Table of Contents | Foreword & Overview | III. Ex Post and Ex Ante Transition

In principle, collectivization was based on sharing and self-reliance. However, the farms were centrally planned and administered by a hierarchy of orders and decrees that trickled down from a central committee at the national level to regional, provincial, district, village and community representatives. The central authorities determined technology transfer, pricing policies, the settlement of financial matters and the marketing of products. For example, research results were delivered to the collective workers as instructions to be followed without dispute, and demand-driven extension as practised in competitive market economy systems did not exist.

The collective farms (or cooperative farms in some countries) were different from the state farms in many aspects. Whereas the cooperative farms were larger in size and labour-extensive, and provided for a diverse body of social, cultural and service needs such as clinics, schools and housing, the state farms were smaller in size and were focused on the production of specialized commodities such as dairy products, fish from hatcheries, pig fattening, feed mills, wool processing and marketing facilities. The cooperatives were normally run by members who shared the product, while the staff of the state farms were normally salaried workers with no direct access to or full stake in the production system or its benefits or liabilities (see Box 1: Examples of collective/state farms under the command economy).

2.1 Livestock production under the command economy

Grain production was the primary activity in most collective and state farms, including the traditionally herding provinces of China following the 'Great Leap Forward' movement, as mentioned above. In most countries the emphasis in livestock rearing was on the production of high-quality wool for export and cheap meat and dairy products for local consumption. Livestock production was integrated in crop production under settled farming, and the number of animals increased with an increase in crop production.

For example, before central planning, livestock production in Kyrgyzstan was based on the extensive grazing of sheep and horses on natural vegetation. Under settlement (see Box 1), the contribution of grain supplements and crop residues to animal feed surpassed that of the range (Table 1). As a consequence, the number of small ruminants increased sharply, until the peak of 10.4 million head of sheep and goats was reached in 1989, according to IFAD and World Bank estimates. The increase in livestock numbers was above the carrying capacity of the rangelands, a factor that caused significant deterioration in the quality of the natural vegetation.

Table 1: Livestock diet composition (%) by feed category in Kyrgyzstan

ource: Norblom et al. (1997).

The situation in Mongolia was different. The collectivization, which started in the 1940s, was gradual and was based on the establishment of Negdels (agricultural cooperatives, but mainly involved in animal husbandry) distributed according to the geographic boundaries of the districts (sums). Furthermore, the Negdels were grouped under agro-ecological zones (Table 2) and were designed to reflect the interests of the long-standing traditions of the herding community, which is the vast majority of the population in Mongolia. Livestock was herded and managed by very specialized (herders, feeders, breeders, wool shearers, etc.) and experienced families within each cooperative. In addition, a limited number of stock was allowed for private ownership, thus keeping the traditional husbandry and herd management capacities intact among the majority of the cooperative workers.

Table 2: Mongolia - Pastoral land use by Negdels

Source: Food and Agriculture Organization of the United Nations (FAO) (1992).

The Negdels maintained the well organized, long-standing tradition of the seasonal mobility of livestock during the command economy and kept excellent statistical records and resource (vegetation and livestock) inventories. Contingency plans against drought and very cold weather (Dzud) were assured by emergency fodder funds. In addition, the Negdels used to insure livestock against mortality due to illness and severe climate. In contrast to the collectives in Eastern Europe and Central Asia, the Mongolian Negdels preserved grazing resources from degradation and overuse until, ironically, the balance was disturbed during the transitional period of decollectivization and the transformation to the market economy.

Next

Table of Contents | Foreword & Overview | III. Ex Post and Ex Ante Transition