G. Mursa

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STATE AND AGRICULTURE. SOME RECOMMENDATIONS ON AGRICULTURAL POLICY

G. Mursa, Roxana Paraschiv

Abstract
The main purpose of the paper is to make a critical analysis of government policies regarding agriculture. The reason of this approach is that, over time, various nations have tried many methods to develop this sector seen as vital especially in the conditions of the demographic growth. Most governments have considered agriculture as a strategic area that should enjoy preferential policies. However, despite of huge amount of resources voulme spent by public authorities , the results were below expectations in many times and in many countries. This analysis uses the specific methods of modern economic theory to show that the competitivity of agricultural sector does not depend primarily on the volume of resources invested by government but on a framework that fosters private investment, an adequate policy of incentives, on the degree of liberalizing trade with agricultural products. The interpretation of statistical data and the use of the elements of quantitative analysis leads us to conclude that the development of the agricultural sector primarily depends on the role played by free markets. Government policies are only adjuvant to be dealt with the infrastructure, with a basic educational level of labor force and a minimum health care for people living in rural areas. The comparative analysis of data from the U.S. and the European Union economies supports this conclusion.

Key words: agrarian policies, preferential policies, open markets, productivity, resources