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

Dmitry Gershenson and Maria Amelina

No 2002/126, IMF Working Papers from International Monetary Fund

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 encourage some regional governments to maintain Soviet-style redistribution structures and make producers forsake more efficient outcomes as more costly, while encouraging other regions to pursue reform.

Keywords: WP; underdevelopment trap; government subsidy; survival probability; Saratov government; agriculture; collective farms; transition; Russian Federation; world value government support; B. government policy; Agricultural production; Agricultural sector; Personal income; Government subsidies; Agricultural policy; Global (search for similar items in EconPapers)
Pages: 35
Date: 2002-07-01
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