Regional aspects of the SAPARD programme implementation in the Slovak Republic

• Published in: Agricultural economics (Praha) 2005-12, Vol.51 (12), p.539-546
• Main Author: Buchta, S.
• Format: Article
• Language: English
• Subjects: Agribusiness; Agricultural economics; beneficiaries; Company structure; Competitiveness; financial assistance; Funding; Labor productivity; Processing industry; projects; regional development; regional implementation; sapard programme; Technology
• ISSN: 0139-570X; 1805-9295
• DOI: 10.17221/5149-AGRICECON

The article presents the analysis of regional distribution for the approved and completed projects by 2004 under the SAPARD programme in the Slovak Republic. The distribution of funding strongly favoured powerful (innovative) business subjects which increased their competitiveness and gained the “advantage of technology advance” (which, in time may change into the rent of technology advance) associated with growth in labour productivity and high probability of investment return. The implementation of the SAPARD programme provides a strong impetus to the restructuring of businesses in agrifood industry, it accelerates and improves the selection among the businesses and economical differentiation. The bulk of the approved funding for projects under the individual measures for agriculture and processing industry within the SAPARD programme was distributed among western and southern regions of Slovakia. The implementation of the SAPARD programme, on one hand, has helped to reduce regional disparities in the vertical spatial approach by the diversion of the bulk of funding to the economically less favoured southern areas of Slovakia lagging behind in terms of infrastructure. On the other hand, though, it has increased the regional disparities in the horizontal spatial view with regard to the fact that most of the funding is spent in the developed regions of western Slovakia. Eastern Slovakia thus has become a disadvantaged and minority recipient of the financial assistance under this programme.