Central Asia after Fifteen Years of Transition: Growth, Regional Cooperation, and Policy Choices

This paper presents a coherent and systematic analysis of the collapse and subsequent revival of the Central Asian Republics (CARs) since 1990. The focus is on the pattern of growth and structural change during the cycle of decline and subsequent revival in the CARs, which have yet to be adequately analyzed in the literature on transition. The paper relates economic performance to initial conditions, country characteristics, and policies. Within this framework, it proposes a simple typology of policies (including a new 'Type III' set of policies on regional cooperation and industrial competitiveness) and relates them to the cycle of decline and revival. It goes on to examine medium-term prospects and policy needs for the CARs.growth; economic reform; regional cooperation; industrial competitiveness; Central Asia; transitional economies

Agriculture in the Face of Changing Markets, Institutions and Policies: Challenges and Strategies

Since the late 1980s, agriculture in Central and Eastern European Countries (CEECs) has been under considerable adjustment pressure due to changing political, economic and institutional environments. These changes have been linked to the transition process, as well as the ongoing integration into the European Union and the world market. Reduced subsidies, increased environmental and food quality demands, as well as structural changes in the supply, processing and food retailing sector call for major structural adjustments and the improvement of farmersâ managerial abilities. Though such changes always carry significant threats to farms, they also offer new opportunities for the farms' entrepreneurial engagement. Upcoming changes in the agricultural environment and their possible consequences for farm structures across Europe are thus still timely subjects. The objective of the IAMO Forum 2006 is to contribute to the success of agriculture in the CEECs, as well as their neighboring countries, in todayâs increasingly competitive environment. Concrete questions the conference focuses on are: What are the most suitable farm organizations, cooperative arrangements and contractual forms? How to improve efficiency and productivity? Where do market niches lie and what are the new product demands? This book contains 33 invited and selected contributions. These papers will be presented at the IAMO Forum 2006 in order to offer a platform for scientists, practitioners and policy-makers to discuss challenges and potential strategies at the farm, value chain, rural society and policy levels in order to cope with the upcoming challenges. IAMO Forum 2006, as well as this book, would not have been possible without the engagement of many people and institutions. We thank the authors of the submitted abstracts and papers, as well as the referees, for their evaluation of the abstracts from which the papers were selected. In particular, we would like to express our thanks to OLIVER JUNGKLAUS, GABRIELE MEWES, KLAUS REINSBERG and ANGELA SCHOLZ, who significantly contributed to the organization of the Forum. Furthermore, our thanks goes to SILKE SCHARF for her work on the layout and editing support of this book, and to JIM CURTISS, JAMIE BULLOCH, and DÃNALL Ã MEARÃIN for their English proof-reading. As experience from previous years documents, the course of the IAMO Forum continues to profit from the support and engagement of the IAMO administration, which we gratefully acknowledge. Last but not least, we are very grateful to the Robert Bosch Foundation, the Federal Ministry of Nutrition, Agriculture and Consumer Protection (BMELV), the German Research Foundation (DFG), the Haniel Foundation and the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) for their respective financial support.Agribusiness, Community/Rural/Urban Development, Farm Management, Industrial Organization, International Development, Labor and Human Capital, Land Economics/Use, Productivity Analysis,

Agriculture in the face of changing markets, institutions and policies: Challenges and strategies

