Transformation of agriculture in central Eastern Europe and the former USSR : major policy issues and perspectives

Abstract

The author surveys agricultural reform to date, identifies key policy issues, and outlines potential scenarios for the transformation of agriculture in Bulgaria, Czechoslovakia, the former German Democratic Republic (GDR), Hungary, Poland, Romania, and to a lesser extent - the former USSR. After years of socialism, these countries'agricultural sectors are characterized by large, inefficient farms with high production costs; heavier food consumption than in market economies of comparable prosperity, and excess demand for food, at subsidized food prices. Central Eastern Europe is beginning to create a new agricultural structure based on private ownership, real cooperatives, and a market economy. The former USSR is also striving to overcome serious economic difficulty with comprehensive economic and political reform. To develop a market-oriented, competitive agricultural structure, these countries need to : a) create marketable landed property; b) change agriculture's structure to emphasize medium size private agricultural ventures and cooperatives; c) create an environment supportive of private ventures; d) create an agricultural market that encourages fair competition; e) develop a policy emphasizing efficient production; and f) support environmentally sustainable agricultural production technologies.Agricultural Knowledge&Information Systems,Environmental Economics&Policies,Economic Theory&Research,Crops&Crop Management Systems,Agribusiness&Markets