Question

Explain the development of the EU’s Common Agricultural Policy (CAP) since its inception, and assess its current advantages and disadvantages.[50 marks]

Answer 1

EUROPEAN UNION COMMON AGRICULTURAL POLICY

The Common agricultural Policy { CAP } was implemented in the year 1962 under the European Union. The European Union is the association of the countries in the European area. The CAP is associated with the agricultural subsidies and also it aims at the development in the rural area. The Common agricultural policy enacted in the year 1962 has undergone several changes and evolved in the present form as we can see in the modern era.

In the early years there exists no relationship among the member countries in the agriculture. But in 1950's there evolved a special interest on the integration of the European union market and to remove the tariff and other trade barriers. It was the time that the policy makers think agricultural is the most important tool to enhance the economic stability and progress and also for the growth of nations. And also many areas were negatively impacted with the insufficient food supply. In such a condition there is a strong wish for the integration in the agricultural sectors among the member nations.

There undergone many changes in the Common agricultural policy, it can be traced back from the 1968 Mansholt plan. The Mansholt plan mainly concerned on how this policy can impact the price and market support for the farmers. This was the first reform mesure for this agricultural policy. And it was followed by the McSharry reforms in the year 1992. The plans was named after the European Commissioner for agriculture McSharry and the plan mainly centred on how to regulate and control the agricultural production and also the scope for a more free market for the producers. And after that the one of the major reform was the 1999, and it consider the two important anchorages in the policy are the support given to the production and also the the progression and expansion of the rural areas. And next to that another is in the 2003 reform which mainly based on the expenditures and the spending. Followed by that in sugar reform act, in which the sugar was also be a part of the subsidized product in the reform measures. And in 2007, the reform act mainly limited the spending of the subsidies and there a subsidy limit is established. These are the important developments in the European Union Common Agricultural policy.

ADVANTAGES

The CAP is most successful in creating and ensuring the food security to Europe. This important aim of the program has achieved in the last years of this policy. Now the European have the access to food items at a reasonable amount of price and there exists an integration among the member nations. One of the most significant aim of this policy was the development of rural areas and the policy has gained that aim. The farmers was a in a threat at the past and now they are secured and many of the young poeple are in willingness to start the farm and to enhance the production. This is a very positive sign of the plan and the poliy. The subsidies play a very important role in this.

The policy is successful in proving the standard and quality food among the member nations. And now the people in Europe has acceess to a wide variety of food items from the crops produced in the nation. And also the policy has the responsibility to the increase the production along with the protection and conservation of the environment.

DISADVANTAGES

The incentives awarded to the farmers boost up the production in a great extend and it creates a situation in which it leads to the over production of the food items. And there involves a wasting of food items in a huge manner, especially in the developed nations. In reality the farmers contribute a very small population in the European countries, but the budget allotted to them is in inproportianate with the population. Almost 25-30 percentage of the European union buget is spend to them.

The budget allowed for the CAP is much more than what they actually deserve. And also the a great share of CAP is spend for a small group, in which the wealthier people will beome more wealthier and only a very small share is allowed for the poor people, it will create such huge difference in the income and wealth. The food security is not become a serious threat at the present condition. In this globalized world the products can be exported at lower price from the nations. So these are the important disadvatages of CAP.