The new generation co-operatives and possibility of their implementation in the countries in transition
2007
Ševarlić, M.M., Faculty of Agriculture, Belgrade - Zemun (Serbia) | Krivokapić-Skoko, B., Charles Sturt University, Bathurst (Australia). Faculty of Bisiness | Nikolić, M.M., Faculty of Agriculture, Belgrade - Zemun (Serbia)
The NGC model is an outgrowth of the traditional agricultural business cooperative. Forces external to cooperatives (such as the industrialization of agriculture and globalization), and forces internal to cooperatives (free rider, horizon, and control problems) present significant challenges to the survival and success of traditional cooperatives. The NGC model may simply be an investment vehicle for the farmer, allowing the farmer to participate in the investment of his commodity beyond the farm gates. It has been argued that more extensive applications of the NGC model as potentially successful for attracting the necessary level of capitalization to fund production process would require careful examination of the legal and taxation issues surrounding the use of delivery rights. It is also likely that initially the formation of NGC will be mainly based on niche markets and small scale investment opportunities. Dominant characteristic of cooperative movement in transitional countries is that cooperatives inherited from socialistic period did not succeed to adapt in proper manner to fast changes during introduction of capitalistic way of production and significantly stronger competitiveness in processes of globalization and liberalization.
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