Agriculture in the transition from a command to a market economy: the case of Latvia

The study presented is the result of a field survey conducted in Latvia in 1991. The brief of this research was to trace the role of the ‘private’ farm sector that has begun to emerge in the wake of the transition from a central-command to a market-oriented economy. Thus a look at the legislative acts embodying the agrarian reform is ccompanied by an analysis of the recent developments in local production systems. The study of ‘production systems’, or that part of economic analysis that comes under the rubric of ‘farm systems’, was employed here for the first time to analyze a Soviet-type economic system in transition. The first and second sections, which focus on the historical evolution of Latvia's agriculture and the economics underpinning it, range in compass from the ‘first’ agrarian reform to collectivization and on to the present situation. This is followed by a look at the current, or ‘third’, land reform initiative (section 3), particular emphasis being accorded the emergence of new production structures and the problems posed by the transformation of the old ones (sections 4 and 5). The next section includes a discussion of the links between the farms of the socialized sector and of the nascent private one (section 6). The concluding remarks provide a recapitulation of the study's main findings. Copyright Kluwer Academic Publishers 1993