Post-Soviet Transformations in Russian Rural Areas: The Role of Institutions

Abstract

This article examines the role played by institutions in the post-Soviet transformation of rural areas of Russia and the development of agriculture. It is shown that the main goal of transformations—the transition to market relations—has been achieved. The relevance of the article lies in the analysis of the process of incomplete institutional transfer, unique on a global scale: the transition from full state ownership and state regulation to market relations was replaced by the dominance of large forms of business organization with prevailing governmental control. The article aims to study the impact of institutional reforms on the structure and dynamics of market agents in rural areas of Russia from 1990 to 2020. Institutional, statistical and sociological methods were applied. Materials from 59 expert interviews were used. The informants represented the categories “public” and “business” of three different agricultural territories. Statistical data and official reports of agricultural holdings were analyzed. Changes in the structure of land ownership and other production factors were considered. The historical stages of the institutional dynamics of agriculture are shown. It is proved that the emergence of a class of owners in agriculture was the main result of institutional changes in Russia; the formation of many institutions for the support and development of agriculture and rural areas is also significant. The observed obstacles to the growth of the segment of small and medium-sized businesses are due to the incomplete legitimacy of the ongoing processes, the strong volatility of the regulatory framework and insufficient transparency of state support. In Russia, after 1990, the total area of agricultural land decreased and was consolidated by large owners—Agricultural holdings. By 2020, the estimated share of agricultural holdings in revenue was 31% for crop production, 37% for livestock, and 70% for meat. Experts noted the excessive dependence of market actors on state support and the deepening of social inequality.