Publication:
Impact of European Union Membership on Agriculture and Rural Development in Newly Acceded Member States: Drawing Lessons for Serbia

Loading...
Thumbnail Image
Files in English
English PDF (2.51 MB)
740 downloads
Date
2016-04
ISSN
Published
2016-04
Editor(s)
Abstract
This Policy Note looks at impacts of European Union accession on agriculture and rural sectors, taking into account specific sectoral features and policy choices pre- and post-accession. The most important lesson learned from recently acceded member states is that policy choices before accession will largely determine whether the agriculture sector will be able to fully reap the benefits of EU membership, by expanding trade, or will struggle in the face of increased market pressure. Every EU candidate country faces a twofold challenge: it needs to direct its agriculture and rural development policy towards increased sectoral competitiveness, and align its legal framework and institutions with the EU membership requirements. Far too often, fulfilling the latter becomes the leading priority, while some underlying sectoral challenges are overlooked. These fail to receive appropriate support pre- and post- accession − due to suboptimal domestic policies and/or foregone EU funding opportunities. The unresolved issues may continue to linger once the country joins the EU, and diminish the effectiveness of EU policies and funding. Serbia is at the very junction where this challenge needs to be addressed. Some producers have already started to benefit from trade liberalization, with strong growth in response to a rapid increase in exports (cereals, oilseeds, fresh fruit and vegetables); others are unable to adapt and are dwindling (dairy and meat production). Based on past experience and taking into account the key features of its agriculture sector, Serbia needs to use this short window of opportunity to focus on re-calibrating its budget resources so that they better stimulate the development of competitive farm units. In parallel, it needs to ensure that alignment with EU requirements – both in policy and institutional terms – remains on track, yet it does not sideline the needed sector transformation prior to EU accession.
Link to Data Set
Citation
Schuman, Irina; Goss, Stephen; Smith, Garry. 2016. Impact of European Union Membership on Agriculture and Rural Development in Newly Acceded Member States: Drawing Lessons for Serbia. © World Bank. http://hdl.handle.net/10986/24170 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Lessons from European Union Policies for Regional Development
    (2009-06-01) Shankar, Raja; Shah, Anwar
    Regional disparities present an ever present development challenge in most countries, especially those with large geographic areas under their jurisdiction. A neglect of these inequities may create the potential for disunity and, in extreme cases, for disintegration. In view of this, most countries actively pursue policies with a view to helping lagging regions catch up with faster growing regions. These policies have at best a mixed record of success. It is therefore useful to discern what type of policies work and why? In this context learning from the experience of the European Union (EU) may be particularly instructive as, over the years, it has provided significant support to assist poorer regions achieve convergence with the richer regions. This paper reviews the impact of EU policies for regional development to draw lessons of interest to other countries pursuing similar goals. The paper concludes that policies that serve to create an internal common market by creating a level playing field that enables poorer regions to integrate with the broader national and global economies have the best potential to advance regional income convergence. In this context, removal of barriers to trade and factor mobility and providing enhanced access to information and technology to the lagging regions should be main policy priorities for regional development.
  • Publication
    The Economic Community of West African States : Fiscal Revenue Implications of the Prospective Economic Partnership Agreement with the European Union
    (World Bank, Washington, DC, 2007-06) Zouhon-Bi, Simplice G.; Nielsen, Lynge
    This paper applies a partial equilibrium model to analyze the fiscal revenue implications of the prospective economic partnership agreement between the Economic Community of West African States (ECOWAS) and the European Union. The authors find that, under standard import price and substitution elasticity assumptions, eliminating tariffs on all imports from the European Union would increase ECOWAS' imports from the European Union by 10.5-11.5 percent for selected ECOWAS countries, namely Cape Verde, Ghana, Nigeria, and Senegal. This increase in imports would be accompanied by a 2.4-5.6 percent decrease in total government revenues, owing mainly to lower fiscal revenues. Tariff revenue losses should represent 1 percent of GDP in Nigeria, 1.7 percent in Ghana, 2 percent in Senegal, and 3.6 percent in Cape Verde. However, the revenue losses may be manageable because of several mitigating factors, in particular the likelihood of product exclusions, the length of the agreement's implementation period, and the scope for reform of exemption regimes. The large country-by-country differences in fiscal revenue loss suggest that domestic tax reforms and fiscal transfers within ECOWAS could be important complements to the agreement's implementation.
  • Publication
    Africa : Economic Partnership Agreements between Africa and the European Union, What to do Now? Summary Report
    (Washington, DC, 2008-10) World Bank
    This report addresses the question raised in its title - now that 18 interim Economic Partnership Agreements (EPAs) have been initialed and negotiations of full EPAs have been launched, what should African countries and regional EPA-groups do? Part two of the report analyzes the outcome of the EPA negotiations thus far, the interim EPAs' implications for the trade and related policies of participating African countries, and the reforms required for successful implementation of interim EPAs. Part three examines the potential role of full EPAs, in advancing regional trade integration, open trade policies, and the liberalization of trade in services and foreign direct investment in Africa. The intended audience for this report is primarily policy makers and their advisors in the African EPA-countries, but it may also be of interest to those in the broader development community concerned with Africa.
  • Publication
    Reforming Agricultural Trade for Developing Countries : Volume 2. Quantifyng the Impact of Multilateral Trade Reform
    (Washington, DC: World Bank, 2007) McCalla, Alex F.; Nash, John; McCalla, Alex F.; Nash, John
    Reforming agricultural trade for developing countries is a two-volume set. The first volume is subtitled Key issues for a pro- development outcome of the Doha Round, and it is focused on specific concerns that are being encountered in the agricultural negotiations, and on strategies for dealing with them to arrive at a final agreement that will significantly spur growth and reduce poverty in developing countries. The companion volume is subtitled Quantifying the impact of multilateral trade reform. It comprises chapters that take different approaches to modeling trade reform and quantifying the resulting benefits and costs to various players in the negotiations. The study explains the differences in results that come out of these different approaches, and compares them to some other recent estimates of the gains from global trade reform.
  • Publication
    Review of Governance of Collective Investment Funds in the New Member States of the European Union
    (Washington, DC, 2008-06) World Bank
    This review examines corporate governance practices in the investment fund sector of the ten new member states in the European Union, composed of the European countries that transitioned to market economies in the 1990s: the eight countries that joined the European Union (EU) in 2004 .Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. plus Bulgaria and Romania which joined in 2007. Croatia, for which accession negotiations started in 2005, is also included in this Review. (For simplification, these countries will be referred to as the EU11.) The review draws on two sources for data. Over the last two years, in-depth diagnostic reviews of investment governance were conducted by the World Bank in two of the countries, the Czech Republic and Slovenia. The objectives of the reviews were to develop a set of good practices. for investment fund governance and provide specific recommendations for the supervisory authorities in each country. The second source was the public websites of each of the supervisory authorities. The analysis in the review also draws on a number of recent studies done by international organizations such as IOSCO and the EU on governance in the investment fund sector. This review does not attempt to replicate these studies, but instead aims to identify selected areas where fund governance could be strengthened either by laws and regulations or by government policies.

Users also downloaded

Showing related downloaded files

  • Publication
    Doing Business 2020
    (Washington, DC: World Bank, 2020) World Bank
    Doing Business 2020 is the 17th in a series of annual studies investigating the regulations that enhance business activity and those that constrain it. It provides quantitative indicators covering 12 areas of the business environment in 190 economies. The goal of the Doing Business series is to provide objective data for use by governments in designing sound business regulatory policies and to encourage research on the important dimensions of the regulatory environment for firms.
