16 GEOGRAPHY , e-mail: [email protected]* Corresponding author,e-mail: 3 2 Vesna Paraušić 1 the competitiveness growth of domestic the country. I of as well risk asalow non-commercial and businessenvironment ofthecountry, of capital, i.e. by favourable macro-economic areagricultural sector caused by lower price Simultaneously, thegreater investments in greater investments inthisproduction. depends onagriculture development and D economy field, too. adirectreflectionto this have institutions), developed physical infrastructure, weak underdeveloped financialmarkets, inefficient legislature and judiciary, under ofthegovernment,economic andtotal risk (highmacro- economic instability andmacro- obstructions infrastructural products. Besides, numerous institutional- ofagro-food market the international onof domesticproducers andexporters whichlimitthecompetitivenessfactors production – circulations, represent basic along with inefficient organization of (resulted from multi-decadedisinvestment), extensiveness, oscillatory, low productivity agricultural production in T this productionanddevelopment ofcompetitive ruralregions. andattractive inS analysis ofagricultural sector foreign documents inthefieldofagriculture, economicandruraldevelopment, provide state authors ofthepaper, sources, i.e. basedonsecondary theanalysisofnumerous domesticand andproductionintensity. oflow productivity domination ofsmallagricultural husbandries Abstract Introduction Key COMPETITIVENESS SERBIAN AGRICULTURAL Geographical Jovan Institute Cvijic Academy ofSerbian ofSciencesandArts Academy, Banking Belgrade he current and structure of extent Institute ofAgriculturalInstitute Economics, Belgrade evelopment ofruralareas substantially words . A : n thatway, allassumptionsof gricultural sector inS gricultural sector agricultural sector, ruralregions, competitiveness. 1 *, Ivana Simeunović S erbia, its high erbia, erbia, aswell asaproposalerbia, ofmeasures for improvement of erbia is characterized by ischaracterized low competitiveness,erbia aswell asby 2 , Darko B. Vuković competitiveness in the level of agricultural production I level. on themacro-economic andruralareas remain dominantly which leadto weak investment activities a) Slow inothersectors, rate ofrestructuring 2017, withprojectionsupto 2020,p. 222]: international assistance for 2014– the period for [Nationalpriorities the basicfactors two payments. and current accountof thebalanceof share ingross valueadded, employment, total nationaleconomy, fromof theaspect ofthe factor representssector animportant animal welfare andruraldevelopment. production, forestry, fishery, food safety, development comprises agricultural T of thecountry. areas andbalancedregional development degree, anddevelopment ofrural upturn production, of which will depend, to a large development directionsofthis to further Republic R in n thepaper, theauthorswillresearch he sector of agriculturehe sector and rural ole

the of national agricultural of T his situationisaproduct of 3 economy S erbia and point out erbia production of

the

T T his he

to developed E which is significantly higher than in regard with 9%ingross domesticproduct(2011), theagriculture inS Bank, ( II. A 130, 132].A Y ofS intheRepublic activities 16.0%ofgrossmakes addedvalueofall beverages andtobacco, theagro-food sector together withproductionoffood products, of S ”,fishery ingross addedvalueoftheRepublic I. economy. foragricultural andruralsector thenational T S of agricultural productionintheRepublic b) A agriculture, for employmentbeyond inthesectors and consequentially poor opportunities was increased from 924millionUSD food products (group “Food and live animals”) products withtheworld. inforeign tradeexchangetrend ofagro-food III. 2013, Bulletin578,pp. 59–60]. achieved upto 64.4%[theLabourSurvey, rural areas, the informal employment was “Agriculture,” in sector andfishery forestry (in ruralareas 34.5%),andintheactivity S I employees, and inruralareas even 43.9%. ” andfishery forestry was employed 21.3% of S 2013, in employees structure in the Republic ofS Republic oftheStatisticalO Labour Survey countries ( countries in regard E to high-developed “ sector by highemployment intheactivity nformal employmentof intheRepublic Agriculture,”, andfishery forestry especially T earbook of the Republic ofS oftheRepublic earbook he following dataleadto significance of erbia. erbia in theyear 2013wasamountederbia 19.3% T able 1),S he share of activity he share ofactivity “Agriculture, and forestry erbia in2011wasamounted 10.5%,and,erbia S erbia, in the activity sector sector in theactivity erbia, “Agriculture, vailability of rich naturalresources ofrich vailability for ccording to dataofthe erbia has been realizingerbia a positive T able 1).A ccording to dataofthe erbia hasbeencharacterized erbia erbia [Bulletin 578,2014,p.erbia 56]in uropean ( countries ccording to dataofthe T he export ofagro- he export erbia participates participates erbia erbia [Statistical erbia erbia, 2013,pp.erbia, W ffice ofthe orld Bank orld T uropean able 1). in 2005 2005 in W orld orld countries?display=default, accessdatecountries?display=default, 3 SL.A http://data.worldbank.org/indicator/ indicator/NV Source: T the Netherlands (2011). the Netherlands 2 1 countries, P forestry, hunting andfishery. For high-developed 2010, andfor thedataisfor the year 2009. A Ukraine Russian Federation Georgia Byelorussia A Armenia Serbia P Croatia Bosnia &Herzegovina Great Britain Sweden Spain Slovakia P Norway T I France D Belgium A Data for (2011), employment: Albania(2010), Armenia taly he Netherlands oland ortugal product (GDP) and employment in agriculture agriculture in employment (GDP) and product ustria Table 1. Share of agriculture in gross domestic domestic gross in Table agriculture of 1. Share zerbaijan enmark griculture encircles crop andlivestock production, Countries he in selected Europeanin countries selected C ungary thedatarefer to oland andHungary theyear W entral andEast .A orld Bank, http://data.worldbank.org/ Bank, orld H GR.TOTL.ZS, igh-developed economies igh-developed Ex-USSR countries value added, value added, Agriculture/ % ofGDP, 2011 urope countries 20.7 18.6 9.0 9.6 4.3 9.3 9.9 5.8 7.4 3.5 3.5 5.1 5.6 8.7 0.7 1.8 2.7 2.5 3.9 2.4 1.6 2.0 1.9 0.9 1.8 1.2 2.3 0.7 1.5 1 rd in agriculture, in agriculture, M employment, employment, GR.EMPL.Z % of the total % ofthetotal Employment Employment ay 2014. 2012 21.0 17.2 37.7 38.9 29.0 12.6 13.7 20.5 42.0 10.5 5.2 6.4 1.2 2.0 4.4 8.3 3.2 2.2 2.5 3.7 1.5 2.9 2.6 3.1 1.2 4.9 – – – 2 S /

