CROATIA - CROATIE - CROACIA

His Excellency Zlatko Mate>a, Prime Minister of the Republic of Croatia

It is my privilege and great pleasure, on behalf of the Government of the Republic of Croatia, to have this outstanding opportunity to address such a distinguished and renowned global gathering.

Croatia is one of the recent members of the global community but is a country with a rich experience and tradition in the development of agriculture, both in terms of research and training and of actual food production. Although engrossed in dealing with the severe consequences of aggression and war, as well as with the many problems inherent in the transition from a planned economy to a market one, the Croatian Government pays particular attention to food security for its entire population and to the supply of adequate quantities of quality foodstuffs to the market. In view of the foregoing, the Republic of Croatia has readily and unreservedly accepted to endorse the idea of the Summit devoted to food security and provided its own contribution towards its preparation.

As a responsible member of the international community, the Republic of Croatia shares the concern of this Summit about the slow resolution of global food security problems, and will resolutely persist in dealing with them at all possible levels. The seriousness of the situation is indicated by the fact that the permanent reduction of arable areas has already become a global trend, and the anticipated increment of the Earth's population calls for doubling food output by the year 2025.

Having this in mind, we are confident that sufficient quantities of quality food can be secured only by increasing production per unit of area. At the same time, this increase must be achieved by applying an ecologically-balanced technology in order to preserve the natural potential, and within an environment of sound competition and social justice, in order to make food accessible to all who need it. The key role in the achievement of such high goals will be played by research and training in agriculture and associated areas but also by the development of democracy in all segments of social life.

In our National Report we have presented in detail what Croatia is doing for itself and what it can offer to the, let us say, "Global Table" as its own contribution to food security. So let me just draw your attention to a few points which I have singled out for this occasion.

In recognizing the role and importance of the agricultural sector within the national economy, Croatia has formulated - in co-operation with FAO - a strategy for sustainable agricultural development. The basic goal of this strategy reads as follows:

"Promotion of more efficient production and marketing of agricultural products in a way enhancing the benefit to farmers and consumers, contributing to the growth of the Croatian economy, protecting the natural resources of the Republic of Croatia, and providing for the competitiveness of Croatian agriculture in the international market. In the achievement of this goal particular attention should be paid to family farms as the basis of Croatian agriculture."

The key element of this strategy is the harmonization of Croatia's agricultural policy with the guidelines of the World Trade Organization (WTO), while counting at the same time on membership in economic integrations such as the Centre for European Integration (CEFTA) and future membership in the European Union.

At its present historic and developmental cross-roads, Croatia sees its prospects for post-war recovery and economic development primarily in the development of tourism and agriculture. The main reasons underlying such an orientation are Croatia's unique natural and cultural values, the unimpaired environment, available natural resources and the complementarity of these branches of the economy. Moreover, unlike most European countries in transition, Croatia retained private ownership in agriculture even during Communist rule and most of the economic facilities (such as 80 percent of agricultural land and more than 90 percent of livestock) were in private hands. During the same period Croatia was also an "open country", meaning that Croatian citizens, while working in developed European countries, also acquired an all-important entrepreneurial spirit and brought it to their homeland.

Nevertheless, in spite of such an ownership structure, the food market was dominated by the products of the economically and politically privileged socially-owned farms. These farms engaged in modern production, with high yields achieved through the application of state-of-the-art techniques in crop and livestock production. Private farms were economically and politically marginalized and extremely fragmented. Along with other "transition" constraints, the processes of land ownership transformation are the main cause of reduced investment in production, of delayed farm land development through drainage and irrigation, and of decreasing yields as the logical consequences of the foregoing. It is estimated that Croatia will attain pre-war consumption by the year 2000, and the current European average by as late as 2010.

However, over the past five years Croatia has also had to face, along with restructuring and economic development, the dire consequences of war and aggression. This primarily involved the cost of care for refugees and displaced persons, whose number varied between 380 000 and 670 000 persons, and today we still have about 420 000 refugees and displaced persons, meaning one refugee or displaced person per 7-10 inhabitants. It should be noted, at this point, that no-one suffered hunger or lack of care, although international assistance for this purpose accounted for less than 15 percent of requirements. Currently a particular problem is posed by creating conditions for the return of displaced persons. Within the reconstruction of economic and overall life in the liberated areas, many returnees also see their prospects in ecologically-oriented agriculture. The support of international financial institutions would allow a permanent orientation to this area, to the ecologically most acceptable road and establishment of rural development, which is also otherwise deeply rooted in the tradition of the Croatian people. Along with this, it should also be noted that part of Croatia, the most fertile and in terms of agriculture the most valuable one is still under occupation and that the process of reintegration is very slow and poses an additional burden affecting the Croatian economy.

In spite of all these constraints, Croatia has sufficient production facilities for the production and processing of strategic agricultural products and is one of the countries which meets its food requirements. Although imports of cheap food from countries with highly subsidized agriculture are currently somewhat high, over the longer term, Croatia will import only products for the production of which it has no suitable conditions, while considerable surpluses of its output will be exported.

In concluding this address, let me in particular thank the organizers for the remarkably good preparation of the Summit. I believe that this important meeting will meet the realistic expectations of most participants, help to dissolve some doubts, and point to the paths of agricultural development and food security world-wide.

In the achievement of these great and ambitious objectives, the Republic of Croatia will responsibly assume and consistently meet its share of the Commitments deriving from the Rome Declaration on World Food Security and the Plan of Action.

At the same time, let me express the absolute support of the Croatian Government for these important documents.