Agrarian Reforms in Turkmenistan
Zvi Lerman and Ivan Stanchin 1
Regional Context and General Reform Efforts
Turkmenistan is a huge Central Asian country of 491,200 km2, nearly 50 million hectares –
the fourth largest by area in the former Soviet Union (FSU) after Russia, Kazakhstan, and
Ukraine. Yet it has a small (albeit rapidly growing) population of about 6 million people, which
puts it in one group with the FSU midgets – Armenia, Georgia, Azerbaijan, the Baltic states.
More than half the population (55%) lives in rural areas, compared to one-third in FSU, but only
4% of the country’s agricultural land (1.8 million hectares) is cultivable, compared to 40% in
FSU. The remaining 96% of agricultural land in Turkmenistan is desert pastures – 39 million
hectares fit only for flocks of karakul sheep and camels, not for human beings (Goskomstat SNG,
2003). Thus, despite the huge expanses and the small number of people, the effective population
density in Turkmenistan is very high: there is less than 0.6 hectares of arable land per rural
resident compared to 2.1 hectares in FSU. Land and water are the two scarcest and most precious
resources in this country.
Turkmenistan is an agrarian country, as is evident from its high share of rural population,
high share of agricultural labor in total labor force, and high share of agriculture in GDP (Table
1). Yet by these characteristics Turkmenistan is generally comparable to its Central Asian
neighbors: it can be characterized as highly agrarian only in comparison with Russia and Ukraine
(as well as the FSU average). Turkmenistan’s share of arable land in total agricultural land is very
small compared with the other Central Asian countries, but all its arable land is irrigated (so is the
arable land in Uzbekistan). Turkmenistan’s population is the smallest but fastest growing in
Central Asia. If the population continues to grow at 3% annually, Turkmenistan will very soon
overtake Kyrgyzstan and Tajikistan.
Turkmenistan was part of the Soviet Union for 67 years to the day, from October 27, 1924
until October 27, 1991. Independent Neutral Turkmenistan was declared in October 1991 by
Saparmurat Niyazov, who had been the First Secretary of the Communist Party of Turkmen
Soviet Socialist Republic since 1985 and was elected the first president of Turkmenistan in 1990
with 98.3% of the vote. According to the post-Soviet constitution adopted in May 1992, the
President is both the head of state and the head of government. Turkmenistan has a single-party
system of government, and the President, in addition to his role as Prime Minister, is also
Chairman of the Democratic Party of Turkmenistan. Saparmurat Niyazov’s term was extended
beyond the five-year constitutional limit in two referendums (1992 and 1994), and in December
1999 he became President for Life by popular acclaim (legally formalized by a vote of
Parliament). He is universally referred to as Turkmenbashi—the Father of the Turkmen. This
honorific has evolved into a surrogate surname, and the President of Turkmenistan is generally
called Saparmurat Turkmenbashi in the local press and elsewhere. Recently he began to be
1
Department of Agricultural Economics and Management, The Hebrew University of Jerusalem, Israel, and National
Institute of Statistics and Information, Ashgabat, Turkmenistan, respectively. E-mail: lerman@agri.huji.ac.il (for Zvi
Lerman) and stanchin@online.tm (for Ivan Stanchin). This paper is part of a research project supported under Grant
No. TA-MOU-98-CA17-011 by the U.S.-Israel Cooperative Development Research Program, Economic Growth,
U.S. Agency for International Development. The data in the paper derive from official statistical sources (as
assembled in Stanchin and Lerman, 2003), a 2001 survey of private farmers, and a 2002 survey of leaseholders in
peasant associations.
1
addressed as Serdar—the Leader, and the adjective “Great” is being added with increasing
frequency to his name. His birthday, February 19, is a national holiday coinciding with the Day of
the National Flag.