17 GEOGRAPHY 18 GEOGRAPHY utilised agricultural area,to have property inS of agricultural husbandries in 2012, even 77.4% of the total number (according to dataoftheA small andmediumagricultural husbandries agriculture ofS GDP [Bogdanov, 2007,p. 31].Althoughin formthem andthey 41% ofthecountry’s S IV. million USD(2013). ranged from 150 million food products, 2005–2013,had inthe period inforeignsurplus tradeexchange ofagro- inforeignsurplus tradeexchange (Fig. 2). inthenationaleconomythe onlysector with agro-food ofS sector (fruits, cereals, sugar),and export-oriented of many agricultural productswhichare Besides, to 2.1milliards USDin2013,i.e. for 127%(Fig. 1). erbian territory, 55%ofpopulationliveerbian in Source: Calculation of the authors accordingSource: to authors the data of Calculation Fig. 1. Export of “Food and live animals” from from animals” live and “Food of 1.Fig. Export Fig. 2. Balance of foreign trade exchange in in exchange trade foreign of Balance 2. Fig. Ruralareas ofS and all sectors, in the period 2009–2013. period the in sectors, all and Source: Calculation of the authors accordingSource: authors the of Calculation of the SORS for the corresponding years. corresponding the SORS the for of export of “Food and live animals” animals” live and “Food of export Serbia in the period 2005–2013. period in the Serbia S erbia provides market surpluses surpluses provideserbia market to SORS the data. erbia dominate,erbia socalled, erbia has been,inyears,erbia erbia occupy 85%of erbia USD (2005) to 949 gricultural C erbia, with erbia, ensus T he pp. 158–171;P high extremely hasbeen market domestic andinternational the competitiveness on ofagricultural sector Besides all mentioned in the previous item, unfavourable export structure, low export structure, lowunfavourable export export L regard ( to theEUcountries ahectareofutilised agriculturalper area in I. given below. are non-competitiveness agricultural sector T naturalresources.and (2)highquality are [Stantič, 2011,p. 2]:(1)low labourprice ofS which belongsalsotheRepublic rural areas of inthecountries authors, the onlycompetitive advantage of accordance to research ofthegroup of of access 5 of access [http://siepa.gov.rs/sr/index/sporazumi, date SIEPAbe seenattheinternet presentation agreement andforeign tradeagreements can Russian Federation etc. M for strategicexport productsintheEU ( with many surrounding countries countries: well asliberalized agricultural productstrade development ofintensive agriculture, as agricultural land, water resources) for andunpollutedrural areas, high-quality location of the country, of high diversity conditions(goodgeographicfactorial V. S of A environment Strategy [seeDraft pointofview from theresources andrural preservation rate andfoodsufficiency safety), aswell as from food (self- productionpointofview market significance onthelocalcommodity have5 hectares),thesehusbandries great of E competitiveness CE ow export results areow theresult export of he most important indicators of he most important erbia in the period 2014–2024,p. intheperiod erbia 55]. valuation

Low value ofagricultural export products Serbia T F he Republic ofS he Republic TA griculture andRuralD

