University of Wisconsin Center for Cooperatives
Journal of Cooperatives
INVITED PAPER


Title The Transformation of Hungarian Production Cooperatives and the Consequences for the Future
Author(s) Erzsebet Toth, Gyula Varga, and Philip L. Paarlberg
Series Volume 11
Issue Date 1996
Abstract This research examines the transformation of Hungarian agricultural production cooperatives. In contrast to early expectations, cooperatives did not experience much membership loss. Rather, the enterprises held together, although they downsized. The distribution of collective assets occurred quickly and created much tension. The sector experienced a severe decapitalization, and the efficiency of the sector fell. There was a sharp rise in unemployment. Sales and marketing were disrupted. Thus, the cooperatives transformed in a very hostile situation. They survived, and some prospered, yet, in general, they remain vulnerable to adverse economic developments. Healthy cooperatives will be vital to the success of smaller private farms.

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