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Modernising Russia's cattle and dairy sectors under WTO conditions: Insights from East Germany [Die Modernisierung der russischen Rinder- und Milchproduktion unter WTO-Bedingungen: Erfahrungen aus Ostdeutschland]
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Modernising Russia's cattle and dairy sectors under WTO conditions: Insights from East Germany
[Die Modernisierung der russischen Rinder- und Milchproduktion unter WTO-Bedingungen: Erfahrungen aus Ostdeutschland]

Author

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  • Petrick, Martin

Abstract

How to revitalise the cattle and dairy sectors under the WTO commitments has emerged as a major policy challenge for the Russian government. This article raises the question whether livestock recovery in East Germany does provide any insights that could be of value to current policy makers in Russia. Similar to Russia, livestock numbers plummeted in the first years after the end of central planning. Unlike in Russia, milk output per cow increased spectacularly and almost doubled in a period of 20 years. It is argued that reforms of the institutional environment of agriculture were at least as important for this outcome as the generous availability of funding. Incentives set by financial aid were sometimes unintended, inconsistent, and led to misallocations that were costly to correct later on. More recent capital subsidies were inefficient in reaching any of the manifold goals they were hoped to achieve. While the Russian government may face little difficulty in dressing up its investment subsidies to make them look like green box compatible, the structural elements of the EU's Common Agricultural Policy are regarded as a poor guide for policy reform.

Suggested Citation

  • Petrick, Martin, 2014. "Modernising Russia's cattle and dairy sectors under WTO conditions: Insights from East Germany [Die Modernisierung der russischen Rinder- und Milchproduktion unter WTO-Bedingungen: Erfahrungen aus ," IAMO Discussion Papers 150, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:zbw:iamodp:150
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    1. Petrick, Martin & Zier, Patrick, 2012. "Common Agricultural Policy effects on dynamic labour use in agriculture," Food Policy, Elsevier, vol. 37(6), pages 671-678.
    2. William M. Liefert & Olga Liefert, 2012. "Russian Agriculture during Transition: Performance, Global Impact, and Outlook," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(1), pages 37-75.
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    1. Csáki, Csaba & Jámbor, Attila, 2018. "Konvergencia vagy divergencia. Merre tart Kelet-Közép-Európa és a FÁK mezőgazdasága? [Convergence versus divergence: Where is agriculture in Central and Eastern Europe and the CIS countries heading," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1048-1066.
    2. Petrick, Martin & Götz, Linde, 2019. "Herd growth, farm organisation and subsidies in the dairy sector of Russia and Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(3), pages 789-811.

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    More about this item

    Keywords

    Agricultural policy; investment aid; East Germany; livestock sector; WTO; Agrarpolitik; Investitionsförderung; Ostdeutschland; Tierhaltung;
    All these keywords.

    JEL classification:

    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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