Formation and failure of market relations in the agriculture of post-communist Russia

This projects wants to contribute to an explanation of the economic stagnation in Russian agriculture, by focussing on the persistence of enterprise networks. It postulates that these old networks represent a negative form of social capital,because enterprises within these networks are constrained in their freedom and external firms are excluded. The research will investigate the consequences of the persistence of these networks for the firms within these networks (mainly former state enterprises) and firms outside this old networks (mainly new firms, like farms and small procurement firms), directing attention to the agricultural producers. To test the afore mentioned hypothesis the project will compare the networks of producers in distress with those of succesful producers. To answer the question to what extent these networks will (continue to ) form an obstacle for change, subsequently the project aims at examining which factors influence the persistence or collapse of these networks. Barter and contacts with the government merit special attention, because they are considered potentially reinforcing factors.