Deputy chief of president's administration Alexander Abramov, 2nd left, President Vladimir Putin, center, 1st Vice Premier Dmitry Medvedev, 2nd right, visit a farm in Zorinsk Dvory village.
Photo: Dmitry Azarov
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Developed Nations Gradually Withdraw from the Village
The reduction in the state subsidies for agricultural producers has turned into a global trend already. The state support for agriculture in the OECD states averaged a bit more than 1 percent of GDP in 2004 through 2006 instead of 2.5 percent in 1986 through 1988.
Partially, the reduction in the state support could be attributed to declining share of the agriculture in economies of developed countries. If the state subsidies averaged 38 percent of all revenues of the farmers in OECD states in 1986 through 1988, the amount slid to 29 percent in 2004 through 2006 and was 27 percent in 2006.
But Turkey stands somewhat apart with its widening share of state support in the farmers’ revenues. But the share of agriculture in GDP suffered the decline even there. When comparing the countries worldwide, the difference in the extent of the state support is shocking. In Japan, for instance, it accounts for 55 percent of farmers’ revenues, and Korea, Norway and Island have two-thirds. At the same time, the farmers get next to nothing from the government in New Zealand and Australia and don’t appear particularly agitated about the lack of support, pressing for liberalization of global food market.
Russia hasn’t joined the OECD yet, and the report sets forth no data about our country. But the issue was raised during the WTO negotiations. Here, the government appropriates roughly $3 billion to agriculture and the chances are to agree on $5 billion, though Russia’s Agriculture Ministry presses for $9 billion a year. But even the last figure is less than 1 percent of the GDP, i.e. it is less than in the biggest food producers. Australia spends 0.23 percent of GDP to bolster this business, New Zealand has 0.26 percent, Canada – 0.79 percent, the United States – 0.81 percent.
www.kommersant.com
All the Article in Russian as of Oct. 24, 2007
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