Production Structure of Polish Agriculture and its Reform

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This study first compared the private agriculture and socialist agriculture for the period prior to the reforms being happened starting 1989 in Poland in terms of production structure, production technology, the use of inputs and the changes in total factor productivity. The private sector did not perform well because of restricted markets of inputs and outputs. The rate of growth in total factor productivity for the private sector was not found to be as high as one would expect for the sector with private ownership of the means of production.This study also examined the changes observed after the introduction of reform measures. The level of agricultural protection was significantly reduced. The amount of subsidies allocated to the sector dropped sharply and the border protection became loose. The decline in real income as a result of tight fiscal and monetary policies led to the drop in demand for food items. This then had an impact to lower the prices of agricultural products. Suppl … More y response slowed and the production was stagnated.The agricultural sector in Poland occupies still a large share in labor force and GDP contribution. Structural changes in this sector is inevitable for the economic development of the Polish economy. The increase in productivity of agricultural production and the development of the agro-industry based in rural areas seem to be the keys for further development. The role of the Government finds to be significant in these areas. The improvement in research and development programs is one of the key areas the Government has to take own initiatives.The de-collectivization process has been creating problems of its own and other East European countries have been experiencing stagnation of agricultural production with the changes in ownership of means of production. The Polish case provides a lesson that the settlement in this de-collectivization process would not necessarily guarantee the betterment of performance of the agricultural sector. Other efforts now the Polish Government is making have to be made at the same time as the de-collectivization process. Less