Urnäsch: From industry and agriculture to tourism and commuters

Urnäsch (Figure 2) is a community with 2370 inhabitants (1998; all numbers were calculated by the authors on the basis of data from the Swiss Federal Office for Statistics [BfS 1986, 1992a,b, 1998]). The textile industry continues to be a principal provider of jobs. In spite of a marked decline, it still accounts for 14.3% (1995) of the community's total employment. Of even greater importance is the agricultural sector, employing 15% of the working population (versus 3.3% in Switzerland). However, agricultural employment has also decreased drastically in recent years. As a result, the total number of jobs decreased by 8.5% between 1985 and 1995 (Table 1). Local residents fear that this loss of jobs will lead to a continuous drop in population and might endanger the community's political independence. The only chance they see for future development is to expand tourism and to attract new residents who commute to larger towns for work.

A wide range of activities attests to the local residents' willingness to try and shape the community's future. Local initiatives have a long tradition in Urnäsch. As the community's financial situation is precarious, a number of tasks that are carried out elsewhere by communities have been taken over by private individuals and groups. Examples of such initiatives are the local ski resort and the museum of local customs and craft. Both are owned and run by private associations and survive only because of their voluntary members' unpaid labor input. Recently, the project “Urnäsch—mitenand vorwärts” (“Urnäsch—moving ahead together”) has stimulated numerous local activities. During an initial 1-week workshop in 1996, a team of external counselors and university students interviewed local families about their ideas and visions for their community; they also organized discussions with groups and school classes. On the last evening, the results were presented to the public and groups were formed to focus on realizing particular ideas. Many initiatives originated in this workshop, for example, a culture club, a village café, and groups for the promotion of tourism and economic development.

In Urnäsch, local initiatives have yielded remarkable results in terms of promoting communication and collaboration as well as raising community consciousness, solidarity, and a sense of local identity. However, some local initiatives aimed at improving the economic situation have achieved little success so far. It is proving difficult to change the community's economic situation through local activities, although the local residents' main concern is the decreasing number of jobs. This results in a discrepancy between the needs and aims of the local population on the one hand and the effects that endogenous development has been able to achieve on the other.

Schamserberg: Surviving on Alpine agriculture?

Schamserberg has 390 residents (1998) in 5 independent communities (Figure 3). Almost 60% of Schamserberg's working population are farmers. With the ongoing reorganization of agricultural policy, mountain farmers, once heavily subsidized, now receive less state support. Today, direct payments without price support and sales promotion account for 39% of the gross income of mountain farmers, whereas the figure is 15% for farmers in the lowlands (BLW 2001). Consequently, most of them constantly worry about their continued existence as farmers. In order to obtain higher prices and more subsidies, many of them have turned to organic farming and sell an important share of their produce directly to customers outside the region. Most residents of Schamserberg agree that the promotion of tourism is important for the region. However, the plan of constructing a small ski resort in upper Schamserberg has triggered a bitter conflict and divided the population. Supporters of the scheme see the ski resort as the only chance for the region's future, while opponents argue that it will never be profitable and will merely destroy a valuable untouched environment.

In accordance with the region's economic structure, many local initiatives concern farming. Examples are a cooperative society of organic farmers (Figure 4), an association of farmers' wives selling home-made produce at regional markets and on order, and a cooperative society planning the construction of a regional slaughterhouse. Some initiatives in Schamserberg have succeeded in creating additional income and new economic opportunities. As a consequence of the conflict about the planned ski resort, however, there is no shared concept of the region's future. This renders the realization of new ideas difficult. In addition, almost the whole population of Schamserberg makes its living from agriculture and is therefore dependent on subsidies from the federal government. The communities themselves depend on cantonal budgetary assistance and voluntary donations. This lack of self-generated financial resources reduces the local power to influence the region's future and creates a feeling of inadequacy, which leads to frustration and resignation.

