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Ministry of Agriculture_ Forestry and Water Management

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					                       MINISTARY OF AGRICULTURE, FORESTRY AND WATER
                                        MANAGEMENT




RURAL POVERTY– RURAL
    DEVELOPMENT
              BRANISLAV MILIĆ
   Advisor for Rural Development Planning
                                    MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                    MANAGEMENT



                 KEY AGRICULTURE INDICTORS

•Agricultural land: 5.7 mil ha
• Arable land: 4.2 mil ha
• 90% land is privately owned
• Some 0.7 million farms (0.4)
• Average farm size: 3 ha (10.6)
• Primary production from
agriculture, hunting and forestry
amounted to 14% GDP
• Export of primary agricultural
produce amounts to 26% total
exports
                      MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                      MANAGEMENT




WHY IS RURAL DEVELOPMENT IMPORTANT FOR EU?
                                                                  MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                                  MANAGEMENT

       WHY IS RURAL DEVELOPMENT
        IMPORTANT FOR SERBIA?




  Map taken from the “Report on selecting pilot rural regions for rural
[1]

development
programming purposes”, Belgrade, October 2006,
European Union Project: Europe Aid 119156/D/SV/YU
“Support to Rural Development Programming and Payment System”
Belgrade, October 2006
                                                         MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                         MANAGEMENT



MAP:DEPOPULATION OF VILLAGES
Number of villages in Serbia
6,020


6,000


5,980


5,960


5,940


5,920


5,900


5,880
        1948   1953   1961   1971   1981   1991   2002



                                                   1856
                Villages with the number of inhabitants
                increasing
                Villages with the number of inhabitants
                decreasing
                                                   4087
                                      MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                      MANAGEMENT




                         RURAL POVERTY
      High and significantly higher than with urban population

16%
14%
12%
10%
8%
6%
4%
2%
0%
              2002                  2003                      2005

                 Urban             Rural              Total
                 Linear (Rural )   Linear (Total)     Linear (Urban )
         MINISTRY OF AGRICULTUR, FORESTRY AND WATER
                         MANAGEMENT




RURAL DEVELOPMENT
    2004 – 2007
                          MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                          MANAGEMENT




        BUDGET FRAMEWORK
•2004 – 5.625.000,00 €;

•2005 – 9.375.000,00 €;

•2006 – 37.500.000,00 €;
                                            MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                            DEVELOPMENT




DISTRIBUTION OF FUNDS PER TERRITORIAL UNITS

            STRUKTURA RASPODELE PODSTICAJNIH SREDSTAVA ZA
                       UNAPREDJENJE SELA U 2004.
                   (procentualni udeo teritorijalnih jedinica )

                                             GRAD BEOGRAD,
                                                   1%
                         JUŽNA SRBIJA, 3%
       ISTOČNA SRBIJA,
             11%                                                   VOJVODINA,
                                                                      65%

       CENTRALNA
         SRBIJA,
           20%

                                                                    2004
       VOJVODINA               CENTRALNA SRBIJA              ISTOČNA SRBIJA
       JUŽNA SRBIJA            GRAD BEOGRAD
                        MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                        DEVELOPMENT




POSSIBILITY OF EVEN DISTRIBUTION OF FUNDS, LFA
                                         MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                         DEVELOPMENT




DISTRIBUTION OF FUNDS PER TERRITORIAL UNIT
              STRUKTURA RASPODELE PODSTICAJNIH SREDSTAVA ZA
                         UNAPREDJENJE SELA U 2005.
                     (procentualni udeo teritorijalnih jedinica)
                                  GRAD BEOGRAD
                                       4%                               VOJVODINA
              JUŽNA SRBIJA                                                 38%
                  19%




       ISTOČNA SRBIJA
            8%


                               CENTRALNA SRBIJA
                                                                   2005
                                     31%
            VOJVODINA           CENTRALNA SRBIJA       ISTOČNA SRBIJA
            JUŽNA SRBIJA        GRAD BEOGRAD
                                MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                MANAGEMENT




DISTRIBUTION OF FUNDS PER RELIEF CHARACTERISTICS

         GEOGRAFICAL DESCRIPTION OF RURAL DEVELOPMENT
            SUBSIDIES DISTRIBUTION STRUCTURE IN 2005.


