Zin.publikācijasThe Development of Privatization in Latvian AgricultureRoberts Zīle, Latvijas Valsts agrārās ekonomikas institūts (LVAEI)
10.10.1993 Abstract The two most important laws regulating land reform and land privatization in rural areas provide the legal basis for changes in land ownership and management. These laws were the starting point for reestablishing private farming. At the same time, the previous highly centralized management of agricultural production assets required that action be taken to decentralize these assets through privatization. The primary guidelines for privatizing these assets were provided in the Law on Land Privatization in Rural Areas. The law provided for a large degree of flexibility in the design and implementation of privatization at the enterprise level. There need be certain structural adjustments in upstream industries supplying agriculture with main inputs and downstream industries processing and marketing agricultural products. Recently the Latvian Parliament passed the Law on Privatization of Food Processing and Agro-service Enterprises. Asset privatization began in 1993 and is moving rapidly. It will undoubtedly show shortcomings and advantages of various approaches used by different industries. The purpose of this paper is to explain the legal framework for agricultural and food industry privatization, as well as to present two examples of privatization. #### Oriģinālais lasāmais formāts pievienots PDF failā. The Development of Privatization in Latvian Agriculture Roberts Zile October 1993 Report 93-BR 14 Latvian State Institute of Agrarian Economics Riga, Latvia Center for Agricultural and Rural Development
The Development of Privatization Report 93-BR 14
Latvian State Institute of Agrarian Economics and Center for Agricultural and Rural Development Roberts Zile is head of the Privatization Department, Latvian State Institute of Agrarian Economics, Riga. The Latvian State Institute of Agrarian Economics is collaborating with CARD at Iowa State University on studies related to the privatization and development of agriculture and related industries in the Baltic countries. The contents of this paper may be cited with proper credit to the author, to the Latvian State Institute of Agrarian Economics, and to the Center for Agricultural and Rural Development, Iowa State University.
CONTENTS Figures .......................................................................................................................................... iv Tables .............................................................................................................. iv Legal Aspects of Agricultural Land Reform ..................................................................................... 1 Legislation Regulating Privatization of Food Processing and Agro-service Enterprises ................................................................................................................. 3 Development of the Privatization of Joint-Stock and Limited Liability Companies in 1992 .............................................................................................. 3 Privatization of the Ilzene Shareholding Company ........................................................................... 8 Privatization of the Skanaiskalns Limited Liability Company ...................................................... 10 Conclusions and Recommendations .............................................................................................. 14 Summary ....................................................................................................................................... 16 Data Sources .................................................................................................................................. 17
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THE DEVELOPMENT OF PRIVATIZATION IN LATVIAN AGRICULTURE Editor's note: This paper continues Baltic Report 92-BR 5 Changing Ownership in Latvia through Agrarian Reform, September 1992, also by Roberts Zile. In-depth discussion of the privatization mechanisms and Latvian laws relating to privatization are provided in that report. The two most important laws regulating land reform and land privatization in rural areas provide the legal basis for changes in land ownership and management. These laws were the starting point for reestablishing private farming. At the same time, the previous highly centralized management of agricultural production assets required that action be taken to decentralize these assets through privatization. The primary guidelines for privatizing these assets were provided in the Law on Land Privatization in Rural Areas. The law provided for a large degree of flexibility in the design and implementation of privatization at the enterprise level. There need to be certain structural adjustments in upstream industries supplying agriculture with main inputs and downstream industries processing and marketing agricultural products. Recently the Latvian Parliament passed the Law on Privatization of Food Processing and Agroservice Enterprises. Asset privatization began in 1993 and is moving rapidly. It will undoubtedly show shortcomings and advantages of various approaches used by different industries. The purpose of this paper is to explain the legal framework for agricultural and food industry privatization, as well as to present two examples of privatization in Latvia. Legal Aspects of Agricultural Land Reform On July 9, 1992, a Law on Land Privatization in Rural Areas was passed. It was a logical follow-up to the Law on Land Reform, adopted on November 21, 1990. This earlier law contained regulations to gradually restructure the legal, social, and economic relations in the countryside related to land use and ownership. It established the procedure for implementing land reform by defining the provisions for submitting land claims and how to comply with them, as well as creating regulations for restoring landowner rights. The Law on Land Privatization in Rural Areas states that former landowners had the right to their landed estates if they submitted their applications before June 20, 1991. However, there were
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