Institutional Adaptation and Closure

The Basic Issue

When institutions finally face the reality of the changing rural situation, it is often too late for creativity. Avoidance of reality is a common problem, but it does not change the situation, it merely postpones it.

The process of changing rural institutions (in both the formal and informal sense of the term institution), has picked up the moniker "rural restructuring". All the term really refers to is the massive changes and closures taking place in the rural landscape, as communities, businesses and organizations adjust to a smaller population, and the larger dynamics in the economic social and political areas of life.

There is a large and growing body of literature on this dynamic of rural restructuring.

Rural Development Institute Research Studies

• Seven Chapters in Changing Rural Institutions:

•       "Issues in Institutional Restructuring in the Rural Sector" - Dr. Bruno Jean (Chapter 1)
  This paper outlines a framework for approaching the social change in rural society today. It holds up the classic sociological view of institutions as the locus of community life, and therefore an excellent window into the changing life in Rural Canada. He notes that there are institutions unique to rural life but that most rural and urban institutions are converging, so separating them out is not all that productive. What is of interest, he claims is the changes taking place owing to the :
  • withdrawl of state service provision
  • decline in population from urban migration
  • rise in he threshold of "critical mass" necessary to permit institutions to function in society in general.

  He holds that creativity is seen more in rural areas, but what he seems to be referring to is the fact that it is a long tradition on the prairies to engage problems with resources available and find new solutions out of necessity.

  All institutions, and voluntary ones in particular are faced with three alternatives:

  • protect themselves
  • maintain themselves
  • transform themselves

•       "Rural Development Through Trade-Volunteer and Business Alliances" - Peter Apedaile and David Fullerton (Chap 2)
  This paper, coming from an economic perspective is critical to the understanding of the development of the current rural situation because it is here that the concept of "entitlement" is brought forward.

  The concept is not developed in this article, as the author is far more concerned here with alerting people to the concept of voluntary associations serving as bridge organizations between companies and their representatives in the matter of forging strategic alliances informally across boundaries and barriers. This central concern of his bears some consideration, especially in that the customary channels for informal alliance building are no longer relevant in the global trading arena with its world wide and regionally blocked out trading areas. However, it seems to me a little crass to intentionally use the relationships of life simply for business ends.

  His major contribution in this article is in his consideration of entitlements and their diverse nature in our everyday life. He refers to D.G.Hartle's book, A Theory of Expenditure Budgetary Process, as one of the sources for his understanding of this concept.

•       "Rural Institutions in the Arena Society" - Tony Fuller (Chap 3)
  This is for me a totally impenetrable article, not because of the content, but rather because of its obscure (personal) image of an "arena". Set as it is as his unifying theme, he destroys his contribution to the definition of society at this stage in development by his obscurity. It is such a major piece in his work that it serves to obscure everything else.

  The author comes from a geography background and somehow his obsession with "space and time" is connected to this image of his. He is trying to gather together under one image the overlapping realities of short distance society, industrial society and open society (to use his terms). One interesting observation is that these eras in social development on the prairies are cumulative rather than discrete, and therefore the current interweaving of the leftovers makes for a confusing scene if one is not familiar with the layers which precede the present reality.

  The piece is not helped by it being a written account of a conference speech which was giv3n to collogues who were aware with his imagery. There are better presentations of his content available elsewhere I believe, maybe even from the author.

•       "Restructuring Local Government: Where Do We Go From Here?" - Peter Diamant (Chap.4)
  This paper arose as a preparatory study for Manitoba's 1994 review of the Municipal Act. It gives an excellent overview of the historical development of municipal structures to date. He notes the three dilemmas which keep this issue in a state of unresolvedness over time:
  1. The Urban Dilemma (variations in population throughout a rural Municipality)
  2. The Accountability dilemma (amalgamation versus partnership)
  3. The government closest to the People dilemma( local contact is more difficult when organizations become large)

  He reflects o three options for Manitoba: status quo, consolidation and Modified multi tier, noting that Canada has a two tier structure (urban usually) and a very stable single tier system at present.

•       " Principles of Organizational Restructuring in Rural Organizations: Co-operatives" - Brett Fairbairn (Chap.7)
  Brett is both a historian of and central player in the co-op movement on the prairies. In this paper, he holds out the possibility that co-ops could be a leading player in shaping the globalization dynamic in that they have been wrestling with one of the central issues in the globalization debate since their inception. He sees co-ops as bridge organizations between the drive for return on investment and the drive for community values. It is because the organization has a long history of trying to balance these often-conflicting imperatives, that he feels they have a worthwhile, yet undervalued contribution to make to the current discourse. In this paper, he looks at some of the principles of restructuring institutions which they have discovered from their experience as Co-ops over the last few years. He addresses six of these lessons:
  1. go regional
  2. community based amalgamation decisions
  3. Vertical integration of services
  4. Horizontal integration
  5. Structural change is important
  6. New organizations are important (re-imagine)

  He feels it is important to note the social movement context out of which the original co-ops formed and remember that this reality is not just adjunct but central to their present reality.

•       "Relationships Among Rural Institutions in Alberta" - Toby Williams (Chap.10)
  This paper is an excellent presentation of the human side of community economic development. The author deals with the deeper need to "re-culture" as well as re-institutionalize. By this she means, we need to look at our feelings, beliefs and practices generally which underlie the institutions we establish or restructure.

  Her paper is in two sections, , and looks at

  1. Why people work together, (especially in a province like Alberta which is known for its independent thought and life). She looks at three common theories.
  2. How people work together. Here, she notes that understanding how labor is divided up amongst lenders, business, communities, and government is critical to making adjustments in institutions which are for the betterment of all.

• "Rural Restructuring: Causes, Consequences and Opportunities" - Sally Shortall and John Bryden. Chapter 17 in Changing Rural Institutions
  These two authors do not accept the inevitability of globalization. Coming from Scotland and Ireland, they offer a summation of and reflection on the conference from which this book of articles emerged. There is a potpourri of observations about the current situation, for example:
  • the pressures federal governments are under in the globalizing context
  • rural poverty is not researched very much but is a big reality
  • There are world and regional-block trading negotiations underway at the same time, and the regional ones are progressing faster.

  He sees in the globalization efforts a chance for the traditionally marginalized of the world to finally be included rather than excluded yet again. I think he is a bit optimistic there.