Internal resources

Internal resources can be considered as the origin of endogenous development. Much depends on the individuals who initiate and carry out local initiatives. It is crucial for them to have innovative and feasible ideas, the necessary knowledge, and useful contacts. Initiatives in Urnäsch and Schamserberg have shown that often a single person, typically a returnee, assumes leadership. Returnees have the advantage of being familiar with local circumstances. With the experience they have gained elsewhere, they often bring back new impulses for local development. Furthermore, it is important that actors are accepted and supported by the local population. In general, the attitude of the population toward change and innovation as well as their ability and willingness to become active and collaborate have a broad impact on the prospects of endogenous development.

Endogenous development requires the active involvement of both local officials and voluntary actors. The contribution of voluntary actors to local development is essential because communities often have neither the financial nor the personal resources to do much more than what is absolutely necessary. In turn, the prospects of success increase when voluntary actors receive financial and organizational support from the local council. The project Urnäsch—mitenand vorwärts is a good example of close collaboration between voluntary actors and local officials. Initiated by the community council, it has triggered numerous voluntary activities and its realization is accompanied by regular meetings between voluntary actors and council members that ensure a continuous exchange of information.

Many local initiatives could not be realized or had to be abandoned due to a lack of suitable infrastructure. Likewise, excessive demands on time and money can prevent people from participating and thus doom a project to failure. Taking such limiting factors into account from the beginning of the planning process can avoid frustration and unnecessary efforts.

External influences

The local economy of mountain communities is strongly influenced by external factors. In Urnäsch, the decline of the textile industry as a result of growing worldwide competition is responsible for the dismal economic situation. In Schamserberg, bleak economic prospects are mainly due to reorganization of national agricultural policy. Because these external influences can hardly be altered by local actors, they set the limits of endogenous development—a situation that often creates a feeling of helplessness among the local population.

External resources

The case studies showed that local initiatives can only be realized with external support in terms of funding, counseling, and information. Such external resources can be considered as part of an endogenous process as long as they are instigated by local efforts.

External public or private funding is often indispensable because the financial resources of most mountain communities are very limited. Solutions to financing problems can be found if actors have innovative and creative ideas as well as good connections to people within and outside the region. This has been demonstrated, for instance, by the enlargement of the museum of local customs and crafts in Urnäsch, which was funded by a generous private donation from outside Urnäsch and by sales of a local artist's paintings to visitors of the museum.

Financial backing is not the only advantage of external support for endogenous development. Outside assistance can be an opportunity for a region because external actors occupy a neutral position and are not involved in local conflicts. Additionally, outside assistance may provide local actors with lacking know-how and information.

Exchange

Besides internal and external factors, communication and exchange of information proved to be particularly important within the community as well as between the community and external actors. Communication within the community improves coordination of activities and is the basis for collaboration and exchange of experience and knowledge. Information about local activities increases local acceptance and the local population's willingness to participate. Exchange of information with other initiatives and regions often stimulates new ideas and encourages people to become involved.

Personal contacts facilitate communication and exchange of information. They increase acceptance and facilitate the tapping of financial resources as well as support from public or private organizations, both inside and outside the community. Additionally, personal contacts are often a significant source of motivation for local actors; being among friends may be just as important as the aim and content of a project.

Endogenous development and social capital

Communication, collaboration, and the local population's willingness to accept change and participate in local initiatives proved to be particularly important for the functioning of the endogenous development process. These abilities refer to a group's social capital. Social capital has been recognized as an important determinant of local economic development by a number of authors. Social capital arises from interactions among people. It consists of networks, norms, and trust, facilitating coordination and cooperation for mutual benefit. Social capital makes it possible to achieve goals that, in its absence, cannot be attained or attained only at higher costs. As social capital creates a sense of belonging and promotes cohesion and solidarity, it increases the local residents' willingness to become involved in community activities and their ability to cooperate. Social capital thus facilitates the realization of local initiatives while these, in turn, contribute to further generation of social capital due to the concomitant increase in interactions among people.