Introduction. The formation of market relations in the agrarian sector of the region’s economy provides new opportunities for the agricultural cooperatives development in the countryside. However, today it develops slowly and unstable. The causes of these phenomena are the imperfection of the mechanism of cooperative relations development, the lack of state support and regulation of cooperative processes, the high cost of credit and borrowed funds, imperfect co-operative legislation and a number of other problems that restrain the cooperation development.
The purpose of the article is to investigate the functioning of cooperatives in the countryside, to consider both the positive and the negative aspects of the creation of this integrated agricultural subdivision.
Results. It has been established that to create this unit, it is necessary to comply with the legislation and to change certain tax levels and to develop new laws and bills on improving the conditions of economic activity and to interest the actors in supporting and developing cooperatives in the countryside.
Conclusions. On the base of the background of data and research, representatives of the cooperative movement in Ukraine understand that such a form of management will give them a good economic benefit. In addition, the cooperative is an opportunity, in the context of the future opening of the land market, to remain an effective and responsible manager of their land assets. Therefore, one of the best mechanisms for village development and local budgets is the cooperative. The revival of cooperation throughout the country in conditions of decentralization will create prospects for the prosperity of rural communities and the reform of the agrarian sector.
Keywords: driver, cooperatives, economic potential, cooperative movement, cooperative management, association.
- Agrarne pravo Ukrayiny. [Agrarian Law of Ukraine]. (2003). In Gajvorons`kogo, M., Dushmana, V. P. (ed.), «Pravo». Kharkiv. Ukraine.
- Pro sil`s`kogospodars`ku kooperaciyu: Zakon Ukrayiny`. [On Agricultural Cooperatives: Law of Ukraine]. (1998). From 17 July № 469/97. VR // Vidomosti Verxovnoyi Rady` Ukrayiny`. № 39. p. 52.2.
- Sil`s`kogospodars`ka obslugovuyucha kooperaciya: slovny`k dovidny`k. [Agricultural Service Cooperative: Dictionary directory]. (2010). / in Korinecz`, Ya. (ed.), NVF «Ukrayins`ki texnologiyi». Lviv. Ukraine.
- Svy`nous, I. V. (2007). «Co-operation of personal peasant farms in a transition economy». Innovacijna ekonomika. № 1. рр. 34–37.
- Malik M. J. (2010). «Problematic issues of development of cooperation and integration relations in the agroindustrial complex». Ekonomika APK. № 3. рр. 45–49.
- Bagaj, N. O. (2001). «Scientific principles of agricultural co-operation development in Ukraine». Zbirny`k pracz` Pry`karpats`kogo universy`tetu. рр. 102–108.
- Ty`tova, N. I. (2000). «Rights of members of agricultural cooperatives: trends and problems of legislative provision». Pravo Ukrayiny`. № 2. рр. 25–27.
The article was received 12.08.2018