The Impact of Land Reform on Economic Development in Rural Kazakhstan

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PROJECT PROPOSAL.

Impact of Land Reform for Economic Development in Rural Kazakhstan.

The project proposal is sought in area of agricultural development with particular emphasis on  land reform. Economic transformation in Kazakhstan has brought changes in the agricultural production and economic of a rural area. The employment opportunities in rural area has been severely affected by continuing disintegration of economic relations between former republics of the Soviet Union and concomitant fall in production, as well as constraints on the ability to sell agricultural commodities on internal and external market. After restructuring and conducting privatization in agriculture the numbers of unemployed people have increased significantly and ability of state to help those people through public expenditure is very limited.

In 2003, Kazakhstan has introduced new Law on Land, which transformed land ownership, previously based on permanent and temporary land use right into private land ownership. The objectives of the reform is to establish efficient system in agricultural sectors, which will contribute to growth of agricultural production, people welfare in rural area and development of the land market. This Law on Land has revoked huge legal disputes and debates on the official levels, when this Law has been considered by Parliament of Republic of Kazakhstan and has passed public discussion. Also, the Law on Land has been discussed by public organization through media-mass. Now, when this Law on Land has been adopted by officials bodies of Kazakhstan some NGO have organized the movement for reconsidering this Law on Land and began to collection of necessary numbers of signature among people for abolition of this Law on Land through national voting.

Objectives

The objectives of the project are to review reforming land ownership, performed by adopted Law on Land; determine how introducing private land ownership will contribute to economic growth of the rural area and increase of agricultural production and people’s welfare; identify the rural population acceptance of this land reform and their desire, capacity and access to own with agricultural land; prepare alternative policy scenarios for reforming land ownership and explore these scenarios through depth economic and social analysis. The proposed analysis on this project will help identify further steps needed to ensure the sustainability and improve the performance of the appropriate land ownership.

The project aims are to review the experiences accumulated during the last six years of previously existed land use right in Kazakhstan, identify the weaknesses and peculiarities of the previous existed land ownership and provide improvement on the land legislation performance and policy recommendations contributing to economic development of rural area in Kazakhstan.

Procedure of the research fulfillment:

The research should be based on data provided by interviews with government officials as well as farmer, household and other surveys and independent research results. The evaluation of the previously existed land ownership and reforms will be performed primarily using certain methodology, which will be elaborated during the conducting research.

The research design of this project consists of qualitative and quantitative methodologies. The qualitative methodology will be based on interviews and meeting with farmers, government officials and representative of NGO, involved in social and agricultural issues. Focused on semi - structured face- to- face interviews will be used to assess impact of a land reform on economic development of a rural are and welfare of rural population. The quantitative techniques, such as survey questionnaires, would be used to collect other primary date.

The Project research will comprise the collection of a statistical data and other information, which will be available from relevant state agencies and governmental organizations. Also, it is supposed to conduct a field study for gathering more information for conducting social-economic analysis. It is necessary to conduct the field study in one or two rural areas, where small farms and farmers prevail in the region.

In order to make economic analysis it is supposed to make comparative analysis economic activity of farms and main economic indicators in chosen focus group in project area before introducing and after introducing private land ownership. As Law on Land has been adopted in June the result of 2003 year will be used for assessment of economic activity before introducing private land ownership and results of 2004 year will match to after introducing land ownership. On the basis of this interviews and analysis will be identified impact of the land reform on economic development of rural area, some existing policy gaps and some conclusion and relevant recommendation for future improvements and supportive measure of increasing rural people welfare.

Practical application of this research:

This importance of this project is stipulated by necessity to reform the agricultural sector in order to increase welfare of rural population and agricultural production, which will contribute to economic development of rural are. The research will be based on actual data, mostly those data will emphasize economic activities in rural area and matching land reform to needs of rural population, which is more poorest group of people in Kazakhstan. Project research also intends to identify barriers and obstacles, with which farmers face in their economic activity and determine how introducing private land ownership will help them.

The research component and policy recommendation for supportive measures should be submitted to relevant non-governmental organisations and governmental bodies (Minister of agriculture) and to other non-governmental organisations. It is supposed to organise round table with participation of representative of those above –mentioned organisation on problem of land ownership. This meeting may attract again the attention of the government and society to the problem of farmers and rural area and maybe it will contribute to some positive changes, which might be made by officials of Republic Kazakhstan.



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