Since the late 1980s, agriculture in Central and Eastern European Countries (CEECs) has been under considerable adjustment pressure due to changing political, economic and institutional environments. These changes have been linked to the transition process, as well as the ongoing integration into the European Union and the world market. Reduced subsidies, increased environmental and food quality demands, as well as structural changes in the supply, processing and food retailing sector call for major structural adjustments and the improvement of farmers' managerial abilities. Though such changes always carry significant threats to farms, they also offer new opportunities for the farms' entrepreneurial engagement. Upcoming changes in the agricultural environment and their possible consequences for farm structures across Europe are thus still timely subjects. The objective of the IAMO Forum 2006 is to contribute to the success of agriculture in the CEECs, as well as their neighboring countries, in today's increasingly competitive environment. Concrete questions the conference focuses on are: What are the most suitable farm organizations, cooperative arrangements and contractual forms? How to improve efficiency and productivity? Where do market niches lie and what are the new product demands? CONTENT: Preface; Jarmila Curtiss, Alfons Balmann, Kirsti Dautzenberg, Kathrin Happe. The success of gradualism: Empirical evidence from China's agricultural reform; Jikun Huang, Johan F. M. Swinnen, Scott Rozelle. Land reform and farm restructuring in Moldova, Azerbaijan and Kazakhstan: A stocktaking; David Sedik. Land market developments, imperfections, and effects in transition countries; Johan F. M. Swinnen, Pavel Ciaian, Liesbet Vranken. Farmland markets, boom/bust cycles, and farm size; Charles B. Moss, Andrew Schmitz. Duality of farm structure in transition agriculture: The case of Moldova; Zvi Lerman, Dragos Cimpoies. Organizational restructuring of the agrarian sector in Bulgaria during the pre-accession period; Julia M. Doitchinova, Ivan St. Kanchev, Albena Miteva. Governance of Bulgarian farming - Modes, efficiency, impact of EU accession; Hrabrin Bachev. Leadership may have a decisive influence on the successful transition of production cooperatives - A social capital approach; Csaba Forgács. Contractual arrangement and enforcement in transition agriculture: Theory and evidence from China; Hongdong Guo. Contractrual relationships in the Hungarian horticultural sector; Imre Ferto. Contract farming in China: Perspectives of smallholders; Hongdong Guo, Robert W. Jolly, Jianhua Zhu. Are macro policies adjusted to institutional arrangements at the micro level? Some evidence from Polish Agriculture during transition; Jan Falkowski, Dominika Milczarek. The Austrian private foundation as a legal form in farm management, with special emphasis on tax issues; Hermann Peyerl, Günter Breuer. Credit as a tool of integration between the Polish farms and buyers of their products; Alina Danilowska. Who, why and how: Problems of farmers' interest representation in Poland; Aldona Zawojska. How competitive is milk production in the Central and Eastern European countries in comparison to Western Europe? Mikhail Ramanovich, Torsten Hemme. Production and trade of animal products in selected ECO countries; Farhad Mirzaei, Olaf Heidelbach. European agriculture without direct payments - A partial equilibrium analysis; Oliver Balkhausen, Martin Banse. Measuring the degree of market power in the Ukrainian milk processing; Oleksandr Perekhozhuk, Michael Grings. Determinants of foreign direct investments in the food processing industry: An empirical analysis for Ukraine; Oksana Luka. Allocative efficiency of corporate farms in the Leningrad region; David Epstein. Pathways towards efficient levels of machinery investments needed for the sustainable development of arable farms in Bulgaria; Nikolay Naydenov. Small-scale farming in Romania - Shadow prices and efficiency; Johannes Sauer, Borbala Balint. How large is the marginal product of land in the Moscow region? Natalia Il'ina, Nikolay Svetlov. Spatial price transmission on the Turkish wheat market - An initial application; Enno-Burghard Weitzel, Ahmet Bayaner. Farm to retail price transmission on the pork market: A German-Hungarian comparison; Lajos Zoltán Bakucs, Imre Ferto, Heinrich Hockmann, Oleksandr Perekhozhuk. The nature of selected price transmissions in the agri-food chain and their consequences; Lukáš Čechura. Labor mobility in transition countries and the impact of institutions; Thomas Herzfeld, Thomas Glauben. Choosing to migrate or migrating to choose: Migration and labor choice in Albania; Carlo Azzarri, Gero Carletto, Benjamin Davis, Alberto Zezza. Rural non-farm employment in Ukraine; Oleg Nivyevskiy, Stephan von Cramon-Taubadel. Opportunities and challenges for farm household livelihood strategies: Pluriactivity in Finland and the UK; Claire Newton. Territorial aspects of enterprise development in remote rural areas of Europe; Zuzana Bednarikova, Tomas Doucha, Zdenek Travnicek. New policy approaches for rural development: The experience of two case regions in Eastern Germany; Theodor Fock --

ENEPO: EU Eastern Neighbourhood - Economic Potential and Future Development

The purpose of this paper is to measure and analyse how intensively CIS countries apply non-tariff barriers (NTBs) to restrict foreign trade in regard to certain products and total trade. Five CIS countries were selected for this analysis: Ukraine, the Russian Federation, Moldova, Belarus, and the Kyrgyz Republic. We first considered measurement methods usually applied to NTBs, reviewed other studies measuring NTBs in CIS countries, and then described our own findings on the matter. This analysis was made in the framework of the EU Eastern Neighbourhood: Economic Potential and Future Development (ENEPO) project seeking to examine different aspects of the European Union's relations with its neighbours to the East.non-tariff barriers, CIS countries, trade policy

