Agriculture Development Strategy in the Republic of North Macedonia: Between Subsidies, EU Support and Pressure From Liberalization

Session

Management, Business and Economics

Description

Agriculture development differs a lot from the rest of economic sectors. While in a market economy the fate of businesses in each sector is decided by competition leading to the entries, survival and growth of the fittest, in agriculture as a whole there are some exceptions as a result of support from the government with subsidies. The main reasoning behind this direct support with the state funds is made on the grounds that food is necessity and there is no alternative to it. Even in global scale, efforts to support agricultural development in various forms. However, contradictions arise between the states about inequalities and dilemmas that arise in the market, mainly between industrially developed countries and emerging economies. A greater pressure falls on developing countries where a large part of the population deals with agriculture to generate employment and incomes that are less worth to buy more expensive industrial goods from developed countries. Trade liberalization of food continues to be criticized not in its essence, but in a part that someone is benefitting at the expense of another depending on how much agricultural products are subsidized. The Republic of Macedonia in the 21st century as a developing country, is in transition to transform the agricultural sector from a half-open in international trade, to a more open and liberal sector by a support from inside and outside. As where it is in this process and perspective, the aim of this paper is to make a critical assessment of these supporting measures and find out what would be a better option for agricultural development.

Keywords:

JEL: F53, O24, Q18.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-95-6

Location

UBT Lipjan, Kosovo

Start Date

28-10-2023 8:00 AM

End Date

29-10-2023 6:00 PM

DOI

10.33107/ubt-ic.2023.187

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Oct 28th, 8:00 AM Oct 29th, 6:00 PM

Agriculture Development Strategy in the Republic of North Macedonia: Between Subsidies, EU Support and Pressure From Liberalization

UBT Lipjan, Kosovo

Agriculture development differs a lot from the rest of economic sectors. While in a market economy the fate of businesses in each sector is decided by competition leading to the entries, survival and growth of the fittest, in agriculture as a whole there are some exceptions as a result of support from the government with subsidies. The main reasoning behind this direct support with the state funds is made on the grounds that food is necessity and there is no alternative to it. Even in global scale, efforts to support agricultural development in various forms. However, contradictions arise between the states about inequalities and dilemmas that arise in the market, mainly between industrially developed countries and emerging economies. A greater pressure falls on developing countries where a large part of the population deals with agriculture to generate employment and incomes that are less worth to buy more expensive industrial goods from developed countries. Trade liberalization of food continues to be criticized not in its essence, but in a part that someone is benefitting at the expense of another depending on how much agricultural products are subsidized. The Republic of Macedonia in the 21st century as a developing country, is in transition to transform the agricultural sector from a half-open in international trade, to a more open and liberal sector by a support from inside and outside. As where it is in this process and perspective, the aim of this paper is to make a critical assessment of these supporting measures and find out what would be a better option for agricultural development.