Privatizing a State Farm in Kazakhstan
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This dissolution of the Soviet Union served the state-directed linkages between state-owned farms and agribusiness enterprises ordered by the command economic system. Likewise, the dissolution disrupted marketing channels connecting the agricultural sector to a market economy those of other former republics. The transition to a market economy requires a transformation in the political and economic structures of state-owned farms and state-owned agribusiness enterprises. Directors of state-owned farms in Kazakhstan face major challenges. The primary consideration is how the farm should be organized after privatization, that is, whether the farm should be transformed into a cooperative, a joint stockholding company, or divided into several private, individual farm operations or partnerships.