Romanian post-communist agriculture – structural dynamics and challenges

Abstract

This paper represents an overview on the structural dynamics of Romanian agriculture, and the challenges faced. Describing the main changes over the last three decades, the analysis here should facilitate understanding of how communist-era agriculture of a centralised state might be transformed into something able to operate efficiently under free-market conditions. The specifics of Romania’s agricultural transition connect closely with certain preconditions, among them in particular the high proportion of the national population that is still rural. A privatisation process set in rapidly post-1989, as the old State Farms were dissolved over just two years. The role this economic branch played in the generation of GDP decreased, in a manner suggesting the former level will not be re-achieved, but farmers have worked to improve their basic infrastructure. The main obstacle would now seem to be the excessive fragmentation of agricultural land and the only-slow process of consolidation. Current characteristics of structural dynamics are visible in trends towards specialisation in farming, livestock restructuring, the slow (re-) development of irrigation infrastructure, increased land prices and more typical processes of a “land grab” profile. In this connection, the paper identifies 9 challenges Romanian agriculture faces, presenting these synthetically to ensure a clarification of objectives, with a view to greater upgrading of the country’s huge potential being achieved.