Seductions of an Underdevelopment Trap: Systemic Impediments to Agricultural Reform in Russia

36 Pages Posted: 2 Feb 2006

See all articles by Maria Amelina

Maria Amelina

World Bank - Development Research Group (DECRG)

Dmitriy Gershenson

International Monetary Fund (IMF)

Date Written: July 2002

Abstract

Despite ambitious agricultural reforms initiated by the federal government, inefficient and unprofitable producers predominate in post-Soviet Russia. However, in some regions, a more robust restructuring has taken place. Observing two Russian regions - one with substantially restructured agricultural production and one in which Soviet-style coordination predominates - we develop a model of the interactions between political and economic incentives that lead to these divergent outcomes. The model identifies region- and sector-specific characteristics that, while encouraging some regional governments to maintain Soviet-style redistribution structures and make producers forsake more efficient outcomes as more costly, push other regions to pursue reform.

Keywords: agriculture, collective farms, transition, Russian Federation

JEL Classification: P32, P26, D78

Suggested Citation

Amelina, Maria and Gershenson, Dmitriy, Seductions of an Underdevelopment Trap: Systemic Impediments to Agricultural Reform in Russia (July 2002). IMF Working Paper No. 02/126, Available at SSRN: https://ssrn.com/abstract=879890

Maria Amelina (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Dmitriy Gershenson

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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