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Halle, Germany

Leibniz Institute of Agricultural Development in Central and Eastern Europe is a research institute located in Halle , Germany. IAMO pursues basic and applied research in the field of agricultural economics. It analyses economic, social and political processes of change in the agricultural and food sector, and in rural areas. The geographic focus covers the enlarging EU, transition regions of Central, Eastern and South Eastern Europe, as well as Central and Eastern Asia. Wikipedia.

Wandel J.,Leibniz Institute of Agricultural Development in Central and Eastern Europe
Review of Austrian Economics | Year: 2011

The paper questions from an Austrian perspective the hypotheses that enjoy widespread support in mainstream economics that business groups are a symptom of imperfect competition and a threat to competition with negative impacts on social welfare. For this, an Austrian theoretical framework is developed and then applied to analyze the interaction of competition and business groups regarding the case of "agroholdings" in Russia. It is maintained that the orthodox literature does not adequately account for the characteristic features of competition in the real world, and therefore may lead to wrong normative conclusions on the relation between business groups and competition. It is argued that also in transition economies for competition to function as an entrepreneurial discovery process, no perfect markets are needed but only freedom to entry and property rights security. Then there is no pattern of action, which in and of itself is inconsistent with competition. Therefore, unless there is evidence for government support, business groups must principally be seen as the result of competitive entrepreneurial discoveries. It is further argued that the only real danger of business groups for competition does not come from their ability to raise non-legal barriers to entry, but from government protection. This may either result from successful lobbying of business groups or from the preference of government officials for this particular form of business organization. Case studies evidence from business groups in Russia's agro-food sector illustrates these arguments. © 2011 Springer Science+Business Media, LLC.

Bobojonov I.,Leibniz Institute of Agricultural Development in Central and Eastern Europe | Aw-Hassan A.,Economic and Policy Research Program
Agriculture, Ecosystems and Environment | Year: 2014

Increased risk due to global warming has already become embedded in agricultural decision making in Central Asia and uncertainties are projected to increase even further. Agro-ecology and economies of Central Asia are heterogenous and very little is known about the impact of climate change at the sub-national levels. The bio-economic farm model (BEFM) is used for ex ante assessment of climate change impacts at sub-national levels in Central Asia. The BEFM is calibrated to 10 farming systems in Central Asia based on the household survey and crop growth experiment data. The production uncertainties and the adaptation options of agricultural producers to changing environments are considered paramount in the simulations.Very large differences in climate change impacts across the studied farming systems are found. The positive income gains in large-scale commercial farms in the northern regions of Kazakhstan and negative impact in small-scale farms in arid zones of Tajikistan are likely to happen. Producers in Kyrgyzstan may expect higher revenues but also higher income volatilities in the future. Agricultural producers in Uzbekistan may benefit in the near future but may lose their income in the distant future. The negative impacts could be further aggravated in arid zones of Central Asia if irrigation water availability decline due to climate change and water demand increase in upstream regions. The scenario simulations show that market liberalization and improved commodity exchange between the countries have very good potential to cope with the negative consequences of climate change. © 2014 The Authors.

Petrick M.,Leibniz Institute of Agricultural Development in Central and Eastern Europe
European Review of Agricultural Economics | Year: 2013

This article contributes to the understanding of neo-endogenous rural development from the perspective of evolutionary game theory. Rural development is modelled as the increasing realisation over time of gains from interaction by rural stakeholders. The model exhibits two dynamically stable equilibria, which depict declining and prospering regions. An external government authority stimulates neo-endogenous rural development by helping decentralised actors to coordinate on the superior of the two equilibria. This intervention may be possible and desirable without giving up the autonomy of local decision-makers. Because initial conditions matter, outcomes cannot be planned or engineered from the outside. © 2013 Oxford University Press and Foundation for the European Review of Agricultural Economics. All rights reserved.

Theesfeld I.,Leibniz Institute of Agricultural Development in Central and Eastern Europe
Water Alternatives | Year: 2011

This paper discusses various concepts of power. Its goal is to shed light on a better method for implementing the power concept. The case of Bulgaria's water user associations' failure shows the abuse of power by local actors who fear they will lose their influence and the private benefits that they have enjoyed under the former system. The paper provides an empirical study of power resources verified by actors' perceptions rather than having resource endowments quantified. It also illustrates the contrast between empirically revealed perceived power resources in a local context and their theoretical examination in the distributional theory of institutional change. Studies that set power resources in relation to one another are scarce. Therefore, in this study an innovative, interactive method is used that leads to a ranking of perceived power resources, which is robust against the impact of belonging to different territorial, social, and agricultural producer groups: 1) unrestricted access to information, 2) personal relationships, 3) trustworthiness, 4) cash resources for bribing, 5) menace, and 6) physical power and violence. The implication of this gradation of power resources on collective action solutions addresses complementary measures to disseminate information and compensation measures for those who fear losing their benefits and may therefore oppose the new institutions.

Valentinov V.,Leibniz Institute of Agricultural Development in Central and Eastern Europe
Ecological Economics | Year: 2014

In developing his famous theory of social costs, K. William Kapp claimed to draw inspiration from the theory of open systems. The present paper reconstructs the notion of social costs from the perspective of the Luhmannian theory of autopoietic social systems, an alternative systems-theoretic paradigm. According to Luhmann, these systems build up their internal complexity at the cost of lowering their sensitivity to the complexity of their environment, both societal and ecological. From the Luhmannian perspective, social costs can be understood as those segments of environmental feedback that are thus ignored by social systems. This perspective is not only consistent with Kapp's own vision of social costs as a systematic outcome of private business enterprise, but also even more radical as it traces these costs back to the regime of functional differentiation of society, and thus to human civilization generally. It follows from the Luhmannian perspective that social costs can be reduced by improving the coordination between the individual functional systems, such as economy, law, politics, and science. © 2013 Elsevier B.V.

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