ABSTRACT
In presenting this essay, I am inspired by yesterday’s review and analysis of the Soviet Union’s past 70 years’ experience with Lenin-and Stalin-initiated agrarian transformation. I am particularly impressed by the wisdom and vision of Professor Nikonov, President of VASHKNIL, the organizer of the conference, and Professor Krylatykh, Director of the Agrarian Institute. Both professors desire at heart to realize President Gorbachov’s perception of ‘glasnost’ (openness through less state control and in favour of market mechanism) and ‘perestroika’ (freedom and progress). These perceptions are manifested in ‘Fundamentals of Land Legislation’ approved in February this year by the Supreme Soviet of USSR (the all-delegates Congress). According to my understanding of the English translation of their presenta-
tion, both professors are pleased with the timely reform of the old agrarian institutions which has recently led to low gross agricultural output which they estimated at only 40 per cent of the Soviet Union’s production potential. In their view, this production deficiency is owing partly to the peasants’ disincentive and partly to the bureaucratization of agriculture that has weakened its linkages with and contribution to the national economy. To tackle this unsatisfactory situation, they stressed the importance of research evaluation of the actual performance of the agrarian institutions and I stress the word actual. They have also warned of the undesirable socio-economic consequences of rapid reform towards private property rights and a market mechanism. In particular, both professors expressed their fear of the likely emerging monopoly powers in the rural economy associated with the probable land concentration. In my following presentation of the lessons learnt from Egypt’s experience with the 1952 land reform, I shall bring forth those consequences that address these concerns and the prospects of the market economy in the Soviet Union. Before doing so, I wish to add another related source of inspiration to my
talk with you today. It comes from the Alfred Marshall Library at Cambridge University when I was invited in 1986 to give a seminar on the economic justification of land reform, especially the peasants’ production incentives and command over their households’ food and labour employment.