A greement), of preferential possibility th pril 2014]. April of araušić, C [see agricultural in P erbia hasfavourableerbia

araušić et al., 2013, the vijanović, 2014].I ore onthetrade T Republic able 2,Fig. 3). evelopment of W est Balkan, to est Balkan,

S erbian erbian , , USA erbia, erbia,

n and landoccupiedby buildings, farmyards, tracks, ponds, andsoon.For S onlyrepresentthey smallshare ofthetotal UAA). grassland; crops,arable land;permanent permanent gardens (even andotheragricultural landsuchaskitchen if food products. S structureofagro- unfavourable export quality. Especially, a great problem is withproducts of homogenous market insupplyoftheinternational continuity aswell asproviding forof commodity export, ofprovidingimpossibility sufficientamounts competitiveness ontheforeign market, ofrealizingunit value, impossibility price cherry), refined sugar,cherry), ofthose andtheprices (dominantly frozen and sour raspberry products: cereals (especially maize), berries surplus. Animals” in which exchange a high it makes of productsinthesector “Food andLive 1 Source: For UAA dataoftheE land isexcluded. access date 10 products dataofthe of UAA, in 2012, in selected European countries countries European 2012, in selected in UAA, of UAA – S Greece Spain France I A T taly Source: Calculation of the authors accordingSource: to authors the the of Calculation he Netherlands Fig. 3. Export of agricultural products per ha ha per products agricultural of Export 3. Fig. erbia ustria T he utilisedagricultural area (UAA thearea) describes usedfor farming.I T Table 2. Export of agricultural products from Serbia and selected EU countries, 2012. countries, EU selected and Serbia from products agricultural of Export Table 2. hose are, primarily, stock market th M arch 2014. data Table in 2. statisticsdatabaseforWTO 2012,http://stat.wto.org/BHome.aspx?Home/WSD Language=, and Serbia. erbia hasasmallnumber erbia UAA 23,752.690 27,837.290 12,856.050 urostat, http://epp.eurostat.ec.europa.eu, accessdate 10 3,437.423 3,477.900 2,878.170 1,872.350 1 , 2010 of commodities, % products inthe products Export ofagro Export T total export total export he term doesnotincludeunusedagriculturalhe term land, woodland 25.0 19.4 16.8 13.8 15.7 8.5 9.5 applying. where is the only basis forthe price market, products are by determined food theworld the environment [ of reduction and preservation poverty for promoting theagricultural growth, investments are oftheessentialsignificance consolidation of agricultural. higher investments and in modernization and unfavourable for financial market the agrarian budget and underdeveloped agriculture II. of S competitiveness of agriculture (the example not “lead” results andhigh to high export conditions inthefieldofagriculture must and viceversa, thatthefavourable factorial (the example oftheNetherlands), sector high competitiveness intheagricultural agricultural area for isnotalimitingfactor of orinappropriate quality that deficiency data ( and total valueoffood export. based onmeatandmilk),causesalow unit especiallythose articles, of manufacturing products, smallshare (domination ofprimary agriculture, 2012],andtheirdeficiency erbia). Extensiveness (low productivity) ofExtensiveness (low productivity) T able 2, Fig. 3) point out to the fact of agricultural T erbia dataforerbia 2012.I he unfavourable export structure he unfavourable export 102,944.900 in 000US$ 49,381.752 78,510.960 42,561.115 15,811.705 products products is a result of low support fromis aresult oflow support 2,838.250 6,882.926 Export Export t includes the land categories: t includesthelandcategories: th T M he State offood and ay 2014.For agricultural n Greece common of UAA in000US$ products perha products of agricultural T he agricultural T he presented Export Export 54,982 1,979 2,079 2,820 3,311 5,494 826

19 GEOGRAPHY 20 GEOGRAPHY 15 Statistics, http://faostat.fao.org, accessdate country. production potentials inagriculture ofevery and multiple roles ofworking invalorisation livestock breeding hasgreat significance and of thetotal agricultural production. III. Low share of livestock in valueproduction decline [seemore P which thisproductionrecords apermanent andmeatprocessors,exporters owing to agricultural producers, forestallers,primary the between connections efficient market problems, ofsetand aswell asdeficiency by numerous financial, organizational-market livestock productionofS countries. high-developed the selected this issignificantly lower share inregard to for theyear 2011(F ofS in theRepublic value ofthetotal agricultural production D data [S tatistical total agricultural productionvalue:F For dataonlivestock breeding share inthe Albania, in agriculture, have thefollowing countries: well asthatlower thanS productivity E to high-developed the fieldofagriculture, isfarlower inregard ofS intheRepublic productivity per anemployee” ( through indicators “ countries,the selected which are presented inagricultureto dataon productivity for dependable ofclimaticfactors. I leads to an extensiveagriculture, highly agricultural production. I. are asfollows:the mostimportant developmentof S of theRepublic implications on economic and regional competitiveness ofnegative hasaseries C Republic non-competitiveness onsequences eficiency ofS eficiency Lack oflong-term andstablegrowth of th M ay 2014. T zerbaijan andGeorgia. he share of livestock breeding in of Serbia Y earbook, 2011, 2013] in 2008, 2011, 2013] in 2008, earbook, of T araušić etal., 2010]. A able 3),canbeseenthat AO data, griculture, addedvalue agricultural uropean countries, as erbian agriculturalerbian erbia amounts34.2% erbia A erbia is characterized ischaracterized erbia ccording to theSORS

