Abstract
The debate continues over the manner in which governments should intervene in agricultural markets in the CEECs. The socialist inheritance and the example of Western nations favor the adoption of commodity-specific programs designed to meet goals of production, consumption and trade. We recommend that governments avoid taking this route, and instead concentrate on broad, economy-wide measures that are neutral toward agriculture. In countries where agriculture is selected for additional support, we suggest credit subsidies. These should take the form of government guarantees of a portion of collateral for short and medium term loans. This form of subsidy is preferred to the more commonly used interest rate subsidy.
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Karp, L., Stefanou, S. (1994). Credit Subsidies to Support Agriculture. In: Schmitz, A., Moulton, K., Buckwell, A., Davidova, S. (eds) Privatization of Agriculture in New Market Economies: Lessons from Bulgaria. Natural Resource Management and Policy, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1388-5_18
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DOI: https://doi.org/10.1007/978-94-011-1388-5_18
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