2002年-世界发展银行全球_Food_and_Agricultural_Policy_in_Russia___Progress_to_Date_and_the_Road_Forward_176页_11mb

Summary of Food and Agricultural Policy in Russia: Progress to Date and the Road Forward

Core Content

This document, Food and Agricultural Policy in Russia: Progress to Date and the Road Forward, is a World Bank Technical Paper (No. 523) authored by Csaba Csaki, John Nash, Vera Matushevich, and Holger Kray. It evaluates the performance of the Russian agricultural sector and outlines the policy challenges and recommendations for its future development.

Main Instruments of Agricultural Policy

• Federal Level:

  • Input and output prices have experienced relatively small policy-related distortions.
  • Legal framework, state domination of certain markets, and the inefficient administration of limited subsidies are significant challenges.
  • Large farms face soft budget constraints, leading to non-payment of debts, increasing debt burdens, and a lack of incentive for real restructuring.
  • The government has introduced a Resolution on Agricultural Debt Restructuring in 2001 and is discussing a draft Law on Financial Rehabilitation of Agricultural Enterprises.

• Regional Level:

  • Agricultural policy is largely made at the regional level, where price and trade policy distortions are more severe.
  • These inconsistencies have fragmented the national agri-food market and hindered overall sector performance.

Key Challenges

• Productivity and Efficiency:

  • Agricultural productivity has not improved significantly despite some growth in the sector due to improved market conditions and initial asset redistribution.
  • The sector has not yet achieved sustainable growth or efficient production.
  • The "price scissors" phenomenon has led to a decline in profitability, with input prices rising much faster than output prices.

• Subsidy Mismanagement:

  • Subsidies were historically used to support production, not efficiency.
  • They were inefficiently and non-transparently channeled through large state enterprises, leading to waste and underutilization of resources.
  • Subsidy reform is necessary to promote market development and efficiency.

• Land Reform and Farm Restructuring:

  • The transition from kolkhozes and sovkhozes to the current "large agricultural enterprise" sub-sector has been problematic.
  • Land reform remains a key area for improvement, with the need to establish private land ownership and land markets.
  • A legitimate legal framework for land turnover and ownership is essential.

• Rural Poverty and Social Infrastructure:

  • Rural poverty has increased significantly, with the poverty rate in rural areas remaining much higher than in urban areas.
  • Social services and infrastructure in rural regions have deteriorated, lagging behind urban development.
  • A large portion of the rural population is indirectly dependent on agriculture, with many linked through agro-industry, input manufacturing, and distribution.

• Employment and Migration:

  • Agricultural employment accounts for about 13% of the economically active population, or 60% in rural areas.
  • The sector has seen significant job losses, with over 2 million rural unemployed as of 2001.
  • Young people (ages 20–29) make up a large portion of the rural unemployed, indicating a long-term demographic challenge.

Recommendations

• Create a Framework for Effective Farm Restructuring and Land Markets:

  • Legally recognize private land ownership and facilitate land turnover.
  • Pass legislation that supports restructuring and provides a clear legal basis for private sector involvement.

• Revamp Agricultural Support Policies:

  • Stop public procurement at both federal and regional levels.
  • Administer subsidies through incentive-neutral mechanisms such as payment per hectare, not based on input or output.
  • If input or credit subsidies are to continue, they should be administered through private channels on a competitive basis.

• Promote Rural Development Strategy:

  • Develop a strategy that devolves social asset responsibility from farm enterprises to local governments.
  • Focus on private individual farming and market development to foster economic growth and poverty reduction.

• Leverage WTO Accession:

  • Russia should take full advantage of its WTO accession to demonstrate its commitment to reform and establish a policy framework for future agricultural support.

Institutional Aspects

• Federal Agricultural Budget:

  • Limited in scope and effectiveness.
  • Needs to be reformed to better support market development and efficiency.

• Regional Budgets:

  • Play a critical role in agricultural policy, but often lead to inconsistent and distorted policies.

• Legal and Institutional Reforms:

  • A clear and enforceable legal framework is essential to support real restructuring of farms.
  • Sanctions, including bankruptcy procedures and foreclosure, should be enforced to ensure compliance with restructuring measures.

Conclusion

The Russian agricultural sector has vast untapped productive potential, but has not yet realized it due to inefficient policies, state dominance, and lack of market-oriented reforms. The key to future success lies in reforming subsidies, establishing private land ownership, and improving institutional frameworks to support market development and private sector participation. The World Bank recommends a cooperative and constructive approach with the Russian government to foster sustainable growth and reduce rural poverty.