Cooperatives in the CIS and Georgia: Overview of Legislation
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Cooperatives in agriculture and in other sectors are usually created by grassroots users to overcome market failures, which are manifested in unwillingness of private business entrepreneurs to provide services in areas that they judge unprofitable or, alternatively, in unfair exploitation of the users by private businesses through monopolistic practices. Best-practice world experience suggests that farmers’ service cooperatives provide the most effective way of improving the access of small farm ers to market services in both situations. International Cooperative Alliance (ICA) defines a cooperative as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise (ICA, 2013). The persons who voluntarily unite to form a cooperative are usually referred to as members or member-owners. In this study, the cooperative laws in all 12 CIS countries (including Ge orgia) are reviewed and their compatibility with universal cooperative principles and actual practices in the West is examined.