          MOUNTAIN
          REGIONS
            26%                                LOWLAND
                                               REGIONS
                                                 38%



         HILLY -
        MOUNTAIN                       LOWLAND -
        REGIONS
          10%
                                     HILLY REGIONS
                                          26%
                                                         2005
                                                    MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                    MANAGEMENT




Activity – rural community                                      4.727.685,00              0,65 %
Activity – environmental protection                             3.600.000,00              0,50 %

Certificate of organic production                                224.000,00               0,04 %

Diversification of activities                                   14.272.206,10             1,99 %

Education of rural population                                    750.000,00               0,10 %

Construction and rehabilitation of facilities                  215.986.592,92             30,13 %

Machinery                                                       66.182.251,57             9,23 %

Facilities and placement promotion equipment                    60.859.981,69             8,49 %


Improvement of living conditions in rural areas                 93.402.915,00             13,03 %

Promotion and protection of local produce                       2.512.415,00              0,35 %

Association and organizing of population                            0,00                  0,00 %

Improvement of race characteristics of livestock                62.436.000,82             8,71 %

Water resources management                                     164.661.446,31             22,97 %

Livestock imports                                               26.310.494,00             3,67 %

Protection from erosion and fire protection zones                995.526,50               0,14 %

                                                            Total              716.921.514,90
                      MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                      MANAGEMENT




DISTRIBUTION OF FUNDS PER TERRITORIAL UNIT




                                               2006
MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                MANAGEMENT




                             2006
MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                MANAGEMENT




                             2006
         MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                         MANAGEMENT




NECESSARY MEASURES
                        MINISTRY OF AGRICULTURE, FORESTRY AND WATER


                                                       MANAGEMENT


1. COORDINATION OF ACTIVITIES

2. INSTITUTIONAL FRAMEWORK

•Management authority
•Paying Agency
•Rural Network

3. DOCUMENTATION FRAMEWORK

4. IMPLEMENTATION FRAMEWORK
                                                                                                          MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                                                                          MANAGEMENT

             INTER-MINISTERIAL COOPERATION
                                                                                                                                              Gov’t teams,
Ministries,
                                                                                              REPUBLICAN                                          umbrella
Secretariats, Agencies,
etc:                                                                                          GOVERNMENT                                    strategies and
                                                                                                     Pokrajinska Vlada
                                                                                                                                            programmes :
            Economy and




                               Jointly funded and implemented or coordinated programs and projects
           Reg.Development                                                                                                                         MDG
                                                                                                                               Guidelines




                                                                                                      FOR RURAL DEVELOPMENT
                                                                                                            NATIONAL COUNCIL
              Infrastructure
                                                                                                                               Guidelines          PRSP
              Environment

                 Science                                                                                                        Lobbying       Sustainable
                                                                                                                                               Development
           Labour and Social
                Policy                                                                                                         Financing            NIP
              Education

                  Culture                                                                                                       Financing   Committee for Public
                                                                                                                                               Works etc.
              Diaspora etc.

          SME Agency, SIEPA
                                                                                                                                            1000 young leaders
                etc.
www.minpolj.sr.gov.yu
                                                                                                            MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                                                                            MANAGEMENT




                         STAKEHOLDERS

         Local self-government




                                 Co-funded & jointly implemented or coordinated programs and projects
                                                                                                                                         Economy




                                                                                                        DEVELOPMENT NETWORK
                                                                                                              NATIONAL RURAL
                   NGO                                                                                                                  System of
                                                                                                                                      cooperatives
          Ecological                                                                                                                 Chamber system

           Agr-rur.                                                                                                                     System of
                                                                                                                                     reg.agencies for
          Civil.soc.                                                                                                               econo.development
                                                                                                                                        and SMEs
            Culture                                                                                                                Other inter-municipal
                                                                                                                                    and reg. initiatives
             Youth

            Sports
                                                                                                                                       Euroregions
          Humanit.
                                                                                                                                        SCTM etc.
          And other
www.minpolj.sr.gov.yu
                                    MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                    MANAGEMENT




         ANALYSIS OF CURRENT SITUATION

Analysis of current situation
for rural economy at national
level


Analysis of current situation for
rural economy at regional level



Analysis of current situation for
rural economy at the level of
external surroundings
                MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                MANAGEMENT




SWOT ANALYSIS
                                        MINISTRY OF AGRICUTLURE, FORESTRY AND WATER
                                                        MANAGEMENT



     NEW VISION FOR
     RURAL SERBIA
•    Three components:

1.   Vision for agriculture which is
     and shall continue to be the
     most significant economic
     activity in many rural regions.
2.   Vision for food processing
     industry and trade
     representing the most
     significant secondary
     economic activity in many rural
     regions.
3.   Vision for rural economy and
     the Serbian society in general,
     irrespective of the role and
     significance of agricultural and
     food processing sector.
                                      MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                      MANAGEMENT




