ABSTRACT
This chapter shows that positive imagery is highly questionable, with the consequences of liberalization having serious negative implications for the short- and long-term development of the Russian economy, and especially for its farm sector. The majority of Russian commentaries point out that the main cause of the difficult situation that agriculture is facings is state deregulation. Analysts argue that the continuation of the economic crisis provides ready evidence that there cannot be self-regulating markets without state participation in rural commodity production. While the Russian economy as a whole has been traumatized, this experience has been more intense for agriculture and rural economies. Before 1991 Russia was a world leader in the production and consumption of food products. At this time it held fifth or sixth place in the world in per capita consumption terms. The agrarian sector in Russia, which includes a quarter of the national productive capacity and 27% of the population, has undergone a deep socio-economic transformation.
