Effectiveness of Control in the Agrarian Sector
Effectiveness of Control in the Agrarian Sector

Author(s): Krasimir Yordanov
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Agriculture, EU-Approach / EU-Accession / EU-Development, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: control; agrarian sector; efficiency; audit
Summary/Abstract: Control in the agricultural sector is a key function of management systems in this field, both at the national level and at the level of individual farms. The sustainability and competitiveness of Bulgarian agriculture depend significantly on the effectiveness of control and its direct influence on risk management in the sector. The effectiveness of control in the agricultural sector is a fundamental factor for transparency and sustainability. It is focused on the transparent distribution and management of public resources, as well as on the detection and limitation of errors, irregularities, and abuses. The effectiveness of control should be considered in two directions. Firstly, the effectiveness of internal control systems in large, medium, and small farms across various sub-sectors. Secondly, the effectiveness of the control system at the national level. The conducted research indicates that control at both levels suffers from various weaknesses and problems. Addressing these is important for compliance with the EU's Common Agricultural Policy (CAP). The methodological basis of this study combines an analysis of legal acts and audit reports from the Bulgarian National Audit Office and the European Court of Auditors with a comparative analysis of practices in other countries and an institutional review of the role of control institutions. Therefore, control should not be viewed as a formal administrative activity, but as a strategic factor for stability and predictability in the agricultural sector. Assessing the effectiveness of control in the agricultural sector requires considering both the institutional framework and the cost-benefit ratio of control activities. The problems with the effectiveness of control in this sector are also due to: the influence of private interests on the management of the sector; complex and non-transparent procedures that increase the cost of control; threats to the independence of control institutions; weak coordination between control bodies; non-implementation or partial implementation of recommendations given by control bodies. The analysis of control in the agricultural sector showed that, despite an established institutional framework in Bulgaria, the effectiveness of the control system remains limited due to a combination of institutional fragmentation, staffing weaknesses, lack of digitalization, and insufficient accountability. Effectiveness is necessary for building trust between the state, farmers, and society, and for guaranteeing the successful integration of Bulgaria into the common European framework of agricultural policy. Risk management in the agricultural sector shows that the effectiveness of control systems is not exhausted by technical checks but depends on the institutional environment, transaction costs, and the ability of public authorities to provide timely regulation. The Bulgarian control system in the agricultural sector must adapt to European standards of transparency, digitalization, and accountability to ensure the effective absorption of funds and to accelerate the modernization of agriculture.

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