Table 1. Selected Characteristics of Turkmenistan and Some FSU Countries
Country area, Ag land,
Population,
Population
thousand km2 million ha
million
density,
per km2
Turkmenistan
491
40.5
4.8
9.8
Uzbekistan
449
20.0
24.9
54.6
Kyrgyzstan
200
4.8
4.9
24.6
Tajikistan
143
4.1
6.2
42.8
Kazakhstan
2,725
86.4
14.8
5.5
Russia
17,075
197.0
144.8
8.5
Ukraine
604
38.4
49.0
81.2
Arable land,
% of ag land
Population
growth rate,
% per annum
3.1
2.2
1.5
2.3
-0.0
0.2
-0.2
Irrigated,
% of arablea
Rural
Share of
Arable land
Share of
population,
agriculture in per rural
agriculture in
%
labor, %
resident, ha
GDP, %
Turkmenistan
4
106
55
48c
0.6
21d
Uzbekistan
20
100
63b
36b
0.3
32d
Kyrgyzstan
29
79
65
53
0.4
38b
c
Tajikistan
18
81
73
64
0.2
29
Kazakhstan
22
7
44
23
3.0
9
Russia
61
5
27
13
3.1
7
Ukraine
82
8
32
23
2.0
14b
Source: Goskomstat SNG (2003). The data are generally for 2000, except where indicated otherwise.
a
1990; b1999; c1998; d1997.
Independent Turkmenistan embraced a model of “gradual, step-by-step transition from an
administrative command system to a market economy” (MinEcon, 1999, p. 70). According to the
official view, “Saparmurat Turkmenbashi … chose a socially oriented model of a market
economy,” whereby market relations are regarded as a “means to increase the living standard of
the people” (ibid.). Despite its reform efforts, Turkmenistan is classified by Freedom House, an
international research organization specializing in the analysis of reform processes in transition
countries, as a “consolidated autocracy” and a “consolidated statist economy” (Freedom House,
2002). This category is the diametric opposite of “consolidated democracy” and “consolidated
market economy” and, alongside Turkmenistan, it includes only two other countries: Uzbekistan
and Belarus. Turkmenistan consistently gets very low marks for political and economic reforms.
Thus, on a scale of 1 to 7 (where 1 is “best” and 7 is “worst), Turkmenistan scores 6.94 for
democratization and 6.50 for economic liberalization – the worst scores by both measures among
all 27 transition countries ranked by Freedom House. Turkmenistan receives a similarly poor
evaluation from the World Bank on the agricultural reform scorecard, where Turkmenistan gets a
score of 6.60 out of 7 (Csaki and Zuschlag, 2004).
The poor scores that Turkmenistan is awarded for its reform efforts by international
organizations probably explain the dim view of this country as expressed in the following
statement by Johannes Linn, the World Bank Vice President for Europe and Central Asia Region
(made at the Central Asia Donors’ Consultation Meeting in Berlin on March 1, 2002):
Turkmenistan is an outlier even within the region in its near-total isolation and
lack of reforms. There is no indication that its position will change in the
2
foreseeable future and it represents a significant obstacle to any effort to increase
regional cooperation in key areas (especially water).
This statement seems to be fairly representative of the prevailing view of Turkmenistan
among Western experts. One of the objectives of this article is to temper this universally negative
judgment by providing evidence of developments in agriculture that give some hope for more
positive change in the future.
Changing Farm Structure
Prior to 1991, agriculture in Turkmenistan was organized according to the standard Soviet
model: some 600 large collective and state farms controlled the bulk of agricultural land while the
rural population cultivated in its spare time tens of thousands of small household plots on 55,000
hectares, or about 3% of irrigated land (Lerman and Brooks, 2001). The structure of the farm
sector has changed dramatically since then as independent Turkmenistan began to implement
various agrarian reforms consistent with its interpretation of a market-oriented economy.
The main change can be characterized as a shift from collective farming to a more
individualized agriculture. The first step (1990-92) involved distribution of irrigated land to rural
families, which more than doubled the total size of the household-plot sector to 133,000 hectares.
The second step (1993-96) involved a national program for allocation of land to independent
private farmers who were allowed to engage in commercial agriculture outside collectivist
frameworks. In 2002 there were more than 5,000 such private farms in Turkmenistan (the
numbers are very fuzzy) operating on 81,000 hectares. The third, and perhaps the most daring and
radical step (1996-97) involved the transformation of former collective and state farms into
associations of leaseholders. So-called “peasant associations” (daikhan berleshik) were organized
by presidential decree in place of the traditional collective and state farms, and each association
was instructed to parcel out its large fields to individual leaseholders (typically heads of families).
Throughout these changes, however, agricultural land remained predominantly state-owned. For a
more detailed discussion of the legal framework for these changes see Lerman and Brooks (2001)
and Stanchin and Lerman (2003).
Table 2. Structure of the Farm Sector in Turkmenistan: 2002
Number
Land, ha
Associations
587
33,900,000 (incl. pastures)
Leaseholders
357,000
1,500,000 (arable)
Peasant farms
5,200
81,000
Household plots
616,000
133,000
Source: Official statistics as summarized in Stanchin and Lerman (2003).
