Junior R. Davis

Agricultural Transformation and Implications for Designing Rural Financial Policies in Romania

In the context of Romanias macroeconomic and agricultural transformation, this paper analyses the current extent of the depth of rural finance and discusses the implications for the future development of rural financial markets in Romania. The overall agricultural support system is reviewed with particular emphasis on mechanisms of rural finance. The paper argues that building an efficient rural finance system that addresses the financial needs of private sector agriculture and the rural clientele requires a multi-level approach: Innovations are needed at the finance system level, involving, in particular, the creation of an effective regulatory and supervisory framework and making the National Bank of Romania (the central bank) independent of Government interference, at the level of financial organisations, in the processing and administration of financial services and in product design.

Understanding the process of decollectivisation and agricultural privatisation in transition economies: The distribution of collective and state farm assets in Latvia and Lithuania

This paper aims to address two key issues in the agricultural economics of transition economies: (i) what do we understand about the process of agricultural transformation in transition economies with respect to the distribution of collective and state farm assets and why is this process so important; and (ii) why the Joint Stock Company model of agricultural privatisation in transition economies, should be considered a “transitional” enterprise form, and not as an end in itself.

Economic reform of the electricity industries of Central and Eastern Europe

The purpose of this paper is the following: firstly, to chart how much economic reform of CEE electricity industries has taken place to date; secondly, to discuss why progress has been so limited; and, thirdly, to consider the prospects over the next few years. In charting the economic progress to date, we will consider and discuss progress in electricity price unbundling and rebalancing; in utility commercialisation; in industry and market restructuring and liberalisation; and in privatisation, as well as the development of economic regulation. For the reasons outlined above, we will explore the pricing issues in some detail as they are essential for understanding the difficulties in making progress in the other aspects of economic reform. The analysis concentrates on the 10 countries with which the EU has an Association Agreement and who are stated candidates for EU membership (the EU 10).

What's Wrong with Romanian Rural Finance? Understanding the Determinants of Private Farmers' Access to Credit

This analysis of the determinants of private farmer access to rural finance in Romania has two distinct aspects: (i) a quantitative evaluation of some measurable variables for example factors affecting the amount of loans and the volume of savings; and (ii) a qualitative aspect, concentrating on the relationship between financial service suppliers and private farmers. We also consider the motivations underlying the participation or non-participation of private farmers in the development of the rural financial market. We have estimated two regression models: a) to determine the main characteristics of the private farms that have access to formal credit; and b) to estimate how farm income, the source and utilization of credit each impact on the actual loan amounts obtained. The paper attempts at all times to reflect the problems that farmers have highlighted in gaining access to rural finance in the results of our analysis.

The Economic Activity of Private Farms in Romania During Transition: Just How Competitive are They?

In this paper we attempt to avoid the usually legalistic approach to surveys of farm reform and the development of a viable private farming sector in transition economies. Instead, we argue that a better understanding of the Romanian private farming sector and its interaction with the rural financial market is gained where broader economic, demographic, sociological and political factors are incorporated in the analysis. Therefore this paper discusses the main characteristics of private farming in Romania in the context of the aforementioned factors. Finally, we evaluate the financial performance and competitiveness of private farms and the severity of the economic problems they face in Romanian agriculture.

The creation of an agricultural free trade area in the CIS: arguments against following the CAP model

Abstract This viewpoint argues that the political impetus for the creation of an agricultural free trade area (AFTA) in the CIS along the lines of the European Unions Common Agricultural Policy is growing, and being encouraged for political rather than practical economic purposes. This paper reviews progress in the development of a CIS-wide AFTA and argues that the creation of an AFTA in the CIS is desirable, but should refrain from implementing a CAP-style of protection.