The new updates on the European common agricultural policy and their impact on the rural development investments

Abstract

Two worldwide processes are putting pressure more and more on the rural development policy at the international level lately. First of all, the trends in climate change and the competition between agriculture and other sectors for the natural resources exacerbate competition and conflicts over access to land, water and biological resources and accentuate extreme poverty and hunger. Second, the rural policy will continue to play a vital role in helping all the countries to achieve the wider objectives of sustainable growth, job creation and competitiveness. This research is based on the news adjustments of the European Common Agricultural Policy -CAP - face to mitigate the effects of the new process: the rising global food prices. In brief, the news updates on the rural development policy are all about freeing the farmers to meet growing demand and respond quickly to what the market is telling them. Therefore, this paper investigates and analyzes the financial impact of these news updates, because the rural development needs to be organized and financial encouraged. The quintessence: the rural development, particularly in the developing countries, needs to be accompanied by the allocation of legal rights and adequate and stronger financial resources to local stakeholders. The two developed economies created one American model and one European model for the rural development. For Romania, the problem is that the rural development policy should include action to flexible financial support, but also the foreign investments and transnational corporations, because these are very important in the market economy.