Posts Tagged ‘transition’
PROSPECTS FOR THE DEVELOPMENT OF TRANSITION COUNTRIES
In countries with a transitional type of economy where the number of poor villages is 600 million, while the number of rural population – 2.2 billion, nonfarm grew fastest in the world. With the growth of profitability nonagricultural activities attempt to solve the problem of the gap in income levels between urban and rural areas by providing grants will require the allocation of all the big budget, and it will happen at the expense of public goods and basic needs of the village. On the other hand, an attempt to reduce the gap by introducing protectionist measures against imports, will increase the cost of food for many poor consumers who are net food buyers.
With the growing population and limited land resources program for countries in transition should include the simultaneous use of all the ways to overcome poverty.
Strategic policy objectives in the transitional countries are as follows:
1. encouraging the production of high production to divert economic activity smallholders from producing prirodointensivnyh basic foodstuffs in the face of rising urban incomes and changes in diet;
2. spread the “green revolution” in the production of basic foodstuffs to areas bypassed process and have high levels of poverty and the establishment there of a system to ensure the subsistence level of social protection.Promoting the employment of animal husbandry among the landless and land-hungry peasants as an alternative to work on the ground;
3. provision of infrastructure to support diversification in agriculture and non-agricultural activities in rural areas;
4. promoting non-farm economic activities to address the problem of employment in rural areas and actively investing in vocational education to enable people to migrate and find work in a rapidly developing economy.
Rapidly growing markets high-value products – especially fruits and vegetables, poultry, fish and dairy products – make it possible to diversify the agricultural system and create a competitive and labor-intensive sector of small farms. Access to export markets for innovative products is also open, because the transition countries have a comparative advantage in areas of activity requiring intensive use of labor and management resources. In many of these countries have high levels of poverty in regions that are in less favorable agro-ecological conditions and to solve this problem we need to improve infrastructure in these areas and implement tailored to their technology.
Another political challenge in the fight against unemployment in rural areas is to assist in the creation of small-town dynamic sector non-farm rural economy, as related to agriculture, the hook and the economy of the city.
China has led the industry in small towns located in rural areas, to diversify rural incomes, and this approach can be applied in other transition countries.
With proper organization and support of even a very small and virtually landless households may achieve improvement in its fortunes, especially in the field of animal husbandry. India’s success in milk production is based on the collective actions of small farmers in the Indian network of cooperatives – dairy producers. Smallholders, particularly women, were the main drivers of successful development of aquaculture and small-scale poultry farms in Bangladesh.
In all these countries, the transition of labor to more dynamic sectors of the economy should be accelerated by large investments in the development of skills of current and future generations. Important changes associated with this restructuring should be supported, using effective social protection programs, so that households could afford to take risks in search of the best decisions for ourselves. A successful solution to the problem of discontinuity between rural and urban incomes in countries with transforming the economy to make a significant contribution to fighting poverty worldwide.
The sharp decline in poverty from 1981 to 1985 occurred under the influence of agricultural reforms that began in 1940-1960, though then the “green revolution” for the most part to initiate and sustain the state, the split is nowbiotech – a new “Green Revolution, the production of high production in agriculture is supported by the state, but led by the private sector.
With respect to perishable goods infrastructure, credit and institutions associated with the manufacturers of processing firms and retail chains (“chain of farm-firm-plug”). Economy of scale in processing and marketing of products exists from continuing to break up small peasant farms, so that institutional innovations, such as agricultural production under the contract, can reduce costs and risk level of smallholders. Linking small producers with processing firms and vendors can also facilitate access to financial capital, through banks, and provide mechanisms for dissemination of technology, knowledge, and billing for the equipment supplied products produced on it, without losing control over food security.
The fact that this can be achieved on the basis of small farms, demonstrates the growth of exports of high-value agricultural products from countries in transition. Meanwhile, distribution of profits across the value chain warbler depends on the strength of the position of each player. Smallholders are better able to defend their interests collectively and not individually. That’s why one of the priorities is to facilitate collective action through producer organizations capable of reaching the benefits of scale of marketing and conclude trade deals at cheaper prices.
Although the diversification of production towards high-value products offers the best prospects for growth in agriculture, its future will depend on the continued growth of production of major food crops and the associated release of resources. In many regions of the markets of major food crops are not sufficiently developed, so that their production for own consumption lowers the risk for smallholders. The largest countries (India and China) if necessary, themselves produce most of the products they consume.
