Development Of Agriculture And Rural Areas In Central And Eastern Europe

With the larger role that the agricultural sector plays in the Eastern Europe and Central Asian (ECA) region, emphasis must be placed on the sector's sustained growth and prosperity. The Bank strategy for rural development in the ECA region during the early phase of transition emphasized the reform of agricultural policies and assistance in privatizing, restructuring, and rebuilding agriculture and agro-industrial complexes. In retrospect, it can be seen that the ECA countries concerned made the right choice when they set their objective to transform their socialized agriculture into a private-ownership and market-based system. Given the developments of the past decade, it is clear, however, that the initial expectations for the outcomes of such reforms were overly optimistic. The transition process in agriculture is far more complex than originally envisaged by both the countries themselves and the international community, including the Bank. Increased social problems and alarming growth of poverty have added a new, unexpected, dimension to the transition process. As the analysis indicates, the region's rural economy is still struggling to adjust to new economic realities, and this will require further refinement and adjustment of the Bank's approach as well. This volume, based on an overview of recent regional developments, summarizes the revised World Bank assistance strategy for rural development in the ECA region.

On 1 May 1 2004, after a 14-year transitional period from central planning to market economics, eight Central and Eastern European (CEE) countries (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) became members of the European Union (EU). Bulgaria and Romania are preparing for accession and are expected to join in 2007. Croatia submitted its application for membership in 2002 and Macedonia in 2004. Part One of this paper presents an overall analysis of the situation and development of producer groups and farmer cooperatives across the CEE countries, including the new EU members, the applicant countries and Balkan states alike. Part Two provides a case study of FAO's experiences and lessons learned with technical assistance programmes and projects in the subregion. The example presents a number of practical suggestions as to how development organisations, governments, donors and advisers might be best able to facilitate the formulation and implementation of policies and strategies that promote the further development of more autonomous and financially sustainable producers' organisations and cooperatives in CEE countries.

"Many of the irrigation systems in Eastern Europe and the former Soviet Union have been shut down because of problems related to organizational requirements, the supply of energy, land ownership, profitability, cost, agricultural marketing problems, and external and internal strife." Improving the relative inefficiency of agriculture and protection of the natural environment are two of the most important challenges facing the countries of the Commonwealth of Independent States and Central and Eastern Europe. This volume documents the development experience in rural, natural resources and environment projects, and research and technical assistance activities in the Eastern Europe and Central Asia Region. This experience has varied widely between sectors and between countries. However, certain lessons learned should inform future activities in the same sectors. Some of the most important findings for these economies include the importance of institutional capacity to sustain reforms, the value of facilitating local participation to increase the sustainability of development programs, and the requirements for fostering a dialog between stakeholders, including the private sector.