COOPERATIVE SOCIETIES IN RUSSIA
Introduction
Cooperative societies in Russia play a vital role in the country’s economic and
social development. These organizations are based on the principles of mutual
assistance, collective entrepreneurship, and shared economic benefits.
Cooperatives have a long history in Russia, dating back to the pre-Soviet era,
evolving through the Soviet period, and adapting to modern economic conditions.
The cooperative movement has been a key driver in areas such as agriculture,
finance, retail, and housing, providing citizens with an alternative economic model
that promotes social solidarity and economic inclusion.
Historically, Russia's cooperative movement has undergone several
transformations. In the Tsarist period, cooperative associations were primarily
agricultural and trade-based, serving peasant communities. During the Soviet era,
cooperatives were integrated into the centrally planned economy, with collective
farms (kolkhozes) and state farms (sovkhozes) dominating the agricultural
landscape. After the fall of the Soviet Union in 1991, Russia transitioned to a
market economy, leading to significant changes in cooperative structures. Today,
cooperatives exist in various sectors, helping to provide essential goods and
services while fostering economic sustainability.
This paper examines the geographical scope of Russia, the countries that share its
borders, and the various types of cooperatives that operate within the country.
Geographical Area of Russia
Russia is the largest country in the world, covering approximately 17.1 million
square kilometers. It stretches across Europe and Asia, occupying about 11% of
the world's landmass. The country spans 11 time zones, making it one of the
most geographically diverse nations on the planet.
The vastness of Russia’s geographical area has a significant impact on the structure
and operations of cooperative societies. In rural regions, where agriculture is the
primary economic activity, agricultural cooperatives play a crucial role in ensuring
food production and distribution. In urban areas, worker cooperatives, financial
cooperatives, and consumer cooperatives are more prevalent, catering to industrial
and commercial needs.
Russia’s geographical diversity can be divided into several major regions:
1. European Russia – The most densely populated and economically
developed part of the country, including cities like Moscow, Saint
Petersburg, and Kazan.
2. Siberia – A vast region known for its harsh climate and natural resources,
including oil, gas, and timber.
3. The Russian Far East – A remote but resource-rich area with access to the
Pacific Ocean.
4. The Ural Mountains – A key industrial region with significant mining and
manufacturing activities.
5. Southern Russia – Known for its agricultural productivity, including grain
production and livestock farming.
Each of these regions has unique economic characteristics, influencing the types of
cooperative societies that thrive in them.
Countries That Share Boundaries with Russia
Russia shares land borders with 16 countries, making it the country with the most
international neighbors. The nations that share a direct land border with Russia are:
1. Norway – Located in the northwest, sharing a border in the Arctic region.
2. Finland – A northern European country with strong historical ties to Russia.
3. Estonia – One of the Baltic states with a complex relationship with Russia.
4. Latvia – Another Baltic state that has experienced historical conflicts with
Russia.
5. Lithuania – Shares a border with Russia’s Kaliningrad Oblast.
6. Poland – Also shares a border with Kaliningrad, an exclave of Russia.
7. Belarus – A close political and economic ally of Russia.
8. Ukraine – Has a long border with Russia, with ongoing political and
military tensions.
9. Georgia – Located in the Caucasus region, historically connected to Russia.
10.Azerbaijan – Shares a border in the Caspian region, with significant
economic ties.
11.Kazakhstan – Russia’s longest land border, covering over 7,500 kilometers.
12.China – A major economic partner with increasing trade and cooperation.
13.Mongolia – A sparsely populated country with economic and cultural ties to
Russia.
14.North Korea – A short but strategically significant border in the Far East.
Additionally, Russia has maritime borders with:
Japan (via the Sea of Japan)
The United States (via the Bering Strait, near Alaska)
Russia’s extensive borders influence its cooperative sector, as cross-border trade
and economic partnerships shape the way cooperatives function.
Types of Cooperatives in Russia
Russia has a well-developed cooperative sector that operates across different
industries. These cooperatives play a vital role in supporting communities,
providing essential services, and improving economic resilience. The following are
the major types of cooperatives in Russia:
1. Agricultural Cooperatives
Agricultural cooperatives are among the most widespread cooperative
organizations in Russia. They emerged from the Soviet system of collective
farming and have since adapted to a market-based economy. These cooperatives
help farmers pool resources, share equipment, and access markets more effectively.
Types of Agricultural Cooperatives:
o Production Cooperatives – Farmers collectively own land and work
together to grow crops or raise livestock.
o Marketing Cooperatives – Help farmers sell their products at fair
prices by eliminating middlemen.
o Supply Cooperatives – Provide farmers with necessary supplies such
as seeds, fertilizers, and machinery.
Agricultural cooperatives are crucial in rural areas, ensuring food security and
improving the livelihoods of farmers.
2. Consumer Cooperatives
Consumer cooperatives provide goods and services at lower costs to their
members. These cooperatives operate supermarkets, grocery stores, and retail
businesses.
Benefits of Consumer Cooperatives:
o Offer discounted prices for essential goods.
o Strengthen local economies by keeping profits within communities.
o Improve access to high-quality products in rural and underserved
areas.
3. Credit and Financial Cooperatives
These cooperatives function as community-based financial institutions, offering
loans, savings accounts, and financial services to members. They serve as an
alternative to traditional banks, especially in rural areas where banking
infrastructure is limited.
Types of Financial Cooperatives:
o Credit Unions – Provide low-interest loans to members.
o Savings Cooperatives – Encourage collective saving habits among
members.
o Microfinance Cooperatives – Support small businesses and
entrepreneurs.
Credit cooperatives are essential in providing financial inclusion for individuals
and small enterprises.
4. Housing Cooperatives
Housing cooperatives help people acquire affordable housing. Members contribute
financially to collectively own residential buildings, reducing housing costs and
ensuring proper maintenance.
Types of Housing Cooperatives:
o Construction Cooperatives – Build new housing units for members.
o Management Cooperatives – Maintain and manage existing housing
facilities.
Housing cooperatives are particularly important in urban centers where real estate
prices are high.
5. Worker Cooperatives
Worker cooperatives are businesses that are owned and managed by employees.
These cooperatives promote workplace democracy and ensure fair wages for
workers.
Industries with Worker Cooperatives:
o Manufacturing
o Construction
o IT and software development
o Retail and services
Worker cooperatives provide job security and financial stability for members.
6. Transport Cooperatives
These cooperatives operate public transport, taxi services, and logistics. They
are common in cities and rural areas where transportation services are limited.
Examples of Transport Cooperatives:
o Taxi associations
o Trucking cooperatives
o Community-based bus services
7. Energy Cooperatives
Energy cooperatives focus on renewable energy production, such as solar and
wind power. They help reduce dependence on fossil fuels and promote
sustainability.
Functions of Energy Cooperatives:
o Develop local power grids.
o Promote clean energy initiatives.
o Provide affordable electricity to communities.
Conclusion
Cooperative societies in Russia have evolved through different historical phases,
from the pre-Soviet period to the modern era. Today, cooperatives play a critical
role in agriculture, trade, finance, housing, and energy production. These
organizations promote economic self-reliance, financial stability, and social
solidarity. Despite challenges such as regulatory constraints and economic
fluctuations, cooperatives remain a fundamental part of Russia’s economy. By
fostering cooperation and collective economic participation, they continue to
support sustainable development and improve the livelihoods of millions of
Russians.
