The objective of this paper is to review available evidence concerning the social dimensions of agricultural price liberalisation and agricultural reform. From the beginning of the transition social considerations have been the major obstacles to rapid progress of the reform. There have also been objections to price liberalisation for its adverse welfare effects on certain population groups. This paper provides a broad view of the social aspects of agricultural transition and focuses on perspectives of poverty alleviation and the generation of employment. It concludes that rural unemployment and poverty are much higher in Bulgaria and Romania, where restructuring of the State sector has been slow, and that agricultural prices have limited impact on production. Appropriate measures with which to address rural poverty include completion of the reform, facilitation of the operation of markets, provision of post-privatisation support to new private farmers and targeted interventions for certain population groups.