12.02.2025 / Expert Comments

The processes of globalization have caused significant transformations in the world economy, significantly affecting both urban and rural areas. The rural regions of Transylvania, part of Romania, have been no exception, experiencing phenomena such as industrial relocation, migration to cities or other countries, and the transformation of traditional agricultural patterns. Indeed, globalization has contributed to amplifying territorial disparities, a phenomenon from which Romania still suffers today. The European Union, through its structural and development funds, such as the European Agricultural Fund for Rural Development (EAFRD) and the European Regional Development Fund (ERDF), has implemented policies aimed at mitigating the negative effects and promoting sustainable development.

Author: Giovanni Gabriele Manca, M.A. Candidate

1.1 The impact of globalization on the rural areas of Transylvania

Transylvania, a region famous for its beautiful landscapes, rich agricultural and cultural traditions, and fragmented demographic structure, has undergone significant transformations as globalization has intensified. Indeed, many rural residents, attracted by better economic opportunities, have left their villages and moved to cities such as Cluj-Napoca or abroad, especially to Western European countries. This phenomenon has led to a rapid aging of the rural population, leaving many communities without the labor force needed to sustain economic activities. The decline of traditional agriculture is a direct result of that phenomenon.^[1] Global competition has made it difficult for local farmers to compete with agricultural products from countries with lower production costs. This has caused a decline in small farms, which are unable to modernize or adapt to new market standards. The secondary sector has also been severely affected: many regions of Transylvania, which used to be home to small manufacturing or mining industries, have seen the relocation of manufacturing activities to areas with lower labor costs or higher demand, contributing to local unemployment. The influence of globalization has then naturally led to a partial erosion of local traditions, with the introduction of urban consumption patterns and behaviors, alienating new generations from traditional cultural and agricultural practices.^[2]

1.2 The response of the European Union

The European Union, aware of the growing disparities between regions, has deployed strategies and resources to foster balanced development, using funds such as the EAFRD and ERDF to support Transylvania’s rural areas.^[3] Through Romania’s Rural Development Program, the EAFRD has financed initiatives aimed at modernizing farms, encouraging the use of innovative technologies, as well as creating opportunities for young farmers by offering start-up grants. Enhancing local natural and cultural heritage through rural tourism, particularly in mountain regions and protected areas. ERDF has been used to improve local infrastructure, a crucial factor in economic development. Among the main interventions, we have investment in the transport network, improving the connection between rural areas and urban centers, support for small and medium-sized enterprises to boost innovation and competitiveness, and the development of energy efficiency and renewable energy projects in local communities.

A special focus should be given to the LEADER program, funded by the EAFRD, which has enabled local communities to develop participatory development strategies, promoting projects that respond directly to local needs. This approach has fostered social cohesion and revitalization of local communities.^[4]

1.3 A comparison

Very interesting is the case of the municipality of Ciugud, a small Transylvanian commune of 3,285 inhabitants that at the beginning of the millennium suffered, like so many other rural centers in Romania, from a stagnant economy and a population collapse. Thanks to European structural funds, several modernization projects were initiated, improvements that covered various areas, from road resurfacing to digitizing the town’s school.^[5]

One Italian case that offers an interesting parallel to Ciugud is the municipality of Mercatello sul Metauro, in the province of Pesaro and Urbino, located in the Marche region. Like Ciugud, Mercatello sul Metauro has faced problems related to depopulation, economic decline, and marginalization of rural areas. However, through careful management of European funds and sustainable development initiatives mediated by the region, it has managed to enhance its natural and cultural resources, promoting a model of territorial revitalization.

Mercatello sul Meaturo, located among the hills and forests of the Marche Apennines, is a municipality that historically based its economy on agriculture, forestry, and farming. However, since the 1960s, it has suffered severe depopulation due to migration to coastal cities or northern Italy. This has led to a gradual abandonment of traditional production activities and a demographic crisis, with a significant aging of the resident population.

Over the past two decades, European funding from the EAFRD and ERDF has contributed to promoting integrated and sustainable development.^[6] Major initiatives include the enhancement of natural resources: Mercatello has focused on environmental tourism, taking advantage of the area’s natural beauty, such as the Apennine forests and the Metauro and Auro rivers. The village has also restored historic buildings and organized cultural events to enhance local traditions, as in the case of the San Francesco museum.^[7] The municipality tried to pursue a major energy efficiency and greater support for business creation, encouraging the creation of local markets and direct connection with consumers. Mercatello has seen a moderate economic and social recovery, thanks to an increase in tourism and the creation of new micro-businesses linked to the area, making it an example of best practice for other rural areas in the Marche region.^[8] Thanks to European funds, in the programming cycle 2014-2020, 88% of the projects had been concluded.^[9]

These two cases make us realize that the key to success in the redevelopment of rural areas is the ability to adapt development strategies to the specifics of the area, creating a balance between modernity and tradition.

Conclusion

In conclusion, particularly in the 2014-2021 programmatic period, the European Regional Development Fund (ERDF) and the European Agricultural Fund for Rural Development (EAFRD), have played a crucial role in the redevelopment of some rural areas in Transylvania and Marche. In Transylvania, the EAFRD has financed projects to modernize agriculture, develop local infrastructure, and promote technological innovation in municipalities such as Ciugud, which has become a model smart village through investments in renewable energy, digital services, and sustainable tourist routes.^[10] In the Marche region, ERDF and EAFRD funds have supported the enhancement of inland areas such as Mercatello, incentivizing the creation of green infrastructure, cultural tourism, and the promotion of short supply chains for local agri-food products. These interventions demonstrate how effective management of European funds can counter the demographic and economic decline of rural areas affected by globalization processes, even though they have to deal often with the slowness of member states’ bureaucracies.^[11]

Departments: School for Sustainable Development; Research Department; Policy Analysis and Outreach Department; Society, Crisis, and Resilience Program; Community Foundations & SDGs.

Regions: Europe.

Themes:  Architecture and Urbanism; Cities; Environment and Climate Change; European Union; Innovation, Science & Research; Public Policy; Sustainable Development Goals.