Agriculture and Food Policy in Countries in Transition to a Market Economy

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Abstract
Discusses how the rejection of Communist principles for a framework of market‐based economies in many former Eastern bloc countries has had a profound effect on the food chain. The scale of adjustments required is considerable, yet some governments still feel that central planning must play a major role in the decisions of enterprises and are reluctant to liberalize. Identifies the key macro‐economic and political constraints which need to be overcome before policy re‐orientation can be achieved. Policy themes which need to be tackled include restoration of property rights, price and trade policy and the development of a sustainable credit system. The speed and sequencing of policy reform need urgent consideration. Policy makers have to make the essential choice between a liberal, market‐ determined approach or something more interventionist. In pursuing the liberal approach, belief in the market is imperative. Private enterprise needs a sturdy legal framework in which to develop. As yet, in m any countries, this framework is too fragile to provide total confidence in the direction of transition.

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