Cooperatives, Law on
COOPERATIVES, LAW ON
The Law on Cooperatives (hereafter the Law) was adopted in May 1988 to offer greater clarity about the direction of private economic activity during the early period of perestroika. This was necessitated by the fact that the earlier Law on Individual Labor Activity, which went into effect in May 1987 as the first step toward creating a legal private sector, was ambiguous as well as limited in its provisions for privatization. Private economic activity, embodied in organizations called "cooperatives," quickly evolved beyond the provisions of the 1987 Law, and the new Law was intended to reflect the reality of the growing cooperative movement.
In general, the Law liberalized the way in which cooperatives operated. The legal basis for private enterprise was changed, and cooperatives were accorded the status of "basic units" in the economy and were thus placed on an equal footing with state enterprises. No longer was the size of a cooperative or the amount of its assets limited. Cooperatives could now engage in any economic activity, except for those prohibited by law. Financial arrangements also moved in a new direction. Shares in a business could be issued. There was no limit on income, the size of which could be based either on one's financial contribution to the cooperative or on the amount of work one performed there. Cooperatives still had to be registered by local authorities, but these administrative organs no longer had the right of approval or disapproval of its activities. Cooperatives were made formally independent of the state sector, and the latter was forbidden to give compulsory state orders to cooperatives. Cooperatives were given the right to form joint ventures with foreign companies. In essence, the Law made cooperatives indistinguishable from capitalist enterprises.
See also: capitalism; economy, post-soviet; liberalism; perestroika
Hansen, Philip. (1988). "The Draft Law on Cooperatives: An Assessment." Radio Liberty 111/88, March 15.
Jones, Anthony, and Moskoff, William. (1991). Ko-ops: The Rebirth of Entrepreneurship in the Soviet Union. Bloomington: Indiana University Press.
"Cooperatives, Law on." Encyclopedia of Russian History. . Encyclopedia.com. (September 20, 2018). http://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/cooperatives-law
"Cooperatives, Law on." Encyclopedia of Russian History. . Retrieved September 20, 2018 from Encyclopedia.com: http://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/cooperatives-law
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.