of the n accordance T able 3)and erbia, and erbia,

erbia, in erbia,

erbia, erbia, T T AO he he he

countries?display=default, accessdatecountries?display=default, 10 EA.PRD data.worldbank.org/indicator/ added peranemployee): Source: For ( dataonproductivity in millionUSD 2 1 (2010); P (2010); Slovenia Republic (2010);Hungary the Slovakian fishery, as well asofcrop andlivestock production. For S Romania P Hungary Croatia Bulgaria govina Bosnia &Herze Albania Great Britain Sweden Spain Slovenia Slovakia P Norway T I Germany France D Czech Republic Belgium A A Ukraine Russian Federation Georgia Byelorussia A Armenia Gross 2004–2006 productionvalue, prices permanent taly erbia he Netherlands oland ortugal ustria enmark zerbaijan griculture includesvalueaddedofforestry, hunting, Table in 3.agriculture Productivity and share of livestock breeding in value of the total total the of value in breeding livestock of oland (2010);S C entral andEast H . - agricultural production igh-developed economies igh-developed Ex-USSR countries prices 2005 permanent US$, 2012 ture, value employee, added per erbia (2009). erbia Agricul- 112,484 23,521 16,101 28,183 28,466 38,006 33,681 12,735 65,249 60,398 43,151 31,641 75,178 31,885 56,515 33,213 T 4,375 5,969 2,512 7,845 1,085 8,389 3,904 9,117 4,111 9,964 3,630 8,906 6,680 he urope countries W orld Bank, http:// Bank, orld A 1 griculture, value total agricultural .A GRI.KD/ value ofthe breeding in of livestock in %,2011 production production th Share M 31.4 50.0 45.4 49.8 42.7 41.5 34.2 33.9 57.2 43.1 37.5 36.2 38.1 51.7 59.8 67.4 35.6 62.2 45.2 43.9 76.5 66.6 35.2 62.6 44.9 71.8 53.4 55.8 58.4 ay 2014. 2

S that, of45under developed municipalitiesin among thegreatest inE Units for Statistics (NTUS) at all dissimilarities p. 379]pointoutto theexpressed regional T ofS in theRepublic economic category rural populationrepresents thepoorest socio- and low productive agriculture, while the dominates thetraditional, mono-functional based ondepletionofnaturalresources; andenergy), andstillhave been (dominatesector agriculture, food industry, been highlydependentfrom theprimary economic structureofS P ofS of theRepublic [the NationalP from the national average of the republic the year 2004),hasbeenlower for oneforth product percapitaintheseareas (data for around 30%), realized gross domestic of agriculture inGDPofruralareas amounts “ areas, adominantshare hastheactivity Although ingross domesticproductofrural II. 17.7% (seeFig. 4). and intheyear 2012wasdecreased for almost significant increase (base index 2005 = 100), agricultural productionhasnotrecorded some A erbia, those 30 had never changed those 30 had never erbia, their he authors[M rofessor Bogdanov [2007] points outthat griculture, Forestry and Fishery” (the share Regional diversities andrural poverty. Fig. 4. Growth/decline rates of agricultural Source: Statistical SORS, Yearbook 2011, production in the of Republic Serbia production in the period 2008–2012. period the in Statistical Yearbook 2013. rogram ofRuralD ijačić, P Nomenclature ofTerritorial erbia 2011–2013,p.erbia 9]. urope, aswell asto data erbian rural areas erbian has levels, whichare aunović, 2011, evelopment

erbia.

T and localauthorities. level of entrepreneurship of rural population labour, d)low capital, agricultural market, etc., c)underdeveloped services, sports education,culture,and healthcare services, remote infrastructurewhichprovides social infrastructure, b)under developed and rural areas are: a)underdeveloped physical 2011], someofdevelopmental limitationsof of countries D E A 2001–2010. accelerated intheperiod and even the regional had been disparities level ofdevelopment inmore than4decades, rural areas ofS of theRepublic fromperiod 1991 to 2002, the population in demographic structure of rural areas. III. of ruralpopulation. which leadto low gainsand low life standard first ofall, dueto itsextensivecharacter, ofagricultural production, low productivity C Study, 2008,pp. 146–147;Bogdanov, 2007; development andlife standard [LifeStandard Numerous studiesinthefieldofrural ofpopulationinruralareas.activities policies willnotdecisively affect to directing of theirchange, inthenearfuture, these unstable anderroneous, thateven incase in economic policy signals sentby agrarian, butalsothewhole invest. I be seen,butwhere theeconomy wishesto occur where theadministrationwantsitto economic development, whichdoesnot rural areas, onlyinaway itwillrealize overall future ispossibleto improve theconditionin view. A education, employment access point of areas, especiallyregarding infrastructure, parameters for development ofrural inE rural countries point outthatS he authors [Živkov, et al., 2012,pp. 10, 11] conomic andS vejić etal., 2010,pp. 14,61],pointoutto ccording to theOpinionofE evelopment andEmployment inthe Migrations and threatening of n accordance to thesamesource, the ccording to thoseauthors, inthe W est Balkan in2011[Stantič, est Balkan ocial C erbia isamongthemost erbia urope, withunfavourable S erbia areerbia so variable, ommittee onRural erbia hadbeen erbia uropean I n the

