OPINION

Clash of two concepts

The decades-long agrarian policy in this area failed the expectations of the state and its people. What are the consequences of that accident and what and how to do in the future in this economic field

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Illustration, Photo: Luka Zeković
Illustration, Photo: Luka Zeković
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Everything, then, that they tell you to hold, / hold and create; but what they do do not do;/ for they speak and do not do (Gospel according to Matthew 23.3)

U to the Montenegrin public, two completely different concepts (Strategies) now appear in the field of agricultural and rural development.

A conceptual twist

The agrarian authorities claim that the current agrarian policy (Strategy) is good and that they have the support of officials from the European Union. In their claim, the proponents of the mentioned concept lose sight of (or bypass) the facts related to three decades of economic and development results in the mentioned area, compared, for example, to what we had in 1989.

The facts speak best about the arguments for the previous claims: the concept of centralist management of agricultural production in Montenegro proved to be disastrous, where any different opinion and initiative was considered heresy and undesirable and, of course, was rejected as such; low level of agricultural land use - 6 percent (2022); a drop in food production compared to the comparative year of 1989 by more than 50 percent (this is an expert assessment, as there are no official data); the decline of livestock as a measure of the success of the development of agricultural production in one country, more than 50 percent; low labor productivity, which lags behind the countries of developed Europe, also by more than 50 percent; major legal and investment failures (land and investment policy of the dairy and other food industries, etc.); reduction of perennially successful companies (once the economic pride of Montenegro) to a beggar's stick ("July 13" of Plantation); Montenegro's high dependence on foreign food imports, for which the state allocates over 600 million euros per year (2022); the drop in export opportunities in the food production sector also by 50 percent; the lack of institutions of the agrarian system as a major current and development issue in the agrarian system of Montenegro and others.

Contrary to the above, Montenegro has immeasurably high natural and market potential - 255.000 hectares of agricultural land and an open market (local, regional and European) for trade in agricultural food products.

Another stream, whose voice in established multi-decade relations, cannot come to the fore, except for the claim that the multi-decade agrarian concept of Montenegro (Strategy) is very bad, and as such it should be unconditionally changed.

On this occasion, it should be recalled that the current agrarian system (Strategy) was created in the early 90s of the last century, when the concept of neoliberal market economy was inaugurated, which believes that the state should be expelled and prevented from participating in market events in the economy and its economy. More precisely, theorists of the neoliberal concept constantly claim that a powerful market hand will tidy up everything and solve all problems to everyone's satisfaction. Unfortunately, that didn't happen!

This is not about the general negation of the neoliberal market concept, but about the fact that Montenegro had a wrong - indiscriminate approach to agriculture and rural development under the given circumstances, which proved to be disastrous in Montenegrin agricultural and rural conditions.

Consequently, the Montenegrin agrarian being today looks more like a bureaucratic being than a society with sincere intentions to wake up and revive European principles and ideas.

Possible projections

Montenegro has the natural and market conditions for the annual growth of food production to be at least 5 to 7 percent, with the aspiration for that growth to be as much as 10 percent. There are also good market conditions to double the current growth rate of food exports - from 15 to 30 percent.

In the long term, Montenegro can produce enough food to feed its population and tourists, and for export - at least 30 percent.

In the list of assumptions for achieving the mentioned goals, it occupies a priority position knowledge and valid development projects, and only then financial capital.

When it comes to state incentives for the development of agricultural production, it would be necessary to increase the current percentage of state support for the development of the economic branch in question from the current 1,0 percent to 3,0 or 3,5 percent, calculated on the amount of the annual national budget of Montenegro. , that is, the figures used today by the countries of the region.

Only with prominent approaches, Montenegro can provide economic and social stability in the long term on the one hand, and on the other hand, make a big step towards joining Montenegro to the economically developed countries of Europe.

Decentralization of the management of the agrarian system in Montenegro is one of the major problems on the way to building a stable and sustainable agrarian system, and preserving both national resources and Montenegrin agricultural entities;

Furthermore, it should be recalled that the proposed measures would for the first time in Montenegro inaugurate a principle that respects the natural and market specificity of the Montenegrin agricultural area, which is why the state agrarian policy should permanently establish lawfulness and respect for regional (land and climate) specificities in the Montenegrin agricultural area .