CHALLENGES OF AGRICULTURAL AND RURAL FINANCE IN CEE, NIS AND BALTIC COUNTRIES

Initially, we explore the attitudes and perceptions of farmers and low farm profitability as potential constraints to rural financial intermediation and investment in agriculture. As part of this discussion we consider what is factual about the "access to credit problem." Second, we summarize recent changes in agricultural finance and credit conditions in the CEE, NIS, and Baltic countries. The focus here is on observed financing patterns, sources of credit, and the set of constraints which are thought to affect the level of rural financial intermediation. Third, we consider how banks are adapting to the new farming structures. Fourth, we review the primary modes of government intervention in financial markets and the role of government in dealing with the bad loans problem by providing "soft credits" via the banks. We conclude by suggesting the means by which governments can foster development of effective rural financial markets.Agricultural Finance,

Farm debt in transition countries: Lessons for Tajikistan

Farms in Tajikistan currently face a severe debt crisis that has been caused by a combination of two factors typical of such situations in many countries: (a) the inability of the farms to make a profit under current conditions and (b) continued lending by the banks to cotton producers regardless of reduced payment capacity and lack of credit-worthiness. The paper traces the accumulation of farm debt in Tajikistan to pervasive government intervention in both financing and production decisions, which has led to soft budget constraints and moral hazard behavior. The purpose of the paper is to inform the debate around the issue of cotton farm debt in Tajikistan by studying the experience of other countries that had to contend with farm debt overhangs in the 1980s and the 1990s. Five CIS transition countries (Belarus, Kazakhstan, Moldova, Russia, and Ukraine) and one market economy (Israel) are studied using time series of aggregate financial reports of the farm sectors. The comparative analysis shows that the farm debt issue is not strictly a transition economy phenomenon. The problem can occur in market economies (e.g., Israel) if the state pursues policies directed toward the expansion of farm production without heed to creditworthiness of the farms and if the farm structure is incompatible with profitability and efficiency criteria. The basic reasons that led to debt accumulation in CIS and in Israel remain valid to this day, and the policy solutions implemented in these countries are relevant for Tajikistan.Farm debt, transition economies, Tajikistan, CIS, Israel, farm restructuring, agricultural reforms, Agricultural Finance, Institutional and Behavioral Economics, Q140, P210, P320, G300,

Bulgaria's institutions and policies : integrating into Pan-European markets

This paper analyzes the process of institutional transformation in Bulgaria and assesses the extent to which it has established institutions and policies fostering domestic economic activity and integration into global markets. After a brief review of characteristics and achieved progress in first-generation reforms, that is, removal of central control over prices, liberalization of foreign trade and exchange rate regimes, the paper first assesses in the comparative perspective the progress made in the quality of governance and structural reforms. It then takes a look at the extent to which this has impacted foreign direct investment inflows and was translated into improved business environment in its domestic and external dimensions. The external dimension relates to backbone services facilitating trade and Bulgaria's trade policies. As far as the latter are concerned, the discussion highlights tensions that emerge from duality-regional versus multilateral-in Bulgaria's trade policy. Despite significant progress in implementation of structural reforms and converging to the EU acquis communautaire that has led to a significant enhancement in the quality of governance and market supporting institutions,"macro"institutional improvements are yet to be fully transplanted to a micro-level, as three areas appear to remain a binding constraint: First and foremost is the low quality of the judicial system and, by the same token, weaknesses in the enforcement of property rights and contracts. Second, backbone services facilitating trade remain a barrier. Bulgaria ranks low relative to the levels of efficiency achieved on average by both EU-8 and the EU-15 countries in management of ports, information technology infrastructure, and customs. Third, there are recurrent complaints among businesses of government bureaucracy, poor infrastructure, and frequent changes in the legal framework including taxation. As a result, the regulatory burden remains huge. There are still redundant and excessive sector-specific regulatory regimes. Bulgaria's markets for industrial goods are fully contestable for pan-Europe (EU-25, European Free Trade Association, Romania, and Turkey), exposing local producers to duty-free competition from imports. With relatively high most favored-nation tariff rates, the level of reverse discrimination significantly increased over the past couple of years. While this has not resulted in perceptible trade diversion, organizational arrangements preventing that to happen unnecessarily increase administrative intervention in the economy.Governance Indicators,National Governance,Economic Policy, Institutions and Governance,Economic Theory&Research,Financial Crisis Management&Restructuring