        NRDSP
Member states preparing their
own RDS based on six
strategic guidelines:
1. Improvement of
competitiveness of agricultural
and forestry sectors;
2. Environment promotion;
3. Improvement of the quality of
life in rural areas coupled with
diversification promotion;
4. Capacity building at local level
for employment and
diversification;
5. Transposing priorities into
programs;
6. Complementarity ov various
Community instruments.
          MINISTRY AGRICULTURE, FORESTRY AND WATER
                         MANAGEMENT




   NATIONAL RURAL
DEVELOPMENT PROGRAM
                          Različitost ruralnih područja
                                           MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                           MANAGEMENT



•   Cluster analysis identified four homogenous
    groups of municipalities representing types
    of rural areas in Serbia;

• Highly productive
  production and integral
  economy;

• Economy of small urban
                                                     M
  areas;                                             a
                                                     p

• Natural resources-oriented                         1
  economy, mountainous                               .
  regions mostly;                                    T
                                                     e
                                                     r
• Regions with strong                                i
  capacities for tourism and                         t
                                                     o
  poor agricultural structure;                       r
                                                     i
                                                     j
                                                     a
                                    MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                    MANAGEMENT




    2007-2013 EU RURAL DEVELOPMENT POLICY
•    2007-2013 EU Rural Development Policy shall focus on three
     regions i.e. “three axis”, measures defined in the new rural
     development regulations:

       1.   Promotion of competitiveness for farms and
            forestry;
       2.   Environment promotion;
       3.   Improvement of quality of life and diversification
            of rural economy;
       4.   The fourth axis is based on experiences of the
            LEADER program, representing potential for
            “bottom up” rural development .
          MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                          MANAGEMENT




WHAT IS IN STORE FOR
      SERBIA?
                                       MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                       MANAGEMENT




IPA – PRINCPLE OF CO-FINANCING

                     EU contribution
                                                    Total investment
                      up to 75% of                  assistance 50% of
                        public aid
   Private                                          the total investment
 contribution                                       value

                   National
                 contribution:
                25% of public
                      aid
                                           MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                           MANAGEMENT




                         IPARD Measures

Axis 1 Market efficiency promotion and EU standards implementation
1. Investments into farms (restructuring and raising standards to the EU levels;
2. Assistance in establishment of production groups and associations
3. Investments into processing and marketing of agricultural products and fishing
   towards restructuring and raising standards to the EU levels;
Axis 2 Preparations for implementation of “agro-environmental” measures and
LEADER approach
1. Preparation for implementation of measures and actions for greening and
   uređenje okoline i pejsaža
2. Preparation of local private – public partners for implementation of local
   development strategies;
Axis 3 Rural economy development
1. Improvement and development of rural infrastructure;
2. Development and diversification of rural economic activities;
3. Training improvement;
Technical assistance
            MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                            MANAGEMENT




HOW DO YOU SEE YOUR OWN
       SITUATION?
                                         MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                         MANAGEMENT



The future of your household over the next five
years?
    Kroz zapošljavanje članova moje
                                                                       39%
        porodice van gazdinstva



       Rad u poljoprivredi ( na našem
                                                          19%
               domaćinstvu)



Rad u poljoprivredi i još neka dodatna
                                                10%
  aktivnost na našem domaćinstvu



    Pokretanje sopstvenog privatnog
                                               9%
    posla ( trgovina,zanatska radnja)



   Nastavljanje sopstvenog privatnog
                                          3%
      posla kojim se već bavimo




                               Ne zna          8%




  Ništa od navedenog – ništa se neće
                                                    12%
               promeniti




                               Drugo     1%
                                                MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                                MANAGEMENT



Who does the most to improve the situation of rural
households?

          Država, Vlada, Ministarstvo                                  27%


 Sami seljaci i drugi koji žive na selu                      19%


       Lokalna samouprava, opština                  13%


            Udruženja zemljoradnika        3%


                                Drugo     2%


                               Nijedna                                          34%


                        Ne zna/Odbija     2%
                                        MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                                                        MANAGEMENT




Which measure would improve the living standards of
                your household?
  Mogućnost zapošljavanja van
                                                                        66%
        poljoprivrede


              Pristup kreditima                                   57%


Organizovanost tržišta (prodaja,
                                                        40%
           otkup)


         Pristup informacijama             17%



          Poslovno udruživanje           13%



      Obuka, edukacija, trening          13%



                   Nešto drugo     2%



                  Ne zna/Odbija    5%
      MINISTRY OF AGRICULTURE, FORESTRY AND WATER
                      MANAGEMENT




THANK YOU !
          TELEPHONES:
           011-3616-285
           011-3616-580
           011-3631-878
               FAX:
           011-3616-285
              E-mail:
     office@minpolj.sr.gov.yu
      www.minpolj.sr.gov.yu

				
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