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Abstract
In Hungary an increasing number of agricultural cooperatives have gone
bankrupt or have broken up due to a lack of competitiveness under market
conditions, in the aftermath of radical reforms. Others, however, have been
able to maintain or even improve on previous levels of success. Individual
farmers have also established new cooperatives and are working toward
deepening cooperation. The paper discusses the importance of leadership of
cooperatives during transition, a topic which is not well addressed in the
literature. Production cooperatives are not only economic units, but also
social networks. Two successful cooperatives in the same town, one old and
one new, have been compared with respect to their social capital,
development and leadership. The findings show that, in the traditional
agricultural cooperative, a more social oriented leadership has helped to
overcome economic, social, and psychological barriers arising during
transition, while, in the case of the new co-op, improving cooperation has
depended mainly on the increased level of social capital after the radical
reforms.