assume youre advising the newly formed russian


Assume you're advising the newly formed Russian government (formerly the Russian SSR) in 1991 regarding their policy toward State and Collective Farms in agriculture, which were both very large individually, with State Farms (Sovkhozy) being much larger, with thousands of workers, machine-tractor stations, etc.. Both types of organizations had grown unwieldy and inefficient and received various government subsidies. Construct a program that you could recommend to the government for privatizing these farms, which would immediately lower the incomes of the subsidized farmers, without creating a political disaster. Is there a way in which a plan could provide incentives to the Farm members that would have a good chance of raising productivity and lead to increased agricultural output while at the same time eliminating subsidies?

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Macroeconomics: assume youre advising the newly formed russian
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