Rural economic development in poland in the early decades of the twenty – First century and lessons learned for Vietnam

n: The dissertation approaches from secondary documents from international organizations such as: European Commission, Polish Ministry of Agriculture and Rural Development, researches of European experts and other oversea experts, e-books information, data of relevant agencies of some European countries and Vietnam in all aspects related to rural economic development. 5 4.2.2. Data processing methods The documents are gathered, translated (if they are foreign language documents), sorted and classified according to each topic and content in the analytical framework. The data that needs to be statistically processed is entered into data and processed through Excel software to form tables, charts and graphs. Statistical, comparison, analysis and prediction method Analyze statistics on Poland's socio-economic development calculate the economic growth rate, the proportion of rural economy in the national economy at different periods. The comparison method is used to assess the difference among periods such as the increase or decrease in agricultural production, rural labor, etc. SWOT analysis method: This method shows the current situation and influencing factors to the clearest. As a result, the Government of Poland’s solutions in promoting their strengths, taking advantage of opportunities and overcoming weaknesses in rural economic development to deal with the challenges posed are fully recognized. 5. New scientific contribution of the thesis Theoretical: Completing the theoretical framework for rural economic development, through clarifying theories of rural economic development, factors affecting from outside and within the country, and rural economic development evaluation criteria. In practice: Analyze the current situation of Polish rural economic development, evaluate the successes, limitations and challenges posed in the rural economic development in Poland in the early decades of the twenty-first century. 6 Evaluate the similarities and differences between Poland and Vietnam, lessons learned, and policy implications for Vietnam. 6. Theoretical and practical meanings of the thesis Firstly, the thesis has shown rural economic development according to the theory of a new rural model with the development of agricultural and non-agricultural production. Besides, exploitation of initiatives at the local level is becoming the main trend. in rural development in developed and developing countries. Secondly, concentrate on the assessment of successes and shortcomings, similarities and application conditions in the implementation of rural economic development in Poland. In the context that Vietnam is integrating deeply with the region and the world, the thesis has drawn lessons and policy implications for rural economic development in Vietnam. Thirdly, the dissertation's research results are a very useful document for teaching at universities, references for domestic and foreign researchers, planners and practitioners, policies for rural economic development in Vietnam. 7. The structure of the thesis In addition to the introduction, the conclusion, the list of the author's published research related to the thesis, the list of references, the index and the appendix, the thesis is structured with 4 chapters as follows: Chapter 1: Overview of research. Chapter 2: Theoretical issues for rural economic development. Chapter 3: The current situation of Polish rural economic development in the early decades of the twenty-first century. Chapter 4: Lessons learned and policy implications for Vietnam. 7 CHAPTER 1 OVERVIEW OF RESEARCH SITUATION 1.1. Published research works related to the thesis 1.1.1. Theoretical research on rural and urban areas Further studies on the concept of overseas rural and urban areas include: Wiggins S, Proctor S (2001) Kathy Miller (2002) Kostas Stimulus (2007) European Commission (2014) pseudo Joop de Beer (2014) Gustavo Bastos BragaI et al. (2016); In the country, there is Mai Thanh Cuc (2005) Hoang Viet (2013). 1.1.2. Theoretical research on rural economy. The specific studies include: Gustav Ranis and Frances Stewart (1993), Clack Edward (2011) Guogang Wang (2015); Daphne Meredith (2016); Alexandru Pavel (2019) 1.1.3. Researches on models of rural economic development Some typical works such as: J. Kirk Ring (2005); OECD (2006); Peter Midmore (2007) 1.1.4. Study of specific cases of Polish rural economic development The authors such as: A.Kowalski, M.Wigier, P.Chmieliński (2008); Józef Mosiej (2014); Agnieszka Baer-Nawrocka (2016) Anetta Barska (2018) 1.1.5. Research on agricultural development and rural economy in Vietnam Some notable authors are: Luu Duc Khai (2012) Vu Trong Khai (2015) World Bank 2016, Michaud (2016) Finn Tarp (2017) Ministry of Agriculture and Rural Development (2018) 8 1.2.Some conclusions are drawn related to the thesis and gaps that need further research in the thesis 1.2.1 Agreed issues: Firstly, the concept of rural areas is a controversial concept that is not uniform in application among countries in the region. Secondly, provide a part of scientific arguments about rural economic development theory, evaluation criteria for rural development. Thirdly, government policy should focus on encouraging the supply of inputs, with a focus on hard infrastructure to promote rural economic development. Finally, there is a need to diversify the economy in rural areas, with a focus on the development of non-agricultural production enterprises for rural economic development. The issues are still debated Firstly, uniformly apply a concept of rural areas to compare and evaluate the rural economic development of each country. Secondly, forms of rural development are appropriate for countries namely: The old mode of rural development focused on agricultural subsidies. The new one focused on: Invest and improve competition in rural areas by exploiting strengths and characteristics of each region and region. Thirdly, the issue of institutions and policies for rural economic development should be concretized, creating a driving force to promote non-agricultural production activities in rural areas. Finally, promote decentralization between the central government and the local government to increase accountability and accountability in policy making and implementation. Moreover, improve the ability to engage with private organizations in the 9 region, exploit and promote community initiatives in rural economic development. 