Trade Effects of Dismantling the Socialized Agriculture of the Former Soviet Union

D. Johnson

Comparative Economic Studies, 1993, vol. 35, issue 4, 31 pages

Abstract: The transition to a market economy in the former Soviet Union will significantly reduce waste and losses in harvesting, marketing, transporting and processing agricultural products. The former system failed to have clear property rights in commodities, contributing to a high percentage of waste and losses. The privatization of agriculture and a market economy will significantly increase the productivity of feed. The use of grain for seed has been excessive and this will be gradually corrected. In recent years the former Soviet Union had annual grain imports of 35–40 million tons of grain and 1 million tons of meat. The dismantling of socialized agriculture is likely to lead to grain exports of about 20 million tons and eliminate the net imports of meat. These changes will have major effects on the international markets for grain and meat.

Date: 1993
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