21 GEOGRAPHY 22 GEOGRAPHY necessity ofover ownnecessity viewing development awareness ofagricultural producers regarding M y y y y limitations inthefieldsof: on elimination of their numerous internal agricultural producers engagemore active thatthe and foreign itis necessary market, and becomemore competitive ondomestic and high income sources on the husbandry) (through thestable ensuring performances improve theirphysical andeconomic wouldstructure ofthetotal husbandries) inS husbandries I rural areas. unfavourable agestructureofpopulationin unequalized regional development and centres,bigger urban which leads to an (especially female population)towards is especiallymigrations ofyoung population pp. 11,12].A P total decline of1%atthestate level [National decreased for with the 3.6%incomparison regions of strengthening RecommendationSfor n order thatsmallandmediumagricultural y y y y rogram ofRuralD aybe the most important israisingthe aybe themostimportant improvement ofproductsquality, etc. standards,introduction ofquality of the significance and importance higher-processing-phase, aswell as of investments into products of andproblems,own mistakes significance in directionsofareal recognition of: Changes inconsciousnessandmentality investments, be always to connected great financial and business, whichare notandmust Better applyofinnovation inproduction competitive spirit, D better awareness,skills, etc. E agricultural ducation, acquiring new knowledge and knowledge new ducation, acquiring evelopment of entrepreneurial and in Serbia ccording to thesamesource, it erbia (whichdominate in erbia the evelopment 2011–2013, sector

competitiveness

and rural

O in agriculture andruraldevelopment, Law onincentives 10/2013 – thestate law; ofS the Republic and ruraldevelopment, O accordance to thelegal[Law onagriculture government ofS oftheRepublic been underthestate’s authority, i.e. the strengthening willbediscussed, whichhave Below measures of agricultural husbandries infrastructure inthecountry. physical, financial and innovation market, capacities ofthestate, aswell asdeveloped and agrarian policy, developed institutional leaders, inform ofastimulatingeconomic ofthepolitical getsupport that husbandries of theagricultural producers, itisimportant whichareBesides theseactivities indomain association, etc. business agreements withacooperative, thegeneralinterests neglect andestablished interest, term theagricultural producers short in long-term, regarding thatmostly, due to a projections till2020; for 2014–2017,with theperiod support for2024; Nationalpriorities theinternational D oftheA year 2014[Draft in S field of agriculture and rural development No. 10/2013]andstrategic inthe framework technological improvement of agricultural of husbandries, investments intechnical- growthproductivity (through modernization consolidation and conditions for property T growth of ruralpopulationlife standard. increase and in theagricultural sector growth, becauseitonlycanleadto income than theagricultural productionfactor inagriculture ismoreproductivity significant of transitionalcountries, thegrowth of rural areas competitiveness inthefield p. 28]for improvement ofagriculture and A ( EU) No1305/2013]. Regulation challengesofthefuture,territorial EC2010; M aking itinto consideration,aimingto make aking ccordingSwinnen [2002, and to Liefert evelopment Strategy for 2014– theperiod fficial Gazette ofS oftheRepublic eeting thefood, natural resources and in the period after the after andtheEUinperiod erbia erbia, No.erbia, 41/2009and T he CAPtowards 2020: gricultural andRural fficial Gazette of erbia, andin erbia, erbia, erbia, on numerous elementsofunfavourable environment, 2013] point out constantly 2010; A [ of theS and agrarian policy. Anyhow, the attitudes and d)generallythemeasures ofeconomic b) labourlegislation, c)traderegulations (reducing taxandnon-fiscalcharges);policy a) tax environment implies adjustment of: (SMEs). andentrepreneurshipmedium enterprises cooperatives ofsmalland andthesector employment increase, development of (through minimizing investment for risk), production andnon-agricultural activities for greater investments in agricultural Creating astimulating businessenvironment [P inS agricultural market on thecompetitiondevelopment onthe to agricultural producers). M service innovations by theagricultural extension transfer information ofknowledge, and theefficient etc.); (ensuring d)knowledge the efficientsystem oflandmanagement, setting land turnover; of landinheritance; in the field capital); c) land (change of policy and (money centres; b)financialmarket development ofcargo andlogistics terminals ofthemarket; in caseofobvious “mistakes” repurchaseimplementation ofintervention market; terminal market; inscriptions position misuse;development ofcommercial and control ofsomecompaniesdominant protection inthefieldof“grey” economy products (efficient of competition policy Market development: a)ofagricultural institutions, etc.banking credit disbursement), development of non- andconditionsfor(adjustment ofterms for crediting the agricultural producers adjusted to needs thespecificandlong-term establishing the efficient credit mechanisms, fundingsources:for theexternal attracting and b)development offinancialmarket a) predictableandstimulatingagrarian policy thestate’simportant inform of: support production, processing andsale),itwillbe T erms andburdenserms intheS araušić etal., 2010a]. ttitudes ofemployers onbusiness Creating thestimulatingbusiness erbian A erbian ssociation ofEmployers erbia canbeseenin erbia erbian economy,erbian ore

