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Does Compensation for Disruptions Stimulate Reforms? The Case of Agrarian Reform in Central and Eastern Europe

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  • Swinnen, Johan F M

Abstract

Most Central and Eastern European governments have decided to restore land to former owners, but there has been opposition to land reform from managers and workers of collective farms. This opposition has slowed down the reform because the local reform-implementing institutions (the 'Reform Councils') are heavily influenced by collective-farm interests. Governments have contemplated offering compensation to encourage acceptance of the reforms. This paper argues that compensation will not stimulate agrarian reform in CEECs unless it is explicitly linked to the implementation of the reforms. The paper discusses alternative options for changing the incentive structure of the Reform Councils, but concludes that results depend on the initial institutional design of the Reform Councils and the selection of their members. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Swinnen, Johan F M, 1997. "Does Compensation for Disruptions Stimulate Reforms? The Case of Agrarian Reform in Central and Eastern Europe," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(2), pages 249-266.
  • Handle: RePEc:oup:erevae:v:24:y:1997:i:2:p:249-66
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    Cited by:

    1. Deininger, Klaus, 1999. "Making Negotiated Land Reform Work: Initial Experience from Colombia, Brazil and South Africa," World Development, Elsevier, vol. 27(4), pages 651-672, April.
    2. Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
    3. Scandizzo, Pasquale Lucio & Savastano, Sara, 2009. "Optimal Farm Size under an Uncertain Land Market: the Case of Kyrgyz Republic," 111th Seminar, June 26-27, 2009, Canterbury, UK 52844, European Association of Agricultural Economists.
    4. Qineti, Artan & Rajcaniova, Miroslava & Braha, Kushtrim & Ciaian, Pavel & Demaj, Jona, 2014. "When land markets 'do not work' and status-quo agrarian structures persist: A case study from rural Albania," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182976, European Association of Agricultural Economists.

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