New Economic Foundations of the Common Agricultural Policy (CAP) of European Union Cover Image

Nowe uwarunkowania ekonomiczne wspólnej polityki rolnej (WPR) Unii Europejskiej
New Economic Foundations of the Common Agricultural Policy (CAP) of European Union

Author(s): Andrzej Czyżewski, Sebastian Stępień
Subject(s): Economy, Agriculture, Economic policy, EU-Approach / EU-Accession / EU-Development
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: Common Agricultural Policy (CAP); interventionism; sustainable development; economic rent; income deprivation; intrinsing value of land; European Union;

Summary/Abstract: The aim of the article is to assess the evolution of the Common Agricultural Policy (CAP) of the European Union in the context of the concepts of industrial and sustainable development, as alternative options reflecting the neoliberal vs institutional model of economy. The authors try to assess various instruments of this policy from the point of view of: (1) reasoning behind the financial support for agricultural sector, (2) new interpretation of economic rents in agriculture (with the consideration of the intrinsic value of land), (3) socio-economic deprivation of farmers (income disparity between agriculture and other sectors of economy, (4) moving from industrial development model to sustainable development model. The authors maintain that agricultural sector requires a financial support from the state. Proper fiscal stimuli are needed (subventions and tax relief) in order to modernize agricultural production, to improve infrastructure, to create alternative earning sources, and to stimulate the provision of public goods and services by agriculture for the needs of society. The authors are in favour of the new concept of sustainable development for the agricultural sector and rural areas, which would take into account, apart from economic efficiency, the demand for environmental protection as well as social questions concerning countryside inhabitants. According to the authors, the current agricultural policy of the EU aims at assuring such a sustainable and harmonious development of agriculture in the EU member states.

  • Issue Year: 2017
  • Issue No: 6
  • Page Range: 675-697
  • Page Count: 23
  • Language: Polish
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