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The status of Russian law relating to private ownership 

 of real property is one good example of the problem. In 

 Russia an individual may "own" land, but ownership means 

 lifetime use of property and the power to pass such use 

 to heirs. The power to buy and sell is severely 

 restricted and the subject of continuing debate. The 

 power to rent, mortgage and foreclose has not yet been 

 seriously addressed. 



However, it should be noted that many agreements are made 

 between private parties on all such matters without the 

 benefit of laws. The hope is that some day law will 

 catch up with reality. Obviously risks are high. 



Banks And Credit 



The almost total absence of a "real" system of banking 

 and credit poses serious problenis. Typically, the new 

 private farmer has only one major asset, his land. He 

 must borrow for buildings, equipment, livestock, and 

 operating capital. Only a fortunate few can obtain the 

 necessary credit. There are a number of practical 

 obstacles to correcting this situation. They include the 

 following: 



