Free land market or the economy will pull out, or kill?

08.05.2011 19:54
Articles about real estate | Free land market or the economy will pull out, or kill? Formation of a free market for agricultural land will facilitate investments in agro-industrial complex of Ukraine.

As UNIAN correspondent, expressed his opinion, senior manager of projects the Foundation for Effective Governance "Andrew LOBACH today in the debate" Free market of land - a threat to Ukrainian village ", organized by the Foundation for Effective Governance" (Kiev, Ukraine) and the company «Intelligence Squared» ( London, UK).

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"The lack of agricultural land market makes it impossible to realize the enormous potential that is in agriculture", - he said.

According to A. Lobach, a moratorium on the sale of agricultural land is blokatrom, preventing fundraising in the agricultural sector, because land can not be used as collateral to raise bank lending.

He also noted that the company's arable land on the Rights of the short-term rentals are not interested to invest in the provision of soil fertility.

During the debate, proponents of the view that the free market for land is a threat to Ukrainian village, said that today Ukraine is not ready for the introduction of a land market.

"I think that the main tasks of the Ukrainian government - get rid of corruption and to develop clear and predictable policies that regulate the land market and agricultural exports. Should not be particularly expect that lifting the moratorium would save small farmers. There is also no reason to radically change the current structure of farm management, better to do it gradually, "- said the director of the Research Institute of Agricultural Economics, Professor University of Debrecen (Hungary), Josef Popp.

In turn, the head of OAO Gladkivschinskoe grain-enterprise "Laura RUBCHENKO said that agricultural development is hampered not the absence of a land market, and such problems as high prices for herbicides, fertilizers, fuels and lubricants, the lack of real stable prices for agricultural products, as well as the lack of an effective grain market since December 2010.

"I believe that society is a fundamental solution to two issues - securing land for the efficient and equitable use of the owners of rent - a huge financial resource that will either contribute to the development of the country's economy or its destabilizing", - said the representative of the farmers.

The head of OAO Gladkivschinskoe HSP has also criticized the bill on the land market. " In her opinion, it lays down conditions for the monopolization of land state operator - State Fund, which is unlikely to significantly improve the financial condition of the agricultural sector, but corruption component will increase even more.

However, participants in the debate - the opponents of the thesis that lifting the moratorium on land sales would lead to a deterioration of the Ukrainian village, believe that all problems of the agricultural sector are connected with the lack of free land market.

"The lack of an open market as a once and allows you to buy the land for a pittance. For a simple reason - the owners have no choice. In turn, the open land market will open for its owners the opportunity to raise funds through the institution of bail ", - the former First Deputy Prime Minister, former Minister of Finance Victor PYNZENYK.

In his view, the lack of a transparent land market is also a cause of corruption in this sphere.

"Remember the scandals of recent years about the bribes to the ground. On the open market it is impossible. Try to have someone to buy one dollar for one hryvnia. And the land market after the lifting of the moratorium will eliminate the need bear the "handouts" to buy or sell land, "- said V. PYNZENYK.

Company President Agri-Ukraine », ATS Ukraine, a group of« Linen of Desna »(Ukraine-France), Michel Tereshchenko, added that the land market - a way to attract investors in the agricultural sector in Ukraine and to provide secure property rights to land plots.

"Following the lifting of the moratorium five million Ukrainian farmers will have direct access to capital, or at least credible assurances necessary to obtain micro credit for the purchase of machinery and equipment. All this will support and strengthen the integrity and attractiveness of Ukrainian villages, and allow to develop agriculture in Ukraine, which even under current conditions is profitable "- he said.

*** Debate "Free market of land - a threat to Ukrainian village" - for the thirteenth public debate in the Oxford Union. " Organizers of the event - Foundation for Effective Governance "and the British company Intelligence Squared. During 2009 and 2010. Foundation conducted a series of debates (https://debaty.org), dedicated to reforming the Ukrainian economy. In particular, discussed such topics as the market of agricultural land, tax reform, relations between Ukraine and Russia, the competitiveness of the higher education system, the feasibility of establishing special economic zones, development of innovation and new technologies and the prospects for tourism development.

Help UNIAN. Foundation for Effective Governance »(www.feg.org.ua) is an initiative of businessman and politician (MP BP of the Party of Regions), Rinat Akhmetov, in 2007 to develop and implement projects and programs aimed at long-term development of the Ukrainian economy. To meet these challenges, the Foundation attracts the leading national and international experts with an impeccable reputation. Independence ensures the Foundation Advisory Board, which includes prominent politicians and public figures from different countries with unique experience and impeccable reputation.

Among them are former Canadian Prime Minister Kim Campbell, former president of the National Bank of Hungary Georgie Shuranov, Managing Director of Ukrainian office of the international investment bank Morgan Stanley, Igor Mityukov. International Advisory Board participates in the formation of the Foundation's strategy, helping to select and approve projects, evaluates performance of the Fund and represents the Foundation in Ukraine and abroad.

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