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STATSMENT. S. R. Johocon Page 6 



Honie Subcomioee « " Pnneigp ^frimita r^ tad Hnnaer March 31. 1993 



viable con^onenu of the agricultural aystein thnn^ a period of severe finanrial teres*. 



• Many of the instmrnona neoeaaary for the efficient functioning of «"«*l'*«' synems are not 

 now in place in Rusaia and the other staua of the FSU. Market information tyatemt, 

 grading and standards, enforceable and futures contracta for maHcet stabalizadon and 

 consistent supplies of raw marfriah and oonunodities, wholesale marki** credit and 

 banking service and legal service are ocamples. There is a clear role for government in 

 fftaKliAing aod maintaining these institutions. Technical awisrance to government 

 miniscries and agencies and even finanrial s\9pon tor starting these institutions on a pilot 

 baaisis needed. 



• Environmental problems associated with agriculture are critical in Rossia and in the other 

 states of the FSU. There is a maior opportunity to deal with environmcm and food safety 

 during the process of the reform. Analysis of environmental policies to accon^>any the 

 market reforms and atriiranrf with inq>lementation could contribute significantly to the 

 sustauiability of agriculture in the FSU and to the safety of the food supply. 



• Added follow-up should better s«4>poft the commercial eSoits of the U.S. firms 

 partiriparing in the Agribusiness Centers. Knowlei^ of Russian and Ukrainian kw and 

 administrative procedures and atiisranff with the rules and oonoq>u uativl in »«r«ki;«ti;Hg 

 joint ventures are <acamples. Added preparatory work for the training scstions could make 

 participation by U.S. firms more e£Eective as weO. 



• Finally, there appears to be a great deal of bureaucratic turf managemem associated with 

 U.S. assistance to the FSU. In many cases, this makes it nearly impossible for those 

 institutions that do not reside near the Bdtway to participate in providing the services for 

 the reform and in the reform itself, dear definition of technical asastaooe and other 

 support programs and assignment of ^—^^"'■^ responsibility in the federal boieancracy 

 could broaden U.S. participation in the reform e£fort and would improve the quality of 

 the support we provide. 



The 1993 Pro g r am 



Our Agribusiness Centers in Russia and Ukraine will respond to a number of these 

 leoommendaiions in 1993. Specifically, we wiU 



• Coneenxraie more on food processing and distribution than in die initial yoar of 

 operation. 



• Sroaden the training pr ogr am to include more qrpes of praetitioiier programs, and to 



