Transition to the market in agriculture in Ukraine: Priority areas for reform

Abstract

There are a number of key characteristics of Ukrainian agriculture which are central to the discussion of the reform process. These include the predominance of state ownership and control, lack of commercial management skills, uneven commitment to reform in a decentralized system of responsibility, monopoly, a low level of technology and limited access to resources that facilitate efficient operation of the market. Necessary restructuring will involve three categories of measures including the establishment of a competitive environment, augmenting enterprise response, and macroeconomic stabilization. At present reform has proceeded extremely slowly and speeding the process appears to require Western aid, both financial and technical, to provide a demonstration of the benefits of reform in order to stimulate its more rapid uptake.