Average size, ha
4
16
0.2
We view the creation of leaseholder-based associations as the most radical step of the land
reform program because of its scope. The reforms aimed at household plots and private farms,
however important, were marginal by the amount of land that they encompassed. The transition
to leasehold contracts, on the other hand, involved more than 350,000 rural family units and 1.5
million hectares of arable land, i.e., practically the entire rural population and 90% of arable land
in Turkmenistan. The current structure of the farm sector in Turkmenistan is presented
schematically in Table 2.
3
The Role of Peasant Associations and Institutional Arrangements for Leaseholders
Following the establishment of the peasant associations, the situation in Turkmenistan
seems to have developed toward a genuine structural change since 1996-97. Although there are
still 600 associations and they still legally control most of the agricultural land resources, they
have become mere organizational shells, or umbrellas, for the farming operations of individual
leaseholders, without significant commercial activity of their own. As of 1997, associations have
virtually no “collective” sales: all sales reported to statistical organs through associations derive
from the individual activity of their leaseholders. The associations have lost much of their fixed
asset base (machinery, equipment, livestock), while inventories, receivables, and payables—
standard signs of commercial activity—have shrunk almost to zero (Table 3).
Table 3. Characterization of Associations as a Shell for Leaseholders
2000
Percentage of sales generated by the association, % of total reported sales
4.6
Fixed assets, change since 1997 in %
−40
Inventories, change since 1997 in %
−86
Accounts receivable, change since 1997 in %
−72
Accounts payable and loans, change since 1997 in %
−90
Source: Aggregate financial statements of farm associations 1997-2000, Ministry of Agriculture of Turkmenistan.
The percentage change 1997-2000 is calculated from the series of balance-sheet data in constant prices (after
adjusting the reported nominal figures for inflation). For more details see Zaslaver (2004).
What is the role of the associations today? First, they are the “guardians” or
“administrators” of state-owned agricultural land that is distributed to leaseholders for cultivation.
All leaseholders interviewed in a large farm-level survey in 2002 report that they have a landlease contract with the association. Second, they are the municipal authority responsible for
maintaining rural infrastructure in the villages—and they receive a certain payment from the
leaseholders (in percent of production revenue) for these services. Third, and most problematic of
all, they are the conduit for transmitting state orders to the leaseholders and enforcing
compliance.
The continuing existence of state orders in Turkmenistan is a legacy of the Soviet centrally
planned system. Turkmenistan has liberalized much of its agricultural production and food trade,
but the main strategic commodities—cotton and wheat (as well as the much less important
rice)—remain subject to state orders. As in the past, production targets for wheat and cotton are
assigned to large farming units—peasant associations in this case; and the association manager
divides the overall quantities among the leaseholders so that the full target is met (or exceeded).
The associations do not sell this wheat and cotton for their leaseholders, as a marketing
cooperative would normally do in the West: the sale contract is directly between the leaseholder
and the state marketing organization, which sends trucks to collect the harvested crop and
sometimes even tractors and combines to help with harvesting. The associations do not act as
supply cooperatives either: leaseholders get all the inputs they need from state suppliers on the
basis of individual contracts signed according to production targets.
Finally, since the associations are neither marketers nor input suppliers, they cannot act as
credit cooperatives for their leaseholders. All financial transactions in this system are handled by
a state-owned agricultural bank – Daikhan Bank – which has a branch in every association,
serving all the local leaseholders. The system is organized on the basis of “passbooks”, so that
very little cash changes hands. Each leaseholder’s production quota is recorded in the
“passbook”. The “passbook” shows the total credit for revenue that the leaseholder will
eventually receive for deliveries of wheat and cotton and the total debit for inputs that he is
4
entitled to get from the state. The revenue is calculated on the basis of fixed state prices, which
are adjusted every year but are always far below the world market prices. The cost of inputs is
also based on fixed state prices net of a hefty 50% subsidy for all inputs used in the production of
state orders. The input debits, plus statutory management charges that go to the association, are
offset against the revenue and the leaseholder keeps only the “profit”.
This highly bureaucraticized system applies only to state orders, i.e., wheat, cotton, and
rice, but it is designed in such a way that the leaseholder must deliver the entire output to state
marketers: otherwise there will be no credit entry in the bank account to offset the debits for
inputs. Commodities not subject to state orders, such as vegetables, milk, or eggs, are generally
produced under different institutional arrangements on the family’s household plot (not on the
leasehold) and are sold in the nearby market or through occasional private traders: there are no
state marketers to deal with these commodities and the association is not geared to provide
cooperative marketing services.
