Impact of Agricultural Policy in Development of Agriculture Sector Within the Period of 1999-2015 in Kosovo

Abstract

Agriculture sector represents one of the oldest economic branches, although the economics of agriculture represents a relatively new branch. In this regard the aim of this paper is to reflect on the issue based on sustainable and comparative arguments; furthermore, the paper aims to identify current disadvantage as well as opportunities for more sustainable agricultural development on the impact of subsidized fiscal policies in the future. Moreover, the effect of agricultural policy instruments on development of agriculture and agricultural income is likewise one of the purposes of this research. Given that agricultural policies play key role for the development of the poor countries, this has lead Kosovo towered listing agriculture development policies among the highest priorities of the political agendas. After the war, in Kosovo, agricultural sector has been neglected in terms of priorities in national development strategies, as well as in financial terms, since there had not been sufficient financial support provided. However, after a few years, recognizing the need of development of the sector as of priorities on poverty reduction, as well as on stimulation of the economic development, the sector has begun to be engaged in the national agendas. Meantime, this represents fundamental message of the World Bank, presented in the World Development Report (World Bank, 2008). In the case of Africa, the members of African Union agreed to allocate at least 10% of their budget to agriculture and rural development sector, and recently the G8 has scheduled to provide 1 billion Euros, as a support to African agriculture investments. In 2007, in Kosovo, grant scheme and subsidize (direct payments), has been accessed to the Agriculture and Rural Development Plan of 2007 -2013. Direct and indirect effects of these instruments on agricultural income / farms are poorly documented. This support was increased by the inclusion of other sectors and cultures until 2014, which includes the following measures: 1.Measure 101:“Investment on physical assets of agricultural economies ", 2. Measure 103:Investments in physical assets on processing and marketing the agricultural products, 3. Measures 302: Diversification of farms and business development. There is a lack of proper research, when the direct effects of the supportive measures on the agriculture and economic development are concerned.