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Land Reform In Moldova: How Viable Are Emerging Peasant Farms? An Assessment Referring To A Recent World Bank Study

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  • Petrick, Martin

Abstract

Based on a case study of two Moldovan regions, the paper challenges the favourable assessment of recently established peasant farms in a World Bank study by LERMAN et al. (1998). The main arguments in favour of a more critical view of the results of land privatisation and farm restructuring are that a) private farmers produce only on a minimal fraction of land with almost no machinery or purchased inputs at all, b) the income of a typical farm household is below a poverty line based on national standards, c) private farmers face substantial production and marketing risks, d) at present, it is unlikely that short- or long-term investment projects in agriculture can be credit funded. Currently, peasant farms are mainly run to produce a minimum diet for the affiliated household. The situation thus gives little reason for rosy future perspectives concerning a market-oriented, commercial private agriculture.

Suggested Citation

  • Petrick, Martin, 2000. "Land Reform In Moldova: How Viable Are Emerging Peasant Farms? An Assessment Referring To A Recent World Bank Study," IAMO Discussion Papers 14882, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamodp:14882
    DOI: 10.22004/ag.econ.14882
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    References listed on IDEAS

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    1. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    2. Lerman, Zvi, 1998. "Does Land Reform Matter? Some Experiences from the Former Soviet Union," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 307-330.
    3. Schulze, Eberhard, 1999. "Eigentumsverhältnisse landwirtschaftlicher Betriebe und Unternehmen in Russland und in der Ukraine: Befragungsergebnisse aus den Regionen Nowosibirsk und Shitomir," IAMO Discussion Papers 18, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Csaki, Csaba & Lerman, Zvi, 1997. "Land Reform and Farm Restructuring in East Central Europe and CIS in the 1990s: Expectations and Achievements after the First Five Years," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 428-452.
    5. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 305-329, August.
    6. Macours, Karen & Swinnen, Johan F. M., 2000. "Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 172-206, March.
    7. Pederson, Glenn D. & Khitarishvili, Tamar, 1997. "Challenges Of Agricultural And Rural Finance In Cee, Nis And Baltic Countries," Working Papers 14358, University of Minnesota, Center for International Food and Agricultural Policy.
    8. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November.
    9. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(3-4), pages 443-458.
    10. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772, Elsevier.
    11. Schmitt, Günther, 1988. "Wie optimal ist eigentlich die optimale Betriebsgröße in der Landwirtschaft," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 37(08).
    12. Zvi Lerman, 1999. "Land Reform and Farm Restructuring: What Has Been Accomplished to Date?," American Economic Review, American Economic Association, vol. 89(2), pages 271-275, May.
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    Cited by:

    1. Matthew Gorton & Barna Kovacs & Tamas Mizik & Sophia Davidova & Tomas Ratinger & Belen Iraizoz, 2003. "An Analysis of the Performance of Commercially Oriented Farms in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 401-416.
    2. Petrick, Martin, 2008. "Landwirtschaft in Moldova [Agriculture in Moldova]," IAMO Discussion Papers 117, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    3. repec:zbw:iamodp:91952 is not listed on IDEAS

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    More about this item

    Keywords

    Agricultural and Food Policy; Land Economics/Use;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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