Transcription of Agricultural Cooperatives I: History, Theory and Problems
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Agricultural Cooperatives I: History, Theory and Problems
Agrekon, Vol 46, No 1 (March 2007) Ortmann & King Agricultural Cooperatives I: History, Theory and Problems GF Ortmann & RP King1. Abstract This paper presents the principles of cooperation and briefly describes the history and development of Agricultural Cooperatives in developed and less-developed countries, with particular emphasis on South Africa. A new Cooperatives Act, based on international principles of cooperation, was promulgated in South Africa in August 2005. The Theory of Cooperatives , and new institutional economics Theory (NIE). (including transaction cost economics, agency Theory and property rights Theory ) and its applicability to the cooperative organizational form, are also presented, as are the inherent Problems of conventional Cooperatives , namely free-rider, horizon, portfolio, control and influence cost Problems caused by vaguely defined property rights.
Agrekon, Vol 46, No 1 (March 2007) Ortmann & King 41 The objective of this paper is to present the history and theory of, and problems associated with, traditional agricultural cooperatives.
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