of S Rural D year 2013inthefieldofA onS the ECReport whichisalsostated in countries), Balkan meant for ruraldevelopment inthe IPARD funds ofFinancesMinistry oftheRS)forusing Protection andthe oftheRepublic ofSerbia ofAgriculture and theEnvironmentMinistry Building administrative capacities (inthe number ofneededemployees inagriculture. increase anddecrease ofproductivity a to come, intheperiod necessarily with diversification), which willbeactivities agriculture ofincomeand (incontext for employing theruralpopulationbeyond aimed to provide thefavourable conditions P activities). production, service development (development ofindustrial conditionsfor overallc) making economic the stimulatingbusinessenvironment and infrastructure inthecountry, b)creating a) improvement ofphysical andsocial rural activities, population whichimply: for diversification ofincome andthe favourable andmaking quality conditions Improvement ofrural life population activities. business environment, for theSMEEsector and the stated thattheIPARD operationalstructure 2017, with projections till 2020, p. 244] is for 2014– theperiod support international of S adopted by theGovernmentofRepublic requirements till2013.I to fulfiltheECadministrativeno possibility 2013+3,inregardthe period thatithad to usetheIPAopportunities RD fundsin to usetheEUfundsfor ruraldevelopment development, nor the population is qualified and implementation of measures for rural ready to adjustto theEUplanningsystem out that in group ofauthors[Živkov, etal., 2012]point for theIPARD fundsmanagement. in 2017 will be signed transfer authorization defined and accredited in the year 2016, while erbia in 2013 [National priorities for in 2013[Nationalpriorities the erbia erbia forerbia theyear 2013].S Report onprogressevelopment [ECReport IPARD measures are going to be S (pre-accession fundsoftheEU (pre-accession erbia, neither is administration erbia, erbian progresserbian for the n thedocument griculture and erbia hasno erbia reviously, it W T est he

23 GEOGRAPHY 24 GEOGRAPHY

more [P authorities, institutions, agencies, etc. S andeconomy andgovernmentalcivil society entrepreneurs, as well as the trust between building trust among agricultural producers/ c) financial market, market, commodity to theresources,access ofallparticipants andanequal rights protection ofproprietary laws, compliance, b) contracts the efficient laws and anefficientapplicationofthe which ensures/provides: a)passingnecessary efficient legislative power) andjuridical blishment oftherulelaw through the S agricultural productionandruralregions in T andvillagesurvival. population inthecountry employment, aswell asstaying oftherural rural regions, ofruralpopulation possibility development ofcompetitive andattractive balanced regional development ofthecountry, of domesticagriculture. O producers’ competitiveness isacrucialissue Strengthening thedomesticagricultural ofpublicinstitutions Development information oftheruralpopulation,etc.). insufficient public-private partnership, groups,(insufficiently developed localaction References C he authors in the paper were analyzed erbia and wereerbia pointed out to numerous law onagriculture andruraldevelopment, O 6. m 8. 7. 5. Strategy ofA draft 4. a 1. c 3. 2. onclusions law on incentives inagriculture andruraldevelopment, O iefert liefert preduzeća, No. 7–8,2011. 10/2013 – state law. tural E 2024, M areas ofS ers, Belgrade, M households. UNDP Bogdanov Natalija(2007).Smallruralhouseholdsin vejić S.,Babović M.,P ttitudes ofemployers onthebusinessenvironment (2013).S ijačić Dragiša, P araušić, etal., 2007]. conomic Report No. 806,M conomic Report W inistry ofA inistry ., Swinnen J. (2002). erbia”, UNDP2010. ay 2013. aunović inS Blagoje(2011).Regional dissimilarities , Belgrade. griculture andtheEnvironment P griculture andRuralD f this is dependant a f thisisdependanta etrović M.,Bogdanov N. Changes in arch 2002, (esta ee A ­ gricultural W evelopment of the Republic ofS evelopment oftheRepublic D of 46006 and 47007, funded by the T of incomeandruralpopulationactivities. anddiversification development ofthecountry investments, employment, overall economic a stimulatingbusinessenvironment for greater (agricultural products, capital, land),c)creating total development economicpolicy, b) market of predictableandstimulatingagrarian and a) insurance numerous measures ofsupport: political leaders, through implementationof of get support that husbandries it is important consciousness onfuture development. Besides, repose and under in mentality developed their numerous limitations, internal which the agricultural producers onremoving to engage more active the most important, more competitive, itisnecessary, maybe andbecome and economicperformances of S husbandries, whichdominate inagriculture I rural areas. of underdevelopment andpoverty export, to of domesticproduction,underusedability andcompetitivenessthough low productivity problems inthisfield, whichhave manifested A ashington, USDA E n order that small and medium agricultural n order thatsmallandmediumagricultural he paperisaresult oftheprojectIII cknowledgement evelopment of the Republic ofS evelopment oftheRepublic V E uković O uković ducation, erbia, shouldimproveerbia, theirphysical fficial Gazette ofRSNo. 41/2009and M arkets in arkets rotection ofRS,November 2013. erbia and ruralnon-agricultural erbia . (2010): “S fficial Gazette ofRSNo. 10/2013. S T cience and ransition conomic Research S erbian U nion ofEmploy- erbian ocial exclusion inrural E conomies, konomika Ekonomika erbia, T echnological erbia 2014– erbia erbia. erbia. ervice. M A inistry inistry gricul- n

