ABSTRACT
This chapter argues that a simpler and more efficient way to develop Russian agriculture is to use existing strengths in the countryside that are found at the household level. The restructuring of Russian agriculture will require a major overhaul of Russian land law and the growth of private farming. The difficulty, however, is to identify the specific causal mechanisms through which this transformation might take place. The core institution in the Soviet agricultural system was the large state enterprise, the kolkhoz or sovkhoz. These large enterprises were designed as agricultural factories that received production quotas from government officials. The crisis in the Russian economy, including the agricultural sector, caused hyperinflation during the first few years of the post-Soviet period. This meant that many Russians lost their entire life savings and at times had to go without many of the necessities of life. The chapter also presents an overview of the key concepts discussed in this book.
