English Version - United Nations Development Programme Romania

In 1998, agricultural production had a net added value, adjusted for inflation, of 52,764.2 billion
lei, and it constituted 15,6% of the GDP. The value of exported agricultural products was $381 million,
of which $266 million was the value of exported foodstuffs and livestock.
The deficiencies of the agricultural system, which have led to a decrease in output, are mainly
caused by the following factors:
Lack of a viable agricultural exploitation due to the various types of ownership, and deficient
management and use of the agricultural resources; these should sized and organised so as to be able to
utilise ecologically and economically efficient techniques and technologie s.
The lack of systems and structures of agricultural production capable to ensure the cultivation of
crops commensurate with the existing ecological and technological conditions and possibilities;
Lack of a functioning market for industrial inputs;
Increasing gap between the prices of industrial and agricultural products;
Lack of capital funds in most agricultural enterprises;
Inefficient system of financial support for producers;
Farmers have to deal with suppliers and distributors that have established monopolies;
Insufficient development and consulting services for farmers;
Lack of adequate protective policies in favour of the farmers and agricultural enterprises with regard
to the production and sale of domestic products on the domestic and foreign markets.
b) Policies and measures for the sustainable development of agriculture in Romania
In Romania, agriculture is the most important branch of the economy. Given the fact that
Romania has the appropriate natural and socio-economic conditions for the development of agriculture,
this branch of the economy is considered a national strategic priority.
Some points in support of this strategic priority:
Having in view the large agricultural areas and the soil quality, Romania's potential for agricultural
production is among the highest in Europe;
A high percentage of the population working in agriculture and living in the rural areas;
Significant contribution of agriculture to the GDP;
The beautiful scenery of the rural areas will help develop tourism as an important economic sector.
Measures to be taken in order to further develop Romania's agriculture:
Creation of viable systems and structures for the organisation, production and management of
agricultural crops. These systems should be appropriate for the application of technology and
techniques that correspond to specific ecological conditions and different forms of property.
Structural adjustment of agricultural production, appropriate for the potential of financial and
agricultural resources, could be achieved by creating structures that are appropriate for the different
branches and sub-branches of agriculture.
The domestic production of agricultural machinery should be strongly encouraged in order to supply
the agricultural sector with the necessary equipment;
Creation and implementation of economic and financial mechanism and systems, corresponding to
domestic and foreign competitive requirements which are also compatible to PAC of the E.U.;
Equitable adjustment of the ratio between the prices of the agricultural and industrial products;
Adequate policies in order to stimulate, support and protect the agricultural producers;
Elimination of the monopoly held by firms that supply farmers or distribute agricultural products;
Incentive measures for the diversification of crops and increased added value of the agricultural
production;
Introduction of professional certification for farmers and persons doing agricultural-related jobs;
Improved access to agricultural-related information, application of the results obtained by the
agricultural research and introduction of a better development system as well as adequate consulting
in the field;
Promoting the reorganisation and efficient operation of research centres in the agricultural and food
industries;
Reconsidering the amount of budget funds allocated for research in agriculture, according to the role
and importance of agriculture in the general context of the national economy and the development of
a well-organised system for the material endowment of the research centres in the field of agriculture
and food industry;
Restructuring and reorganisation of agricultural training at all levels, to meet the present requirements
of sustainable development.
The application of these measures requires legislative changes, as well as the creation and
implementation of certain studies and projects.
38