World Perspectives

Backwards on TFP

While activists to Ukraine’s east decry Big Ag and romanticize about the superiority of small, inefficient farms, Kiev’s new law will enable the buying and selling of farmland beginning 1 July. The government hopes that a well-functioning land market will lead toward bigger, more efficient farming and bolster investment. Smaller, less efficient farms result in Ukraine’s yields being a third less than the U.S. in corn and a quarter less than in the EU next door.  The buying and selling of land were prohibited in 2001 and with farmers limited to leasing smaller lots, the number of agricultural workers per hectare has risen rather than fallen, hurting improvements in total factor productivity. Opponents fear that foreig...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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