An Economic Typology of An Economic Typology of Rural Areas in RomaniaRural Areas in Romania

Marioara RusuMarioara RusuInstitute of Agricultural EconomicsInstitute of Agricultural Economics

Bucharest, RomaniaBucharest, Romaniaee--mail: mara.r@xnet.romail: mara.r@xnet.ro

The Diversity of Rural Areas in the Enlarged European Union:

Characterization, Typology and ModellingDecember 14-15, 2006; Seville - Spain

Presentation outlinePresentation outline

The importance of the rural area in Romania The importance of the rural area in Romania and the constrains this faces withand the constrains this faces withMethodologyMethodologyClassification and description of rural areas Classification and description of rural areas based on economic dimensionbased on economic dimensionConclusionsConclusions

Background (I)Background (I)Rural area has an important place in RomaniaRural area has an important place in Romania

It holds about 89% of RomaniaIt holds about 89% of Romania’’s territory; s territory; It is inhabited by 47% of total population It is inhabited by 47% of total population (10.13 (10.13 million people);million people);

Important natural resources are located hereImportant natural resources are located hereagricultural land (14.8 million ha) agricultural land (14.8 million ha) forests ( 6.4 million ha)forests ( 6.4 million ha)protected areas (1.5 million ha)protected areas (1.5 million ha)

Background (II)Background (II)

Agriculture still play a very important role Agriculture still play a very important role in Romanian economyin Romanian economy

its contribution in GDP is about 12% its contribution in GDP is about 12%

almost 36% of the Romanian labour force is almost 36% of the Romanian labour force is employed in agricultural activity employed in agricultural activity

Background (III)Background (III)

Rural area faces with a number of economic Rural area faces with a number of economic development constrainsdevelopment constrains

low performance and competitiveness of low performance and competitiveness of agricultureagriculturelack of alternative economic activities lack of alternative economic activities ageing of labour forceageing of labour forcepovertypoverty

Background (IV)Background (IV)

There is a significant territorial diversityThere is a significant territorial diversity

In transition, the territorial disparities in In transition, the territorial disparities in economic development increased;economic development increased;The current inequalities among the rural areas The current inequalities among the rural areas are the result of :are the result of :

different endowment with natural, human and different endowment with natural, human and financial resources;financial resources;particular ways of economic, social and cultural particular ways of economic, social and cultural developmentdevelopment

Main objectiveMain objective

to identify the differences among rural to identify the differences among rural areas from the economic dimension areas from the economic dimension standpoint and to propose an economic standpoint and to propose an economic typologytypology of themof them

Methodology (I)Methodology (I)

Delimitation of rural and Delimitation of rural and urban areas is regulated by urban areas is regulated by the Law Regarding the Law Regarding Localities NetworkLocalities Network

According to its provisions According to its provisions the basic rural administrative the basic rural administrative territorial unit is territorial unit is THE COMMUNETHE COMMUNE

2686 communes (NUTS 5)2686 communes (NUTS 5)

Delimitation of rural areaDelimitation of rural area

Methodology (II)Methodology (II)

16/10 indicators16/10 indicators(factorial analysis)(factorial analysis)

relevance relevance reliabilityreliability

five issuesfive issues

agricultureagricultureforestryforestrytourismtourismindustryindustrylabor forcelabor force

The choice of indicators and issuesThe choice of indicators and issues

Methodology (III)Methodology (III)Economic typology of rural areas

Rural areas with mainly agricultural resources and Rural areas with mainly agricultural resources and poor or medium economic situationpoor or medium economic situation

significant arable land resources significant arable land resources (about 70%);(about 70%);small to medium small to medium -- sized farms;sized farms;low developed animal husbandry low developed animal husbandry (0.35 LU/ha);(0.35 LU/ha);low forestry potential (12%);low forestry potential (12%);low tourist attractiveness degree; low tourist attractiveness degree; lack of tourist accommodation lack of tourist accommodation units;units;lack of industrial activities;lack of industrial activities;medium share of active medium share of active population;population;low share of employed population low share of employed population (31%)(31%)significant share of population significant share of population employed in agriculture (65%)employed in agriculture (65%)

Location: mainly in plain units

- 25% of rural area

- 26% of rural population

Rural areas with resources for a medium diversified Rural areas with resources for a medium diversified economy and medium economic situationeconomy and medium economic situation

medium arable land resources medium arable land resources (62%);(62%);smallsmall--sized farms;sized farms;medium development of animal medium development of animal husbandry (0.44LU/ha);husbandry (0.44LU/ha);medium forestry potential (21%);medium forestry potential (21%);low to medium tourist attractiveness low to medium tourist attractiveness degree;degree;low to medium tourist low to medium tourist accommodation capacities;accommodation capacities;low to medium industrial activities;low to medium industrial activities;medium share of active population;medium share of active population;low share of employed population low share of employed population (36%);(36%);high share of population employed in high share of population employed in agriculture (54%);agriculture (54%);

Location: non homogeneous

- 40% of rural area

- 43% of rural population

Rural areas with resources for a diversified Rural areas with resources for a diversified economy and medium economic situationeconomy and medium economic situation

low arable land resources;low arable land resources;small small ––sized farms;sized farms;medium development of animal medium development of animal husbandry sector;husbandry sector;significant forestry resources significant forestry resources (36%); (36%); high and very high tourist high and very high tourist attractiveness degree;attractiveness degree;medium tourist accommodation medium tourist accommodation units;units;medium industrial activities;medium industrial activities;medium share of active medium share of active population;population;medium share of employed medium share of employed population;population;medium to high share of medium to high share of population employed in agriculture population employed in agriculture (44%)(44%)

Location: Carpathians Mountains, Danube Delta and Black Sea coast

-35% of rural area

-31% of rural population

Conclusions Conclusions

This proposed economic typology of the This proposed economic typology of the rural areas may represent an important rural areas may represent an important step in the elaboration of the rural step in the elaboration of the rural development strategies and policies which development strategies and policies which should take into consideration the specific should take into consideration the specific opportunities and constrains of each areas opportunities and constrains of each areas for an integrated development of them for an integrated development of them

Thank you for your attention!Thank you for your attention!