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Post Socialist Farmers' Cooperatives in Central and Eastern Europe

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  • Konrad Hagedorn

Abstract

The emergence, transformation and sustainability of farmers cooperatives in post-socialist societies of Central and Eastern European Countries (CEEC) require complex and diverse processes of institutional change. In this paper we discuss the conditions under which cooperatives develop and sustain and also the role of local and central actors using a case study approach. Since cooperatives in the socialist system provided numerous social services and contributed to rural development, another research question concerns the survival of this tradition. Through twin case studies in Poland, Hungary, Slovakia, Lithuania, Bulgaria and East Germany we present the conditions and strategies for achieving sustainability of co-operatives. The results reveal important requirements for cooperatives to be sustainable: overcoming the communist legacy of mistrust against cooperative organizations, convincing members by building trust, coping with fundamental collective action problems, constructive communication that takes the problems and ideas of members seriously, finding cooperative leaders able to cope with members opportunism and a facilitating state encouraging the development of cooperatives.

Suggested Citation

  • Konrad Hagedorn, 2014. "Post Socialist Farmers' Cooperatives in Central and Eastern Europe," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 555-577, December.
    • Handle: RePEc:bla:annpce:v:85:y:2014:i:4:p:555-577
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    File URL: http://hdl.handle.net/10.1111/apce.12051
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    References listed on IDEAS

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    1. Murray, Catherine, 2005. "Social Capital and Cooperation in Central and Eastern Europe: A Theoretical Perspective," Institutional Change in Agriculture and Natural Resources Discussion Papers 18831, Humboldt University Berlin, Department of Agricultural Economics.
    2. Valentinov, Vladislav, 2007. "Why are cooperatives important in agriculture? An organizational economics perspective," Journal of Institutional Economics, Cambridge University Press, vol. 3(1), pages 55-69, April.
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    2. Constantine Iliopoulos & Rando Värnik & Taavi Kiisk & George Varthalamis & Liis Sinnott, 2022. "Governance in Estonian Agricultural Cooperatives: Structures and Processes," Sustainability, MDPI, vol. 14(23), pages 1-24, November.
    3. Golovina, Svetlana & Hess, Sebastian & Nilsson, Jerker & Wolz, Axel, 2019. "Networking among Russian farmers and their prospects for success," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 31(4), pages 484-499.
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    5. Wolz, Axel & Möllers, Judith & Micu, Marius Mihai, 2020. "Options for agricultural service cooperatives in a postsocialist economy: Evidence from Romania," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49(1), pages 57-65.
    6. Denisa Gajdová & Helena Majdúchová, 2018. "Financial Sustainability Criteria and their testing in the conditions of the Slovak Non-Profit Sector," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(1), March.

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