Fig. 1. Contracts with State Marketers/Suppliers
Association (land)
Daikhan Bank
Farm services
Fertilizer supply
W ater Users Ass
Cotton Board
Grain Board
0
20
40
60
80
100
percent of leaseholders
The complex system of relationships between leaseholders and various state organizations
is reflected in Figure 1, which shows the percent of respondents in the 2002 survey who signed
contracts with input suppliers, product marketers, and the bank. Over 80% of respondents are
bound to the state by credit and input supply arrangements. The percentages for marketing
contracts are deceptively low. As leaseholders generally specialize either in grain or in cotton, the
combined frequency of contracts with the Cotton Board and the Grain Board is around 100%
(actually slightly more than 100% reflecting the existence of some mixed grain/cotton farming).
Thus, all leaseholders are bound by marketing agreements to the state, with no independent
commercial activity in the two strategic commodities.
The Role of the Household Plot
Leaseholders operate in a two-tier farming system. In one tier, they have 5-6 hectares of
irrigated land leased from the peasant associations, where they grow mainly wheat or cotton for
delivery to the state. In the second tier, they have a small household plot of about 0.25 hectares on
which they grow vegetables and keep some private livestock. The output from the household is in
part consumed by the family and in part sold in the open market, without any intervention from
the state. The income of most rural families thus includes cash income from the leasehold
5
operation plus cash and in-kind income from the household plot. In the 2002 survey, these two
components were evenly balanced and jointly accounted for 75% of family income (Figure 2).
The remaining 30% represent cash income from off-farm salaries of family members working
outside the household, pensions, social transfers, etc. The household plot is thus a very important
source of income for rural families, accounting for more than one-third of total income in value of
own farm products consumed by the family and in cash from product sales. The enlargement of
household plots in 1990-92 made a very important contribution to the well-being of the rural
population.
Fig. 2. Structure of Leaseholder Family Income
Leasehold
38%
HH plot
36%
Other
13%
Off-farm wages
13%
Total income 13.5 million manat
Private Farmers and Their Land
In addition to leaseholders and their household plots, Turkmen agriculture has another
relatively new component that began to emerge only in 1993. These are independent private or
peasant farms (called daikhan farms in Turkmen) that operate outside associations on land grants
received directly from the state, and not in the form of a lease from the association. The land in
these private farms increased from zero in 1992 to more than 115,000 hectares in 1998-2000,
when it approached the total land in household plots (130,000 hectares). In those years, the
private sector (household plots and peasant farms combined) controlled almost 10% of all
cultivable land in Turkmenistan. There were about 7,000 private farmers in Turkmenistan, so that
an average private farm had 16 hectares – four times as much as the average leasehold in
associations (4 hectares; see Table 2).
Yet there is a serious problem with the quality of land in private farms. The declared
government policy is to give private farms unirrigated, uncultivable land and thus force them to
reclaim desert land at their own expense (see, e.g., Lerman and Brooks (2001)). In effect, the
government has relinquished the responsibility for what was traditionally regarded as a public
good in the Soviet era and today relies on private individuals to invest in land reclamation. The
poor land quality in private farms is clearly illustrated by Figure 3, which shows that in 1993-95
cultivable land was only 30%-40% of the holdings – compared to 80% in household plots. Yet it
seems that the private farmers are doing exactly what the government intended them to do: they
are actively reclaiming desert land on their farms and the share of cultivable land has steadily
6
increased from the initial 30%-40% to 60% today (Stanchin and Lerman, 2003). The picture that
emerges from the 2001 survey of private farms is consistent with these national figures: among
the respondent farms, 31% of the land was irrigation-ready from the start, another 37% was
reclaimed by the farmers during their new tenure, and 32% is still unused and remains to be
“opened” for cultivation in the future. It is largely through the efforts of private farmers that
Turkmenistan added 64,000 hectares to its stock of irrigated land, which increased from
1,744,100 hectares in 1994 to 1,808,400 hectares in 2001.
Fig. 3. Share of Cultivable Land in Individual Sector
100
percent of holdings
HH plots: 0.25 ha
80
60
Farms: 20 ha
40
20
0
1990
1992
1994
1996
1998
2000
Another difficult issue is the peculiar notion of “private landownership” in Turkmenistan.
