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

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  • J.R. Davis

Abstract

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.

Suggested Citation

  • J.R. Davis, 1996. "The Political Economy and Institutional Aspects of the Process of Privatizing Farming," CERT Discussion Papers 9607, Centre for Economic Reform and Transformation, Heriot Watt University.
    • Handle: RePEc:hwe:certdp:9607
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    References listed on IDEAS

    as
    1. E. Maldeikis, 1996. "Privatisation in Lithuania: Expectations, Process, Consequences," CERT Discussion Papers 9603, Centre for Economic Reform and Transformation, Heriot Watt University.
    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. Karen Brooks & Zvi Lerman, 1995. "Restructuring of traditional farms and new land relations in Russia," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 11-25, October.
    4. A. Purju, 1996. "Political Economy of Privatisation in Estonia," CERT Discussion Papers 9602, Centre for Economic Reform and Transformation, Heriot Watt University.
    5. Maddock, Nicholas, 1995. "Agriculture after socialism The transformation and development of Lithuanian agriculture," Food Policy, Elsevier, vol. 20(2), pages 129-137, April.
    6. Pajo, M. & Tamm, M. & Teinberg, R., 1994. "Restructuring of Estonian Agriculture (The)," Staff General Research Papers Archive 720, Iowa State University, Department of Economics.
    7. Kasper Bartholdy, 1996. "Statistical Review," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 270-281, May.
    8. M. Pajo & M. Tamm & R. Teinberg, 1994. "Restructuring of Estonian Agriculture, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 94-br15, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. M. Pajo & M. Tamm & R. Teinberg, 1994. "Restructuring of Estonian Agriculture, The," Center for Agricultural and Rural Development (CARD) Publications 94-br15, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    1. Junior Davis, 1997. "Understanding the process of decollectivisation and agricultural privatisation in transition economies: The distribution of collective and state farm assets in Latvia and Lithuania," Europe-Asia Studies, Taylor & Francis Journals, vol. 49(8), pages 1409-1432.
    2. 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.

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