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Abstract
Cooperative enterprise has appeal as a means of filling gaps in the economic
institutions of the rural sectors of the transition economies of Central and
Eastern Europe and the former Soviet Union. But in addition to problems
that have faced cooperatives in the West because of their inherent
characteristics, the Soviet-era legacy created cultural burdens that
cooperatives will have to overcome. A review of countries’ experiences
since 1989 indicates some commonalities in attempts to create “new
cooperatives,” but also instructive differences across countries. The evidence
so far is unfavorable for cooperatives in agricultural production. In
marketing and input supply the current situation is more promising. In both
production and marketing, the economic institutions remain in flux. Unique
approaches involving cooperatives may take permanent root, but their long-term
prospects are in doubt.