Distortions to Agricultural Incentives in Eastern Europe and Central Asia
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World Bank, Washington, DC
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In a recent survey of European economic
growth since 1950, Crafts and Toniolo (2008) conclude that
incentive structures are a crucial explanator of comparative
growth rates of the economies of east and west Europe.
Pre-empting that, a 2006 report on trade performance and
policies in Eastern Europe and Central Asia included as one
of its key recommendations the need to reduce the mean and
variance of the tariff equivalents of trade barriers, and in
particular to reduce unilaterally the policy regimes'
anti-export bias, especially in countries exporting primary
products (Broadman 2006). To progress such reform in
Europe's transition economies efficiently and
effectively, and to see how recent policies line up with
those of the European Union (EU), requires better
information on the extent of reform during the past two
decades and of current policy influences on incentives
within and between sectors. Immediately prior to their
transition to market economies, policies in the region
greatly distorted producer and consumer incentives,
especially for agricultural products. Those distortions have
been reduced substantially in several countries, but large
variations remain across the region and distortions appear
to be growing again in some countries. Now is thus an
opportune time to examine how policies affecting agriculture
are evolving in this region, including as part of the
adjustment to EU accession for ten of the transition
economies in the region.
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AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURE, BANKRUPTCIES, BEEF, BUDGETARY SUPPORT, CA, CENTRAL PLANNING, COMMODITIES, COMMODITY, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITIVENESS, CONSUMER PRICES, CONSUMERS, CURRENCY, DAIRY, DAIRY SECTOR, DEBT, DEPRESSED PRICES, DEVALUATION, DEVELOPMENT POLICY, DEVELOPMENT STRATEGIES, DIRECT PAYMENTS, DOLLAR VALUES, DOMESTIC ECONOMY, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRICES, ECONOMIC CRISES, ECONOMIC DEVELOPMENT, ECONOMIC REFORM, ECONOMIC RESEARCH, EGG, ENERGY EXPORTS, ENERGY PRICES, EXCHANGE RATE, EXCHANGE RATE SYSTEMS, EXCHANGE RATES, EXPENDITURES, EXPORT MARKETS, EXPORT SECTORS, EXPORTS, FARMERS, FARMS, FEED, FINANCIAL CRISES, FINANCIAL FLOWS, FINANCIAL INSTITUTIONS, FOOD CHAIN, FOOD INDUSTRY, FOOD MARKETS, FOOD PRICES, FOOD PROCESSING, FOOD PROCESSORS, FOOD PRODUCT, FOOD PRODUCTS, FOOD QUALITY, FOOD SECURITY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FOREIGN INVESTMENTS, FREE MARKETS, FREE TRADE, GDP, GDP PER CAPITA, GLOBAL EXPORTS, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GOVERNMENT REGULATION, GRAINS, GROSS VALUE, GROWTH RATES, HUNGER, INCENTIVE STRUCTURES, INDUSTRIALIZATION, INFRASTRUCTURE INVESTMENTS, INPUT PRICES, INSTITUTIONAL CONSTRAINTS, INTEGRATION, INTERNATIONAL TRADE, LABOR MARKET, LIVESTOCK, LIVESTOCK PRODUCTS, MAIZE, MARKET ECONOMIES, MARKET ECONOMY, MARKET PRICE, MARKET REFORMS, MARKET REGULATIONS, MARKETING, MARKETING COOPERATIVES, MERCHANDISE, MERCHANDISE EXPORTS, MILLS, MONOPOLY, NATIONAL ECONOMY, OATS, ORANGE, OUTPUT, OUTPUTS, OVERVALUATION, OVERVALUED EXCHANGE RATES, PENSIONS, PER CAPITA INCOME, PER CAPITA INCOMES, PLANNED ECONOMIES, POLITICAL ECONOMY, POLITICAL SYSTEM, PORK, POTATO, PRICE COMPARISON, PRICE DISTORTIONS, PRICE SUPPORT, PRICING POLICY, PRIVATE INVESTMENTS, PRODUCER PRICE, PRODUCER PRICES, PRODUCTION COSTS, PROPERTY RIGHTS, PROTECTIONISM, PUBLIC GOOD, RAPID GROWTH, REAL GDP, REGIONAL TRADE, RENT SEEKING, RETAIL, RETAILING, RICE, RURAL DEVELOPMENT, RURAL INFRASTRUCTURE, SECURITY CONCERNS, SHEEP MEAT, SOFT BUDGET CONSTRAINTS, SOYBEAN, STARVATION, STOCKS, SUGAR, SUPERMARKETS, SUPPLIERS, SUPPLY CHAINS, SURPLUS, TAX, TAX RATES, TAXATION, TRADE BALANCE, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRANSITION COUNTRIES, TRANSITION ECONOMIES, VALUE ADDED, VERTICAL INTEGRATION, WAGES, WHEAT, WHOLESALERS, WINE, WORLD DEVELOPMENT INDICATORS, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO