SOCIOECONOMIC ANALYSIS AND PROMOTION OF D EVELOPMENT IN RURAL-AREAS OF THE NEW FEDERAL STATES

Since the German reunification rural areas of the new German Lander ar e significantly affected by economic and social consequences of the tr ansformation process. Main characteristics of these areas are a low de nsity of population and a lack of infrastructure as well as particular ly unfavourable conditions for employment and income outside the agric ultural sector partially combined with natural disadvantages for agric ultural production and low farm income potentials. During the years 19 90 and 1991 rural areas suffered from east-west-migration similar to o ther areas with the exception of Berlin. The rate of unemployment incr eased in rural areas at a higher level in comparison with those areas of high population density. Since the Western German joint scheme ''Im provement of regional economic structure'' has been introduced to the new Lander based on the unification act, the efforts to create and/or stabilize jobs in business and industry have so far not been as succes sful in rural, mainly peripheral areas affected by higher unemployment rates as in urban areas. Compared to this, the promotion of reconstru ction and creation of infrastructural facilities for business and indu stry has more taken into account the lack of infrastructure in rural a reas. Priority axes of promotion within the scope of the joint scheme ''Improvement of agricultural structure and coast protection'' have fo cused on reestablishment of family farms, improvement of agricultural infrastructure including village renewal, and improvement of food proc essing and food marketing. It is provided to shift those priority axes to the advantage of support for rural infrastructure and diversificat ion of agricultural production, which will be financed by the EAGGF-gu idance section-during the next period of EC-structural policy (1994-19 99). These changes indicate that future assistance for adjustment of a gricultural structures and rural development perspectives seems to be more related to the specific conditions of rural areas compared to the last period of the EC-structural policy (1991-1993).