First, land granted to private farmers allegedly in “private ownership” is totally nontransferable: it
is received from the state without the right to sell, give as a gift, or exchange. Another unusual
twist is that private ownership in Turkmenistan is granted conditionally, and the state reserves the
right to confiscate private land if the farmer’s performance does not meet the expectations of the
regional authorities (Decree, 1993). During the early phases of reform (up to 2000), the
confiscation option was not enforced, so that both the number of private farms and their land
holdings were steadily increasing. In January 2000, there were 7,066 private farms in
Turkmenistan with 115,000 hectares in private ownership or long-term lease, up from 750 farms
with 28,400 hectares in 1993. Between 2000 and 2002, however, the number of private farms
decreased to 5,176 and the land holdings dropped to 81,100 hectares. The downward trend
continued and by the beginning of 2003 private farms retained only 64,200 hectares. Within just
three years private farms lost a staggering 45% of their land: the state began to enforce the
confiscation provision, taking back private land from farmers who had not farmed actively (or
satisfactorily) in the past two years. This, of course, is an unthinkable policy in a market
economy, yet in Turkmenistan policymakers justify its enforcement by the acute scarcity of
cultivable land and the need to ensure that no cultivable land is left idle.
Some Comparisons of Leaseholders and Private Farmers
The most striking difference between leaseholders and private farmers is not in farm size
(5-6 hectares in leaseholds, 20 hectares in private farms): it is in the fact that leaseholders are
7
subject to state orders while private farmers are allowed to grow whatever they wish. This is
clearly reflected in the specialization of farms in the two groups (Table 4, based on 2001-2002
surveys): leaseholders produce either cotton or wheat, with less than 10% of farms producing
both cotton and wheat and only 5% diversifying into other commodities. Among private farmers,
on the other hand, 15% produce both cotton and wheat while fully 34% produce commodities
other than cotton and wheat. These other commodities are largely livestock products, which are
very seldom reported by leaseholders. Nationally, the product mix of leaseholders in associations
is 85% crops and only 15% livestock. Livestock production is concentrated mainly in the
individual sector – private farms and household plots, where the product mix is diametrically
opposite: 25% crops and 75% livestock.
Table 4. Specialization at the Farm Level (percent of respondents)
Leaseholders
Cotton only
36
Wheat only
50
Cotton+wheat
9
Other
5
Source: 2001-2002 surveys.
Private farms
8
43
15
34 (livestock)
Table 5. Sale Channels for Farm Products: Leaseholders and Private Farmers (percent of respondents)
Channel
Leaseholders
Commodity
Channel
Private farmers
State
100
State
88
Cotton
State
71
Association
9
Wheat
Market
21
Market
3
Market
Market
Vegetables
Meat, milk
80-100
80-90
Source: 2001-2002 surveys.
The difference in institutional arrangements for leaseholders and private farmers is also
reflected in different access to marketing channels (Table 5). Leaseholders sell primarily to the
state, which is consistent with their obligation to deliver wheat and cotton under state orders.
Private farmers use different channels for different products. Vegetables, meat, and milk – the
products for which no state procurement exists – are sold in the open market. Cotton is sold to the
state: in principle, private farmers have no obligation to sell to the state, but there are apparently
no alternative sale channels for cotton – direct exports are prohibited – and they are obliged to
sell to the state cotton board. Wheat is again in a different category: the state takes 70% of the
harvest, but a respectable 20% is sold through alternative channels. There is a very clear lesson
behind these numbers: if producers are given an opportunity to choose between marketing
channels, they will indeed exercise their right of choice, presumably optimizing sales income.
Despite the state orders and the constraints on individual choice, leaseholders appear to be
quite happy with the new arrangements (Table 6; unfortunately no such data are available for
private farmers). Most of the respondents in the 2002 survey report an increase in their
motivation to work (compared with the situation in the former collective) and an improvement in
their standard of living. Practically everybody is optimistic about the future prospects under the
new system. The enthusiasm reflected in the first column of Table 6 may be exaggerated due to
the specific socio-economic environment and local cultural traditions, but given the large size of
the sample positive views cannot be dismissed as spurious. In terms of popular attitude the
agricultural reforms are a success.
8
Table 6. Leaseholders’ evaluation of the situation under the new leasehold arrangements compared to the
collective past (percent of respondents)
Better than before the
No change
Worse than before the
reforms
reforms
Motivation to work
85
11
4
Standard of living
72
23
5
Future prospects
90
6
4
Source: 2002 survey.
