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Ukraine: Agricultural and
Rural Investment Strategy
Second Draft June 2005
Review Workshop
Kiev, 29 June 2005
What is the ARIS

a strategic paper highlighting priority
areas for investment in agriculture and
rural development: public goods and how to
attract private investment

own by the Government and reflecting its
priorities;

Builds on the Agricultural Sector Review and
Concretize its main recommendations;

Still a First Draft which needs to be discussed
and complemented by Consultations with
Stakeholders
Livelihood in Rural Areas
Agricultural GDP was halved since independence
2.4 million jobs were lost, one third of labour force
predominance of subsistence farming;
Widespread Poverty
Lack of Perspective
Deteriorating Living Conditions
What Happened ?
Rural Life was
organized by and Around
Collective and State
Farms;
When they were
dismantled, no new
system replaced them
Decreased Support and
Investment in
Agriculture;
Rural Infrastructure not
Taken care of
»
Conditions for
the emergence of a
viable agricultural
sector not all met
Lack of Economic
and employment
opportunities
Deteriorating
living conditions
ARIS: Three components
Support a viable
agricultural
sector
 Develop
off-farm
employment and
rural businesses
Maintain and Improve
Rural Infrastructure and
Services
I. Support a Viable Agricultural Sector 1 / 2
Ask Key Strategic Questions




Agree on a Stable
Long Term
Agricultural Policy
Objectives, roles of
agriculture;
Build Local Capacities
to Analyze, Design
and Implement it;
Ensure appropriate
Funds (budget and
other Funds)




What type of
agriculture should
be promoted /
supported
Family-based vs.
enterprises
Big vs. small farms
Economic vs. social
efficiency
I. Support a Viable Agricultural Sector 2 / 2
Develop Adapted and Sustainable Agricultural Services

Complete
Farm
Restructuring

Develop Adapted
Advisory Services
• Develop Adaptive
Research and Updated
Education
 Ensure
Access to
Markets
 Ensure Access to Rural Finance
II. Create Off-Farm Employment
and Rural Businesses



Opportunities for
Private Rural
Businesses
Upstream and
Downstream of
Agricultural Sector:
input supply,
marketing,
processing
Economic and Social
Services





Pro- Active
Development to
Assist the
Development of
these Businesses
Information Campaigns
Technical Support to
Business Development
Business Plans
Access to Markets and
Rural Finance
III. Maintain Good Rural Infrastructure Services
to Fight Rural Poverty and Enable rural economic development

Rationalize the nature and Coverage
and Target the Interventions
• Set the Mechanisms for
Local Management, priority
setting and Partnerships

Rehabilitation, Improvement and
Development of Rural Infrastructure
Thank you – Questions?