The Royal Veterinary and Agricultural University Food and Resource Economic Institute European Cooperative Movement – Background and Common Denominators. Jarka Chloupkova Unit of Economics Working Papers 2002/4 European Cooperative Movement – Background and common denominators By Jarka Chloupková* The Royal Veterinary and Agricultural University Department of Economics and Natural Resources E-mail:
[email protected] Abstract Influenced by the legacy of command economies, the recent agricultural cooperation in Central and Eastern Europe is, compared to EU countries, marked by a different pattern. Based on simplified ownership incentive approach, this paper distinguishes between the fundamental features of communist, post-communist and democratic cooperatives. While in most Central and Eastern Europe there are more production cooperatives than marketing / supplying (secondary) cooperatives, in EU countries the ratio is reversed in favour of the secondary cooperatives. The more common utilisation of secondary cooperatives that enable a vertical integration might be one of many reasons for more competitive agricultural sector in the EU. Based on circumstantial historical evidence, and the influence of internal and external factors, this paper identifies three common steps that form pre-requisites to a successful cooperative development. The paper closes with noting that these three steps might not be directly applicable to the CEEC situation. * The author would like to thank Ingrid Henriksen, Kostas Karantininis, Niels Kærgård, Karsten Kyed, Henrik B. Olesen and participants of the Øresund Seminar, May 15th, 2002 for valuable comments on earlier versions of the paper. This working paper presents a collection of material for understanding a range of cooperative related issues and subsequently the base for paper entitled as: “Will post-communist cooperatives work?: Social capital dynamics and the performance of cooperatives”.