Opening of land market to allow Ukraine to accelerate economic growth by 0.5-1.5% of GDP a year in next five years – World Bank
The opening of the land market would allow Ukraine to speed up economic growth by 0.5-1.5% of GDP a year in the next five years, Lead Economist and Program Leader covering Belarus, Moldova and Ukraine Faruk Khan has said.
"Creating a transparent and efficient land market would contribute to economic growth of up to 0.5-1.5% of GDP in the next five years, depending on the reform scenario and additional strategies. The main channel of influence on the growth process would be an increase in the number of producers of goods with larger added value, he said at a press conference in Kyiv on Tuesday.
At the same time, he said that Ukraine should create safeguard mechanisms to ensure transparency of the market and prevent its monopolization, provide access to financing for small farms, and also create monitoring systems for the progress of land market reform in order to avoid criminal actions.
World Bank experts back the decision of the government to change the direction of budgetary subsidies in the agricultural sector – from large producers to small farmers. Government subsidies for farmers should be narrowly targeted and designed in such a way as to stimulate increased productivity, expansion of products with higher added value and the use of new technologies. At the same time, international experience shows that support should be given to farms with land parcels of up to 500 hectares, which are most limited in lending opportunities.