Great Recession and paradigm shift – towards sustainable development of agriculture and rural areas

Abstract

Great Recession is another proof that the current paradigm of economic growth should be changed. It ought to be applied to all sectors, including agriculture. The farming sector was strongly affected by substantial price increases of some products. It was especially painful for poorer consumers in developing and Third World countries, while its benefits were channelled mainly to big farmers and speculators in developed economies. Common Agricultural Policy could not avert this turbulence. The implementa-tion of the concept of sustainable development is a possible solution of this problem as its approach is more holistic and humanistic. However, the implementation of adequate reforms is very slow. It is a sign that leading US and EU policymakers attempt to stay within the limits of current model of growth.However, the second wave of price hikes may prove to be more lasting, which would further deepen income inequality.

Keywords

• Great Recession
• paradigm shift
• Common Agricultural Policy
• sustainable development of rural areas
• food prices
• income inequality