Privatisation and changing farm structure in the commonwealth of independent states

Abstract

The most striking feature of land reform in the post-Soviet space has been the overall shift from collective to individual land tenure in agriculture, generally accompanied by privatisation of legal landownership. Individualisation of farming has been among the main factors that acted to arrest the initial decline in production during the transition and to bring about agricultural recovery in the region. In Commonwealth of Independent States (CIS) countries, the recovery point for agricultural growth is closely linked with the observed watershed dates for individualisation of farming. Furthermore, the rate and the attained level of recovery are higher in countries that pursued decisive individualisation policies (Transcaucasus, Central Asia), while in countries with less sweeping individualisation reforms (European CIS) the recovery has been sluggish. Land reform and individualisation have also led to significant improvements in agricultural productivity due to the higher incentives in family farming. Greater production and higher productivity have contributed to significant poverty reduction since 2000. To ensure continued improvement of rural family incomes and poverty mitigation, policy measures should be implemented that facilitate enlargement of very small family farms and encourage the access of small farms to market channels and services.