4.1. Rural development issues in the CEECs

4.1.1. Common problems

Initial decline in agricultural output in most of the CEECs has been followed by a constant increase in output. There is an open dilemma about the role of agricultural policy - should it encourage further increases in output or re-orientate towards promotion of non-agricultural activities in rural areas? Additional problems arise from the lack of government resources to regulate agricultural production in environmentally sensitive areas.

Rural development was a non-existent concept in the formerly centrally-planned economies, thus rural programmes have not so far been developed. Moreover, today the rural-urban mobility of labour is limited by a lack of employment opportunities and housing in the urban areas. Collapse of public structures (services, social care) and no alternative employment for skilled labour has resulted in an increase in the rural population. The social buffer role of agriculture should not be underestimated. However, this role can interfere with the development of competitive agriculture.

Despite frequent (mainly legitimate) criticisms regarding existing Community support programmes for capacity building assistance in the CEECs (PHARE programmes), some of its positive aspects also have to be recognised. A positive aspect of the PHARE programmes is that they introduce the principles of subsidiarity and co-financing in the policy-making process of the CEECs. In addition, PHARE programmes have been important in enhancing co-operative networks.