Heterogeneity of Agrarian Transformation in Europe, Caucasus, and Central Asia

Abstract

Abstract This chapter reviews the progress of the agrarian transformation in Europe, Caucasus, and Central Asia. It highlights similarities and differences by describing the performance of the agricultural sector in these economies with respect to output and productivity development and discussing land and other reforms. The agrarian transformation across the thirty countries in these regions reveals increasing heterogeneity. Decollectivization and land reform resulted in a sharp reduction of agricultural employment in some countries. In contrast, subsistence agriculture and increased engagement in agriculture served as a livelihood strategy in several others. In most of the countries that joined the European Union since the early 2000s, agriculture is currently a small sector, characterized by highly productive commercial farms. In stark contrast stand the agricultural sectors of Belarus, Tajikistan, Turkmenistan, and Uzbekistan, where state involvement is still high. Either state-led price formation or the restructuring of farms are signs of this involvement. Any outlook on further agrarian transformation depends on the direction of future political and economic reforms. The agricultural producers and markets in the group of countries that are aiming at EU accession face enormous challenges. Farmers and enterprises will most likely be pressured to further increase productivity, resulting in an accelerated structural change.