  • Publication
    Economic Growth in the 1990s : Learning from a Decade of Reform
    (Washington, DC: World Bank, 2005) World Bank
    The authors examine the impact of growth of key policy and institutional reforms: macroeconomic stabilization, trade liberalization, deregulation of finance, privatization, deregulation of utilities, modernization of the public sector with a view to increasing its effectiveness and accountability, and the spread of democracy and decentralization. They draw lessons both from a policy and institutional perspective and from the perspective of country experiences about how reforms in each policy and institutional area have affected growth.
  • Publication
    Kenya Economic Update, April 2018, No. 17
    (World Bank, Nairobi, 2018-04) World Bank Group
    After multiple headwinds dampened growth in 2017, a nascent rebound in economic activity in Kenya is gaining momentum. Notwithstanding the projected rebound in economic activity risks are tilted to the downside. The Government of Kenya has outlined four big priority areas for the next five years. These are agricultural and food security, affordable housing, increased share of manufacturing, and universal health coverage. Support from the public and more importantly the private sector will be required to achieve the big 4. Specific measures to create fiscal room to support the big 4 can include: enhancing domestic revenue mobilization through the rationalization of tax exemptions; slowing the pace of expansion of recurrent spending; and improving the efficiency of spending. Boosting agricultural productivity and food security will require re-allocating more resources to agriculture and improving the efficiency of current spending in the sector. To eradicate poverty by 2030, Kenya will need a combination of higher growth, more inclusive growth, and growth that is increasingly driven by the private sector and translates into more rapid poverty reduction.
  • Publication
    Energizing Europe
    (Washington, DC: World Bank, 2024-02-29) World Bank
    This report focuses on the impact of the war in Ukraine on the energy sector in 2022 and early 2023 and Its implications at the macro and micro level in the EU. The EU is a net importer of energy and is highly dependent on fossil fuels. In 2021, almost 70 percent of the EU’s energy needs were met from fossil fuels, mostly imported from Russia. This has led to legitimate concerns on the security of energy supply andhas also made the EU susceptible to fluctuations in fossil fuel prices. Russia’s invasion of Ukraine in February 2022 led to disruptions in the supply of fossil fuels, especially natural gas, to the EU and a spiraling of energy prices. The macro level effects of the war in Ukraine as evidenced by higher inflation and tighter monetary policy as well as lower growth are relatively well-known but the impacts on firms and households have been very heterogenous with significant policy implications.
  • Publication
    Manure Management
    (Washington, DC: World Bank, 2017) Backus, Ge B. C.; Cassou, Emilie; Gerber, Pierre J.
    This working paper provides an overview and assessment of Dutch manure management policy instruments from 1984 to 2016. The most successful and cost effective measures have included restrictions on manure spreading, the creation of a national Manure Bank as an offtake of last resort, the requirement to inject manure into soil, support for flagship farms, and limits on farm size managed under the mineral input registration system. The various quota systems that have been implemented have proven costly for industry and the public sector alike, but have prevented livestock numbers and related pollution problems from increasing further. Ever stricter limits on the application of manure to soil, for example, have imposed costs but shown positive results. Applications of manure nitrogen decreased from 447 kg per ha in 1980 to 326 kg per ha in 2010, and applications of manure phosphate decreased from 160 kg per ha to 84 kg per ha over the same period. Dutch manure management policies have generally increased farmers’ incentives to seek valuable uses of manure. The costs of manure policy to the public sector have also been relatively high, with monitoring, enforcement, and registration averaging around 900 euro per farm per year. Part of the effectiveness of Dutch manure policy has been owed to its incrementalism. Restrictive measures have generally been designed to increase in stringency over time and allowed industry to adapt. Dutch manure policy has, however, cost the life of many of the country’s less-efficient farms. The number of pig farms in the Netherlands decreased from 34,000 in 1984 to 5,000 in 2015. Lessons learned include the effectiveness of gradually tightening standards, using combinations of sticks and carrots, and regularly evaluating policies. Promising approaches include the coupling of land and animals, and manure processing.