Management Theory and Studies for Rural Business and Infrastructure Development, Volume 27

The eu common agricultural policy for agricultural and rural development

Ilze Upite, Irina Pilvere

Abstract

The specifics and problems of agricultural industry – dependency on climatic conditions, price fluctuations, market inelasticity, high capital intensity, slow turnover of capital, irreplaceability and immobility of land as the main resource in agricultural production, low labour mobility, etc., have historically forced to implement various protectionism policies in this industry. Agriculture in
European Union (EU) countries depends on the EU Common Agricultural Policy (CAP).
Research aim: to investigate the specifics of agricultural industry that led to the implementation of protectionism policies in the world and to characterise the EU CAP, outlining its major features in the future.
Research methods: scientific discussion, analysis and synthesis, as well as logical and constructive methods and statistical data analysis.
Research results: CAP was designed in 1957 with the purpose of protecting and promoting agricultural development; it underwent several reforms, yet its share in the total EU budget was still significant in 2009, accounting for 49%. The funding for the CAP increased twice as much from 1990 to 2009, yet its share in the total EU budget decreased by 13 percentage points.

JEL codes: Q100, Q180.

Keyword(s): agriculture, Common Agricultural Policy


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.