| Economic incentives in Kazakhstan have been radically reshaped since the Soviet era ended in 1991. In the first phase of transition, the economy and agricultural sectors declined by 40-50%. Overall economic growth refused in 1996, and agriculture is likely to enter a recovery phase soon. The economy of Kazakhstan is undergoing rapid structural change, and agriculture is experiencing strong inter-sectoral competition. The change to market-oriented and commercially-driven agriculture has altered fundamentally the incentives faced by Kazakhstan's wheat farmers. They have reduced use of inputs sharply because of the need to pay market prices for fertilizer, fuel, and other inputs, while severely curtailing investment in machinery and their farms generally.... |
