Agricultural Transition in Post-Soviet Europe and Central Asia • Kimhi, Lerman (eds.) Lerman • Kimhi, Asia Central and Europe Post-Soviet in Transition Agricultural In der Schriftenreihe Studies on the Agricultural and Food Sector in Transition Economies werden durch das IAMO Monographien und SStudiesSttuuddiiieess oononn ttthehheeA AAgriculturalggrriiiccuulllttuurraalllaa andnnddFF FoodooooddSS Sectoreeccttoorr Tagungsberichte herausgegeben, die sich mit agrarökonomischen ii ininnT TTransitionrraannssiiittiiioonnEE Economiesccoonnoommiiieess Fragestellungen zu Mittel- und Osteuropa beschäftigen. Wissen- schaftlern,In der Schriftenreihe die in diesem Studies Bereich on forschen, the Agricultural steht die and Schriftenreihe Food Sector als in DiskussionsforumTransition Economies offen. werden durch das IAMO Monographien und Tagungsberichte herausgegeben, die sich mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa beschäftigen. Wissen- Inschaftlern, its series dieStudies in diesem on the Bereich Agricultural forschen, and stehtFood dieSector Schriftenreihe in Transition als Agricultural Transition in Post-Soviet Europe EconomiesDiskussionsforum IAMO publishes offen. monographs and proceedings focusing on and Central Asia after 25 Years agricultural economic issues specific to Central and Eastern Europe. International Workshop in honor of Professor Zvi Lerman This series offers a forum to researchers studying this area. In its series Studies on the Agricultural and Food Sector in Transition Economies IAMO publishes monographs and proceedings focusing on agricultural economic issues specific to Central and Eastern Europe. This series offers a forum to researchers studying this area. Edited by Ayal Kimhi, Zvi Lerman ISSN 1436-221X Leibniz Institute of Agricultural Development ISBN 978-3-938584-95-8 in Transition Economies ISSN 1436-221X ISBN 978-3-938584-95-8 79 Agricultural Transition in Post-Soviet Europe and Central Asia after 25 Years International Workshop in honor of Professor Zvi Lerman The Center for Agricultural Economic Research and The Hebrew University of Jerusalem March 20-22, 2013, Rehovot, Israel Studies on the Agricultural and Food Sector in Transition Economies Edited by Leibniz Institute of Agricultural Development in Transition Economies IAMO Volume 79 Studies on the Agricultural and Food Sector in Transition Economies Agricultural Transition in Post-Soviet Edited by Europe and Central Asia after 25 Years Leibniz Institute of Agricultural Development in Transition Economies International Workshop in honor of Professor Zvi Lerman IAMO Volume 79 Edited by Ayal Kimhi, Zvi Lerman IAMO 2015 Bibliografische Information Der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.ddb.de abrufbar. Bibliographic information published by Die Deutsche Bibliothek Die Deutsche Bibliothek lists the publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the internet at: http://dnb.ddb.de. Diese Veröffentlichung kann kostenfrei im Internet unter <www.iamo.de/dok/sr_vol79.pdf> heruntergeladen werden. This publication can be downloaded free from the website <www.iamo.de/dok/sr_vol79.pdf>. 2015 Leibniz-Institut für Agrarentwicklung in Transformationsökonomien (IAMO) Theodor-Lieser-Straße 2 06120 Halle (Saale) Tel. 49 (345) 2928-0 Fax 49 (345) 2928-199 e-mail: [email protected] http://www.iamo.de ISSN 1436-221X ISBN 978-3-938584-95-8 CONTENTS Foreword ................................................................................................... iii Ayal Kimhi List of contributors ................................................................................... ix A. The transition scene after 25 years Twenty-five years of transition and European integration: Some observations on the governance of land markets in an integrated Europe ............................................................................... 3 Johan Swinnen, Kristine Van Herck, Liesbet Vranken After the transition: The impact of EU Membership upon the agriculture of the New Member Countries ............................................. 17 Csaba Csaki, Attila Jambor Markets and morality: The relevance for transforming the agricultural sector in transition countries .............................................. 35 Ulrich Koester Agricultural labor adjustment and the impact of institutions: Panel Data Analysis .................................................................................. 53 Thomas Herzfeld, Thomas Glauben, Liesbeth Dries, Ramona Teuber B. Country transition experiences After 20 Years of transition in Ukraine, Will the market find a way? ..................................................................... 