Definition and discussion on natural resources and

human assets in the Alps

Mountains are known to store a number of resources, which are considered as having remarkable economic and ecological value.

Their ecosystems support approximately one quarter of terrestrial biological diversity, with nearly half of the world's biodiversity hot spots concentrated in these high altitudes, but they also play a substantial role in supplying a remarkable amount of food to humanity. Around 20 plants supply 80 percent of humanity’s food. Six of them:

maize, potatoes, barley, sorghum, apples and tomatoes, originated in mountain areas.

Seven others, wheat, rice, beans, oats, grapes, oranges and rye found new homes in the mountains and evolve into many different varieties. Moreover, these eco-systems are a significant source of public good (positive externalities) such as clean air, biodiversity, quality products and landscapes, which are essential for mankind.

Most of the major European rivers have their headwaters in the Alps and their discharge is transported via river systems to lower lands.

The Alps play a crucial role for water accumulation and supply. Therefore they are often referred to as natural "water towers".

Moreover, the water system of the Alps is very important not only for the countries of the region, but also for large parts of Europe. In particular, the Alps contribute highly to the total discharge of the four major rivers (Danube, Rhine, Po and Rhone) flowing from the region, from 26 % (Danube) to 53 % (Po)⁴⁴.

44 Weingartner et al., 2007

In this perspective, mountains, though they often are marginal areas, should be kept in the world market so as to contribute to ensuring food security⁴⁵ .

In common language, an asset (or, a resource) is defined as "a source of supply or support: an available means; a natural source of wealth or revenue; a natural feature or phenomenon that enhances the quality of human life”⁴⁶. Assets will be the main focus of this section of the report that will try to examine their characteristics, nature and contribution to human wellbeing and territorial development of the Alpine area.

Though the perception of the existence of specific mountain resources is common knowledge, in this report, taking into consideration its specific goals and the context in which it investigates, they will be divided into the two principal groups of natural resources and human assets. The proposed distinction is based on the consideration of some of the principal approaches of research and international practice towards the assets, which will be considered in the following sections.

According to this basic distinction, the characterizing elements of the mountain territory and environment are part of the group of natural resources, and are generally tangible goods. On the other hand, the elements, which can be found in mountain areas and are linked more to human behavior, perceptions and actual interventions on the territory, have been included in the group of human assets.

Culture, landscape, public services (including health services, transportation services, social services, etc.) and innovation capacity are some examples of the second group's contents. Though human assets may also be tangible, their distinctive nature is determined by the intangible value, which is provided by human beings.

45 SARD-M Fao: www.fao.org/sard/en/sardm/home/index.html

46 Definition according to the Merriam-Webster Dictionary

A basic description of, and a brief discussion about, the most typical mountain based natural, environmental resources and human assets are provided within the following paragraphs.

Good practice Good practice Good practice

Good practice 35: Economic cycles and rural : Economic cycles and rural : Economic cycles and rural : Economic cycles and rural development in Europe, with special development in Europe, with special development in Europe, with special development in Europe, with special

reference to the Alpine sites reference to the Alpine sites reference to the Alpine sites reference to the Alpine sites

The focus of rural development policies has shifted over the past decades from the classical aim of attracting external investment, to the

enhancement and exploitation of local, endogenous resources. This attitude has been called "endogenous development" (Woods 2005).

In particular the endogenous nature of rural economies refers to the degree in which they are (1) built on local resources, (2) organized according to local models of resource-combination (implying local control over the use of resources), (3) strengthened through local distribution and re-investment of the produced wealth (van der Poleg and Marsden 2008).

An economic cycle, according to mainstream economic theory, represents a set of economic relationships (production, processing, and consumption, recycling) between aggregated units (households, enterprises, state, foreign countries). It is seen as a result of division of labor (Figure 10). These flows of goods, services and capital are open to other regions and markets. At present, local economies largely rely on external trade and capacities. Thus, the worthiness of enhancing local assets (e.g. energy, raw materials) and processing capacities (know-how) should be analysed. Large amounts of raw materials & energy come from outside the region.

Only small processing & marketing of intermediate products is made locally. Final products are to a large extent exported. At the same time, some intermediate and final products, which could be produced in the region, are often imported.

Strengthening the local economic cycles aims at reducing the external demand of raw materials, and waste quantity. More, it aims at meeting the regional demand, strenghtening the regional identity, producing local added value. A primary goal is to reinforce the economic relationships

within a region (Figure 11). The available tools include regional co-operation, activation of regional production-, marketing-, processing.

Regional economic cycles would reduce the transport costs, foster regional development, favour local labor markets. Local economy is expected to create more transparent production circles and closer participation of social groups (Maier 2001).

Long-lasting disputes exist over the worthiness of enhancing locally based and independent economies – that is criticized especially by neoclassical economists. Supporting local economies is interpreted as a public intervention on the market and a form of protectionism.

Though, to some extent the new trend in rural development policy and the enhancement of endogenous development have been accepted even from liberal positions. EU rural development policy has been encouraging the valorization of local resources for the last 20 years, and especially in the 2007-2013 period.

Figure Figure Figure

Figure 15151515: Strengthening inner: Strengthening inner: Strengthening inner----economic : Strengthening innereconomic economic economic relationshi

relationshi relationshi

relationships of the future economic cyclesps of the future economic cyclesps of the future economic cycles ps of the future economic cycles

Figure Figure Figure

Figure 14141414: Schematic model of current : Schematic model of current : Schematic model of current : Schematic model of current economic cycles

economic cycles economic cycles economic cycles

Bibliography BibliographyBibliography Bibliography Woods, M., 2005.

Woods, M., 2005. Woods, M., 2005.

Woods, M., 2005.

Rural Geography. Processes, Responses and Experiences in Rural Restructuring. Sage Publications, 330 p.

Ploeg van der, J.D., Marsden, T. (eds.), 2008 Ploeg van der, J.D., Marsden, T. (eds.), 2008Ploeg van der, J.D., Marsden, T. (eds.), 2008 Ploeg van der, J.D., Marsden, T. (eds.), 2008

Unfolding Webs: The Dynamics of Regional Rural Development. Van Gorcum, 262 p.

Maier, J., 2002 Maier, J., 2002Maier, J., 2002 Maier, J., 2002

Regional Economic Cycles as an Instrument of a Sustainable Regional Development in Rural Areas. Dela 17, p. 72-84.

C.2 Natural and environmental