NEW UN REPORT SPOTLIGHTS CHALLENGES TO RURAL DEVELOPMENT IN WESTERN BALKANS

Economic development in the rural areas of several nations in the Western Balkans is being hindered by challenges related to agriculture, climate change and migration, according to a new report by the United Nations Food and Agriculture Organization (FAO) and the World Bank.

The report, "The Changing Face of Rural Space: Agriculture and Rural Development in the Western Balkans," takes a look at the situations in Albania, Bosnia and Herzegovina, Montenegro, Serbia and the former Yugoslav Republic of Macedonia.

It says that agricultural trade deficits are widening and climate change is putting pressure on agricultural resources. In addition, young people are increasingly migrating to urban areas or abroad in search of economic opportunities.

While the five countries are at different stages of development, they face similar challenges in modernizing their agricultural sectors to become competitive in regional and European markets.

"The agrifood sectors in these countries are undercapitalized and highly fragmented, dominated by small producers with unsophisticated production and quality control systems," says FAO's David Lugg, a co-author of the report. Processing capacity, a potentially critical part of the value chain, is also limited.

The report, intended primarily for policy-makers and donors in the region, notes that scarce credit or land, expensive inputs, degraded infrastructure and poor access to high-value markets are among the obstacles faced by some farmers.

At the same time, the report suggests that the prevailing challenges, as well as the region's ongoing process of integration with the European Union, are an opportunity.

"The need to meet EU food safety and other standards while addressing the food and financial crises is a powerful incentive for improving agricultural policy," it states. "Agriculture and rural development as sources of growth, employment and food security now need to be taken seriously."

Julian Lampietti of the World Bank also notes the need to look beyond agriculture at overall rural development in the region.

"What's needed is a balanced approach that emphasizes increased competitiveness of the agrifood sector while providing alternative income opportunities in rural communities to help future generations avoid the poverty trap," he says.

The report also calls on countries to come up with strategies to adapt to climate change, noting that the region is likely to face higher temperatures, reduced and more variable precipitation, and more frequent extreme climatic events, such as floods, droughts and heat waves.
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