Agricultural cooperative development experience in different countries of the world
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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The existence of an efficient system of agricultural cooperatives in EU countries is related to the continuous process of long-term development. The cataclysmic changes in socio-economic formation in this process did not take place, as it happened in the countries of Eastern Europe or the former Soviet Union.
In the period of crisis, agricultural cooperatives were used by the states as the means of agriculture regulation. In the period of the acute food crisis after the Second World War, many states identified the agricultural cooperative process as the most effective means of the quantitative growth of agricultural production and it was going with active state support. During the same crisis, an active propaganda campaign by the state agencies led to a rise in the number of cooperatives and intensification of their economic capabilities.
Today, a perfect system of agricultural cooperatives operates in many countries around the world.
The legal basis of the Italian cooperative system is primarily Article 45 of the Constitution adopted by the Republic in 1947, and the objectives of cooperation are formulated in the Italian Civil Code.
As exemplified by the case of the development experience of the five hundred year-old sectoral and community cooperative of the Italian Cooperative Movement, the process of agricultural cooperation took an important place in socio-economic development of Spain, England, France, Germany, Netherlands and other countries.
The legal basis of the cooperative system in Spain is Article 129.2 of the Spanish Constitution (1978). The main factor in the success of Spanish reforms is the development of cooperatives in agriculture. It is worth mentioning that 60% of agro-food sector is produced by cooperatives.
The process of co-operation in France is based on general legal regulations (mostly the law on cooperation). The state considers cooperation as the third sector of the economy. The existing 24000 agricultural cooperatives will provide 1 million jobs and their annual overall financial turnover exceeds 300 billion euros.
Co-operative activities in Germany are based on the Federal Law on “Commercial and Economic Partnership” (1889). Germany is considered to be the home of credit cooperatives. Today, the Raffaisean Union unites country’s cooperative and cooperative banks. 80% of farmers, 75% of businessmen and 60% of artisans, the number of which is 14 million people are the members of cooperative banks.
Producers of many US leading brands, especially fruit juices and dairy products, are cooperatives. They produce 78% of milk, 17% of fruits and vegetables. Most importantly, in the United States, labor productivity in cooperative enterprises is 1.5 times higher than in individual enterprises.
As a result of the adoption of the Agricultural Cooperative Act in Japan in 1947, and by the Japanese Emperor’s Order, the Government implemented a new agrarian policy throughout the country. As a result, the entire rural population was automatically involved in the cooperative system. 91% of Japanese farmers currently are members of agricultural cooperatives.
Description
• Koguashvili P., (2015). - Rural Development in Europe - From 1970 to Present. Electronic Textbook (Editor and Translator Prof. P. Koghuashvili). GTU (in Georgian);
• Koguashvili P., Mamukelashvili D., (2018). Some Topical Issues of Agro-Cooperative Policy, “Economics” N12 (in Georgian);
• Koguashvili P., Mamukelashvili D., (2019) - Cooperative Intra-enterprise Relations - The Basis for Agricultural Cooperatives Viability. “Economika da Biznesi”, T.XI, N1. P. 71-77 (in Georgian);
• Mamukelashvili D., (2019) – Spain – Evolution, Regulation and Support for Agricultural Cooperatives, Agronews.ge, 08.02 (in Georgian);
• Mamukelashvili D., (2019). Agricultural Cooperation in European Countries, Agronews. ge, 06.02 (in Georgian).
Keywords
Cooperative system, social function, legal regulations, credit cooperatives, pseudo-cooperatives, hierarchical structure
Citation
Economics and Business, №2, 2019, pp. 47-61