Junior Researcher

Dr. Inna Rudenko

 
 
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Value Chains for Rural and Regional Development: The Case of Cotton, Wheat, Fruit and Vegetable Value Chains in the Lower Reaches of the Amu Darya River, Uzbekistan

Republic of Uzbekistan is implementing “phase to phase” transition to the market economy. The number of countries Uzbekistan has trade relations with gradually and consistently increases and after gaining the Full-Fledged Member status with the WTO the marketing opportunities are expected to improve. The application of acceptance to WTO was sent in December 1994. Though the procedure of adoption is long and Uzbekistan has yet to bring the national legislation in conformity with provisions of WTO agreements, the opportunity of integrating to the world economy is there. Only that the sectors of the economy for further focused development should be chosen with careful considerations on revealing and employing comparative advantages Uzbekistan has.
Experience from developing countries shows that nations specializing on exports of primary commodities are vulnerable to the fluctuations in the world markets. Likewise injury to Uzbekistan from low cotton prices in the world in 1998-2001 was USD 1.479 bln. (Washington conference 2002) In the light of such experience shift from the primary commodity exports to the export of the value added commodities and the removal of trade barriers with the aim of facilitating trade became an important part of the recent reform package in the country. Openness in trade and to FDI is supposed to contribute to development benefits (e.g. inflow of needed investments, access to capital and intermediate goods not available domestically at comparable cost, ideas, technology). However, a certain level of development is required for a country to compete effectively in international markets and to benefit from trade and financial liberalization. Economic openness – trade liberalization – needs to be carefully ordered, managed and nurtured in order to become a positive force for development. (Bezanson 1999)
Since the trade regime is liberalized and Uzbekistan shifts towards export orientation, the production having the best comparative advantages should be developed the most. This is seen as the basis for successful export oriented development. At present the most promising branches in Uzbekistan are labor and resource intensive branches of processing industry which are able to efficiently attract internal raw materials and labor resources. These are textile and food processing industries and the agricultural sector, providing the processing industries with raw material. Cotton is produced in quantities that allow not only the provision of growing local textile industries with raw material, but also the continuation of exports of cotton lint. Half of the amount of vegetables and fruits produced annually is enough to cover the respective domestic requirements of the country, thus leaving plenty of room for increasing marketing opportunities of vegetables and fruits, fresh, processed or dry. There is a great need for development and re-equipment of processing industry, storage facilities, for improvement of marketing services.
With the changes, taking place lately in agricultural sector and with development of processing industries it is likely that the value chains of agro commodities will be modified and more actors be included, such as textile companies for cotton sector, processing plants and marketing agents (most likely private) for wheat and vegetables. Consequently, further work is required to analyze ways of strengthening the country’s value added export industry. However there is a question of what the agricultural producers are going to gain from this. Will they be better or worse off with the extension of value chains?
The main objective of the proposed research is to capture and map the value chains for selected agro commodities: cotton, wheat, vegetables and fruits in Khorezm region of Uzbekistan. The focus on this particular region reflects the location spot and the focus of interests of the ZEF/UNESCO Uzbekistan project. This can be referred as qualitative analysis of the value chains.
Value chain approach will help in answering the questions: What are the actors of the specified value chains in Khorezm, Uzbekistan and what are their functions and relations? What value is added and where along the chain? How is the income distributed among the actors? What are the weak links in the chain and what can be done to improve them? Who will benefit? What are the comparative advantages of producing and exporting these agro commodities?
Quantitative analysis in the form of Multi Market Partial Equilibrium Model for cotton sector will give a closer insight at the relationships among actors of the chain. It will allow finding the levers for the adjustment of the chain and simulating the possible outcomes from policy regulations.
Department ZEF B: Department of Economic and Technological Change
Research areas - Globalization and International Trade
Research countries - Uzbekistan
Research topic Value Chains of Agro Commodities for Khorezm Region, Uzbekistan
Working groups ZEFb Working Group on Macroeconomics and Trade
Funding institutions ZEF Uzbekistan Project
Degrees Master Degree in Agricultural Economics
Financially supported by BMBF
Publications

Rudenko I.. 2010. Case Study #8-6, The Aral Sea: An ecological disaster. Food policy for developing countries: Case studies. Ithaca, New York: Cornell University,

Begdullaeva, T., M. Orel, I. Rudenko, N. Ibragimov, J.P.A. Lamers, K. Toderich, Z. Khalikulov, C. Martius. 2009. Productivity of sugar sorghum varieties imported from India under the conditions of Karakalpakstan. Vestnik [вестник), 215: 20-22.

Rudenko, I., Lamers, J.P.A., and Grote, U.. 2009. Can Uzbek farmers get more for their cotton?. European Journal of Development Research, 21 (2): 283-296.

Rudenko, I., U. Grote, J. Lamers, C. Martius. 2008. Wert schöpfen, Wasser sparen. Effizienzsteigerung im usbekischen Baumwollsektor. In: M. Sapper, V. Weichsel (eds.): Grünbuch. Politische Ökologie im Osten Europas. [Osteuropa 04-05/2008]. 407-418.

Rudenko, I., Grote, U., and Lamers, J. P. A.. 2007. Barriers and opportunities for increasing income of cotton producers in Uzbekistan. A Cotton Value Chain Analysis. Could Uzbek Farmers Get More for Their Cotton?. The European Journal of Development Research, under review: under review.

Rudenko I. and Sh. Safarbaev. 2006. Structural changes – a path to success. Journal of Agriculture of Uzbekistan, vol.2:

Rudenko, I. and J.P.A. Lamers. 2006. The comparative advantages of the present and future payment structure for agricultural producers in Uzbekistan. Central Asian Journal of management, economics and social, 5(1-2): 106-125.
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Rudenko I., J. Lamers and U. Bekchanov. 2005. Water pricing. Jounal of Agriculture of Uzbekistan, Tashkent, vol.2:

Rudenko, I., J.P.A. Lamers and U. Bekchanov. 2005. Water pricing (Landscape Restructuring in Khorezm region, ZEF project). Agriculture in Uzbekistan, 3: 29-30.

Rudenko I., M. Mirzaeva and A. Zaikin. 2003. Assessment of the efficiency of irrigation water use in Khorezm. Articles collection of the First Republican Conference of Master Students, Tashkent State Economic University, Tashkent.

Rudenko, I. and M. Mirzaeva. 2003. Influence of the water availability factor on agricultural production of Khorezm. Articles collection of the Second Master Students’ Seminar, Tashkent Institute of Irrigation and Melioration, Tashkent.

Rudenko, I., Grote, U., Lamers, J.P.A., Martius, C.. 0. Regionale Wirtschaftsprojekte zwischen Wertschöpfung und Nachhaltigkeit. In: Chiari, B., and Pahl, M (eds.): Wegweiser zur Geschichte Usbekistans. Ferdinand Schoeningh, 259-267.

Additionals, Curriculum Vitae
and Downloads

CV_IR.doc
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