1.2.2. Issues related to the thesis topic that the above works are left open need further research: Firstly, there is no research that fully analyzes scientific arguments and builds a full theoretical framework for rural economic development. Secondly, the research has not applied the theoretical framework to better recognize the successes in the implementation of rural economic development in the early decades of the twenty-first century. Thirdly, there are no research to assess the similarities and differences between the two countries. On that basis, draw out Polish worth learning successes as well as unsuccessful lessons that Vietnam needs to learn to avoid. Finally, the research has no connection with the world, especially Poland with lessons learned in the context of Poland integrating deeply with the region. 1.3 Research questions and analytical framework of the thesis 1.3.1. Research question What was the development of the Polish rural economy in the early decades of the twenty-first century? Additional research questions continue to be asked as follows: What factors affect the Polish rural economic development in the early decades of the twenty-first century? What is the criterion for assessing the development of the agricultural economy in Poland? What are the successes, limitations and shortcomings in Polish rural economic development in the early decades of the twenty-first 10 century? What are the lessons learned from Polish rural economic development for Vietnam? 1.3.2. Analytical framework of the thesis CHAPTER 2 THEORETICAL ISSUES OF RURAL ECONOMIC DEVELOPMENT 2.1. Theories of rural economic development 2.1.1. Theory of two regions (dualism theory) According to this theory, urban areas are modern and dynamic, while rural areas are supposedly undeveloped. Countries should prioritize the development of industrial production over rural development. 2.1. 2. Endogenous growth theory (or new growth theory) Promote free markets and reduce government intervention. There is a need to call for community participation, strengthen economic opportunities in rural areas. Rural development approaches need to be changed from top-down to a bottom-up approach in order to effectively exploit local resources. 2.1.3. Sustainable livelihood theory Focus on the production transition as well as institutional change with the aim of alleviating poverty and eradicating inequality in rural areas (Schejtman and Berdegué, 2004). These methods focus on methods of economic development by region and using the typical comparative advantages of each region as the driving force for development. 2.1.4. Theory of the new rural model Countries need to take a regional approach when making rural development policies instead of a sector approach. As a consequence, make rural policy possible to integrate, harmonize with 11 other sector policies and improve public expenditure effectively and rationally in rural areas. Rely on strategic investment to encourage the development of activities that bring the highest production efficiency for each region. Additionally, exploit the characteristics of each region as a factor creating a new competitive advantage. 2.2. Rural economic development 2.2.1. Concepts of the rural area, the rural economy and rural economic development In the EU (2014), it is defined that rural areas are areas with a population density of less than 150 people per km2. In Poland, the classification of criteria is applied according to the common standards of the European Union. Development concept: Development is a constantly changing process that increases people's living standards and equitably distributes growth gains in society. The concept of economic development Economic development is a change in all aspects of the economy in a given period of time, an increase and decrease in the size of output, the quality of the change in the economy, and progress of society. The concept of rural economy: The concept of rural economy includes activities of agricultural and non-agricultural production to generate rural growth. The process of diversifying economic activities in rural areas, in which concentrating all resources to attract and promote non-agricultural activities in order to create jobs and improve people's income. 2.2.2. Rural economic development characteristics 12 Some key features: (1) be a factor in rural development; (2) create the modernization of rural areas; (3) moving towards liberalization according to the market mechanism; (4) link with the diversification of the rural economy (5) Aim for decentralization in management and towards sustainability 2.2.3. Rural economic development content The content of rural economic development includes the following five basic elements: (1) Improve the quantity; (2) Better the quality; (3) Diversify product structure; (4) Change the organization and market and (5) Ensure fairness across regions, population groups, generations, men and women. In order to achieve the above contents, rural economic development policies focus on: Improving the competitiveness of the agricultural production sector; human resource training and development; rural infrastructure modernization; based on local resources; complete supply chain system of agricultural products; diversify non-agricultural production activities; and perfecting the system of policies to support rural economic development. 