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Russian Agri-Food Sector: 16 Months After The Breakdown Of The Monetary System

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  • Poganietz, Witold-Roger

Abstract

In August 1998 the Russian foreign exchange market and financial system collapsed. As a consequence the rouble devaluated in real terms against the currencies of the main trade partners, generating an output push in the agri-food sector. This improved the financial health of most producer, thus "opening a window of opportunity" enhancing the long run growth prospects. But, it is not apparent whether the agri-food sector make use of the enhanced circumstances. Insufficient incentive systems due to non-enforcement of legal rules within firms and farms and lack of credibility of Russian government promote a rent-seeking behaviour of employer and employees. Thus, it could be expected, that the non-price competitiveness of Russian products will rather worsen than getting better.

Suggested Citation

  • Poganietz, Witold-Roger, 2000. "Russian Agri-Food Sector: 16 Months After The Breakdown Of The Monetary System," IAMO Discussion Papers 14937, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamodp:14937
    DOI: 10.22004/ag.econ.14937
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    References listed on IDEAS

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