Post-Soviet Agricultural Restructuring: A Success Story After All?

Abstract

Challenging the initial expectation that all post-Soviet economies will evolve from collective toward fully individualized farming, I argue that they separated into two different reform paths. In the European successor countries and Kazakhstan, corporate and family farms coexist, labor exited agriculture, and capital inflow boosted labor productivity (a “Westernization”). In the Transcaucasian and the other Central Asian countries, complete farm individualization did not increase labor productivity much, in turn keeping rural incomes depressed (a “Southernization” akin to the Global South). Future policies should promote income alternatives to agriculture and improve the flexibility and transparency of farm consolidation processes.