PERFECŢIONAREA MECANISMULUI ECONOMIC ÎN FUNCŢIONAREA GOSPODĂRIILOR ŢĂRĂNEŞTI DIN AGRICULTURA REPUBLICII MOLDOVA ADECVAT ECONOMIEI DE PIAŢĂ

Abstract

THE IMPROVEMENT OF ECONOMICAL MECHANISM IN FUNCTIONING OF FARMS FROM MOLDOVIAN’S AGRICULTURE ADEQUATE TO THE MARKET ECONOMY Moldovan agriculture accounts for approximately 33% of the GDP, and with food processing industry added, as much as 48%. 43% of active labour force is involved in the agricultural sector. This branch of economy is the largest contributor to export, accounting about 65% of total exports.The comparative analysis of farm structure in Moldova and the EU countries (as representatives of a market economy) shows that Moldova is characterized by much greater land concentration in large farms than any of the EU countries. Even in countries closest to Moldova, such as Portugal and Greece, the large-farm sector controls a much smaller proportion of land and small farms achieve much greater dominance. To move closer to the farm-structure pattern typical of market economies, Moldova should allow land to flow from large corporate farms to small individual farms, rather than in the opposite direction. This will reduce the concentration of land in large farms, while at the same time increasing the share of land controlled by the small individual farms, and thus bring Moldova in closer conformity with the market pattern of land concentration. At the same time it may correct, at least partially, one of the two manifestations of land fragmentation in Moldova: the average size of the very small individual farms will increase somewhat as they acquire more land at the expense of large corporate farms.