Institutional traps of the land reform in the aspect of market turnover of agriculturally used areas
Year: 2022
Type: article
Abstract: The objective necessity of institutional support of the land reform in Ukraine in the aspect of market turnover of agriculturally used areas (AUA) is revealed. It is emphasized that during the reform the institutions that bring negative results have apeared. These institutions form institutional traps, such as: imbalance of normative and market prices for land; growth of speculative operations with land; inequality of the priority right to purchase leased land; inequality of access to credit resources for land purchase; legalization of undeclared assets and «laundering of dirty money»; monopolization of the land market and increase in land prices. It is emphasized that in order to exit from these institutional traps it is necessary that: 1) the market price of land by January 1, 2030 should be not less than the normative monetary value, which, in addition, should be regularly updated by the specialists of the State Geocadastre; 2) the low initial price of land should not become a subject for speculation, and should be faciliated by electronic auctions for sale and simplification of the procedure of state registration of land plots; 3) the transaction on the market of AU should be monitored or even directly conducted by the authorized body; 4) while selling municipal and state lands, particularly through electronic auctions, farms and agricultural holdings should be in equal conditions; 5) equal access to credit resources should be provided to all participants of the land market, conditions for the participation of farmers in the state program «Affordable loans 5–7–9%» should be simplified and they shoul be provided with the access to the Fund for partial guarantee of loans in agriculture, and in the future – to loans of the State Land Bank, which is to be organized; 6) sources of funds origin for AUA purchase, exclusively in cashless form should be documentary approved, and measures and standards of the International Group on Combating Dirty Money Laundering (FATF) should be implemented; 7) regulation of AUA concentration level in the hands of one owner, including at the regional and local level should be introduced, here the Antimonopoly Committee of Ukraine should play an important role; 8) possible increase in prices for agricultural products should additionally be regulated by institutions in the field of consumption. It is concluded that all these measures should create the necessary basis for the exit from the institutional traps at the lowest cost.
Source: Galician economic journal
Author: Z. Zakharchenko
Institution: Vinnytsia National Agrarian University
Language: English
Topic: Land Use and Management
Subfield: Geography, Planning and Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4226089128