A host of complex problems arises when a socialist economy shifts to a market economy and especially when the two economies integrate. Thus, what needs to be done first is to draw predictable problems in each sector of the economy and conduct basic research to prepare for the problems.
The major research topics of this study in preparation for economic integration in the agricultural field are as follows: first, a basic research to restructure the agriculture of a socialist economy into a structure of new market economy; second, a basic research on liberalization of distribution and price of agricultural products; and third, a basic research on building a new governance for agricultural policy.
The restructuring of agriculture during the transition encompasses a wide range of issues to be considered. First, state and cooperative farms are privatized and a variety of management forms will emerge in the process. Second, the means of agricultural production are privatized concurrently with the change in farm management type. Third, policy support is needed during change of management type and privatization of farms to secure competitiveness.
This study focuses on privatization in the agricultural sector and restructuring of agricultural management in eastern Germany after socialism. Farmland privatization is an important issue not only in that it meets the basic requirements of a market economy with respect to exercise of property rights legally and systemically, but also in that the direction and method of the privatization will determine the new management structure of agriculture.
The selection of a privatization method is linked with the direction of management restructuring. Therefore, privatization and management restructuring can not be discussed without either one of them.
Liberalization of distribution and price is essential in transforming the agriculture of eastern Germany into a market economy, and it has the most impact on agriculture during the transition. Studies on this topic should focus on various aspects of rapid price liberalization and its impact on agricultural enterprises. With respect to the distribution sector, basic research is needed on building an efficient distribution system and facilities.
The backwardness in the administration of agricultural policy can prevent speedy transition and integration of agriculture. Therefore, it is very important to build an efficient policy governance system in the process of economic integration. Here too, it is necessary to study the unification process of Germany.


Researchers: Young-Hoon Kim; Tae-jin Kwon, Min-Jee Nam, Kyung-Ryang Kim and Youn-Sang Choi
E-mail address: kyhoon@krei.re.kr