Success and Failure of Reform: Insights from the Transition of Agriculture

TLDR

The study examines how reform strategies in transition countries affect economic performance. The authors focus on agriculture in transition countries, documenting post‑reform performance across Asia and Europe to capture sharp policy changes, country differences, and simple agricultural relationships. The findings demonstrate that pricing and subsidy reforms, land‑rights reforms affecting farm restructuring, and institutions facilitating exchange all influence output and productivity. The paper concludes with general lessons on reforms and transition.

Abstract

The paper analyzes the linkages between the reform strategies in transition countries and economic performance. We focus on agriculture because of the sharpness of the policy changes, fundamental differences among countries, and relative simplicity of agricultural relationships. We document post reform performance in the transition countries of Asia and Europe. We show how: a.) pricing reform and subsidy reductions; b.) land rights reform and policies that affect farm restructuring; and c.) the presence institutions that facilitate exchange (either markets or market substitutes) affect output and productivity. The paper ends with general lessons on reforms and transition.