Economic Behaviour of the Collective Enterprises in Transitional Economy (Russian Case) and Policy Implications

EUGENIA SEROVA

Higher School of Economics, Moscow 125206, Russia

Absract

SEROVA, E., 1999. Economic Behaviour of the collective enterprises in transitional economy (Russian case) and policy implications. Bulg. J. Agric. Sci., 5:360

The post-socialist agrarian reforms in the industrial and agricultural economies have led to the different agrarian structures after the first stage of farm restructuring. In the agrarian countries land distribution to the peasant household has brought to the instant growth in the GAO and food consumption, while reforms in predominantly industrial societies were not focused only on land re-distribution and were coupled with initial fall in agricultural output and per capita food consumption. The study showed the objective causes for a such results.
Therefore the initial stage of farm restructuring in the major part of transitional economies caused the spreading of the production co-operatives (that is collective enterprise) as the major type of agricultural enterprise.
In agrarian theory after A.Chayanov there is a bulk of studies on the economic behaviour of family farm, which maximises the different utility function than firm. This peculiarity of family farm explains the backward sloping of the supply curve in agriculture based on individual farming structure.
However, the economic behaviour of collective enterprise is not fully analysed in the theory. We suggest some modelling approach to explain the economic behaviour of collective enterprise and to classify the possible types of such agricultural producers.
In the first quarter of 1997 the survey of collective enterprises in a number of regions of the Russian Federation will be conducted in order to investigate the real results of farm restructuring. The elaborated model of collective farms' behaviour will be tested in this survey.
The hypothesis which will be exploited is the following: the collective form of agricultural enterprises is the temporary transitional form and under the pressure of market environment one part of the current collectives will be divided into smaller entities and another part will be transformed into big market oriented entrepreneurial firms.
The national agrarian policy should be oriented onto development of market infrastructure and avoiding market failures in order to accelerate the process of real farm transformation.

Key words: Russian case, economic behaviour, collective enterprises, transitional economy


* Prof. Eugenia Serova, Doctor of Economics, Head of the Agrarian Policy Division of the Institute for Economy in Transition (Moscow), Professor of the Higher, School of Economics (Russian Government), Moscow, 125206, Vuchetich street, 13, ap.18; telephone office (7-095) 229 6596; home (7-095) 211 4373; Fax(7-095) 229 7071; E-mail office (collective box) iet@online.ru; home serova@redline.ru