The role of the Rural Development Programme (RDP) in creating growth in the agricultural sector. The case of countries from East-Central Europe

Abstract

The evolution of the agricultural sector requires a permanent combination of activities related to raising the competitiveness of farms, improving the quality of life of the rural population and maintaining natural resources. Such tasks in EU countries are performed by rural development programmes (RDP), created under the second pillar of the Common Agricultural Policy. The aim of the paper is to define the role of RDPs in driving the transformation of the agricultural sector in selected countries of East-Central Europe – the Czech Republic, Hungary, Poland and Romania – for the years 2007-2013. The authors attempt to find certain interrelationships between the premises of rural development programmes and the funds directed their way, and changes in the agricultural sector for each of the economies. The work uses critical analysis of subject literature, meta-analysis, deductive and inductive reasoning, as well as a comparative analysis using elements of time series analysis (analysis of dynamics and structure changes). The main conclusion is that: 1. the second pillar of CAP was undoubtedly an important element of support for rural areas in the countries of East-Central Europe; 2. the accumulated effects of the support led to a considerable improvement in the income situation of agricultural producers; 3. investment expenditures led to structural changes at farm level. In relation to the above, the key issue is to keep a relatively high level of funding for the second pillar of CAP for EU-12 countries after 2020.