STIMULATING INVESTMENT IN MOLDOVAN AGRICULTURE THROUGH SUBSIDIES

• Main Author: Aliona SARGO
• Format: Article
• Language: English
• Published: University of Agricultural Sciences and Veterinary Medicine, Bucharest 2013-10-01
• Series: Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development
• Subjects: agricultural households; agricultural policy; agricultural sector; banking; donors; economic growth; financial institutions; financial flows; fiscal policy; incentives; investments; private property; subsidies
• Online Access: http://managementjournal.usamv.ro/pdf/vol3_3/Art44.pdf

Providing sustainable financial services for rural areas and agriculture in developing countries has proven to be difficult. Millions of lei have been spent in Republic of Moldova for subsidizing programs and policies to develop financial institutions to serve this neglected market. But, Moldovan farmers are dissatisfied with the results. Agriculture continues to receive only a small share of total formal credit and that most farmers must rely on savings or informal credit supplies to finance their operating costs and long-term investments. These critics argue for a return to more active government intervention, including the creation of state-owned agricultural development bank