Challenges of modern World and the Georgian agricultural anti-crisis plan

Abstract

The paper discusses the problems that will help governments’ first priorities in tackling the COVID-19 pandemic have been to overcome the health emergency and to implement rapid economic rescue measures, the latter mostly aimed at providing essential liquidity and protecting livelihoods in the face of abrupt losses of income. As the health crisis gradually abates in some countries, attention is now turning to preparing stimulus measures for triggering economic recovery. The relative importance of the other dimensions will likely vary across different country contexts, according to their development priorities, infrastructure needs and social circumstances, in particular for developing countries. The food sector is fundamentally important for the conservation and sustainable use of natural capital, and ultimately dependent on it. Secure food supply is essential for well-being and economic stability – indeed even to sustain life – meaning that the availability and affordability of food are likely to be key government priorities coming out of the crisis. The agriculture sector faces growing threats including from climate change and infectious diseases of plants and livestock. In some countries, initiatives have been voiced to protect national producers, such as introducing minimal quotas for local products on shelves of supermarkets (Bulgaria and Croatia); Some countries have banned the import of food and live animals from the countries and regions significantl affected by the virus (Croatia); in Bosnia and Herzegovina, small farmers are offered sowing packages for the development of local production. Taxes will be returned to people living above 600 meters above sea level, the government will help them with the purchase of agricultural equipment, support the production and irrigation infrastructure, develop the livestock business and strengthen the processing industries for domestic use. Additional funds will be spent on the cultivation of industrial crops and the development of organic farms. Also, attention will be paid to the cultivation of previously abandoned croplands. The article also discusses let to address the challenges of the pandemic and support agriculture, the Government of Georgia has promptly developed an adequate plan. Because the plan is very complex, it will help to reduce the impact of the pandemic on the country’s economy and all directions of agriculture. Most of the problems in the agrofood sector are directly related to the efficiency of the land market and land profitability. Launching a land market will help to enlarge the area of agricultural land, spread intensive agro technology, and increase the banks’ interest in the sector. The way the authorities provide information on external markets of agrofood production and international standards must be streamlined, which will help to improve sales opportunities and the issuing of bank loans for the processing sector in order to meet the demand of processing enterprises working with raw materials supplied by farmers. All of this will significantly accelerate rehabilitation of the processing industry, which could play an intermediate role between the financial institutions and the farmers.