2.3. Factors affecting rural economic development 2.3.1. Outside impact factors Depending on the degree of national integration with the region and the world, the influence of external factors on rural economic development differs. As a member of the European Union, therefore, Poland is bound by regulations and policies at the EU regional level. Some of the prominent changes of the region have been affecting rural economic development in Poland such as: (1) the European Union's rural development policy; (2) the public debt crisis; (3) regional migration, (4) population aging (5) Brexit in the European Union. 13 2.3.2. The factors affecting the country Rural economic development is affected and influenced directly by factors such as natural and social conditions, resources for rural economic development, quality of rural human resources, and applicability technology and policy change. 2.4. Evaluation criteria and analytical framework for rural economic development 2.4.1 Group of evaluation criteria for agricultural production in rural areas GDP in agriculture and the share of agricultural GDP in GDP of the whole economy; Farm size; Agricultural labor productivity 2.4.2. Criteria group for non-agricultural activities evaluation Average income per capita; Labor employment in rural areas; Criteria to measure labor mobility in Polish rural areas; Rural infrastructure modernization; Spending on innovation and creativity (R&D); Number of non-agricultural production enterprises in rural areas CHAPTER 3: THE CURRENT SITUATION OF POLISH RURAL ECONOMIC DEVELOPMENT IN THE EARLY DECADES OF THE TWENTY – FIRST CENTURY 3.1. Natural conditions, socio-economic in Polish rural area 3.1.1. Natural condition 3.1.1.1. Polish terrain location Poland is a country located in Central Europe, covering a total area of 3,127,000 km² with a population of 38.56 million, ranking 6th in the European Union in terms of both population and area. 3.1.1.2. Weather condition 14 There is considerable variation in the length of each individual season. Average air temperature in the period 2010-2018 ranged from 7.5 ° C to 9.6 ° C and rainfall varied greatly from 576 mm to 830 mm 3.1.1.3. Countryside Poland is divided into 16 regions with 314 districts and 2,479 communes. Polish rural areas are divided into remote rural areas, areas bordering urban areas. There are 3 main types of areas: (1) pure rural areas; (2) the intermediate areas and (3) the urban area. 3.1.2. Social and economic conditions. 3.1.2.1. Population status The population fluctuation in Poland is not much with the amplitude of increase or decrease between years averaging 0.2% per year. In 2018, Poland's population was 38.41 million. Rural areas increased by 547 thousand people in 2018 compared to 2000 because of an increase in the birth rate, increased immigration in improved rural areas. 3.1.2.2 Labor situation in rural areas The employment trend contributed to the increase of the group of workers aged 15 - 24 years old from 50.4 to 50.9% in the period of 2014-2018. The employment rate of the elderly group (male 55-64, women 55-59) also witnessed an increase of 49.4-54%. Meanwhile, this rate increased slightly at 36 -37% towards young workers (18-24). Unemployment: Poland benefits from the financial resources of the EU region to improve living conditions, infrastructure, and labor skills. The rural unemployment rate has decreased significantly from 17.6% in 2004 to 8.5% in 2014, and nowadays it reaches only 4.2% in 2018. 15 Trends in labor mobility in Polish rural areas: International workers who migrate into rural Poland in recent years increased from 38,500 in 2006 to 86,000 in 2018. They are mainly unskilled workers that come from Ukraine. 3.2. Polish rural economic development in the first decades of the twenty-first century 3.2.1 Some key features of Polish rural economy Focusing on "narrow policy" combined with regional development strategies to focus on solving specific goals such as: (1) Improve the competitiveness of the agricultural sector; (2) Train and develop rural human resources; (3) Modernize rural infrastructure; (4) Diversify the rural economy, etc. 3.2.1.1. Transition period from 1993 to 2004 Poland has made strong adjustments to "Rural Development Policy" with a series of other policies adjusted towards agricultural liberalization, farm competition promotion and financial support incentives for production. 3.2.1.2. EU integration period from 2004 to present Transform the growth model towards sustainability and EU standards. The operation of policies in rural economic development is in line with regional policies. 3.2.1.3 The movement of Polish rural economy. During the period 2000-2018, GDP growth in rural areas increased by 60% with a value of 92,841 million euros. Average growth in rural areas in the period 2000-2014 was 3.3%- the highest GDP growth among OECD countries. The share of GDP in rural areas varies from period to period and accounts for 30% in 2018. The income per capita in the Polish rural area increased significantly from USD 10,556 in 2000 to USD 17,035 in 2018, 16 however, there are regional differences. Labor productivity in Poland has changed significantly. Productivity levels are seen converging on a par with the national average from 81% in 2000 to 87% in 2014. 3.2.2. Measures to develop the Polish rural area economy 3.2.2.1 Current status of agricultural production development The rate of agricultural production in Poland's GDP decreased gradually from 4.5% in 2004 to 2.4% in 2016. The value of agricultural output in recent years reached a high value with 23,206 million euros, up 4, 65% compared to 2016. The number of farms with an area of 20-50 hectares has increased from 97,000 farms in 2010 to 102,000 farms in 2016. The number of farms larger than 50 hectares has also increased from 27 to 34 thousand farms in 2016. The proportion of some Polish agricultural products in the EU 28 is increasingly high, such as apples 26.4%, poultry 15.1%, white cabbage 31.4%, followed by products such as barley, oats and the 3rd in the EU are beets, wheat. 