Development of agricultural cooperatives in the context of decentralization: a leadership aspect

Abstract

The role and place of local governments and rural communities’ authority decentralization in the formation of sufficient motivational, organizational and financial tools ensuring their own development and gaining autonomy in managerial decisions are investigated. A thorough analysis of the basic principles of agricultural cooperative development is carried out and the role of the leader in this process is determined. The main constraints on the development of cooperative movement in the rural areas caused by a number of general and specific problems have been identified. It is substantiated that the success of agrocooperatives in Ukraine is based solely on the community enthusiasm, particularly on their leaders, as well as on the support of associations and international donors. This is confirmed by the study of the activities of the leading agricultural cooperatives of Cherkasy region and Kyiv region "Bulls of Cherkasy region" and All-Ukrainian agricultural cooperative headed by people influencing the groups and encouraging the cooperative members to take active action, and their instructions are followed unconditionally. These leaders take personal responsibility for their initiatives; they have a vision of the deliverables and can set priorities well. The survey conducted among the members of the cooperatives revealed their awareness of the need for group actions and the possibility of obtaining personal benefits through group actions and a special system of relationships, which implies a certain group interdependence. The survey also found that training the heads of local self-government bodies in the organizational and legal issues of establishing and managing a cooperative was appropriate along with applying for grants, business plans development and search for financing for the purchase of fixed assets. It is summarized that the formation and development of agricultural cooperatives is an important tool for local economic development, contributing to the development of the private sector in the countryside, expanding employment and improving the quality of life and income of the rural population.