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Where is the solution?

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Nicole Toma
As 2010 arrived, we were filled with hopes and dreams about a solution for the crisis. Here we are now, halfway into the year and still asking ourselves, Where is the solution? The government has introduced new taxes and reduced salaries and pensions, but this was far from the peoples expectations.
A report from the Ministry of Agriculture and Rural Development of Romania reveals that our country has a total agricultural area of 14.7 million hectares, representing 61.7 per cent of the country, while the arable land covers 9.4 million hectares, which ranks us fifth in the EU behind Spain, France, Germany and Poland.
The Romanian rural economy is dominated by agriculture but it is still poorly integrated in the market economy. From 2007 to 2009, the contribution of agriculture, forestry and fisheries in the GDP was around six per cent of GDP, while in other EU countries this segment covers around 1.7 per cent.
Despite the remarkable agricultural potential that it holds, Romania has become a massive food importer. Moreover, if we consider the level of funding in agriculture, Agriculture Ministry reports show that the financial support available to Romania between 2007 and 2009 stood at around four billion Euro.
Even so, Romania’s agriculture is characterized by an aging population, low level of education and subsistence farms. With no future, no markets and low incomes, the situation will lead to increasing disparities in this field between Romania and the rest of EU. From this point of view, EU reports have shown that two thirds of the people living in rural areas are aged over 50 and nearly one third of them are over 60.
Another matter of concern is the educational level in villages, as only one person per thousand in rural populations has completed higher education. Last but not least, the same report raised the issue of small farms. Very few farms exceed an area of two hectares, while the average EU farm area is 30 hectares. To become competitive, farms in Romania should expand. Irish experts have suggested the association between many owners of farms as one possible solution to this problem.

From all of us here at Business Arena,
enjoy the quality, admire the value!
by Nicole Toma

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