Measuring success and identifying its determinants

Given these intriguing combinations of policies and performances that have unfolded during the first decade of transition in the agricultural sectors of the world's transition nations, we believe a renewed enquiry into the debate about the choice of the reforms and their impact on economic performance is due. The commonalities and differences of the nature of reform among East Asian, CEE, and the CIS nations and the subsequent productivity contours call for a careful comparative analysis. To do...

Grassroots resistance and failed agricultural reform in the Soviet Union

The story of China's reform seems to suggest that grassroots support for reform was important in triggering decollectivization in China. However, the question remains whether China's reforms could have been successful if they had only had the support of the nation's new reform champion Deng Xiaoping. Quite simply it is important to explore the question if there had been no grassroots support, could China's agricultural reforms have succeeded The lessons from the last years of the Soviet Union...

Historical legacy and privatization

One of the most fundamental decisions of those in charge of the reform of agriculture is whether or not to privatize land (Figure 9.1, Choice no. 1). When land is privatized, all property rights, control, income, and alienation rights, pass to the new title holder. The importance of the decision is clear. Land is an essential input into agriculture. It is an asset that is multifunctional, often providing non-market services such as insurance, collateral, and status. As such, it is particularly...

The Second Decade of Transition

By design, our book has concentrated on the first decade of transition. To this point it has concentrated almost exclusively on tracking the changes to output and productivity during the first ten years after the start of the reforms, and on identifying key factors which have affected the choice of the governments during this period, and before. The analysis has considered the determinants of the changes that occurred during reform's first decade and measured some of the effects. As this book...

Reform and efficiency an empirical illustration

Observations on changes in crop output, fertilizer use, and average productivity from three transition countries, China, Russia, and the Czech Republic, illustrate the relationship between agricultural reforms and efficiency (see Table 3.2). First, in response to the price and property rights reforms, our model predicts that the output and input level should rise in 'Country 1', a nation in which the farmers were taxed by pricing policies during the pre-transition era. The effect on average...

Inkind versus share distribution of land

In this section we seek to explain the third important dimension of property rights reform (Figure 9.1, Choice no. 3). There are two alternative ways to cast the question. First, we can study the property rights decisions of nations that chose not to privatize. More specifically, conditional on the decision not to privatize (that is, conditional on choosing to be either land reform type 3 or 4), we can try to explain why some nations decided to distribute control and income rights to individual...

Central and Eastern Europe

In Central and Eastern Europe, agricultural policies during the second decade have been strongly dominated by the EU accession process (Swinnen 2002b). Eight CEECs (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia) joined the EU in 2004 and others (Bulgaria, Croatia, and Romania) are expected to join in the coming years. An extensive set of new regulations relating to the agricultural sector and the food industry, on land legislation, and many other...