Agriculture and Trade in the Northeast Asian Socialist Countries in Transition: A Comparative View

Abstract

The most notable phenomenon in global agriculture in the latter half of the 20th century is the coexistence of starvation and satiation. Advanced market economies faced a problem of overproduction, while less developed countries suffered from low productivity and food shortages. Advanced market economies have tried to resolve the problem of overporduction and financial burden caused by subsidies through freer international trade. The Uruguay Round trade negotiations reflected the need and, in the end, the World Trade Organization system emerged. The impact of the Uruguay Round agreement on the world agricultural production and trade will be immense. On the other hand, the socialist economies appeared as a large grain importer in the world market since the 1970s. Lack of motivation for higher productivity and the remains of the "command economy" are key factors for their low agricultural production. However, fundamental changes have also been occurring in socialist economies. The change is from the traditional centrally-planned economy toward a market system. In this process, collective and state farms are being dismantled, and direct control in food marketing is diminishing. These changes would significantly influence the world economy.