Status and prospects of agricultural cooperative development

Abstract

Cooperatives in the Republika Srpska are in a position to face the consequences of development from the previous period, the consequences of the war and the creation of a new concept of cooperative development, starting primarily from changes in the legal, economic and political system of the country. There are two phenomena or two directions of development of cooperatives. First is the direction of development of newly established cooperatives that have fully or at least partially harmonized their operations with cooperative principles and legal framework and have a sound business and market policy. The other direction of stagnation and undevelopment refers to the still present so-called old cooperatives that have not adjusted their operations to the new legal framework or new market circumstances, and are very often burdened with lawsuits, within which significant cooperative and state property has been blocked. The experience of developed countries proves that cooperatives are one of the irreplaceable segments of agricultural and rural development and a very suitable form for free and voluntary association of producers. The role of cooperatives in the future is to influence the reduction of social and economic divisions and to direct the whole process in a fairer way. It could be said that cooperatives, from the point of view of their principles, represent irreplaceable forms of organizing people. They, in fact, by their structure and specifics, carry the keys to their own success. The parameters of cooperative adequacy are different, and the following stand out: priority of cooperative membership; diversity of cooperatives; strengthening the power of the people; careful resource management; creating financial power; strategic thinking. Cooperative membership must be the center of attention.