Cover image for Distortions to Agricultural Incentives in Europe's Transition Economies.
Distortions to Agricultural Incentives in Europe's Transition Economies.
Title:
Distortions to Agricultural Incentives in Europe's Transition Economies.
Author:
Swinnen, Johan F. M.
ISBN:
9780821374207
Personal Author:
Physical Description:
1 online resource (456 pages)
Contents:
Cover -- Title Page -- Contents -- Dedication -- Acknowledgments -- Contributors -- Abbreviations and Acronyms -- PART 1 Introduction -- 1 Introduction and Summary -- Introduction -- Growth and Structural Changes during Transition -- Methodology for Measuring Nominal and Relative Rates of Assistance -- Distortions in Incentives under the Communist Regime -- Changes in Distortions in Incentives during Transition -- Trade Liberalization -- Variations in Distortion Levels among Countries and across Commodities -- Changes in Agricultural Policy Instruments -- Trade Costs -- Regional Policy -- Infrastructure -- Corruption -- Assistance to Agriculture Relative to Other Tradable Sectors -- Changes in Exchange Rates -- The Inefficiency of Transfers -- Forces behind Transitional Policy Choices -- Causes of Rent Extraction -- Causes of Increases in Support during Transition -- Crises, Political Change, and Reforms -- The Impact of International Agreements -- The Influence of International Institutions -- Human Capital Constraints -- Prospects for Reducing Distortions: Implications for Agricultural Competitiveness and Trade -- Notes -- References -- PART 2 Eastern Europe -- 2 New EU Member Countries -- Introduction -- Historical Perspective on Agriculture and Policy Distortions -- The Communist Period -- The Transition Period, 1989 to 2000 -- Phase One: Liberalization -- Phase Two: Fire-Brigade Policy Making -- Phase Three: Policy Consolidation -- The Pre-EU Accession Period, 2000 to 2004 -- Accession to the EU in 2004 -- Changes in Trade Policy and Trade Agreements during the Transition -- Effects of Trade Liberalization -- New Trade Agreements -- Measuring Assistance to Agriculture -- Methodology and Approach -- Indicators of Assistance and Taxation -- Assistance to Agricultural Production -- Taxation of Consumers.

Agricultural Policy Instruments and the Composition of Assistance -- Political Economy -- Structural Causes of Agricultural Policy Distortions -- Absolute Income (the Development Pattern) -- Relative Income and Comparative Advantage -- The Antitrade Pattern -- The Role of International Agreements -- WTO -- Regional Agreements: CEFTA and the Baltic Free Trade Area -- EU Enlargement and Policy Alignment -- The Budget and Human Capital Constraints -- Lessons and Prospects for Reforms and Reducing Distortions -- Notes -- References -- 3 Turkey -- Introduction -- Overview of the Turkish Economy and Agricultural Sector -- Macroeconomic Developments -- Turkey's Agricultural Sector -- Agricultural Policies -- The Institutional Setting -- Agricultural Trade Policy -- Domestic Agricultural Policies -- Agricultural Policy Reform, 2000 to 2005 -- Estimates of Distortions since 1961 -- Import Protection and Support for Agricultural and Other Products -- NRAs for Agricultural Commodities -- NRAs for Nonagricultural Commodities -- Relative Rate of Assistance and the Trade Bias Index -- Other Studies Measuring Distortions to Agriculture -- The Distortionary Impact of Policies -- Conclusions -- Notes -- References -- PART 3 Commonwealth of Independent States -- 4 The Russian Federation -- Introduction -- Agricultural Policy and Assistance during the Soviet Planned Period -- Assistance during the Transition -- Budget Subsidies -- Input Pricing -- Border Measures and the MPS -- Poor Infrastructure, the Exchange Rate, and Transmission -- Decomposing Changes in Agricultural Producer Prices -- Producer Assistance in the 2000s -- Indirect Assistance for Producers and the RRA -- Assistance to Consumers -- Future Policy Direction and Political Economy Analysis -- Notes -- References -- 5 Ukraine -- Introduction -- History of Growth and Structural Change in the Economy.

