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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 25, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:zbw:iamodp:14937
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    agrifood sector; macroeconomic environment; exchange rate policy; agricultural credit market; Russia; Land- und Ernährungswirtschaft; Wechselkurspolitik; Makroökonomische Rahmenbedingungen; Agrarkreditmarkt; Russland;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other

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