RURAL DEVELOPMENT IN ROMANIA – A FEW CONSIDERATIONS

Paul Lucian
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Paul Lucian: Lucian Blaga Univeristy of Sibiu, Romania

Studies in Business and Economics, 2020, vol. 15, issue 2, 165-174

Abstract: The 'Agenda 2000' introduces the Rural Development Policy, as part of the Common Agricultural Policy (CAP), as a complex policy that can ensure a stable income and a reasonable standard of living for the rural population. Rural development is a major CAP objective since over 50% of the population lives in rural areas and accounts for 80% of E.U. Territories. As a concept, the 'rural area' is defined both at a national and European level following specific criteria; however, these criteria differ from one country to another. A complete definition can be found in the European Charter of Rural Areas. Between 2014-2020, the development of rural areas in Romania is supported by the National Rural Development Program. It provides non-reimbursable funds from the European Union and funding from the Government of Romania. Convergence with the Europe 2020 Strategy is ensured through the Partnership Agreement with the European Union, which covers a number of challenges and thematic objectives. In order to achieve them, well-founded investment programs are needed. These programs must have a direct impact on increasing the living standards of the population residing within rural areas. Over 19 billion euros were allocated to Romania for the 2014-2020 period; these funds were used for agricultural policy and rural development. The total budget of the NRDP (2014-2020) is 9.4 billion euros, of which 1.3 billion euros comes from national funding. We believe the achievements recorded in rural areas, up to 2020, are modest and do not reflect the proposed objectives. Thus, projects were drawn up at national and local levels seldom support rural development and do not reflect development needs; sadly, these projects are often drawn up without focusing on efficiency.

Keywords: rural development; rural infrastructure; durable growth; competitive increase; labor force migration (search for similar items in EconPapers)
Date: 2020
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