Distortions to Agricultural Incentives in Europe's Transition Economies

The main purpose of this study is to assess the changing landscape of agricultural protection and taxation patterns in the region. The study is based on the EU-10 sample, plus Turkey, as well as seven countries in the Commonwealth of Independent States (CIS): Kazakhstan, the Kyrgyz Republic, the Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan (the CIS-7). In 2000-04, these countries accounted for 89 percent of the region's agricultural value added, 91 percent of the population, and 95 percent of total gross domestic product (GDP). In agricultural subsidy and trade policy, analyses of politically feasible reforms or policy options for coping with structural changes (such as the current boom in energy raw material prices that has intersectoral Dutch disease effects) need to be based on a clear understanding of the recent and current extent of policy interventions and the political and economic forces behind the evolution of these interventions. The second purpose of this study is thus to improve our understanding of the political economy of distortions in agricultural incentives in countries in the region. Based on this better understanding, the study's third purpose is to explore the prospects for additional reductions in the distortions in agricultural incentives and their implications for the agricultural competitiveness and trade of countries in the region.

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Bibliographic Details
Main Authors: Swinnen, Johan, Anderson, Kym
Language:English
en_US
Published: Washington, DC : World Bank 2008
Subjects:ADVANCED COUNTRIES, AGRICULTURAL ECONOMICS, AGRICULTURAL OUTPUT, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL POLICY ISSUES, AGRICULTURAL PRICE, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURE, APPLES, ARBITRAGE, BEEF, BENCHMARK, BORDER PRICE, BUDGETARY SUPPORT, CENTRAL ASIAN, CENTRAL PLANNING, CENTRALLY PLANNED ECONOMY, COMMODITIES, COMMODITY, COMMODITY PRICES, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITIVENESS, CONSUMER PRICE, CONSUMER PRICES, CONSUMERS, COPYRIGHT CLEARANCE, COPYRIGHT CLEARANCE CENTER, COTTON PRICES, CROPS, DAIRY, DEBT, DEMOGRAPHIC, DEPRESSED PRICES, DEVALUATION, DEVALUATIONS, DEVELOPING COUNTRIES, DIRECT PAYMENTS, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRICE, ECONOMIC REFORM, ECONOMIC RESEARCH, ECONOMICS, EGG, ENERGY EXPORTS, ENERGY PRICES, EXCHANGE RATE, EXCHANGE RATE SYSTEMS, EXCHANGE RATES, EXPENDITURE, EXPORT MARKETS, EXPORT SECTOR, EXPORT SECTORS, EXPORTS, FACTOR PRICES, FARMERS, FARMS, FEED, FINANCIAL FLOWS, FOOD CHAIN, FOOD CONSUMPTION, FOOD EXPORTS, FOOD INDUSTRIES, FOOD INDUSTRY, FOOD POLICIES, FOOD PROCESSING, FOOD PROCESSORS, FOOD PRODUCTS, FOOD QUALITY, FOOD SECURITY, FOOD STAPLES, FOODS, FOREIGN CURRENCIES, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FREE TRADE, FREE TRADE AGREEMENT, GDP PER CAPITA, GLOBAL ECONOMY, GLOBAL EXPORTS, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GOVERNMENT REGULATION, GRAINS, GROSS DOMESTIC PRODUCT, GROSS VALUE, GROWTH RATES, HUMAN CAPITAL, HUNGER, IMPERFECT COMPETITION, INEFFICIENCY, INFLATION, INPUT PRICES, INSTITUTIONAL CONSTRAINTS, INSTITUTIONAL INFRASTRUCTURE, INSURANCE, INTEREST RATE, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INVENTORY, LAND RESOURCES, LIBERALIZATIONS, LIVESTOCK, LIVESTOCK PRODUCTS, MACROECONOMIC PERFORMANCE, MAIZE, MARKET ECONOMIES, MARKET ECONOMY, MARKET PRICE, MARKET PRICES, MARKET REFORM, MARKET REFORMS, MARKETING, MERCHANDISE, MERCHANDISE EXPORTS, MILLS, MONOPOLY, MULTILATERAL TRADE, NATIONAL CURRENCIES, NET EXPORTS, OUTPUTS, OVERVALUATION, OVERVALUED EXCHANGE RATES, PENSIONS, PER CAPITA INCOME, PER CAPITA INCOMES, PLANNED ECONOMY, POLITICAL ECONOMY, PORK, PRICE DISTORTIONS, PRICE SETTING, PRICE SUPPORT, PRICE SUPPORTS, PRODUCER PRICE, PRODUCER PRICES, PROPERTY RIGHTS, RAPID GROWTH, RAPID INDUSTRIALIZATION, REAL GDP, REGIONAL TRADE, RENT SEEKING, RETAIL, RETAIL PRICES, RURAL DEVELOPMENT, SALES, SECURITY CONCERNS, SOFT BUDGET CONSTRAINTS, STARVATION, STOCKS, SUBSTITUTION, SUGAR, SURPLUSES, TAX, TAX RATES, TAXATION, TRADE BALANCE, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRADE TAXES, TRANSACTION COSTS, TRANSITION COUNTRIES, TRANSITION ECONOMIES, VALUE ADDED, WAGES, WATER RESOURCES, WEALTH, WESTERN EUROPE, WHEAT, WHOLESALERS, WORLD DEVELOPMENT INDICATORS, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:http://documents.worldbank.org/curated/en/2008/01/9661146/distortions-agricultural-incentives-europes-transition-economies
https://hdl.handle.net/10986/6502
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Summary:The main purpose of this study is to assess the changing landscape of agricultural protection and taxation patterns in the region. The study is based on the EU-10 sample, plus Turkey, as well as seven countries in the Commonwealth of Independent States (CIS): Kazakhstan, the Kyrgyz Republic, the Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan (the CIS-7). In 2000-04, these countries accounted for 89 percent of the region's agricultural value added, 91 percent of the population, and 95 percent of total gross domestic product (GDP). In agricultural subsidy and trade policy, analyses of politically feasible reforms or policy options for coping with structural changes (such as the current boom in energy raw material prices that has intersectoral Dutch disease effects) need to be based on a clear understanding of the recent and current extent of policy interventions and the political and economic forces behind the evolution of these interventions. The second purpose of this study is thus to improve our understanding of the political economy of distortions in agricultural incentives in countries in the region. Based on this better understanding, the study's third purpose is to explore the prospects for additional reductions in the distortions in agricultural incentives and their implications for the agricultural competitiveness and trade of countries in the region.