PROGRAM SAPARD - COMMITMENTS AND PAYMENTS ACCORDING TO INDIVIDUAL PROVISIONS BEFORE THE ACCEPTANCE OF THE SLOVAK REPUBLIC INTO THE EUROPEAN UNION - Polish Journal of Management Studies

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PROGRAM SAPARD - COMMITMENTS AND PAYMENTS ACCORDING TO INDIVIDUAL PROVISIONS BEFORE THE ACCEPTANCE OF THE SLOVAK REPUBLIC INTO THE EUROPEAN UNION

Abstracts > Vol 3

PROGRAM SAPARD - COMMITMENTS AND PAYMENTS ACCORDING TO INDIVIDUAL PROVISIONS BEFORE THE ACCEPTANCE OF THE SLOVAK REPUBLIC INTO THE EUROPEAN UNION

Kotulič R.*

Abstract:

This article explains the technique of redistribution of public resources from the SAPARD programme under individual provisions and regions of the Slovak Republic. Moreover, the article clarifies reasons of failure of individual project plans. Profit-making  projects and reasons of rejections of applications for financial support under the SAPARD programme were subject to deeper analysis. On the basis of analysed data there can be observed the flow of public resources to areas with profit-making agriculture  (Nitra and Trnava regions). The disproportion of drawing the financial resources during the monitored period of 2003 and 2004 was only confirmed and probably will be deepening in next years in disadvantage of companies economising in worse natural conditions.  The most surprising was the inability of agricultural subjects covering the breeding of the livestock as well as the production and processing of fruits and vegetables to submit a complete project under the provision no. 1, that could be acceptable from  the formal aspect to the SAPARD Agency (up to 43 applications were incomplete).

Keywords: agricultural enterprises, SAPARD, APA, commitment, payment, public expenditure, approved projects

Introduction

The reason behind Slovak Republic's decision to take advantage of the aid of pre-accession and structural funds is the fact that the majority of aid-recipients does not dispose of sufficiency of the financial capital for realisation of the intended investment.
The ineffectiveness of existing agrarian policies in implementation of the market transformation of agriculture in the Slovak Republic, manifested in the low productivity and unattractiveness of this subdivision, delaying of structural changes, weakening  of the competitive ability of the subdivision on the domestic and foreign market required evolvement of different programmes for support of agro-entrepreneurs. Financial resources received via these programmes by entrepreneurially subjects are a controversial  and highly discussed topic of all economic debates. Irrecoverable financial contributions in any form, the production or direct appropriations on land, distort market prices of agriculture output, however, not taking the advantage of this offered opportunity  would be a massive mistake for the Slovak Republic and all of us.
The extent of capability of depleting the financial resources from the pre-accession programme SAPARD was contrary to media proclaimed awareness of applicants not satisfactory enough. It was possible to receive a maximum of  50 per cent of the valid final expenses from the SAPARD programme concerning profit-making projects (provisions no. 1, 2, 4a, 5). These consist of three-quarters granted by the European Union and a quarter granted by the Slovak Republic. SAPARD was able  to defray mostly all valid final expenses for non-profit making projects (provisions no. 3, 4b, 6, 7, 8, 9). However, these defrayable expenses were similarly granted by three-quarter by the European budget and the native country granted the rest of the  costs.

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Summary

On the basis of analysed data it is possible to observe the flow of public finances into areas with profit-making agriculture and with better natural conditions (Nitra and Trnava regions). In principle it is understandable because the pre-accession  assistance from the SAPARD programme was granted only to viable entrepreneur companies that during the last 2 years showed mostly positive results. The disproportion of drawing the financial resources during the monitored period of 2003 and 2004 was only  confirmed and probably will be deepening in next years in disadvantage of companies economising in worse natural conditions. From the overall amount of approved public resources, the highest proportion for profit-making projects was obtained by subjects  of agricultural basic production, in relative numbers it stands for the provision no. 1 up to 34 per cent of all public resources.
On the other hand there is seen a great number of municipal areas interested in obtaining the pre-accession assistance under the provision no. 4b (reconstruction of roads, footbridges, pavements, bridges and historical buildings, etc.) manifested in the  high number of accepted projects up to 165. However, there was not enough public resources reserved for this provision under the SAPARD programme and in the 9th round of invitations, applications for these projects were stopped because of the lack of  financial resources.
The most surprising was the inability of agricultural subjects covering the breeding of the livestock as well as the production and processing of fruits and vegetables to submit a complete project under the provision no. 1, that could be acceptable from  the formal aspect to the SAPARD Agency (up to 43 applications were incomplete).

References

[1].   Ciaian P., Qineti A., Enete A., European Integration: Estimation of agricultural supply response of Central and East European Countries. Book chapter In: Charemza, w.w., Strzala, K. (eds.). East European Transition and EU Enlargement. A Quantitative  Approach. New York : Published by Physica-Verlag Heidelberg, 2002, pp. 201-216. Kislingerová, E. a kol.: Manažerské finance. Praha : C. H. Beck, 2004.
[2].   Kotulič, R., Ekonomická analýza subjektov hospodáriacich na pôde podľa regionálnej diferenciácie Slovenska. Prešov: Prešovská univerzita v Prešove, 2006, p.92.
[3].   Pokrivčák, J., Politically ideal agricultural subsidies of the EU member states: Implications for the Central and East European accession. Agrární perspektívy VII, Praha, 1998.
[4].   Report on Agriculture in the Slovak Republic in 2003, 2004 (Green Paper).
[5].   SAPARD Agency, Methodological instruction for applicants of financial assistance under the SAPARD programme for provisions no. 1,2,3,4a,4b,5,6,7,8,9.


PROGRAM SAPARD - ZOBOWIĄZANIA I PŁATNOŚCI W ZALEŻNOŚCI OD POSZCZEGÓLNYCH PRZEPISÓW PRZED ODEBRANIEM SŁOWACJI DO UNII EUROPEJSKIEJ


Streszczenie:

W artykule opisano techniki redystrybucji środków publicznych z programu SAPARD na podstawie poszczególnych przepisów i regionów Republiki Słowackiej. Ponadto, artykuł wyjaśnia przyczyny awarii indywidualnych planów  projektu. Profit-tworzenie projektów i przyczyny odrzucenia wniosków o wsparcie finansowe w ramach programu SAPARD były przedmiotem głębszejanalizy. Na podstawie analizowanych danych nie można obserwować przepływ środków publicznych na obszarach o zysk rolnictwa (regionach Nitra i Trnava). Dysproporcja rysunku środków finansowych w okresie podlegającym kontroli z 2003 i 2004 zostało to jedynie potwierdzone i prawdopodobnie będzie pogłębienie w najbliższych latach w niekorzystnej sytuacji przedsiębiorstw oszczędzania w gorszych warunkach naturalnych. Najbardziej zaskakująca była niezdolność rolnych tematy dotyczące  hodowli zwierząt gospodarskich, a także produkcji i przetwórstwa owoców i warzyw do złożenia pełnego projektu w ramach świadczenia numer 1, które mogą być przyjęte z formalnym do Agencji SAPARD  (do 43 wnioski były niekompletne).


 
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