77 William H. Meyers, Kateryna Goychuk Property rights in transition: Evidence from the 1999 reform in Ukraine .................................................................................................. 95 Leonid A. Krasnozhon Competition for land and labor among individual farms and agricultural enterprises: Evidence from Kazakhstan’s grain region ...... 117 Martin Petrick ii Contents Revealing the role of agricultural contracts in rural livelihoods in Uzbekistan ................................................................................................ 141 Utkur Djanibekov, Kristof Van Assche, Daan Boezeman, Grace Villamor, Nodir Djanibekov Tajikistan’s vulnerability to climate change: An agricultural policy approach ................................................................................................... 159 Zvi Lerman Land reform and its distributional implications: The case of Georgia .................................................................................. 175 Ayal Kimhi C. Trade The impact of the Soviet legacy on agri-food trade in the former Soviet Union ................................................................................. 195 Sandro Steinbach, Mariusz Rybak Agricultural policy in Russia and WTO accession .................................. 217 David Sedik, Zvi Lerman, Vasilii Uzun D. New structures: Agroholdings and cooperatives What drives the growth of agroholdings? An analysis of Russian and Ukrainian experiences ...................................................................... 251 Alfons Balmann, Heinrich Hockmann, Karin Kataria, Franziska Schaft Agricultural cooperatives in Israel: Past and present............................ 281 Yoav Kislev FOREWORD AYAL KIMHI The transition from Socialism to Capitalism occurred in many countries world- wide, but nowhere was it so sharp as in Eastern Europe and the Former Soviet Union. Many researchers studied this process since the fall of the Berlin Wall in the autumn of 1989. Twenty-five years later, an international workshop was organized by the Center for Agricultural Economic Research in Rehovot, in colla- boration with the Hebrew University of Jerusalem and the Leibniz Institute of Agricultural Development in Transition Economies (IAMO) in Halle, Germany. The purpose of the workshop was to provide a retrospect on the transition process through the lenses of researchers who studied it in the past and those who are still studying it. The focus was on agricultural transition, since it was a crucial step in ensuring food security and providing a basis for non-agricultural development. This volume includes a collection of papers presented in the workshop. The papers are organized in four parts. The first part deals with the transition process in general, with a focus on agricultural transition in the realms of land mar- kets, product markets and labor markets. In the opening chapter, Jo Swinnen, Kristine Van Herck and Liesbet Vranken provide an overview of the transition process and the integration of transition counties into the European Union. They claim that land privatization was an important component of this integration. However, vast institutional heterogeneity in land markets still exists among EU member countries. The chapter discusses the causes and consequences of this heterogeneity, and concludes that a good combination of liberalization and regulation of land markets may address political sensitivities and at the same time allow much of the economic benefits to occur. The chapter by Csaba Csaki and Attila Jambor examines the impacts of joining the EU on the agricultural sector in the New Member States. These impacts are not uniform across countries, have both positive and negative components, and are sensitive to policy decisions. On the whole, the chapter concludes that EU accession had a positive effect on agriculture in the New Member States, stemming from access to markets, access to EU funding, and an improved insti- tutional framework. However, the experiences of the different countries varied iv Foreword quite a lot, due to differences in initial conditions, pre-accession policies and post-accession policies. Ulrich Koester is trying to deal in his chapter with the fact that transition countries that were more conservative in their adoption of a market economy had more favorable growth trajectories than transition countries that followed the advice of western economists more enthusiastically. He suggests that poor performance after adopting a market economy is largely due to lack of morality in the popu- lation, combined with legislation that has been affected by influential lobby groups. He claims that this is particularly evident in the transformation