67 Delhi Business Review X Vol. 12, No. 2 (July - December 2011) THE IMP THE IMP THE IMP THE IMP THE IMPACT OF THE GLOB CT OF THE GLOB CT OF THE GLOB CT OF THE GLOB CT OF THE GLOBAL FIN AL FIN AL FIN AL FIN AL FINANCIAL AND ANCIAL AND ANCIAL AND ANCIAL AND ANCIAL AND ECONOMIC CRISIS ON THE AGRO ECONOMIC CRISIS ON THE AGRO ECONOMIC CRISIS ON THE AGRO ECONOMIC CRISIS ON THE AGRO ECONOMIC CRISIS ON THE AGRO- FOOD SECTOR OF FOOD SECTOR OF FOOD SECTOR OF FOOD SECTOR OF FOOD SECTOR OF CENTRAL AND EASTERN EUROPEAN AND CENTRAL CENTRAL AND EASTERN EUROPEAN AND CENTRAL CENTRAL AND EASTERN EUROPEAN AND CENTRAL CENTRAL AND EASTERN EUROPEAN AND CENTRAL CENTRAL AND EASTERN EUROPEAN AND CENTRAL ASIAN COUNTRIES ASIAN COUNTRIES ASIAN COUNTRIES ASIAN COUNTRIES ASIAN COUNTRIES J. Popp . Popp . Popp . Popp . Popp 1 , N N N N N. Potori . Potori . Potori . Potori . Potori 2 , R.G R.G R.G R.G R.G. Gara . Gara . Gara . Gara . Garay 3 Erika Dobo Erika Dobo Erika Dobo Erika Dobo Erika Dobo 4 , Mahesh K Mahesh K Mahesh K Mahesh K Mahesh Kumar Sin umar Sin umar Sin umar Sin umar Singh gh gh gh gh 5 , and and and and and Aja Aja Aja Aja Ajay K y K y K y K y Kumar Sin umar Sin umar Sin umar Sin umar Singh gh gh gh gh 6 HIS paper assesses the impacts of the global financial and economic crisis on the agro-food sector of Central and Eastern European, Caucasus and Central Asian countries on the basis of research conducted in Hungary, Ukraine, Armenia and Kyrgyzstan. It summarises the results of a study of which the objective was to propose policy options to the Food and Agriculture Organisation of the United Nations and other public authorities which can be applied to lessen the undesirable effects of the current or future crises in the sector. Results of interviews of stakeholders were analysed in the context of primary economic data and policy recommendations were formulated. Key Words: Financial and Economic Crisis, Agro-food Sector, Central and Eastern Europe, The Caucasus and Central Asia. Introduction Among developing regions, Eastern Europe and Central Asia has been hit hardest by the global crisis. For several countries, a combination of international support, adjustment programmes, and perhaps even private sector debt restructuring will be needed to avoid large-scale defaults. Growth plummeted from 7.6% in 2007 to 4.7%in 2008, and was projected to be -5.6% in 2009 driven by a collapse in capital inflows, a sharp deterioration in terms of trade, and contraction in both domestic and external demands. The robust domestic demand that supported growth throughout 2007 and through the first three quarters of 2008 began to wane at the height of the crisis in September 2008. In several countries with data available for the first quarter of 2009, output deteriorated further on a year-on-year basis. Economic activity continued to shrink in Hungary (4.7%), Lithuania (13.6%) & Latvia (17.9%), while Romania and Russia recorded negative growth for the first time (6.4% and 9.4%, respectively). Poland, the only economy to show resilience, posted a GDP increase of 1%. See World Bank (2009) for a comprehensive overview of the financial and economic crises in the region. This paper assesses the impacts of the global financial and economic crisis, hereinafter crisis, on the agro-food sector of Central and Eastern European, Caucasus and Central Asian countries on the basis of studies conducted in four representative countries, namely: Hungary, a central European country and a member of the European Union (EU) (Potori et al., 2011); Ukraine, a large eastern European T 1 Deputy Director General, Research Institute of Agricultural Economics (AKI), Budapest, Hungary and Professor and Vice Dean, Faculty of Applied Economics and Rural Development, University of Debrecen, Debrecen, Hungary. 2 Head of Department & Director, Research Institute of Agricultural Economics (AKI), Budapest, Hungary 3 Research Scholar – Agricultural Policy Department, Research Institute of Agricultural Economics (AKI), Budapest, Hungary 4 Doctoral Student, Szent Istvan University, Godollo, Hungary. 5 Professor, Szent Istvan University, Godollo, Hungary and Director, Tata Consultancy Services. 6 Coordinaor – MHROD, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, India and Hony. President – Governing Body - Society for Human Transformation and Research, Delhi School of Professional Studies and Research, (Approved by AICTE and affiliated to GGS Indraprastha University), India.