Outcomes of Agricultural Reform
Proper assessment of the impacts of agricultural reforms requires detailed comparisons of
the performance of the three institutionally different components of Turkmen agriculture:
leasehold farms, household plots, and private farms. Unfortunately, neither national statistics nor
our surveys provide the full information necessary for this kind of analysis. National statistical
data only enable us to make a crude performance comparison between the “association sector”
(i.e., leasehold farms) and the “individual sector” (mainly household plots, but also private
farms). The results of this comparison are presented in Figure 4, where two features are worth
noting. First, the share of the individual sector in agricultural output increases over time, while
the share of the associations decreases despite the transition to leasehold arrangements after 1996.
In 1997, the first year of the main farm-structure reforms, each sector accounted for one-half of
gross agricultural output. Five years later, in 2001, the individual sector produces 75% of
agricultural output, while the association sector is down to 25%.
Fig. 4. Associations and Individual Farms: Output and Land
80
percent of output/land
70
60
50
IndivOutput
AssOutput
IndivLand
40
30
20
10
0
1997
1998
1999
2000
2001
Another noteworthy feature is the ratio of output to land in the two sectors. The individual
sector (household plots and private farms combined) control about 10% of cultivable land, on
which they produce 75% of total output. Association leaseholds account for 90% of cultivable
land, and yet they produce only 25% of total output. The relative productivity of land in the
individual sector appears to be 27 times higher than in the association sector.
Neither feature is unique to Turkmenistan. Similar trends are consistently observed in all
former Soviet republics, where in line with accepted theoretical considerations we generally
attribute the performance differences to different incentives for individual farmers and workers of
former collectives. Yet the institutional setting in Turkmenistan is unique in that the former
9
collectives have shifted to individual leasehold arrangements. As a result, leaseholders
presumably face incentives that are much closer to the incentives of individual producers than the
incentives of workers in former collective farms in the rest of the FSU. We would have expected
the leaseholders to achieve productivity levels that are much closer to the individual sector and
thus give a strong boos to Turkmen agriculture. This obviously has not happened so far.
The only possible explanation, in our view, lies in the sharp differences in the institutional
production and marketing arrangements between the individual sector and the leasehold sector.
Individuals are free to decide what to produce and how to sell, and individual farming is
flourishing thanks to private initiative. Leaseholders are strictly bound by state orders on the
relatively large areas that they receive from the association, and there is not much room for
private initiative. It is particularly important to note that the second tier of leasehold farming – the
household plots – is not subject to these restrictions and household plot production seems to be
flourishing (as part of the individual sector statistics) while the association sector is struggling.
Switching to a still broader national view, we see in Figure 5 that both agricultural output
and GDP declined sharply after 1990. Some signs of recovery appeared in 1997-98 –
coincidentally with the introduction of significant reforms in agriculture. We would like to hope
that the incipient recovery is indeed linked with the impact of agricultural reforms, but only the
future will show if this is so. Figure 5 incidentally reveals another important feature of rural
Turkmenistan: the labor employed in agriculture is steadily increasing over time, both because of
high natural increase of the rural population and because of lack of alternative employment
opportunities outside agriculture. The combined effect of increasing labor and decreasing
agricultural output of course has had a negative effect on labor productivity of Turkmen
agriculture.
Conclusion
Turkmenistan has implemented significant reforms in agriculture, increasing the size of the
household plot sector, enabling the emergence of independent private farms, and most
importantly individualizing to a certain extent the production arrangements in former collective
farms through the introduction of leasehold contracts. Yet the policies underlying these reforms
are not entirely consistent: state orders are retained for the main cash commodities (cotton and
10
wheat), the producers are generally bound to monopolistic state marketers and input suppliers,
and the independent private farmers who are relatively free from these constraints receive land of
very poor quality that requires major investment in reclamation. It is not surprising that the
performance of the new leasehold sector is far short of its potential and the new independent
farmers are struggling to survive. However, despite these political constraints, the reforms are
finally beginning to have some positive impact, with agriculture slowly starting to recover from
the initial transition-induced decline.
References
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Commonwealth of Independent States: An Update on Status and Progress in 2003,
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February 2.
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Eurasia, www.freedomhouse.org
Goskomstat SNG (2003), Official Statistics of the Countries of the Commonwealth of
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