Agriculture and globalization, economic diplomacy's role

• Author: Speranca Liliana NEAGU
• Position: European Integration Ministry
• Pages: 1-8

Page 1

Agriculture in the globalization context

Globalization is a manifestation of the world market's force and it means gradually depraving the State of its economic power, which is more and more transferred to the private business environment. Nations cannot avoid the process. Both Romania and the other European countries have to face an ever more obvious and stronger competition on behalf the United States, Japan and the so called BRICK group, namely Brazil, Russia, India and China. At the G 7 meeting of he most industrialized countries (western countries, at present G8 meaning G7 plus Russia) in Lyon, in June 1996 France's President Jacque Chirac was pleading for a controlled globalization. Authors of the work "' The Global Trap: Globalization and the Assault on Prosperity and Democracy" say that euro EU single currency plays the part of the key of Europe's political unity and it could lead to the split up from the US domination. The European Union¹ (EU) has responsibility as a global economic actor to the poor countries, like those in the Sub- Saharan Africa. Farming and food produce outlets are more and more organized. We all know now Camembert, Coca Cola, Pepsi, and Marlboro. Italian Pizza, Hot-Dog; Cabernet, some food and beverage sorts have been globalised some time before.

Since the end of the Cold War and the switch from the logic of dipolarism to a mono-polar world tempered by the accession of the regional powers, agriculture has undergone changes. The challenges of this period come from the competition, especially the economic one, namely we can notice the proliferation of the non-state actors that started having business activity in agriculture and food industry. Economic corporations, territorially autonomous or municipal areas, foundations and NGOs have been set up.

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Media is more and more influential in shaping the public opinion, I have in view the power of brands and marks. The technological progress, especially in IT&C and transportation led to an ever more globalized commerce. Globalization generates both opportunities and risks. Powerful actors localize and exploit cheap manpower and/or make use of advanced technologies, which is not at all neglectful when comparing productions any kind, the agricultural one included

Grains production in 2003 was the following: Asia 48%, North America 21%, Europe, 17.1 %, Africa 6.1%, South America 5.9% and Oceania 1.9%, National Statistics Institute (INS)² data say. Romania put out 12,964 thousands tones grains, which means 0.62 % of the world production, in 2003. It also put out 2,850 thousands tones potatoes (Europe supplied 42.1%); 765 thousands tonnes sugar (70.6% in Europe); 234 thousands tones sunflower (Europe: 58.3 %); 3,515 thousands tones vegetables (Europe: 11.4 %; Oceania:0.4%, Africa:5.8%; north America: 6.6%, South America:2.4%andAsia:73.4%); 2,029 thousands tonnes fruit (Europe:15,7%; Oceania: 1,3%; Africa: 13%; North America: 12,4%; South America: 14,2% and Asia: 43,4%). World Animal statistic figures are the following: 1,542 million cattle, 956 million swine; 1,024 million sheep; 768 million goats. Romania grew 2,878 thousand heads. In 2003 it earned 1.10 % of the world cow milk production, namely 5,588 thousands tonnes (Europe: 41,5%; Oceania: 4,9%; Africa: 4,2%; North America: 19,6%; South America: 9,1% and Asia: 20,7%); and it put out 0.54 % of the world egg production.

WTO has been debating the topic of direct subsidies for farmers, the cut in the customs duties for farming produce and food industry products. Whereas the United States and Brazil as well as other farmers expect EU to curb customs fees, but Washington is still criticized for the too poor subsidies it grants to the farmers.

Sustainable development

The Sustainable Rural Development (SRD) concept was first reported in the media through World Conservation Strategy (1980). Later, it was World Commission on Environment Development (WCED) report, and the Brundland Report, and the World Bank publication, The Environment, Growth and Development, in 1987. The World Bank describes the Rural Development as the economic growth, poverty eradication and the health environment management that are joint objectives, many times. RD involves the reasonable use of non-renewable resources, especially coal and crude. Robert Allen defines sustainability³ saying that "the sustainability criterion requires equal access to the basic resources to be valid for each generation"⁴. The RD concept entered the agriculture and went round the world as the agricultural economy doctrine. Concisely, the president of the International Association of Agricultural Economists, the Australian John Langworth defined the concept (Tokyo 1991) as having three elements, he economic growth, the market and the environment. In 1996 Phillipe Vasseur describes the sustainable agriculture as an economically available, environmentally health and socially fair agriculture that have in view satisfying the human needs without destroying the natural resources.

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Rural space was defined, during the Third European Forum in Verona, 1995, as the inland and costal area includes the villages and the small towns where the largest part of the land is used for farming and forestry, arrangement of mountain areas for leisure activities, wildlife reservations, residential areas, crafts, services or industrial activities. Rural space has 3 functions⁵ (5) the economic, the environmental and the social-cultural one. SRD is not only Romania's target but also a goal the entire international state community strives for. The tenant the Rio Declaration of Rio on Environment and Development (1992) reads that "peace, development and environmental protection are interdependent and inseparable. UNO staged, on the same topic of Rural Development, the first International Conference on financing the development, in Monterrey, Mexico, on March 21-23, 2003. The summit for the Earth's sustainable development held the World Rio Conference plus ten years in Johannesburg, on August 28, 2002'

Rural space covers 85 percent of Europe's surface, considerably topping the urban one as regards ensuring the life quality. In Europe's outlook the village fulfils the following functions: 1) the economic function providing food, revenues comparable to liberal professions, the environment protection; 2) the ecological function focused on conservation of natural...