THE ;-" Russian Views of WORL'D*.. ;WANRLD the Transition in Public Disclosure Authorized the Rural Sector Struures, Policy Outcomes,and Adiptive Responses L. ALEXANDER NORSWORTHY, EDITOR Public Disclosure Authorized 20653 June 2000 Public Disclosure Authorized ''4 I v.<; ' f, - bte Ci Public Disclosure Authorized Russian Views of the Transition in the Rural Sector Structures, Policy Outcomes, and Adaptive Responses L. Alexander Norsworthy, Editor Environmentally and Socially Sustainable Development Europe and Central Asia Region The World Bank Washington, DC (D2000 The Intemational Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433 All rights reserved Manufactured in the United States of America First printing June 2000 12345 0403020100 The findings, interpretations, and conclusions expressed in this paper are entire- ly those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Execu- tive Directors or the countries they represent. The World Bank does not guaran- tee the accuracy of the data included in this publication and accepts no respon- sibility for any consequence of their use. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission to reproduce por- tions of the work promptly. 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Alexander Norsworthy, editor. p. cm. A collection of articles translated from Russian. Includes bibliographical references. ISBN 0-8213-4765-9 1. Agriculture and state-Russia (Federation) 2. Russia (Federation)- Rural conditions. I. Norsworthy, L. Alexander, 1962- II. World Bank. HD1995.15.Z8 R87 2000 333.76'1947-dc2l 00-032476 CONTENTS Acknowledgments................................................ v Abstract ................................................ vii Preface ................................................ ix Abstracts of Russian Articles ................................................ xi L. Alexander Norsworthy and Olga Paluba "Impact of the Transition: Approaches and Findings"............... ................................. I Maria Amelina "Rural Interactions in the Post-Soviet Era".................... 16 Vasily Uzun "Agrarian Reform in Russia in the 1990s: Objectives, Mechanisms,and Problems".......................................... 25 Renata Yanbykh "Driving Forces in Russian Agrarian Policy in the 1990s"................................................. 42 Vladimir Bogdanovsky "Land Reform: Expectations and Social Con- sequences"................................................. 57 Eugenia Serova "Public Opinion concerning Russia's Agrarian Re- forms"................................................. 67 Zemfira I. Kalugina "Paradoxes of Agrarian Reform in Russia"........... 87 Eugenia Serova "Reform and Economic Behavior in Russian Agriculture"................................................ 103 Zemfira I. Kalugina "Survival Strategies of Enterprises and Families in the ContemporaryRussian Countryside".............. 118 Olga V. Artemova "Changes in the EverydayActivities of Rural Women in Russia from the 1970s to the 1990s".............. 132 Grigory loffe and Tatiana Nefedova "The Environs of Russian Cities: A Case Study of Moscow"..................................... 145 Galina Vitkovskaya "Adaptation and Integration of Forced Migrants in Russia . ...............................................167 Sergei A. Panarin "The Rural Economy of the Tunka Valley in a Time of Transition and Crisis"................................................ 188 L. Alexander Norsworthy and Alexander Feshenko"Studying the Po- litical Economy of the Rural Transition"........................................ 202 iii ACKNOWLEDGMENTS To arrange for the publication of a compendium of Russian articles on different political, economic and social aspects of rural reform in Russian was a difficult and time consuming task. This effort was undertaken to demonstrate the need for a multidisciplinaryapproach to analyzing a decade of reforms. This activity required the support of many World Bank project leaders and managers in the Environmentally and Socially Sustainable Development Department of the Europe and Central Asia Region at the World Bank. The gracious cooperation and contributions of Russian experts from Moscow to Siberia, and within the World Bank itself made this concept a reality. I am particularly grateful for the feedback and guidance from Ayse Kudat, Thomas Blinkhorn and Stan Peabody of the Social Development Team. Also the suggestions from Laura Tuck, John Nash and Csaba Csaki of the Rural Development team, and Kevin Cleaver, the Department Director. Maria Amelina's work in the Development Economics Research Group closely matched many of my original interests in exploring what the Russians themselves had to say about the reform experience. Christian Forster of the US Department of Agriculture was also an important sounding board for what this compendium was trying to accomplish. A special thanks is to Frank Laczko of IOM for allowing the reprint of the Vitkovskaya article on Adaptation Strategies. I am also grateful for recommendations from the publications coordinator of the Social Development Anchor Bonnie Bradford and from Paola Scalabrin in the Office of the Publisher. The papers in this compendium were obtained as the original work of the authors in English and reflect the opinions of the authors, not those of the World Bank Group. Any errors or omissions must be attributed to the editor, not the contributors v ABSTRACT This compendium of papers by Russian experts on the rural sector seeks to explore the institutions, policy outcomes and adaptive responses of enterprises and households to restructuring of the rural sector. The importance of hosuehold plots has increased dramatically but these production units are still dependent on the large successors to the collective and state farms. There are some hopeful signs that the markets are responding to the reforms and producing more efficiently, but this is offset by the uneven implementation of new farm and enterprise laws accross the different regions. Because of demgraphic shifts and the change in land markets, the boundaries between rural and urban are blurred particularly in large metropolitan areas. Rural women continue to bear a disproportionateburden of household work, and the opportunities for migrants moving to rural communities to match or exceed their previous standards of living are constrained. This is due to the importance of social networks of households and enterprises and access to scarce inputs in rural areas. vii PREFACE This compendium is not a typical World Bank publication. Most of the contributing authors are Russian academicians and policy specialists living in Russia. Their approach to evaluating the effects of the transition in that sector differ substantiallyfrom the World Bank's. Many terms such as "land ownership" and "private" or "independent farm" do not have the same meanings among the Russian experts themselves or among rural households. Definitions differ even more markedly from those employed in Western countries. The boundaries between the firm and the household and between the government and the large rural enterprises remain blurred. The boundaries between government and non-government are not always apparent in the attached volume. This is indicative of the confusion which exists regarding causes of the deterioration of Russian agriculture and solutions. Also, the different papers do not present comparable economic and social indicators, thus posing an obstacle to synthesizing and integrating their research findings with those of the Bank. Despite these at times contradictory views of what has happened in Russia and why, there is value in reviewing these interpretations and policy prescriptions. The intent of the compendium is to raise awareness of Russian perspectives on the transition in rural areas rather than to advocate specific development interventions from a World Bank perspective. The World Bank perspective has been published elsewhere and circulated widely. The policy prescriptions and recommendations regarding the agricultural sector in Russia presented by the World Bank have been ignored in Russia. Most of the authors of the articles admit the failure of Russian agriculture in the "transition," but provide a different set of solutions to those most often seen in the West. We hope that this will stimulate a debate that can contribute to moving the sector forward. We