The opportunities of new cooperative models application in Russian agricultural economy

Abstract

Agricultural cooperation in Russia is considered today as the most important condition for the successful functioning of the agricultural sector of the economy, as well as the development of rural areas and communities. However, as the results of theoretical and empirical analysis of domestic cooperative practices development demonstrate, cooperative activities, despite significant efforts by the State to support cooperation, are still low in efficiency. At the same time, one of the reasons for the current situation in the activities of agricultural consumer cooperatives is that their organizational model (traditional cooperatives) is unable to realize its potential in a new (rapidly changing) economic environment (both global and national). In this connection, the article 1) reveals the peculiarities of the conditions in which domestic cooperatives operate, as well as the problems they face in implementing strictly traditional principles in their organizational structure; 2) justifies the need to transform both the model of cooperatives and the formal and informal institutions that determine the development of cooperation in rural space; 3) highlights the main directions of traditional cooperative principles modification to bring cooperative structures to the new level of efficiency and competitiveness. The main result of the research is the conceptual definition of three alternative models of business-type cooperatives with different strategies, as well as different degrees of individualization property rights, control, and management. The common features of the proposed varieties of contemporary entrepreneurial cooperatives include the restriction of membership, the application of up-to-date financial instruments to enhance additional investment opportunities, the involvement of a wide range of participants in cooperative activities (as members, specialists, managers), and the implementation of various motivational tools for rapid expansion of cooperative activities. In conclusion, the author presents the algorithm of organizational and institutional changes, which are necessary for the successful introduction of the entrepreneurial model of agricultural cooperatives into domestic economic practice.