History of Agricultural Policy Evolution prior to Independence -- The Extent of Distortions in Incentives in Agriculture since Independence -- Methods and Data -- Results -- The Evolution of Policies and Distortions Affecting Agricultural Incentives -- Phase I: 1991-94 -- Phase II: 1995-98 -- Phase III: 1999-2000 -- Phase IV: 2001-today -- Explanations for the Evolution of Agricultural Policy since Independence -- Implications for Desirable Versus Likely or Politically Feasible Policy Reform Paths -- Notes -- References -- 6 Kazakhstan -- Introduction -- Historical Background -- The Evolution of Policies since 1991 -- Prices and Subsidies -- Privatization and Organizational Structure -- Trade Policies -- Exchange Rate Regimes -- Quantifying the Distortions -- Wheat -- Cotton -- Livestock -- Other Agricultural Products -- Trade Costs -- New Estimates of Rates of Assistance -- The Political Economy of Policy Choices -- Future Policy Reform Paths -- Notes -- References -- 7 The Kyrgyz Republic -- Introduction -- Historical Background -- Transition Strategy and Macroeconomic Developments -- Agricultural Development -- The Evolution of Policies since 1991 -- Prices and Subsidies -- Privatization and Organizational Structure -- Trade Policies -- Quantifying the Distortions in Incentives -- Wheat -- Cotton -- Overall Assessment -- The Political Economy of the Policy Choices -- Future Policy Reform Paths -- Conclusions -- Notes -- References -- 8 Tajikistan, Turkmenistan, and Uzbekistan -- Introduction -- Patterns of National Reform -- Cotton -- The Market-Based Cotton Sectors and Tajikistan -- The Regulated Cotton Sectors of Turkmenistan and Uzbekistan -- Grains, Especially Wheat -- Livestock -- Transfers from Agriculture in Turkmenistan and Uzbekistan -- Price Distortions -- Conclusions -- Notes -- References.

Appendix: Methodology for Measuring Distortions to Agricultural Incentives -- What, According to Theory, Should Be Measured -- Direct Agricultural Distortions -- Price-Distorting Trade Measures at the National Border -- Domestic Producer and Consumer Price-Distorting Measures -- What if the Exchange Rate System Is Also Distorting Prices? -- What About Real Exchange Rate Changes? -- What if Trade Costs Are Too High for a Product to Be Traded Internationally? -- What if Farm Production also Involves Primary Factors, but Intermediate Inputs? -- What About Postfarmgate Costs? -- Nondistortionary Price Wedges -- Domestic Trading Costs -- Processor-Wholesaler Costs -- International Trading Costs -- Product Quality and Variety Differences -- Net Effect of Nondistortionary Influences -- The Impact of Distortions in Food Processing on Agricultural NRAs -- The Mean and Standard Deviation of Agricultural NRAs -- Trade Bias in Agricultural Assistance -- Indirect Agricultural Assistance and Taxation through Nonagricultural Distortions -- Assistance to Agricultural Production Relative to Nonagricultural Production -- The Ways the Theory Is Put into Practice in This Study -- Time Period Coverage of the Study -- Farm Product Coverage of the Study -- Farm Input Coverage -- Trade Costs -- Classifying Farm Products as Import-Competing, Exportable, or Nontradable -- The Transmission of Assistance and Taxation along the Agricultural Value Chain -- The CTEs of Farm Products -- Key Required Information -- Exchange Rate Distortions -- Guesstimates of NRAs for Agricultural Products not Covered -- Non-Product-Specific Assistance to Agriculture -- Assistance to Nonagricultural Sectors -- The Use of Percentages in the Chapters -- Notes -- References -- Index -- Back Cover.
Abstract:
This book provides an overview of the evolution of distortions to agricultural incentives caused by price and trade policies in the economies of Eastern Europe and Central Asia (ECA) that are transitioning away from central planning. It includes country and sub-regional studies of the ten transition economies of Central and Eastern Europe that joined the European Union in 2004 or 2007, of seven other large member countries of the Commonwealth of Independent States (CIS), and of Turkey. Sectoral, trade and exchange rate policies in this region have been changed hugely since the dissolving of the Soviet Union in 1991, but much remains to be done to reduce trade barriers, and with it the anti-export bias in the policy regime of especially those countries exporting primary products. To progress reform - and to see how recent policies line up with those of the European Union (EU) - requires better information on the extent of progress during the past fifteen years and of current policy influences on incentives within and between sectors. Prior to their transition to market economies, policies in ECA countries greatly distorted producer and consumer incentives, especially for agricultural products. While those distortions have been reduced substantially in several countries, large variations remain - and distortions appear to be growing again in some of the countries. This book provides the necessary stocktake required for these countries- policymakers to be able to move reforms forward in an informed way.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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