in policy-making principles and objectives among different policy sectors in public administrations; alignment in priorities and timeframes; collaboration among different departments and across levels to co-design and implement policies; and the anticipation to and action against possible negative externalities (Fioretti et al., 2020).

One important reason for the implementation of a cross-sectoral approach in non-urban areas is based on the diversity of these areas, to the extent that it could be said that there are no two rural areas alike. These areas could vary in terms of their natural and climatic conditions, geographic features, historic and cultural developments, demographic and social changes, national and regional specificities and economic prosperity. This diversity calls for locally designed responses and the appropriate policy-mix corresponding to each territory’s specific needs and possibilities. It also means that territorial development strategies should address non-urban areas according to their individual characteristics and in relation to their environment (European Commission, 2021a).

The cross-sectoral approach creates and strengthens the links between different sectors of the local economy and different stakeholder groups in the territory to multiply the results of policy actions. This is of particular relevance in non-urban areas, where there is limited availability and scale of development drivers. The aggregation and coordination of cross-sectoral efforts to achieve multi-sectoral benefits help multiply the results, which would not happen if done through individual sectoral action. This multiplicity of development effects drives more efficient and sustainable development in rural areas. Finally, it is important to note that the degree of ambition in the implementation of cross-sectoral approach will vary across territories and will be tuned to the contextual situation (its social, economic and environmental dynamics). It should be implemented to the extent that it matters for the territory in order to achieve the benefits outlined above.

Adopting a cross-sectoral approach successfully can be challenging for policy makers. In this respect, this chapter focuses on three main policy challenges, proving examples, resources and recommendations for addressing each.

The first challenge relates to understanding the newly introduced EU cohesion policy structure, tools and requirements to support a cross sectoral approach. The 2021–2027 cohesion policy regulations stress the importance of the cross-sectoral approach and define three territorial tools that should be based on territorial and local development strategies. These strategies should include a description of an integrated approach to address the identified development needs and boost the potential of the area[1]. To address this first challenge, the chapter will present key aspects of the new EU cohesion policy framework and explore the opportunities it offers to stimulate effective cross-sectoral integration in territorial strategies.

As a second challenge, this chapter will zoom in on the elements that are crucial in the design and implementation of an effective cross-sectoral approach in territorial strategies. Key steps of the design phase include: a thorough diagnosis of development potential and a deep understanding of how different questions are interconnected; a sound collaboration between different agencies and levels, including the citizens level; and a clear structuring of foreseen actions under a common logical framework that highlights the interlinkages and complementarities among them.

Challenges for working in a cross-sectoral way are not only apparent at the level of strategy design, but also in the implementation phase and in particular at the individual project level. A more integrated project can contribute to several objectives at the same time, be more inclusive and have a larger impact. To increase the chances of having integrated projects, the phase of project selection and the establishment of selection criteria play a key role. Inspiring examples of integrated and interdisciplinary projects are also promoted by the New European Bauhaus initiative. In a final section the chapter will look deeper into ways to promote an integrated cross-sectoral approach at project level.

Challenge 1 : How to use the new EU cohesion policy framework to stimulate effective cross-sectoral integration in territorial strategies ? 

In the framework of the EU cohesion policy 2021–2027 programming period, integrated territorial development has gained more importance in comparison to the previous period, in particular for non-urban areas. Several changes are noteworthy, and understanding the main elements and features of the new policy framework is key for making use of the opportunities it offers to support cross-sectoral integration. First, minimum requirements have been introduced for integrated territorial and local strategies in the Common Provisions Regulation. These requirements apply to several European funds at the same time. These integrated territorial and local strategies can be delivered through three territorial tools: (a) Integrated Territorial Investments (ITI), (b) Community-Led Local Development (CLLD), (c) any other territorial tool that supports initiatives designed by a Member State.

Challenge 2 : Which elements to take into account in the design of an effective cross-sectoral territorial strategy ? 

A first step in designing a cross-sectoral strategy is to know what challenges the strategy needs to address and what the potential of the territory at play is. In other words, the process begins with an analysis of the development needs and opportunities of the territory. A thorough understanding of development needs and potentials implies recognising their multidimensional nature (how different aspects are related to each other), and harnessing these through a cross-sectoral integrated plan.

Both the cohesion policy definition of a territorial strategy[5] and a local development strategy[6] stress this first stage of strategy design. For uncovering these local challenges and potentials and understanding their mutual relationship, combining external and local knowledge is most effective. This implies on the one side using data at the most granular (local) level to run an evidence-based territorial analysis. On the other side, it implies a participatory approach to strategy design, as often non-urban communities have strong ties, knowledge and creative ideas that can be unleashed.

Challenge 3 : How to go one step further and promote an integrated approach at project level ? 

The implementation is a critical junction in the life-cycle of a strategy – design, implementation, evaluation. However, strategies often remain as ‘plans on paper’ with no or disappointing implementation after their approval. For successful implementation of an integrated territorial strategy, objectives should be translated into projects that contribute to achieving (part of) these objectives. In many instances, the combined action of a number of projects supported by the strategy is what brings to reality the value of the integrated ambition of the strategy. However, a project within the strategy can be integrated too.

• Make full use of the new opportunities in the EU cohesion policy 2021–2027 to stimulate effective cross-sectoral integration in territorial strategies.
  • The new Policy Objective 5 – with its specific objective 5.2 aimed at supporting non-urban areas – can support thematically integrated strategies, including themes falling under other policy objectives.
  • Territorial instruments such as integrated territorial investments, community-led local development and other similar, nationally developed territorial tools can combine funding sources and provide coordination structures.
  • Other policy objectives can also support integrated strategies from a certain thematic angle.
  • Programmes can use technical assistance or even launch specific preparatory actions to support the design of integrated territorial strategies.
• Combine external and local knowledge in the development of the strategy to strengthen integration, efficiently address local challenges, seize the opportunities in the territory and boost innovation.
  • Use a participatory approach to strategy design to uncover local knowledge.
  • Explore the support tools that are available to run an evidence-based territorial diagnostic using data at the most granular level.
  • Increase the strategic capacity of local authorities and stakeholders by establishing mechanisms to link with higher levels of government and their available support.
  • Use innovation as an approach that crosses different sectors as it can be a catalyser for rural change and touch on many different policy areas.
• Be aware that the design and implementation of an integrated territorial strategy demands a strong coordination structure.
  • Involve stakeholders and other agencies early on in the strategy design in order to assure buy-in for cross-sectoral strategy implementation.
• Be aware that the design and approval of an integrated strategy is a time consuming process, particularly when it is done for the first time.
  • Use and upgrade existing sectoral and cross-sectoral strategies as the starting point.
  • Work closely with managing authorities to define the scope of the strategy that can be supported by an EU Programme.
  • Support capacity building and preparatory actions assisting the design and future implementation of the strategy.
• Support projects within the strategy that contribute to the objectives and are cross-sectorally interlinked.
  • Find a balance between investments in infrastructure (referred to as ‘hard’ investments) and investments in skills, capacity, inclusion (referred to as ‘soft’ investments).
  • Apply the integrated approach also at project level by keeping a broad perspective and apply an interdisciplinary approach.
  • Define adequate project eligibility and selection criteria as these will decide to a large extent how well projects will link to the strategy and how integrated and interlinked they will be.
  • Explore the different possibilities that exist within and between EU Funds for supporting integrated projects.