Transition of Agricultural Co-operatives on the Southern Podlasie—From Bureaucratic Structures into Free Market Entrepreneurship

Zofia Chyra–Rolicz
(Department of Humanities, Siedlce University of Natural Science and Humanities, Siedlce, Poland)

Abstract: Southern Podlasie, the agricultural region on so called Eastern Wall of Poland had had long lasting co-operative tradition of common economic activity, going from XIX century. Different co-operative activity in peasants circles, dairy, consumers, saving and credit chaises were popular among peasants and habitants of small towns. It was the way of economic and social progress entered into countryside. The bureaucratic structures were imposed on the co-operative movement and it loosed competitiveness ability in the period of the Polish People’s Republic. The time of political, economic and social transformation after 1989/1990 brought for co-ops deeply regress, destruction of an old socialist structures created in central planned economy and adaptation to market economy. The study will deal with an analysis of the number of co-ops’ units in the former Siedlce, Biała Podlaska, Łomża and Białystok provinces, which had existed into following branches: the peasants’ self-help, supply and marketing, dairy, horticultural and apiculture, banking, handcraft, farming peasants’ cercles. Moreover, it discusses the achievements of consumer co-ops’ in Siedlce region and its successful strategy towards the free market economy. The proof of free market rivalry had been very hard for agricultural co-ops. The high percentage of them collapsed, but there are also good examples of successful adaptation into new condition of activity. The banking co-ops have played very important role in developing of entrepreneurship in local scope, serving not only for their members, but also for support private small business. The hope connected with UE integration didn’t change situation of co-ops into better. The UE’s funds were not addressed into co-ops, which must fight for survival calculated on own forces and the knowledge of their leaders and staffs. It was strong struggle for saving enterprises, jobs and possibility do existing in condition of very high unemployment. These circumstances have strong influence for renewal of social links shareholders with their co-operatives.

Key words: Poland; Podlasie region; Co-ops; NPO; foundations; undeveloped region; poverty; tradition

JEL codes: D2, D7, N5, N8, N9, Q1