16. p 12. 14. p 13.

15. 11.

17. statisticalF 10. studyontheLife Standard,S 19. 10. stantičC 18. 3. 23. 21. t 22. 20. Internet 5. 6. statisticalbaseof EUR 7. statisticalbaseoftheSO 4. 9. statisticalbaseofthe 8. statistical base of the 9. 2. c 1. statistical statistical urvey 2013(2014). BulletinNo. 578,StatisticalO labourSurvey p p p t t the P Report onS Report terms ofsustainableregionalterms competitiveness. I of competitiveness intheS petitiveness: institutions. oftheinternational evaluation I srpske za društvene nauke, No. nauke, zadruštvene 130. srpske ment oflivestock productioncompetitiveness ofS intheRepublic agricultural andfood economicsnationalresearch I tions oftheCAP2013+to thechallengesofEUmemberstates agriculture”, I National P 10 REGULATION (EU)No. 1305/2013OF ber 2013,SWD(2013)412. gov.rs/W 2011, REX/322. tions till 2020, Government of the Republic ofS tions till2020,GovernmentoftheRepublic for 2014–2017withprojec for theperiod - National priorities support theinternational Gazette No. 15/2011. D 1698/2005, tural Fund for RuralD CIL of17D S S Živkov Goran et al. Goran Živkov (2012). poverty reduction, Government of the Republic ofS reduction,GovernmentoftheRepublic poverty future (2010).E (2010).S industry sporazumi O erms andburdenserms ineconomy ofS araušić araušić he CAPtowards 2020:M araušić he State offood andagriculture (2012).F erbia, the erbia, erbia erbia araušić araušić ensus ofagriculture 2012,A evelopment andEmployment inthe ffice of the Republic ofS ffice oftheRepublic th M rimary A rimary and arch 2014). I nvestment and V V V V V ebSite/public/Report veto (2011).OpinionoftheE V esna, C Y Y esna (2007). esna, C esna, DragoC esna, M earbook oftheRS2011,tatisticalO earbook earbook oftheRS2013,tatisticalO earbook rogram ofRuralD AO base, http://faostat.fao.org (access date 15 (access date 5 W statistical ecember 2013 on support for ruraldevelopment by theE ecember 2013onsupport Official Journal oftheEU,20.12.2013. Journal Official erbian progresserbian for 2013(2013).E orld Bank, DFID( Bank, orld gricultural C uropean C vijanović Janko (2014).C vijanović Janko vijanović Drago, erbian UnionofEmployers,erbian A ihailović Branko, I W nstitutional and infrastructural barriers of the Republic of of the Republic barriers nstitutional and infrastructural OSTAT evelopment (EAFRD)andrepealingC W orld Bank, http://data.worldbank.org, (access date 10 Bank, orld vijanović, eeting thefood, naturalresources challengesof the andterritorial xport P Export orld orld ommission, Brussels, 18November 2010,COM (2010)672final. th sources ommodity M ommodity T erbia, 2013. erbia, erbian agricultural sector.erbian pril 2014). April he future of the , epp..ec.europa.eu, (accessdate 10 erbia 2002–2007(2008).StatisticalO erbia evelopment of the Republic of evelopment of theRepublic griculture ofS intheRepublic T rade Organization/WTO iew.aspx (accessdate 10 epartment for I epartment V Vladana Hamović (2010).Cluster approach to improve ffice of the Republic ofS ffice oftheRepublic romotion uković P uković Vladana Hamović (2010a).I erbia: State analysisinbranchofagricultureerbia: andfood uropean E THE EUR ompetitiveness ofS ofagro-economy arket inS arket W est Balkan countries. Brussels, 21 est Balkan AO nalysis of the actual indicators redrag indicators (2013).Analysisoftheactual S erbian villages.erbian nstitute ofA A ffice of the Republic ofS ffice oftheRepublic ffice of the Republic ofS ffice oftheRepublic , Rome, 2012. ustrian D ustrian uropean C gency gency OPEAN PARLIAMENT ADOF nternational D nternational conomic andS erbia, 8 erbia, erbia, E erbia, nstitute, No. 91.1 T erbia. hematic proceeding: “ SIEPA, ffice of the Republic ofS ffice oftheRepublic nternational problems,nternational No. 4/2007. evelopment C , http://stat.wto.org (access date th gricultural E conomic Annals, No. 184. th ommission, Brussels, 16 November 2013. th pril 2014). April erbia, SO RS http://webrzs.stat.erbia, erbia, Book I(2013).Statistical erbia, M T http://siepa.gov.rs/sr/index/ eam for social inclusion and ouncil Regulation (EC ouncil Regulation evelopment), 2008. ay 2014). S mperfect C mperfect ocial C erbia 2011–2013, erbia ffice of the Republic of ffice oftheRepublic conomics, Belgrade. erbia. Zbornik M Zbornik erbia. W erbia, Belgradeerbia, 2011. erbia, Belgradeerbia, 2013. ooperation ( ommittee onRural arsaw 2013. uropean A th erbia: clusters in clusters in erbia: M ompetition in T st he new solu- he new th ay 2014). S THE COUN- S erbia, 2014. erbia,