But the revolution high-value production and distribution of “biotechnology revolution” in areas not covered by it require more efficient water management, which is especially important against the background of their impoverishment and deterioration of water quality. Integrated approaches to the problem are able to reconcile the interests of the many water users, particularly where its lack is particularly acute. Reform of irrigation institutions, elimination of policy distortions such as subsidies for water and electricity, supporting trade and sound macroeconomic events – all these are important steps to enhance the efficiency of water use and satisfaction of competing consumers. Large-scale reform efforts require purposeful leaders and equitable distribution of rights to use water to remove political barriers. Since water scarcity is felt more and more, inevitably there will be water markets, which are necessary for the existence of support and, perhaps, the legal framework. In Jordan, for example, that market has been deduced from the shadows by registering, licensing and accounting performance of all the sources to which you are allocated individual quotas.
Reducing the negative impact of systems of intensive agriculture on the environment, especially pollution agrochemical waste and animal waste is a priority to improve both the ecological condition and health, as well as helping to cope with the economic slowdown caused by the degradation of land and water. Practice more sustainable farming will require a balance between the right to use incentives (prices for inputs and final products), use of improved management techniques, such as an integrated approach to pest management and nutrient management, as well as better regulation.
STRUCTURAL FEATURES OF RGANIZATSII AGRICULTURAL PRODUCTION IN TRANSITION COUNTRIES
Structural features of agricultural production in transition countries show a wide variety of country-specific and regional characteristics.
The average farm size in Asia today is small – in Bangladesh, China and the delta region in Vietnam, he is only 0,4-0,5 ha. In South Asia the process of reducing the areas will continue, as its rural population is growing at a rate of 1.5% per year and is projected to increase to last until 2020
Since farming on small plots of land requires labor-intensive, it is important to understand whether the densely populated Asian countries to effectively grow cereals and other basic culture in such areas, especially if wages in rural areas will grow.
Population growth and land fragmentation are putting pressure on rural labor market. In India there are 80 million poor peasants with a low volume of assets that can survive only by passing to non-agricultural activities. In addition, millions of landless households depend entirely on employment – in India alone, 82 million of such employment for a worthy reward for a growing rural population – one of the most difficult challenges of our time, especially important for South Asia, Middle East and North Africa, where the number of jobs in non-agricultural activities (and for unskilled labor in general) grows very slowly.
Lack of water. Freshwater is now almost exhausted in many countries, and growing demand for water for urban, industrial and environmental needs warrant a reduction of consumption in agriculture. Lack of water, the consequences of which are enhanced by ongoing climate change, especially felt in the Middle East, North Africa and a number of areas in India and China (chapters 2 and 8). Emphasis on the use of lifting water for irrigation has led many countries to its excessive consumption, lowering groundwater levels and deteriorating water quality.
With regard to the former socialist countries, the structure of their agriculture dominated the giant collective farms under the direct control of the state. The average farm size ranged from 1,157 ha in Poland to 124,770 hectares in Turkmenistan, while, for example in the EU15 or the U.S., the average farm size was 20 and 197 hectares respectively.
In the early 1990s. for privatization and the restoration of property rights followed by a restructuring of the agricultural sector. New owners of land and other assets could withdraw from the collective farms and to create family farms. Some former collective farms have been transformed into cooperative associations of owners selhozaktivov (including land), joint stock companies, limited liability company or partnership. The organizational form of households dependent on means of privatization and government policy. For example, in Albania and the Baltic States was created a lot of small family farms, while in Slovakia, the Czech Republic and most former Soviet republics dominated by large agricultural enterprises.
Economy chooses the structure of production, which gives them a comparative advantage. Large agricultural enterprises, where possible division of labor and does not require control over labor, capital-intensive production of profitable products. Since farms have an advantage in the production of grains and oilseeds, where labor costs are low, and capital intensity is high.
Small farms have the advantage of less capital-intensive production, where possible control over labor, and labor is difficult to measure. For example, in the production of perennial crops (including fruit), which requires considerable labor and low capital.
Additional empirical tests confirm that this specialization of farms is observed both in CEE and the EU, although the breeding and cultivation of field crops (potatoes and sugar beets), the results differ. Thus, in CEE field crops specialized small farms use more labor-intensive technology, and in the EU this production is more capital-intensive.
Multicountry study confirms that in countries where the share of family farms in land use more for growing oilseed crops assigned a smaller portion of land, and by labor-intensive crops – more substantial. In these countries, the ratio of livestock per hectare higher than in countries with a smaller share of family farms.
Thus, agricultural products, production of which the country will be competitive in international markets, determined the structure of farms. High transaction costs impede change the shape of the organization of farms in countries with transition economies in transition, so the correct choice of the structure of production agriculture is more important to choose the form of its organization.
Comparing the efficacy of various forms of economic organization, should also take into account the transaction costs associated with markets. In many transition countries, markets are more suited for large-scale agricultural enterprises, which impedes the development of family farms. Labor-intensive products requires a variety of business agreements and vertical linkages, for example, than capital-intensive products.