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Policy Papers

  • 10.04.2011

    Why agricultural producers lose huge market opportunities with state monopolies International experience and Ukrainian evidence

    (Code:AgPP_34)

    Two draft laws came out to the public in February 2011 that might effectively turn into September 11 for the agriculture and food sectors of Ukraine in case at least one of the two comes into the force. A Draft Law #8053 as of February 2, 2011 “On amendments to the Law of Ukraine “On State Support to Agriculture” (as to the peculiarities of exports of products subject to state price regulation)” and a Draft Law #8163 as of February 25, 2011 “On amendments to the Law of Ukraine “On Grain and Grain Markets” (concerning the grain exports)” effectively aim at granting to the State a monopoly of the export of various agricultural products in the former and of the grain in the latter case. What does the global and Ukrainian experience say about state monopolies? In the following we briefly shed some light on this fundamental issue for developing the Ukrainian agrarian potential.

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