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25 GEOGRAPHY 26 GEOGRAPHY A T I associate ofregional researcher economics andeconomicgeography. ofthedepartment for I Banking, A economics and finance. at the Belgrade Since2013,heworks Banking Union –Nikola University Geographic I of humanresource management inmultinationalcompanies. at Since2008heworks rural development, competitiveness andclusters. has publishedanumberofmonographs andscientific papersinthefieldofagriculture, arko n 2009–2013,Darko raining at Belgrade Banking A raining atBelgrade Banking ctuarial A ctuarial ssociation, M nsurance &Finance, asanA nstitute “Jovan C V ukovic has worked attheFaculty hasworked ukovic of Entrepreneurial Business, Darko Vukovic is Simeunović is Ivana Vesna Parausic P papers related to foregoing topics. Sheismemberof ember ofC M M P claims,assessment, Estimationofexpected L interest refers to A M M A courses onFinancial M Bratislava, and W E obtained MS of economicsanalysesandpolitics. A in 2005from theFaculty ofE A Banking, field of Human Resource M finance). I Faculty ofKragujevac, University ofE economic development oflocalcommunities and regions. She engaged inareas ofsustainableruraldevelopment andsocio- Shehasbeen development ofagricultural andcapitalmarkets. producers, through and the affirmation of networking strengthening thecompetitiveness ofS Belgrade. dealswiththeproblems ofbuildingand Sheprimarily S onthetopic dissertation doctoral “ the Faculty ofE A T esla inBelgrade, asateaching assistantinthescientificfieldof conomy. remium calculation),StatisticalDataAnalysis, Financial erbia” atM erbia” cademy (Faculty for I Banking, gricultural E ctuarial M ctuarial athematics andFinancial Statisticsaswell asnumerous athematics. booksinthefield ofFinancial Shepublishedtwo ultivariate analysis (postgraduate studies). H anagement S ien vijic” oftheS – classes: Bucharest, Belgrade, Zagreb, Budapest, cademy. I n 2007healsoattended specialized program inthe nsurance and Finance, I n 2013, he completed doctoral dissertation at the n 2013, he completed dissertation doctoral ouncil oftheFaculty andHeadoftheA egatrend University, Faculty ofBusinessStudiesin c degree inGoverningtheState intheM conomics, Belgrade, S athematics, I ssistant P P conomics, ofBelgrade, University anddefended rague), where he obtained a diploma in the field cience, Quantitative M hD erbian A erbian A , Research A ssistant ctuarial S ctuarial A rofessor. ssociate cademy ofS anagement ( athematics, Financial Statistics, P conomics in Belgrade, department conomics inBelgrade, department nsurance (graduate studies), rofessor at the Belgrade Banking nsurance &Finance). Hegraduated ssociate, attheI works Union cience (Risk analysisandcience (Risk P rofessor at the Faculty for erbia. Shegraduatederbia. from conomics (economics and A gricultural clusters in in clusters gricultural rts, as an ciences andArts, ethods inFinance and t the same faculty he t thesamefaculty University. W irtschafts Universitat irtschafts erbian agricultureerbian cademy – Faculty oss reserving, er scientific She teaches nstitute of ctuarial V erbian ienna, arket arket