This USAID- funded project report is in response to a request from the Minister of Agriculture for assistance in developing a catastrophic insurance program for agriculture in Romania. Agriculture is an important sector in the Romanian economy. In 1998, 36% of the employment and 16% of the gross domestic product in Romania came from agriculture. Thus, it is important to consider the problems associated with natural disasters that impact the agricultural sector. Given the importance of agriculture, such shocks also likely impact the growth path of the general economy.
A major focus of this report is to develop recommended strategies that would use limited government funds to foster private-sector innovation for an emerging agricultural insurance sector.