Incentive measures and the possible transformation of agricultural production and agroeconomy in order to promote competitiveness and rural development in Serbia

Abstract

The incentive measures aimed at agricultural production and the agroeconomy cannot be considered as a broad social category, nor as a narrow speculative, political or ideological category (e.g. as a form of political campaign, or as systemic corruption in the distribution of incentive resources, etc.). Without an adequate legal framework and without the support of the corresponding middle level - mainly through state coordination (subsidies destined for different units of local self-government) and more intensive specialized advice on the ground for the implementation of the planned agricultural and rural policy (carried out carried out at least at the level of just one administrative district)—it is impossible to achieve the desirable transformation effects.

In fact, the current situation of agricultural production and agroeconomy in Serbia is unsustainable in the long term from the point of view of competitiveness, given the obvious need to promote adaptive development and to progressively harmonize agrarian and rural policy with national of the EU in the common market. The absence of adaptive development could cause unfavorable effects that would be reflected in the decline of the rural population, in the high unemployment rate and in the increasingly high age index of the rural population.

In the current implementation of incentive measures, it has become clear that the so-called catch all policy cannot be successful if there are no well-defined strategic guidelines and agroeconomic institutions that, through a systemic approach, strengthen the relationship between agricultural production and export-oriented economy. Furthermore, the positive effect of the period of time necessary for the implementation of the incentive measures is neglected (subsidies have to be paid to their beneficiaries in the spring for the current year). No less important is any other benefit that derives from these measures and that influences the reduction of the unstable commercial activity of the beneficiaries (which largely takes place in the underground market): their integration into primary and secondary cooperatives, development of competitive commercial family farms in the VAT system (minimum one employee), reduction of the discrepancy between agricultural production and processing activity in the field of food safety and the environment, etc.