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Domestic and Trade Policy for Central and East European Agriculture

Larry Karp and Spiro Stefanou

No 814, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: After a brief period of liberal agricultural policies, Central and East European (CEE) countries have begun to rely increasingly on price subsidies and trade restrictions. We outline the situation of CEE agriculture and describe current policies. Scarce government funds could be better used to support agriculture by providing partial loan guarantees, thus reducing private collateral requirements and making credit more widely available. This policy would provide income and not merely price insurance. In addition, it avoids the commodity bias associated with price policies. Others have argued that traditional price and trade policies should be used to support CEE agriculture, citing the example of OECD nations, and in particular the goal of joining the EC. We summarize and criticize these arguments.

Keywords: Agricultural Policy; Central and Eastern Europe; Collateral Subsidies; Economic Transition (search for similar items in EconPapers)
JEL-codes: F13 F14 Q17 Q18 (search for similar items in EconPapers)
Date: 1993-11
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Citations: View citations in EconPapers (3)

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Working Paper: DOMESTIC AND TRADE POLICY FOR CENTRAL AND EAST EUROPEAN AGRICULTURE (1993) Downloads
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