Cross-cooperation sectors between the Republic Macedonia and the Republic of Moldova: comparative analysis

Abstract

This research aims to asses the rural development perspectives and strategic sectors in Republic Macedonia and Republic of Moldova that can be considered cooperation sectors between the countries. Also, the research will serve as a handbook map for new created and existing LAGs or associative groups aiming to cooperate with other regional partners. A Local Action Group is a non profit-making structure formed of public and private organizations, especially from rural villages, from different socio-economic sectors. Through the European Agricultural Fund for Rural Development (EAFRD), LAGs can apply for financial assistance in the form of grants to implement the Local Development Strategy of their respective territory. Agriculture is important segment of Macedonian economy, as it impacts the economy significantly, by contributing with around 11.4% in total Gross Value Added (GVA). In addition to this, the agricultural sector is important for reducing unemployment rates and it provides employment for about 17.9% of the population. In the Republic of Moldova, agriculture continue to remain an important sector of economy. Even if declining, it is accounting for 12,2% of GDP in the year 2017. Food Industry accounts for more than 30% of the manufacturing, and it is contributing to other sectors such as transport, trade, financial and insurance activity. Main characteristic of the Macedonian and Moldavian agriculture is its dual structure. This means that small farms are most common and dominating the sector. Almost of the holding operate on land less than one hectare. However, these is high level of land fragmentation. In both countries, agricultural policy development is constructed as an adjustment towards the Common Agricultural Policy of the European Union. The process of EU integration resulted with positive changes in terms of better institutional capacities and legislation. Main goals of the national agricultural policies are the CAP objective and at the time this is the national agricultural strategies. In order to achieve these objectives, there has been introduced increased budget, along with systemic establishment of policy through set of laws, strategies, programs and long-term plans.