Trakia Journal of Sciences, Vol. 9, Suppl. 3, pp 94-100, 2011 Copyright © 2011 Trakia University Available online at: http://www.uni-sz.bg ISSN 1313-7069 (print) ISSN 1313-3551 (online) EXAMINATION AND ANALISIS ABOUT THE EFEECT OF RURAL DEVELOPMENT PROGRAM 2007-2013 ON DEVELOPMENT OF RURAL AREAS /BY WAY OF EXAMPLE OF REGION STARA ZAGORA/ D. Ivanov* Department of Management, Trakia University, Stara Zagora, Bulgaria ABSTRACT The objectives of the present elaboration are to be research and analyze the effect of Measure 311 and Measure 312 of Rural Development Areas Program /RDAP/ and to be valuate the effect of the program upon development of rural areas by way of example of Region Stara Zagora. At the territory of region Stara Zagora for the period 2007-2010 16 projects are accepted on measure 311 “ Diversity into non- agricultural activities” and 62 projects on measure 312 “Support for the creation and development of micro- firms”. Thanks to these two measures are created opportunities for economic development of rural areas. The investments are decreasing unemployment and stimulating the economic activity. Although, the positive effect of the program, there are some failings like too big threshold of personal share in investments, which restrict the number of potential candidates. The methods which are used are observation, statistical analysis, research and analysis of documentation, expert valuation and many others. Key words: rural areas, development, perspectives INTRODUCTION On the territory of Region Stara Zagora are Measures 311 “Diversification into non- situated 11 municipalities, which are having agricultural activities” and 312 “Support for summary population at the end of 2010- the creation and development of micro-firms”, 347 414 people. The national definition defines can be applied on the territory of 9 rural areas in which no settlement has a municipalities from the region, which are: population over 30 000 people. That definition Bratya Daskalovi, Galabovo, Gurkovo, has been used under SAPARD program and Maglizh, Nikolaevo, Pavel banya, Opan, will also be applied in the Rural Development Radnevo and Chirpan. program 2007-2013 for territorially based interventions. The main objective of the present elaboration is to be examining and analyzing effects of According to this definition 231 out of total measures 311 and 312 of Rural Development 264 municipalities in Bulgaria are classified as Program/RDP/ for development of rural areas, rural. Rural areas represent 81% of the territory to be revealing the influence’s problems and to and 42% of the population (Figure 1). be making suggestions for measuring them up. According to this definition 9 out of total 11 The objectives can be achieved by using these municipalities in the Region Stara Zagora are basic tasks: classified as rural. Municipality Stara Zagora • Revealing the nature of RDP and Measures and Kazanlak are defined as urban territories. 311 and 312; ________________________________ • Analyzing influence’s problems of the *Correspondence to: Dimo Naydenov Ivanov, measures at the territory of Region Stara Department of Management, Trakia university, Zagora; Stara Zagora 6000, Bulgaria, Student town, , e- • Making suggestions for measuring up with mail: [email protected], Mobile phone: +359 88 7586851 the problems and to be increase the effect of their influence. 94 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 IVANOV D. The methods, which are used: researching of The program is structured in four axes and the the documents; observing and analyzing of the report is accepting by analyzing of axis 3, in achievement results; retrospective analysis; particular Measure 311 and Measure 312. logical analysis; a monographic method, an Priority 3 of the Community “Construction of induction and deduction and many others. local capacity for work load and economic diversification” is integrated in purposes of The research is span the period 2007-2011. National strategic plan and it’s in pawn in The informational base of the research and RDP, by measures of axis 3, in which are analysis are national and regional statistical distributed 31% of Community contribution. examinations, examinations and publications Increasing quality and approach to basic of different authors, own examinations. services for the population and also the infrastructure in rural areas are particularly Rural Development Program 2007-2013 and enforcing of Measure 311 and Measure 312 important for detaining population and RDP 2007-2013 is a part of Common Agriculture revealing of conditions for business Policy/CAP/ of the European union /EU/. CAP is development. For this objective is provided an indivisible part of contracts, which have sizable investment support for increasing of created the European community. CAP is based physical infrastructure and fittings, which are on three fundamental principles: free trade at the needed for providing services for rural territory of the Community, based on common population. The development of enterprises prices, benefits for the European production at and the creation of possibilities for the Community markets and also common employment in rural areas are encouraging by financial responsibility. The objectives of the support for investments into non-agricultural European CAP: to be delivering an acceptable activities by agricultural farms and rural standard of life for farmers, to be delivering population and also for activities for qualitative foods for consumers by reasonable development of village tourism. The prices, to keeping the European patrimony in employment among women is needed to be rural areas and to be contributing for keeping the marked that most of the newly created jobs are environment. The main instruments of CAP are connected with activities of axis 3, in particular direct payments and market support for growers with Measure 311 “Diversification into non- (1-st pillar of CAP) and the rural development agricultural activities” and Measure 312 policy (2-nd pillar of CAP). “Support for the creation and development of The Rural Development Program 2007-2013 is micro-firms”. For the both of two measures the prepared and correspondence with priorities of participation of women is really important (for strategic terms of reference of the Community example activities for village tourism). and National strategic plan for rural Because of that it is important to be given development areas in Bulgaria 2007-2013. adequate priorities for companies, which are RDP is conformable with all priorities of the managed of women. Community. The distribution of the resources About measures 311 and 312 an aid intensity of between key fields of rural development areas 70% of the total eligible expenditure will be is based on identification needs of agri-food applied subject to the limits and conditions sector, environment and the population in the imposed by the de minimis rules (Commission rural areas in Bulgaria. The program is also Regulation (EC) No 1998/2006). This level of conformable to possibilities, given by other aid intensity was chosen in order to maintain instruments of the Community for support for parallelism with OP Competitiveness supporting increase of environment and quality of life in micro-enterprises in urban areas. This support rural areas. The program is analyzing in details will seek to stimulate investments and creation of the real condition of Bulgarian agriculture, its employment opportunities in non-agricultural national peculiarities and problems. As results activities in rural areas by both agricultural of a program enforcing are realized different producers diversifying out of agriculture, and by projects in different areas of agricultural other rural micro-enterprises. It will create a production and for the period 2007-2011 on a competitive environment for investments in rural national level, have been contracted projects areas compared to the urban agglomerations, and for over 938 million euro. can be justified by the very low purchasing power and level of economic development within Bulgaria's rural areas. Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 95 IVANOV D. Figure 1. Rural areas (231 in blue) and Urban areas (33 in white) Measure 311 “Diversity into non- The measure will provide grant aid to agricultural activities” agricultural producers for investments in The process of restructuring of the Bulgarian development of non-agricultural activities. The farming sector, which is characterised by a measure will be implemented in 231 rural large number of low-productive small farms, municipalities. Investments in tourism may be facilitated by creating incentives to development in settlements and resorts of farmers to diversify into non-agricultural developed mass tourism will not be supported. activities. The support for investments of agricultural producers into non-agricultural The indicative list of areas of diversification is activities will facilitate their entrance, or as follows: expansion in sectors having potential for • Rural tourism development: market growth. This will bring additional • Local crafts income to farmers and will redirect labour • Development of social services for the from agriculture to more productive jobs, rural population easing the underemployment problem - Child care, care for the elderly, etc.; • Processing and marketing of The support for development of non- agricultural products, which are not supported agricultural activities of agricultural producers under measure 123