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Abstract
Rural economy of Bosnia and Herzegovina (B&H), which is shaped and
supported by agribusiness development, has been faced with several goals, that are
very important for development of the country, and those are the following: to
create possibilities for income creation in agricultural sector, to support process of
the refugees' return as well as to „unload“ urban settlements, to enable appropriate
quantities of healthy food under competitive prices, to strengthen domestic market
by decrease of food trade debalance, to enable development of tourism as well as
other corresponding economic branches.
Stabilization and Association Agreement sets additional challenges in front
of rural community and agribusiness sector. The agribusiness sector and rural
economy have to be ready for adaptation according to new legislative as well as
EU standards, which requires a huge transfer of technology as well as
strengthening of human resource potentials.
Policy of agricultural and rural development in Bosnia and Herzegovina
could be well followed by analysis of the budgets made by particular strategies'
decision makers and this analysis is one of the main topics this paper is dealing
with. Beside analysis of funds assigned to rural sector and agricultural
development, it is also important to analyze utilization of those resources, because
the basic problem of B&H agrarian policy is not only in lack of resources, but in
utilization of modern policy instruments oriented toward capacity improvement as
well as establishment of the business operation environment.