GOVERNANCE OF PRODUCTION CO‐OPERATIVES IN RUSSIAN AGRICULTURE |
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Authors: | Jerker NILSSON Svetlana GOLOVINA Sebastian HESS Axel WOLZ |
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Institution: | 1. Swedish University of Agricultural Sciences, Uppsala, Sweden;2. State Agricultural Academy, Kurgan region, Russia;3. Christian‐Albrechts‐Universit?t zu Kiel, Germany;4. Leibniz Institute of Agricultural Development in Transition Economies, (IAMO), Halle, Germany |
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Abstract: | Many Soviet kolkhozy and sovkhozy were transformed into agricultural production co‐operatives, because the farm workers would have had large transaction costs in any other type of organization. These co‐operatives still hold a strong market position. This study explores the hypothesis that this market strength could be due to low governance costs, obtained through strong manager power. As managers want the co‐operative to survive, they make limited investments in the co‐operative and pay low wages. The members, however, do not consider this to be problematic. They appreciate the community within the village, their private plots of land and the co‐operative's services. Hence the existence of the co‐operatives is not threatened. |
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Keywords: | Russia production co‐operative labour co‐operative governance agriculture |
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