6.6 LEADER implementation: the role of local action groups and power
7.4.2 The legacy of South Tyrolese agricultural cooperation
7.4.2 The legacy of South Tyrolese agricultural cooperation
As partially discussed in Section 7.2, farmers in Tyrol always maintained a greater freedom than in any other German region, and were thus not obliged to give up part of their harvest or pay large sums of money to redeem their property (Hans von Voltelini 1919 in Faustini 1985; Pichler & Walter 2007). This was especially the case in the period of subsistence economy, when farmers produced goods for their own consumption. However, from around 1825, when mass production of food and goods of common use started, as well as the development of means of transportation including railways and sea transport, farmers in Tyrol started to face economic impoverishment and got increasingly into debt. The new means of transportation (such as the Brenner railway) gave the opportunity of importing goods from far away, damaging the production in local markets; as well, salaries of people involved in agriculture started to depend on money and not on food products and clothes. Other factors that played a role in the impoverishment of farmers included the natural disasters of the late 1800s, and also political reasons. Throughout the wars of 1859 and 1866, which led to the Italian unification, the Asburgic empire lost the regions of Lombardia and Veneto, which until then they were Tyrol’s markets; the new customs represented a clear obstacle to exports (Pichler & Walter 2007).
In spite of the economic impoverishment, in South Tyrol the shift from a subsistence economy to a market economy was not as critical as in many parts of Europe, where it caused massive migration overseas (Pichler & Walter 2007). In this regard, Leonardi (1993, 90) points out that:
“Tyrol was still distant from those bitter social conflicts that were dramatic especially in the large centres of Europe, where a concrete realisation of cooperative models based on cohesive principles among the various social classes found many difficulties.
Certainly, a Catholic vision of the world, deeply rooted among Tyrolese population, had a big influence in that. The catholic moral and ethic represented a model of life, in which collaborationist concepts represented an important meaning”.
In the context of this agricultural crisis, Tyrol politics took action at the late nineteenth century; the Provincial Council of Agriculture (Landeskulturrat) carried out a vast agrarian reform which included the introduction of the closed farm, the creation of the rural credit banks according to the system of Friedrich Wilhelm Raiffeisen, and the establishment of agricultural cooperatives in the early 1890s. An incentive to the diffusion of the cooperative movement in the economy came in 1891 from the encyclical “Rerum Novarum” of Pope Leone XIII, which still today represents the foundation of the Christian social doctrine. The Christian‐social area pushed for the introduction of cooperation in Tyrol, which was supported and approved by farmers and handricrafts workers (Pichler &
Walter 2007, 32; Leonardi 1993).
Before the First World War, the cooperatives and the association of cooperatives were organized partly in sectoral federations in the whole territory of Deutschtirol (thus excluding Trentino) and partly in intersectoral territorial federations in both North and South Tyrol. The opportunity to create a federation was particularly supported by the regional councilor and deputy Ämilian Schöpfer, who proposed a constitution for the agricultural coopearatives in which all farmers would be represented in order to safeguard their interests (Pichler & Walter 2007). According to Pichler & Walter (2007, 31),
“in about 20 years, the Cooperazione was a crucial part of the socio‐economic system both in the secondary valleys and the main ones in the region. At the beginning of the 1900s there was no sector of agriculture in which cooperatives were not active”. In 1919, about two‐thirds of autonomous farmers of South Tyrol/Alto‐Adige were organized in cooperatives while the rural credit banks had a capillary presence in the territory. As such, agricultural cooperatives were not supported and/or created from some central institution as in the case of North Karelia, but were the result of a bottom‐up process, within which farmers have always been very powerful agents.