3.2.2.2. Development of non-agricultural activities in rural areas The proportion of rural workers participating in non- agricultural activities remains low; Polish rural economic diversification activities are improved with EU financial support; Promoting entrepreneurship, self-employment in rural areas was strongly implemented when Poland became an EU member; The development of self-employment and production activities in rural areas has attracted a large workforce. 3.2.2.3. Developing the rural labor market Active labor market policy is implemented with a focus on 03 goals:(1) Develop vocational training programs to provide workers with new skills;(2) Increase recruitment demand for 17 businesses through wage support mechanisms, investment in job creation (3) Enhance job connectivity through upgrading job searching systems. 3.2.2.4. Rural infrastructure modernization Invest in Polish rural areas to promote sustainable growth in national development strategy. Public investment in infrastructure always accounts for a high proportion of GDP, which was equivalent to 3.5% of GDP in 2015- higher than the average rate of the OECD countries of 3.1%. Rural infrastructure investment activities are quite diverse from modernization of the transport, energy, and communication sectors, etc. 3.2.2.5. Enhancing the application of science and technology The innovation network was established by the Polish government in 2015. Along with this network, private consulting service centers, businesses, agricultural extension services, etc positively contribute to production growth. Some initiatives to increase the application of science and technology:(1) Build a national innovation network with the links of universities, research institutes, associations, etc linked with the regional innovation network;(2) Mobilize ranchers to participate in an innovation and cooperation network funded by the EU budget;(3) Complete policies on increasing access to policies to support investment in ecological innovation technology. 3.2.2.6. Enhance the role of government in rural economic development Adjustment of policy and institutional frameworks: Compliance and strict implementation of EU integration criteria; Implementation of rural development programs 18 3.3. Evaluation of successes and limitations on Polish rural economic development 3.3.1. Analysis of factors affecting rural economic development in Poland Poland is focusing on market development, production investment (S + O); Strategy (W + O) to overcome weaknesses, take advantage of opportunities by solutions to promote land accumulation; Strategy (S + T) exploits advantages, strengths and mitigates challenges: exploiting community initiatives to mobilize resources; Strategy (W + T) overcomes weaknesses, minimize challenges to achieve sustainable development. 3.3.2. Some achievements in rural economic development (1) Poland's rural area has made impressive changes; (2) land accumulation policy has created a change in production methods of agricultural farms; (3) agricultural production still plays an important role in the development of rural areas; (4) production capacity and competitiveness of farms are supported by policies and initiatives in rural economic development; (5) the contribution to non-agricultural activities is increasing; (7) rural labor force has been improved day by day; (8) Policies are tailored to the common standards of the region (9) use financial resources efficiently. 3.3.3. Limitations and causes in rural economic development Average farm area in Poland is less than 20 hectares- lower than the EU average. Poland's agricultural sector is still a labor intensive sector compared to EU member states. Agricultural production activities have not yet developed sustainably, and are highly dependent on external financial resources. Diversification of rural economic activities is limited in many areas. 19 3.3.4. Some assessments of initiatives and solutions that Poland has implemented in rural economic development (1) Apply a new rural theoretical framework with SWOT analysis to formulate strategies and action programs. (2) Promote rural economic diversification through off-farm activities; (3) The rural labor market is strongly changed by decentralization in management, flexibility in training and vocational training; (4) Integrate implementation of regional programs with domestic programs (5) Use financial policies to intervene in the real estate trading market through the use of preferential credit (6) Implement decentralization and strengthen the role of the local level;(7) Establish agricultural information supply systems, agricultural extension centers to broaden rural access; (8) Change approaches to rural economic development (implementing LEADER programs) CHAPTER 4 LESSONS LEARNED AND POLICY IMPLICATIONS FOR VIETNAM 4.1. Similarities and differences in rural economic development between Poland and Vietnam 4.1.1 Some similarities between the two countries Legal and policy framework for rural economic development: Implementing the transition from a centrally planned economy to a market-oriented economy, gradually eliminating the subsidy mechanism in agricultural production. Co-implement rural development programs along with some similar contents in objectives and methods. Socio-economic conditions in rural areas along with the majority of the population concentrated in rural areas 20 Measures in rural economic development: Agricultural production has shown rapid output growth, rapid exports. Labor productivity is improved and all applies the policy of land accumulation. Agricultural restructuring is accelerated with activities to diversify the rural economy. Rural infrastructure has been improved along with a trained rural labor force, applying science and technology in production. 4.1.2. Some differences Institutional reform and establishment of market economy mechanism in Vietnam are still in the stage of completion. The implementation process still has many uncontrolled and ineffective fields. To be specific, the