Farm/Household-Level Simulation: Results of Testing Policy and Other Scenarios. Factor Markets Working Document No. 54, June 2013

Among the different production factors, land is the one that most often limits farm development and one of the most studied. The connection between policy and other context variables and land markets is at the core of the policy debate, including the present reform of the Common Agricultural Policy. The proposal of the latter has been published in October 2011 and in Italy it will include the switch of the payment regime from an historical to a regional basis. The authors’ objective is to simulate the impact of the proposed policy reform on the land market, particularly on land values and propensity to transaction. They combine insights and data from a farm household investment model revised and extended in order to simulate the demand curve for land in different policy scenarios and a survey of farmers stated intention carried out in the province of Bologna (Italy) in 2012. Based on these results, the authors calibrate a mathematical programming model of land market exchanges for the province of Bologna and use this model form simulation. The results of the model largely corroborate the results from the survey and both hint at a relevant reaction of the land demand and supply to the shift from the historical to the regionalised payments. As effect, the regionalisation would result in increased rental prices and in a tendency to the re-allocation of land.

The impact of the withdrawal from Afghanistan on Russia’s security. Egmont Security Policy Brief No. 54, March 2014

ISAF’s withdrawal from Afghanistan in 2014 will directly impact the wider region. Not only is there a risk of instability spilling over to Central Asia, but the drawdown will also accelerate the ongoing shift in the balance of power in Central Asia towards China. Should a spillover occur, the burden will mainly fall on Russia and China. Russia will, however, only continue playing the dominant role in the security of the former Soviet Central Asia (FSCA) until China takes on responsibility for the security of its direct sphere of influence or “dingwei”. Russia’s Near Abroad, however, overlaps both with the EU’s Eastern Neighbourhood in Europe and China’s dingwei in Central Asia and the Far East. It is, therefore, necessary to approach Russian reactions to these encroachments on its historical spheres of influence in a single context, taking into account the interrelationship between these three.