This is the third book that the German Advisory Group has produced on agricultural policy in Ukraine, and the second that has been produced in conjunction with the Institute for Economic Research and Policy Consulting (IER) in Kiev1. This book, therefore, picks up on what has become a tradition of periodically taking stock of both developments in Ukrainian agriculture and the analysis of these developments that we have produced in recent years.
Over the years, the analytical capacity especially of our Ukrainian colleagues in the IER has grown remarkably. This is reflected in a series of empirical analyses in this book based on up-to-date econometric techniques and quantitative policy simulation models. We have maintained in this book the tradition of inviting outside experts to contribute to our book in areas that we have not been able to cover ourselves, thus increasing the scope of the analysis and ensuring that not all topics are seen from the same perspective. As in the past, we have endeavoured to update all of the chapters to a certain extent, since some were originally written as much as two years ago. However, such updating is not always entirely possible. It is our conviction that many basic economic relationships and policy messages remain the same even as numbers change from year to year.
The structure of this book is simple. In Part I we study several broad topics that relate agriculture to overall economic development in Ukraine such as the implications of WTO membership for Ukrainian agriculture, the mix of different agricultural policy tools employed in the country, the system of agricultural taxation and the links between agricultural productivity and poverty. In Part II we adopt a farm enterprise perspective, focussing on competition for land as well as farm efficiency, organisation and management.
In Part III we concentrate on policy in several specific markets such as grain and oilseeds, and on futures markets as a potential risk management tool for agriculture in Ukraine. While agriculture in Ukraine is too vast a topic to be covered comprehensively in any single volume, we hope that this selection of chapters and topics provides food for thought and conveys some of the excitement and interest that we have felt working in and on agriculture in Ukraine.
Table of Contents
| INTRODUCTION | 1 |
| PART I: AGRICULTURE AND ECONOMIC DEVELOPMENT IN UKRAINE | 4 |
| 1. The Implications of WTO-Accession for Agricultural Policy in Ukraine | 5 |
| 2. Shifting Agricultural Policy towards Measures Envisaged by the Green Box | 16 |
| 3. Taxation and Ukrainian Agriculture | 25 |
| 4. The Links between Agriculture and Macroeconomic Development in Ukraine | 41 |
| 5. Agricultural Productivity Growth: a Vehicle for Rural Poverty Reduction in Ukraine? | 58 |
| 6. Agricultural Policy versus Rural Policy: Core Tasks and Joint Responsibilities | 69 |
| PART II: FARM ENTERPRISES AND ECONOMIC REFORM IN UKRAINE | 79 |
| 7. Ensuring Competition on the Market for Lease Land in Ukraine | 80 |
| 8. The Organisational Forms and Performance of Agricultural Enterprises in Ukraine: What Conclusions can be Drawn? | 88 |
| 9. Measuring the Productive Efficiency of Ukrainian Farms | 97 |
| 10. The Balanced Scorecard as a New Strategic Management Instrument for Ukrainian Agricultural Enterprises | 117 |
| 11. Farm Management Challenges in Ukrainian Agriculture | 125 |
| PART III: DEVELOPMENTS ON KEY AGRICULTURAL MARKETS IN UKRAINE | 137 |
| 12. A Market for Risk and not for Grain: An Introduction to Futures Markets for Agricultural Products in Ukraine | 139 |
| 13. The Oilseed Export Tax Revisited | 153 |
| 14. The 2003 Wheat Crisis and Food Security | 167 |
| 15. The 2003 Wheat Harvest: Crisis! What Crisis? | 183 |
| APPENDIX: STATISTICAL DATA | 191 |
