Rural economies in the context of economic theories

Vásáry, Viktória

Keywords: spatial, ecological and institutional economics, rural development

The challenges of rural economies and their sustainable solutions are analysed and synthesised by applying the tools and categories of spatial, ecological and institutional economics. The rural area is a very complex unit of economic, social and natural space with special characteristics. At the same time the heterogeneity of the units of space is very striking.
The problems and difficulties to be addressed or the most effective exploitation of resources in economic, social and environmental terms in rural economies also require theoretical analysis of different ongoing practices and theoretical abstractions.
The creation of new concepts and adequate theoretical reasoning how rural economies function needs on the one hand an interdisciplinary approach and on the other hand – in terms of economics – the explanation and analysis of different phenomena calls for the tools of, for example, spatial economics, ecological economics and institutional economics.
The aims that need to be attained by using different targeted and tailor-made measures in the framework of integrated rural policy cannot be reached simultaneously as these are more or less competing aims that cause a tension in the future too. A decision needs to be made on which one is of higher priority – economic or environmental goals. The maximised result calls, however, for innovative thinking, and an innovative, even creative policy approach and being able to find the golden middle way in terms of competitive economic performance and surviving ecosystems.
In view of Pillar 2 of the Common Agricultural Policy reform the rural development policy to be implemented after 2013 seems to have characteristics of the paradigm described. The supranational common strategic framework and the national partnership agreements will contribute to the better harmonisation of rural development and other policies. By selecting schemes from the menu defined at European Union level Member States and regions will be able to adjust the multiannual programmes to their own needs. Hence they will be able to exploit their endowments to the greatest extent possible and to contribute much more to the fight against climate change.

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