Institutional foundations of subsistence agriculture in transition economies

The paper considers the problem of subsistence and semi-subsistence farming in Central and Easter Europe. The latter is analysed in terms of the institutional characteristics of the transition process. The concepts of institutions and institutional change are clarified and subsistence agriculture is derived as a natural consequence from the process of economic transition. The process of shortening which gives rise to subsistence agriculture is described. It is demonstrated to have economy-wide effects, and in the domain of agriculture these effects lead the emergence of subsistence behavioural patterns. The policy implications of the proposed view of subsistence agriculture are briefly reviewed and some policy recommendations derived.