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Domestic and trade policy for Central and East European agriculture 1

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  • Larry Karp
  • Spiro Stefanou

Abstract

After a brief period of liberal agricultural policies, Central and East European (CEE) countries have begun to rely increasingly on price subsidies and trade restrictions. We outline the situation of CEE agriculture and describe current policies. Scarce government funds could be better used to support agriculture by providing partial loan guarantees, thus reducing private collateral requirements and making credit more widely available. This policy would provide income and not merely price insurance. In addition, it avoids the commodity bias associated with price policies. Others have argued that traditional price and trade policies should be used to support CEE agriculture, citing the example of OECD nations, and in particular the goal of joining the EC. We summarize and criticize these arguments.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 2 (1994)
Issue (Month): 3 (09)
Pages: 345-371

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Handle: RePEc:bla:etrans:v:2:y:1994:i:3:p:345-371

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Cited by:
  1. Karp, Larry, 1995. "The Direction and Timing of Agricultural Trade Refonn in Central and East Europe," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9z61f67x, Department of Agricultural & Resource Economics, UC Berkeley.
  2. Bojnec, Stefan & Swinnen, Johan F. M., 1997. "The pattern of agricultural price distortions in Central and Eastern Europe," Food Policy, Elsevier, vol. 22(4), pages 289-306, August.
  3. Kiss, Judit, 1997. "Agricultural Trade Between Central Europe and the EU," 1997: Economic Transition in Central and East Europe, and the Former Soviet Union: Implications ... Symposium, June 12-14, 1997, Berlin, Germany 50841, International Agricultural Trade Research Consortium.
  4. Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2008. "EU Enlargement Implications on the New Member States Agri-food Trade," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44122, European Association of Agricultural Economists.
  5. Rausser, Gordon C. & Small, Arthur A., 1997. "Alternative trade and support strategies for CAP integration," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6bm4q0xt, Department of Agricultural & Resource Economics, UC Berkeley.
  6. Hausner, Ulrich & Cichon, Janusz & von Witzke, Harald, 1993. "Economic Reforms In Poland: Implications For Agriculture," Working Papers 14408, University of Minnesota, Center for International Food and Agricultural Policy.

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