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The Political Economy and Institutional Aspects of the Process of Privatizing Farming


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  • J.R. Davis


The paper includes: (i) a descriptive account of what has actually happened in the Baltic States in regard to agricultural sector reforms; (ii) an analysis of the institutions, policies, laws and regulations underlying the process of privatizing farming and land ownership; (iii) the interaction of these factors and their agricultural policy implications; and (iv) the influence of interest groups and political factors that have allowed reform to move rapidly in some areas while possibly blocking or delaying them in others. Finally, it is argued that the mixture of restitution and the equal distribution of formerly collectivised property has resulted in the excessive fragmentation of agricultural land throughout the Baltic States. The resulting farms as units of production, are usually too small to be commercially viable (especially as productivity levels per person and per ha are very low by western standards), even if ceteris paribus the economic environment was more positive.

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Bibliographic Info

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 9607.

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Date of creation: 1996
Date of revision:
Handle: RePEc:hwe:certdp:9607

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  1. Kasper Bartholdy, 1996. "Statistical Review," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 270-281, 05.
  2. Kasper Bartholdy, 1996. "Statistical review," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 527-537, October.
  3. A. Purju, 1996. "Political Economy of Privatisation in Estonia," CERT Discussion Papers 9602, Centre for Economic Reform and Transformation, Heriot Watt University.
  4. Brooks, Karen & Lerman, Zvi, 1995. "Restructuring of traditional farms and new land relations in Russia," Agricultural Economics, Blackwell, vol. 13(1), pages 11-25, October.
  5. Maddock, Nicholas, 1995. "Agriculture after socialism The transformation and development of Lithuanian agriculture," Food Policy, Elsevier, vol. 20(2), pages 129-137, April.
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Cited by:
  1. J.R. Davis, 1996. "Privatization and Regulation of Public Utilities in Latvia," CERT Discussion Papers 9614, Centre for Economic Reform and Transformation, Heriot Watt University.
  2. J.R. Davis, 1997. "Understanding the Process of Decollectivization and Agricultural Privatisation in Transition Economies: The Distribution of Collective and State Farm Assets in Latvia and Lithuania," CERT Discussion Papers 9709, Centre for Economic Reform and Transformation, Heriot Watt University.


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