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Institutional Transformation In Reindeer Herding Industry Based On Economic Behavior

Table 3:

Criteria PHH PF
Status of the herder in the household (organization) Individual HeadofthePF, memberofthePF, withoutformal work agreement, personal labor participation
Legislation regarding the herder in the OLF Exists outside the legal framework Commercialactivity, agriculturalproducer
Alignment with the family and ancestral household economy In alignment In alignment
Ownership of reindeer Individual, informally distributed among the members of the family Private, distributed among the members of the family based on an agreement
Employment Unemployed Employed, fromage 16 afamilymembermay join the PF
Taxes Does not pay 5 yearsreleasefromIIT, paymentstopensionandmedical fund (36,000 rubles)
Transaction costs None None
State retirement plan None Yes
Medical insurance None Yes
Statistical records None, existing systems of record-keeping are not applicable Yes
Data credibility Low High, comes under personal responsibility
Manageability Low High
Land in use Not provided Possible, depending on deer numbers
Opportunity for pasture rotation None In the event of agricultural cooperative formation
Fish quotas Not provided Provided
State support measures Not applicable As to agricultural producers and small entrepreneurs, also others
Discussion
Pros and cons for the region and the household Pros:nonefortheregion, relativefreedomfor the householdCons:hiddenemployment, lackofinsurance, lackofrightstosupportandresources, uncontrollable pasture rotation, impossibility of defending the interests of the household in court Pros:fullemployment, insurance, righttosupportandresources, legalized record, channels of managementCons:needforaccountingandtaxpayment, stronger oversight
Mechanisms for resolving negative consequences Legalization through a single OLF Creationofcompetencecenterswhichcanperformalllegallyrequiredactions without the personal involvement of the head of household
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