On this occasion, the region would be promoted, as the bearer of the new green development of Montenegro which would represent a major event not only in agricultural production, but also in the whole economic development of Montenegro (Seaside region; Zetsko-Bjelopavlić plain region; Valley region; Karst region and High mountains region). These permanent scientific professional positions were promoted a long time ago, however, no one will pay attention to it?

Each region in a future development projection should have a high level of current and development autonomy and development plans, and represent a development core in which knowledge, good projects, capital, human interest and initiative will take precedence. In a prominent way, the region would become the bearer of the realization of the new green Montenegrin and European agenda, which will be implemented by business entities such as: specialized or general type farms (ready for some of the acceptable forms of association); clusters capable of independent performance on the domestic and foreign markets; companies in private and mixed ownership; state enterprises, etc.

In the emphasized division of labor, which aims to create a production-market environment that will maximally stimulate food producers for the largest and highest quality production, another key interest would be realized - an economically, developmentally and socially stable Montenegro.

In the context of the above, it is necessary to modernize agricultural legislation and lower legislation in accordance with the recommendations and practice of developed European countries.

On the plan of creating an optimal economic environment in the economic branch in question, priority should be given to the definition of the construction concept institutional infrastructure in the area of ​​the agrarian system, which would include: (a) improving the efficiency of work and the development of scientific-technological and personnel potential, as the bearer of the realization of key tasks in the realization of the new - green agrarian strategy in Montenegro; (b) the formation of a design-investment institution, whose task would be to translate modern development knowledge and plans in the mentioned area into high-quality and credible domestic development projects, ready to take responsibility for their successful implementation; (c) formation of a credible institution for market development (domestic and foreign) and, finally, (d) formation of a specialized institution for financing current production and investment development in the fields of agriculture, rural economy, forestry, water management, rural tourism, wood processing and others service.

In the context of prominent funding agricultural institutions it would take place on the basis of market economy, respecting the gradualness in the transition period, on the way to the definitive application of the concept of self-financing of development institutions.

A strategically important decision

In order to enthrone an operationally stable and efficient agrarian system in Montenegro, it would be necessary to form Council for the Development of Agriculture, Forestry and Water Management, as an advisory body to the Government of Montenegro or the Ministry of Agriculture, Forestry and Water Management, whose composition would involve well-known scientific and professional personalities and experts from the fields of biotechnical sciences and professions, forestry and water management, development of rural economy, rural tourism, sociology, economics, of finance, information technology, etc.

The Council would be obliged to propose to the Government of Montenegro a project of a new Green Strategy on market and European bases within a reasonable period of time.

It would be unfair not to point out that in the indicated period there were also positive results such as: the development of rural infrastructure, livestock farms, viticulture and wine production, honey production, as well as the development of certain companies such as Franca from Bijelo polje, Mesna industrija Nikšić and Voli from Podgorica and others.

Obligation of domestic intelligence to communicate what kind of strategic concept is needed future green economy in Montenegro

The question seems simple at first? But it's not like that. The domestic, scientific and political public is faced with a Decision of what kind general concept as a strategic commitment, should be offered to the economic entity of Montenegro? That strategic question is an autonomous obligation of the current Montenegrin mind.

After the definition of the general guidelines (Strategy), it is necessary to incorporate into the adopted concept (being) "blood flow" and make it alive so that this new agrarian development being is able to direct the future Montenegrin agricultural product in the direction of increasing volume, exclusivity and high quality. In the indicated area, in addition to domestic expertise, it will be necessary to hire foreign expert assistance.

The new agrarian strategy should respect all the principles of sustainability in the short and long term, and confirm that exclusive and high-quality food will be produced in the future (Njeguš prosciutto, wines, cheeses, olive oil, etc.)

We have two concepts on the table. Is there a third? That question should be answered by scientific and professional authorities in this field?.

It is necessary to form Chamber of Biotechnical, Forestry and Water Management engineers and technicians of Montenegro, in accordance with the laws that regulate this matter.

It is also necessary to form union of agriculture, forestry and water management, which would provide employees in this economic branch with the right to free speech and union activity.

The author is an agrarian economist and specialist in agricultural and rural policy

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