Heterogeneity, Specialization and Social Cohesion in Israeli Moshav Cooperatives
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The Israeli Moshav cooperative was designed as a group of homogeneous
family farms, all equal in size and resources. Over the years, processes of
selective migration and specialization have increased heterogeneity within
each Moshav. This has led to destabilization of the social and economic
viability of the cooperative, and was one of the reasons for the financial
crisis of 1985. This paper investigates the process of heterogeneity and
specialization and examines its consequences in the post-crisis period. In
particular, it documents the aggregate trends of decreasing number of active
farms, increasing farm size, increased farm specialization, and increased
reliance on off-farm income. All these lead to increased heterogeneity and
polarization within and between Moshav cooperatives, raising concerns
about the future economic and social viability of these cooperatives.