Because of a different economic asset of agriculture, at the end of the First World War the South Tyrolese cooperatives were severed from the main organization located in Innsbruck (North Tyrol); they later started to operate autonomously in a period of difficult transition characterized by the rise to power of fascism, which opposed their work because of their desire for autonomy and democracy (Pichler & Walter 2007). In contrast to what happened in Italian‐speaking Trentino, where the cooperative movement was split according to different ideological and political perspectives, in South Tyrol the strong cohesion within the German‐speaking minority rarely saw the rise of ideological divisions within the cooperative movement. The fascist regime was opposed to the autonomous institutions in the region, and it considered the
removal of the ‘German’ banks a crucial step to the Italianization of the territory.
In Fascist Italy there was no space for free and democratic cooperation, which re‐emerged after World War II. At that time, agriculture had a fundamental relevance in the social and economic structure of South Tyrol. At the end of the Second World War farms experienced a slow process of modernization and mechanization that, from the second half of the 1950s, accelerated. Throughout this period, rural cooperatives and their federations played a fundamental role.
These associations represented an important support for the farmer, especially for marketing products, in their buying plants and seeds, tools, etc. (Pichler &
Walter 2007).
The first social organization to be re‐established after 1945 was the Südtiroler Bauernbund (SBB), which saw to the reorganization of agriculture (Gatterer 2007). The cooperatives of fruit growers were born, as well as wine cellars and cattle cooperatives; throughout the 1960s the activities of the rural banks started again. In 1954 the Provincial Federation of the South Tyrolese Agricultural Cooperatives was established, as well as the Central Union of Agricultural Cooperatives, whose function was to place products in the market. According to Gatterer (2007, 1125), “this complex organization was by far superior to the one existing in the Italian agricultural world”. A member of the Christian Democratic Party in 1958 stated that: “the mechanization of agriculture in Alto Adige has reached extraordinary figures. The latest data […] indicate that in the Province of Bolzano there are 1595 tractors […], as well as 5000 machines for agricultural use, exactly twice the amount of the agricultural machines present in the Province of Trento, for the same extension of cultivated land. In addition, the Province of Trento has one of the highest mechanized agricultures in Italy”.
Gatterer (2007) argues that in spite of being conservative in mentality, the South Tyrolese were at the highst level concerning technical and civil progress. This factor was supported by the presence of agrarian schools: in 1968 in South Tyrol there were two agrarian technical institutes, one institute specialized in fruit cultivation, and two schools that prepared women for domestic work in agriculture. The agricultural cooperative system is still strongly present in the province, and it deals with the commercialization of agricultural products. The cooperatives run almost the entire dairy market, as well as the apple market (90%) and the wine market (70%) (Il Sole 24 ore 2003).
Within the overall cooperative system from 1980 to 2005, the production and the services of cooperatives have more than doubled, reflecting the fact that South Tyrolese society has increasingly moved to a ‘service’ society, as shown in Table 12; the decrease in the number of agricultural cooperatives is partially due to the merger policy which has characterized the last decades (Pichler & Walter 2007, 207) (Table 12).
Table 12: Evolution of cooperative types in South Tyrol, 1964–2005 Source: Pichler & Walter (2007, 208)
COOPERATIVES’
TYPES 1964 1971 1975 1980 1985 1990 1995 2000 2005 Increasing/
Decreasing percentage Cooperative
stores (co-ops) 28 19 15 17 19 15 12 13 11 -35
Agriculture 150 164 149 152 146 140 132 150 130 -14,5 Work & Production 33 30 15 53 55 79 67 113 107 +101,9
House building 161 193 152 431 357 233 192 204 221 -48,7 Services 40 88 55 152 194 216 264 306 320 +110,5
Credit 70 71 54 59 58 58 54 53 52 -11,9
Total 482 565 725 864 829 741 721 839 928 +7,4
On the basis of the role of agriculture and rural development in the South Tyrolese regional context discussed in Sections 7.1–7.4, in the following three sections the LEADER policy in this province will be discussed, in particular how rural development and agriculture have come together in this European programme.
7.5 LEADER IN SOUTH TYROL: MAIN FEATURES AND