Resource information
Countries in transition from centrally
planned to market economies face several challenges when
planning investments. These include a lack of information
about beneficiary groups, particularly those in rural areas;
and the collapse of institutions maintained by the state
prior to transition. During preparation of the Estonia
Agriculture Project, the government sought World Bank
technical assistance to undertake a social assessment (SA)
to fill information gaps and initiate a process of building
new local level institutions. The SA was divided into three
phases, with the overall objective of building institutional
capacity at both the local and the national level. Phase I
has been completed. It has enabled the government to assess
farmers' commitment to rehabilitation of field drainage
systems, and their willingness to form farmer-managed Land
and Water Associations and to share costs and assume
responsibilities for operation and maintenance. Since
regaining independence in 1991, Estonia has stabilized its
macroeconomic situation and moved rapidly towards a market
economy. Living standards, which declined dramatically in
1992 and 1993, have begun to rise in urban areas where
enterprises have been privatized and industrial production
has begun to revive. However, similar results have not
materialized in rural areas. Estonia has the potential to be
competitive in agriculture if certain constraints are
overcome. The Agriculture Project, as the first
Bank-supported operation, is expected to address some of
these, principally the rehabilitation of field drainage systems.
