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Abstract

According to the principle of multifunctionality in article 104 of the Federal Constitution of the Swiss Confederation the Confederation shall ensure that agriculture contributes substantially by way of a market-oriented production to a decentralized inhabitation of the country. The following article investigates the relation of the two political aims market orientation and decentralized inhabitation from analysing the effects of agricultural subsidies. Resulting from this example different development scenarios are highlighted for the rural area.

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