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The CAP as a Job Stabiliser

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  • Konstadinos Mattas
  • Efstratios Loizou

Abstract

The CAP's impact upon farm structures, farm incomes and rural development has attracted significant interest among researchers and policymakers. However, its impact upon employment levels has been studied only indirectly, and valuable inferences have been missed. Taking account of the CAP's role in and impacts on employment requires a broader approach to policy evaluation as employment changes are closely related to changes in sector activity. Besides fulfilling agro†food production and other rural objectives, the CAP should also be seen as a dynamic job†generating and maintenance tool. CAP measures, besides directly creating jobs in Pillars I and II, keep alive several farming activities which, without their support, would probably cease, with significant job losses in many regions. Moreover, the CAP, via the multiplier effect (sectoral and fiscal), creates and secures jobs in non†agro†food sectors that are crucial for regional and national economies. Furthermore, under the current dismal economic and social conditions in several EU countries not least in terms of employment levels, the CAP's mechanisms are vital. Certainly, a further careful overhaul of the CAP could enhance its power as a job†stabilising programme.L'impact de la PAC sur les structures agricoles, les revenus agricoles et le développement rural a suscité un intérêt considérable parmi les chercheurs et les décideurs de l'action publique. Cependant, son impact sur les niveaux d'emploi n'a été étudié que de manière indirecte, et des liens intéressants ont été ignorés. Compte tenu du rôle et de l'impact de la PAC sur l'emploi, il faut une approche plus large de l’évaluation des politiques, car l’évolution de l'emploi est étroitement liée à celle de l'activité sectorielle. Outre la production agroalimentaire et d'autres objectifs ruraux, la PAC devrait également être considérée comme un outil dynamique de création et de maintien de l'emploi. Les mesures de la PAC, outre la création directe d'emplois au sein des piliers I et II, contribuent au maintien de plusieurs activités agricoles qui cesseraient probablement sans cela, entraînant des pertes d'emplois importantes dans de nombreuses régions. En outre, la PAC, via l'effet multiplicateur (sectoriel et fiscal), crée et maintien des emplois dans des secteurs non agroalimentaires qui sont essentiels pour les économies régionales et nationales. En outre, vu les conditions économiques et sociales déprimées dans plusieurs pays de l'Union européenne, notamment en ce qui concerne les niveaux d'emploi, les mécanismes de la PAC sont essentiels. Une nouvelle révision prudente de la PAC pourrait certainement améliorer sa capacité à stabiliser l'emploi.Der Einfluss der GAP auf landwirtschaftliche Betriebsstrukturen, auf landwirtschaftliche Betriebseinkünfte und ländliche Entwicklung hat beträchtliches Interesse bei Wissenschaftlern und Politikern hervorgerufen. Jedoch wurde der Einfluss der GAP auf die Beschäftigungsquoten nur indirekt untersucht, daher fehlen nützliche Rückschlüsse. Eine Berücksichtigung der Rolle der GAP in und ihres Einflusses auf das Beschäftigungsniveau erfordert somit ein breiter gefächertes Herangehen der Politikevaluierung, da Änderungen im Beschäftigungsniveau eng mit den Veränderungen innerhalb des Sektors verbunden sind. Neben der Erfüllung von Zielsetzungen in der Agrar†und Nahrungsmittelproduktion und dem Erreichen von anderen ländlichen Zielen sollte die GAP auch als ein dynamisches Werkzeug zur Schaffung und Erhaltung von Arbeitsplätzen betrachtet werden. Zusätzlich zur direkten Schaffung von Arbeitsplätzen in den Säulen I und II halten die Maßnahmen der GAP viele landwirtschaftliche Arbeitsbereiche am Leben, die ohne diese Förderung wahrscheinlich in vielen Regionen †gefolgt von erheblichen Arbeitsplatzverlusten – aufhören würden zu existieren. Darüber hinaus schafft und erhält die GAP über den Multiplikatoreffekt (sektorbezogen und finanzwirtschaftlich) Arbeitsplätze in Bereichen außerhalb der Land†und Ernährungswirtschaft, die sowohl für nationale, als auch für regionale Volkswirtschaften eine zentrale Rolle spielen. Des Weiteren sind die GAP Mechanismen unter den derzeitig schlechten wirtschaftlichen und sozialen Bedingungen in vielen EU†Ländern, nicht zuletzt hinsichtlich des Beschäftigungsniveaus, unverzichtbar. Sicherlich könnte eine vorsichtige Revision der GAP ihre Fähigkeit, als Job†Stabilisierungsprogramm zu wirken, verstärken.

Suggested Citation

  • Konstadinos Mattas & Efstratios Loizou, 2017. "The CAP as a Job Stabiliser," EuroChoices, The Agricultural Economics Society, vol. 16(3), pages 23-26, December.
  • Handle: RePEc:bla:eurcho:v:16:y:2017:i:3:p:23-26
    DOI: 10.1111/1746-692X.12170
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    1. Vasilev, Aleksandar & Maksumov, Rashid, 2010. "Critical analysis of Chapter 23 of Keynes’s Notes on Mercantilism in The General Theory of Employment, Interest and Money (1936)," EconStor Research Reports 155318, ZBW - Leibniz Information Centre for Economics.
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    1. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    2. Alexandros Gkatsikos & Konstadinos Mattas & Efstratios Loizou & Dimitrios Psaltopoulos, 2022. "The Neglected Water Rebound Effect of Income and Employment Growth," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 379-398, January.
    3. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    4. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    5. Hyytiä Nina, 2020. "Russian Food Import Ban – Impacts on Rural and Regional Development in Finland," European Countryside, Sciendo, vol. 12(4), pages 506-526, December.

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