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Impact of Land Reform Strategies on Rural Poverty in the Commonwealth of Independent States

Comparison between Georgia and Moldova

Series:

Kerstin Kötschau

This study aimed at analysing the impact of two different land reform strategies on rural poverty in CIS countries, particularly in Georgia and Moldova. While Georgia distributed agricultural land parcels directly to the population at the beginning of the 1990ies, Moldova transferred land via paper shares for undemarcated land parcels. This study is based on household data, which were collected during household surveys in Georgia and Moldova in 2007 and 2008. The data had been used in order to analyse the impact of land reform on the endowment with land and other capital, the use of capital and the access to markets and credits as well as the importance of agricultural employment for rural households. A logit analysis had been run in order to detect the determinants of poverty.

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Figure 1: Land reform strategies in transition countries ................................. 8 Figure 2: Change in agricultural employment 1990-1999 (in %) .................. 14 Figure 3: The determinants of disposable household income ........................ 51 Figure 4: Design and subjects of the questionnaire ........................................ 65 Figure 5: Sown areas (arable land) according to the farm structure in Georgia ........................................................................................ 85 Figure 6: Classification of holdings by total land area in Georgia (2004) ..... 86 Figure 7: Land tenure in Moldova (in % of total agricultural area) ............... 87 Figure 8: GAO, employment, and labour productivity (ALP) in Georgia ..... 89 Figure 9: GAO, employment, and labour productivity (ALP) in Moldova ... 89 Figure 10: Sown area to annual crops in Georgia (1990-2005) ....................... 91 Figure 11: Area sown to annual crops in Moldova (1999-2008) ..................... 91 Figure 12: HCI according to different national poverty lines in Georgia ........ 97 Figure 13: HCI according to different national poverty lines in Moldova ...... 98 Figure 14: HCI in Moldova, by area (1998-2005) ......................................... 100 Figure 15: HCI in Georgia, by area (1998-2005) ........................................... 102 Figure 16: Poverty, land and livestock ownership in Georgia ....................... 104 Figure 17: HCI according to employment status in Georgia ......................... 105 Figure 18: HCI according to employment status in Moldova ........................ 106 Figure 19: HCI according to the number of children in Georgia ................... 107 Figure 20: HCI according to the number of children in Moldova ................. 108 Figure 21: Ownership of machinery by the households (in % of households) ................................................................................... 125 Figure 22: Car ownership ............................................................................... 126 Figure 23: Commercial orientation of agricultural production (%) ............... 137 Figure 24: Use of complementary factors...

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