A Stimulating Export Oriented Policy of Agricultural Sector of Developing Countries on Example of Georgia
This topic is about regional and agricultural policies in small and developing countries, where the agro field is in difficult situation, and governments don’t have enough resources, to develop rural regions and agricultural sector. Economists consider agriculture as a precondition for the development of the industrial sector, as it actively uses products produced in other fields: large agricultural equipment, pesticides and other necessary equipment. The amount of agricultural product stimulates the development of the processing and refrigeration industries. In addition, this field is one of the largest areas of employment. The development of agriculture stimulates the growth of large farms and cartels as well as the effectiveness of small entrepreneurs. Consequently, it is important that agricultural policy would include not only agricultural and farming development strategies, but also be an integral part of regional policy. No matter how many laws are written in the government creating effective models for the development, it is crucial to have a powerful team who have great desire, knowledge and experience for participation and implementation of the plan. Unfortunately, today there is no such commitment. This is confirmed by the fact that all existing projects enjoy support, i.e. existing farmers who have already had their own businesses wanted to expand existing ones. Theoretically, on the one hand, it is not as bad, probably good; however, real outcome can be achieved only with the large scale effect; therefore, all mini-agricultural lands should be involved in agricultural production. The biggest problem in Georgian agricultural sector is fragmental patches of land, where practically is impossible to carry out profitable economic activities. Relevantly establishing various forms and development of farmers’ cooperation should be an essential component of the agricultural policy. Finally, there is determined the stimulating regional policy combined with the agricultural policy priorities and main instruments for its implementation in Georgia.
KeywordsAgriculture economics Cluster Georgian agriculture
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