Living Standards Measurements Study - Serbia 2002 - 2007

10. AGRICULTURE
10.1. Rural poverty
Agriculture is closely related to poverty: the
poorest areas are those with high employment rates
in the agricultural sector. The same is true for
households. Households relying to greater extent on
income from agriculture are poorer than others.
Such a situation is caused by lower productivity of
the agricultural production compared to other
industries. Furthermore agricultural dominance
indicates the unfavourable performance of other
industries and a low economic development rate. In
such circumstances, agriculture represents a
"shelter" for numerous rural populations (especially
those with limited physical, human, financial and
social capital) not capable of participating in overall
economic growth.
The situation above applies to European
countries, as well. In Europe, especially in Southern
and Eastern European countries, agriculture still has
an important economic and social role, although its
productivity is well-below the level achieved by
other industries0F1 . High-levels of rural poverty in
Europe, although not extreme poverty, are common
in Central and Eastern European countries in the
early transition and EU accession period, and in
some Mediterranean regions and Balkan countries1F2 .
Various studies indicate that transition, particularly
in its early stage, is closely related to social tensions
and growing inequality of the rural population. In
the IFAD study (2002) “Assessment of Rural
Poverty – Central and Eastern European Countries
and New Independent States”, the following groups
are classified as particularly vulnerable to rural
poverty:
• Farmers in upland and mountainous areas –
these populations often live in extreme poverty and
are not capable of producing sufficient food to meet
their own needs. Market and communication
isolation as well as overall underdevelopment of the
region significantly reduces generation of additional
income.
• Rural wage earners. Rural households, with
income exclusively from wages (especially those
households with no land or no other capital) are, as
a rule, poorer than others. Considering limited
resources, these households usually do not produce
enough food even for their own needs.
• Rural women. Women's share in the poor
rural population, as a rule, is growing in the
transition period, having an adverse impact on
gender equality. The study states that a trend of
"rural feminization" is still present in analyzed
countries as a consequence of the migration of men
to cities in search of employment. Women are left
on the farm to deal with own production agricultural
production and are not able to diversify their
activities due to numerous household obligations.
• The elderly. Pensioners also account for a
large share of the poor rural population. In analyzed
countries, they are usually “returnees” who were
prime beneficiaries of the land restitution programs.
However, many are no longer capable of farming or
lack basic machinery and equipment to start
production. Considering the underdeveloped land
market, income coming (possibly) from rent is
modest and usually in kind.
• Ethnic minorities. The creation of new state
borders has caused increasing numbers of minority
groups and growing competitiveness for limited
resources along the line of majority-minority
relations. The IFAD study states that during the land
restitution process in post-communist countries,
members of ethnic minorities had unequal treatment
in rural areas in terms of their status in the
privatization process and access to capital.
• Internally displaced people. A high
percentage of refugees and IDPs live in rural areas.
Usually they do not own land, access to labour and
financial markets is difficult and they depend on
social allowances.
More reliable conclusions on compatibility of
these findings with the Serbian situation needs
additional research, but can be accepted in principle
(Box 1).
134 Living Standards Measurements Study - Serbia 2002 - 2007