Systematic Country Diagnostic
The World Bank Group
The World Bank
Agriculture plays a significant socio-economic role in Romania and its transformation to a modern, vibrant, and market-oriented sector is central to fighting poverty, promoting social inclusion, and reducing the urban/rural development divide. Most of Romania's poor live in rural areas and earn their living from agriculture or agriculture-related activities. In 2016, eight out of ten people who were at risk of poverty or social exclusion lived either in rural areas or in towns and suburbs that were predominately rural. Using microdata from the 2013 Household Budget Survey (HBS), this report finds that individuals living in rural areas are 16.5 percent more likely to be poor than those who live in urban areas. Also, those living in rural areas and working in agriculture are 27 percent more likely to be poor. There are large variations in poverty rates and in the risk of poverty or social exclusion across regions in Romania. The risk of poverty or social exclusion is significantly higher in the northeast, southeast, west Oltenia, south Mutenia, and the west regions compared to that in Bucharest-Ilfov, the northwest, and center regions.
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