3172 International Journal of Criminology and Sociology, 2020, 9, 3172-3183
E-ISSN: 1929-4409/20 © 2020 Lifescience Global
Economic and Legal Mechanisms of Interstate Support for
Agricultural Producers
Airat B. Bazenov
1
, Aizat M. Begzhan
2,*
, Zhassulan S. Zhunissov
2
, Abzal K. Tazhikov
3
and
Bagdat Amandossuly
2
1
Department of Theory of State and Law, Kazakh Humanitarian Law Innovative University, Semey, Republic
of Kazakhstan
2
Department of International Law, Al-Farabi Kazakh National University, Almaty, Republic of Kazakhstan
3
Department of Civil Law, South Kazakhstan Pedagogical University, Shymkent, Republic of Kazakhstan
Abstract: The transitional stage in the agrarian economy requires an optimal combination of state protection and market
levers. At present, the state regulatory influence on the development of agriculture remains, on the one hand, quite
significant, and on the other, insufficiently effective. There is no systemic integrity in the practice of state regulation of the
agricultural sector. The relevance of the study is that in transition economies, agrarian protectionism was initially caused
by somewhat different circumstances, and the protectionist policy was formed in fundamentally different conditions. The
authors demonstrate that protectionism in industrial-type transition economies inherited a huge mechanism of state
support for the agro-industrial complex in the depths of a centrally planned economy. Everywhere this support
constituted a heavy burden of national finances, and one of the primary tasks of reforms in transition economies,
including agrarian reforms, was precisely the release from this burden. It causes sharp liberalization of agrarian policy in
almost all countries. The method of analysis was used to investigate the main directions, methods, and mechanisms of
state regulation of the economy in different countries; the priority areas of state regulation of prices in the agro-industrial
complex industry were highlighted. The practical significance of the study is that macroeconomic reforms in countries
with an industrial type of development led to a rapid deterioration in the financial situation of the agricultural sector.
Keywords: Government support, agriculture, development, reform, economics.
INTRODUCTION
State regulation of economy is exercised in various
forms. Depending on the timing, there is long-term and
short-term regulation. Economic liberalization leads to
a crisis in the agro-industrial complex, in particular, to a
decrease in the income of the population, which, in
turn, leads to a decrease in the capacity of markets for
agricultural products; a rapid increase in price disparity
and a decrease in the share of the agro-industrial
complex in the final price of food products, and a
deterioration in the financial condition of this industry;
the rupture of cooperative relations within the United
Nations and the growth of market problems for national
production; delimitation of the country from the
distribution of agricultural products, as well as the lack
of normal market infrastructure; the deterioration of the
financial condition of the agricultural sector, together
with the lack of an adequate lending mechanism for
agricultural needs against the backdrop of inflationary
processes, led to the decapitalization of the sector and
a decrease in the level of productivity.
Consequently, the agri-food sector occupies a
significant part of the economy in almost all countries
*Address correspondence to this author at the Al-Farabi Kazakh National
University, Almaty, Republic of Kazakhstan; Tel: +7 (7222)-21-10-00;
E-mail: aizat.m.b@national-univesity.info
and is represented by a significant share of the
population (Denisov 2018). Therefore, the objective
deterioration of the situation in the agricultural sector
under the pressure of agrarian oppositions could not
but lead to increased protectionism after some period
of reforms (Sharapova and Sharapova 2018). The
problem lies in the fact that in several countries the
strengthening or, more precisely, the restoration of
protectionism occurred at a time when the main tasks
of the reforms had already been solved:
macroeconomic stabilization was achieved, the initial
market infrastructure was created, and sector
restructuring was completed (Bylund and Johnsson
1987). Under these conditions, protectionist measures
no longer hinder further reform implementation (Garcia
et al. 1996). In other countries, the slow implementation
of reforms was associated with the introduction of
protectionist measures, which, in turn, started slowing
down the progress of reforms (Radchenko et al. 2020).
The second feature of the strengthening of
protectionism in post-socialist countries is associated
with the fact that almost all measures to support the
agri-food sector are drawn from the arsenal of
developed countries – the European Union (EU) and
the United States (US) (Volkov and Orlovab 2017). At
the same time, the specifics of the transition economy
dictate their patterns of protectionism: many general