Silvia Scaramuzzi

Why early collective action pays off: evidence from setting Protected Geographical Indications

The registration of Geographical Indications (GIs) under the European Union (EU) legislation requires collective action and considerable efforts borne by multiple actors such as producers, processors, public authorities and research centers. We analyze their efforts, risks and benefits by comparing two EU GI registration processes in Italy and Austria, namely the Sorana bean Protected Geographical Indication (PGI) and the Perry from Mostviertel PGI. Results from the institutional and transaction costs analysis suggest that intensive interaction for solving conflicting interests, negotiating quality standards and defining common rules might pay off in indirect benefits and reduced risks. In particular, an inclusion of diverse and heterogeneous interest groups and a high degree of direct enterprise participation along the GI application process (as observed in the Italian case) generate benefits such as trust and social cohesion, which then support the actual use of the GI label and a better implementation of associated quality standards. A supportive legal framework with assistance from public authorities can back up the community of producers not only in technical aspects, but also as mediators when conflicts seem to be difficult to solve. As there seems to be a positive relationship between the intensity and effectiveness of collective action and the likelihood of achieving broadly accepted standards and social cohesion needed for successful GI implementation, the question for future research would not be how to avoid collective efforts but how to effectively organize the interaction among heterogeneous producer groups.

Why early collective action pays off: evidence from setting Protected Geographical Indications – CORRIGENDUM

The registration of Geographical Indications (GIs) under the European Union (EU) legislation requires collective action and considerable efforts borne by multiple actors such as producers, processors, public authorities and research centers. We analyze their efforts, risks and benefits by comparing two EU GI registration processes in Italy and Austria, namely the Sorana bean Protected Geographical Indication (PGI) and the Perry from Mostviertel PGI. Results from the institutional and transaction costs analysis suggest that intensive interaction for solving conflicting interests, negotiating quality standards and defining common rules might pay off in indirect benefits and reduced risks. In particular, an inclusion of diverse and heterogeneous interest groups and a high degree of direct enterprise participation along the GI application process (as observed in the Italian case) generate benefits such as trust and social cohesion, which then support the actual use of the GI label and a better implementation of associated quality standards. A supportive legal framework with assistance from public authorities can back up the community of producers not only in technical aspects, but also as mediators when conflicts seem to be difficult to solve. As there seems to be a positive relationship between the intensity and effectiveness of collective action and the likelihood of achieving broadly accepted standards and social cohesion needed for successful GI implementation, the question for future research would not be how to avoid collective efforts but how to effectively organize the interaction among heterogeneous producer groups.

The role of traditional products in the valorisation of marginal rural areas: the case of Iris Pallida.

Nowadays the problem of valorisation of marginal rural areas in Europe is significant. In Italy some traditional agricultural crops with high added value may play an important role for the environmental preservation and social and economic development of some marginal rural areas. The purpose of this paper is to analyze the problems and potential of developing traditional crops in marginal rural areas, through their valorisation as typical products. Two main research questions are addressed: Are there specific problems for traditional products in marginal rural areas? In particular, is there a problem of loss of power and appropriation of value upstream the chain? The paper presents a case study analysis on the Iris Pallida supply chain. Iris Pallida is a minor crop, whose rhizome is used by the international fragrance industry. The fieldwork carried out has allowed to point out that the problem of power and appropriation is relevant and should be addressed by strengthening collective action and enhancing horizontal and vertical coordination. Specific problems in the role of traditional products in marginal rural areas also emerge. These are mainly connected to the structure of farms, to the conflicting strategies and to the access to information and technical support. The consequence is a higher need for coordination, for public support and for integrated rural development actions such us structural consolidation, research and development, marketing and tourism promotion.