Production Efficiency and Beyond: Local Determinants in Russian Privatisation

This article analyses factors influencing rural households’ decisions to remain in collectives or separate from them during Russia’s post-socialist privatisation period in the 1990s. It argues that although decisions to remain in or separate from a collective were influenced by a number of factors, the dominant one was the households’ abilities to cope with independent production. These abilities were predetermined by the extent to which production was intensified in each collective. In Siberia less labour and capital intensive husbandry based on native herding that is well - adapted to the local environment, offered better chances of establishing viable economies, and thus greater incentives to split from a collective.