Epsilon Open Archive

Abstract

After the collapse of the Soviet Union, a large number of collective farms (kolkhozes and sovkhozes) were transformed into agricultural production co-operatives. After two decades, most of these production co-operatives are still in operation. Although they face problems as regards e.g. wage levels, profitability and productivity, they are strong in many regions of the Russian Federation and within many types of crops. The continued existence of such agricultural production co-operatives puzzles many Western economists. This paper attempts to provide an explanation in terms of the history of Russian co-operatives in the agricultural sector and of the institutional settings, i.e. the legal and administrative environment of the cooperatives.