Modernization of the Agricultural Sector in the Context of Sustainable Development in the Republic of Moldova.

Abstract

This paper focuses on the links between agricultural modernization and sustainable development, looking in particular at the impact of the structural changes over the rural livelihoods. In order to achieve this, there were used the following research methods such as: analysis of the economic indicators, methods of comparative analysis, assessment of the public policies’ impact on the rural development. The agricultural sector in the Republic of Moldova is based on extensive farming and is insufficiently adapted to market economy conditions. There is a growing understanding in the country that the rural economy is not confined to the agricultural sector, but embraces the broad spectrum of needs of all rural people including living standards, economic activities and natural resources. The situation is associated with the major risks related to the structural changes that may affect the countryside and the economy as a whole such as: a) migration and uncontrolled urbanization, b) lack of professional qualifications and adaptability of the population in the rural areas, c) inadequate use of the natural resources. Rural economy, employment issues, natural resource management and also goals and circumstances of the agricultural production have changed considerably. At the same time, academia and civil society are aware that the new paradigm of modernization must begin both with the agricultural technologies and the people. Its novelty is that in the combination of financial, economic and technological policies for agriculture, new components to be introduced, like policies aimed at improving human capital in agriculture and environmental protection. The paper contains conclusions and proposals on modernization of agriculture and diversification of non farm activities in rural areas.