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FP6

CARERA — Result In Brief

Project ID: 22653
Funded under: FP6-POLICIES
Country: Greece

The effectiveness of agricultural reform

An EU-funded initiative highlighted the extent to which reforms in agricultural policy have positively impacted employment opportunities.
The effectiveness of agricultural reform
The Common Agricultural Policy (CAP) in the EU has evolved considerably in the last 15 years. This has affected farm subsidies, economic structure of rural areas, employment and development in many regions. The project 'The impact of CAP reform on the employment levels in rural areas' (Carera) was designed to provide an objective assessment of key features of rural areas, such as employment and income levels.

The project sought to gather the latest information regarding rural development measures and provide a database related to rural economic sectors. These efforts were intended to reveal structural changes within the farming sector and reforms brought about by the CAP.

To achieve these goals, the project team undertook different approaches to produce exploitable, realistic results. It mapped economic transactions through input-output models, surveyed various stakeholders and employed several different models such as positive mathematical programming (PMP) and stochastic frontier model (SFA). This identified CAP reform impacts, effects on rural employment, income levels and farmers' future intentions, among other valuable data.

In effect, Carera took many innovative approaches to agricultural economics, giving rise to a new framework regarding impact assessment. It also considered policy parameters to allow data to be compared among different countries. Project results were disseminated online, as well as through workshops, conferences, science journals, leaflets and CD-ROMs. Some key project outcomes have been improved evaluation of policy changes in the sector and a set of recommendations for policymakers on generating employment.

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