Influence of informal institutes on the development of rural cooperation in Ukraine

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Influence of informal institutes on the development of rural cooperation in Ukraine

Journal Title: Регіональна Економіка - Year 2016, Vol 82, Issue 4

Abstract

In a historical retrospective view the features of informal institutes’ influence on the development of rural areas of Ukraine are outlined. Comparison of rural residents’ ability to close the ranks during the October Revolution and in Soviet times is conducted. The changes of informal institutions’ impact on rural development at different times over 100 years are researched. The fact that the policy of collectivization was the policy of moral distortion and substitution of concepts and norms of behavior of rural society is proved. It is shown that the destructive impact of these policies on the social and economic activity of the villagers explaines some problems of rural cooperation, in particular the belief that social and personal services must be granted to the peasants at cheaper price than to citizens. Destructive moods in rural society expressed in the confidence in the injustice of profits allocation in Ukraine are revealed. It is shown that possession of land plots by rural residents is a base for the development of rural cooperation, however the vagueness of future land market comes forward as a inhibitory factor. Specific attitude towards understanding of a theft as a crime is researched. It is determined that informal institutions are important for the development of cooperatives at rural areas. The fact that rural territory is optimally developing only if there are available industrial or processing enterprises thereon is proved. It is explained that the combined employment of villagers, when they go to work in the city and agriculture remains a permanent alternative type of employment for them, has a positive effect on the development of rural areas. Core group of potential cooperators, which the informatively-educative activity of the authorized institutes that promote co-operation should be directed at, is allocated by exception. This group includes the members of rural communities that do not have permanent employment and do not rent the landplots. Fair competition, prestige of employment in the field, stability and confidence in the future are determined as the main informal factors of cooperation development at rural territories. It is shown that providing of rural residents with sufficiently high level of social infrastructure will contribute to forming of a sense of stability and confidence in the future, particularly it concerns the development of the transport sector and opportunities to obtain qualitative school education. The facts that informal institutes of Ukraine have become the hostages of formal ones because the latter create an environment in which rural cooperatives should develop and that formal institutions today are able and obliged to ensure the development of informal institutions are proved.

Authors and Affiliations

Inna M. Kulish

Keywords

EP ID EP436097
DOI -
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