Development of agricultural cooperatives in Kyrgyzstan: who are the lead actors?
Nazik Beishenaly1*, Frédéric Dufays1,2
1University of Leuven (KU Leuven) Faculty of Business and Economics, Naamsestraat 69, box 3530 – 3000 Leuven, Belgium.
2HEC Liège, University of Liège , Place du 20 Août 7, 4000 Liège, Belgium.
This article belongs to the Special Section “30 years of farm restructuring and water management reforms in Central Asia”
Agricultural cooperatives play an important role in promoting local communities and sustainable farming practices in many parts of the world. In Kyrgyzstan their development remains a challenge despite the existence of laws and policies, support from donor-funded projects and the existence of an apex organisation. What is missing for their development and who should lead their development? Adopting an entrepreneurial ecosystem (EE) approach to the analysis of the agricultural cooperatives, we aim to identify the lead actors of the agricultural cooperatives’ development in Kyrgyzstan and understand what roles such a lead actor plays in the emergence and strengthening of an EE for agricultural cooperatives. Adopting a case study approach, we retrieved archival data published between 1991 and 2020 on agricultural cooperatives in Kyrgyzstan, that included documents from government, cooperatives and their apex organisations, and studies commissioned by international organisations. We reviewed data using a grounded theory approach and organised our codes and text excerpts around the EE elements and actors. Thereby, we identify what roles the three principal actors of cooperative development, namely government, cooperatives and their apex organisation, and international organisations, play in different EE dimensions – i.e., policy, skills and education, market environment, culture, networks and partnerships. Among others, we uncover that the lead actor varies across EE dimensions and the paradox, where expectations of the government and cooperatives’ are inadequate to their funding abilities; while international organisations, that could fund cooperatives’ development, do not consider them as a priority in their projects. Although the study has limitations due to its exploratory nature, we offer both theoretical contribution extending entrepreneurial ecosystem approach to the study of agricultural cooperatives in transition economies and practical implications for better understanding and integrating agricultural cooperatives in the international development programming.Download the article (eng)
For citation: Beishenaly, N., & Dufays, F. (2021). Development of agricultural cooperatives in Kyrgyzstan : who are the lead actors? Central Asian Journal of Water Research, 7(2), 138–157. https://doi.org/10.29258/CAJWR/2021-R1.v7-2/138-157.eng
Beishenaly, N., & Dufays, F. (2021). Approaching the Development of Agricultural Cooperatives in Developing and Transition Countries through an Entrepreneurial Ecosystem Lens: The Case of Kyrgyzstan. 31st International Conference of Agricultural Economics, International Association of Agricultural Economists.
Beugre, C. D. (2017). Building Entrepreneurial Ecosystems in Sub-Saharan Africa: A Quintuple Helix Model. Palgrave Macmillan US. https://doi.org/10.1057/978-1-137-56894-6
Bijman, J., & Iliopoulos, C. (2014). Farmers’ Cooperatives in the Eu: Policies, Strategies, and Organization. Annals of Public and Cooperative Economics, 85(4), 497–508. https://doi.org/10.1111/apce.12048
Bijman, J., Iliopoulos, C., Poppe, K. J., Gijselinckx, C., Hagedorn, K., Hanisch, M., Hendrikse, G. W. J., Kühl, R., Ollila, P., & Pyykkönen, P. (2012). Support for Farmers’ Cooperatives (European Commission).
Charmaz, K. (2006). Constructing grounded theory. Sage Publications.
Chen, M., Jhabvala, R., Kanbur, R., & Richards, C. (2007). Membership Based Organizations of the Poor. Routledge.
Chohra, M. (2019). A critical review of the academic entrepreneurial ecosystem in developing countries: The case of Algeria. International Journal of Technology Management & Sustainable Development, 18(3), 243–259. https://doi.org/10.1386/tmsd_00008_1
Colombelli, A., Paolucci, E., & Ughetto, E. (2019). Hierarchical and relational governance and the life cycle of entrepreneurial ecosystems. Small Business Economics, 52(2), 505–521.
Colombo, M. G., Dagnino, G. B., Lehmann, E. E., & Salmador, M. (2019). The governance of entrepreneurial ecosystems. Small Business Economics, 52(2), 419–428.
Cook, M. L. (2018). A Life Cycle Explanation of Cooperative Longevity. Sustainability, 10(5), 1586. https://doi.org/10.3390/su10051586
Deininger, K. (1993a). Cooperatives and the breakup of large mechanized farms: Theoretical perspectives and empirical evidence. World Bank.
Deininger, K. (1993b). Cooperatives and the breakup of large mechanized farms: Theoretical perspectives and empirical evidence (World Bank Discussion Papers WDP 218). World Bank.
Develtere, P. (2021). International Development Cooperation Today (Leuven University Press). https://lup.be/products/161195
Develtere, P., Pollet, I., Wanyama, F., International Labour Office, International Labour Organization, & World Bank Institute (Eds.). (2008). Cooperating out of poverty: The renaissance of the African cooperative movement. ILO.
Dufays, F. (2016). Embeddedness as a facilitator of sustainable entrepreneurship. In Sustainable Entrepreneurship and Social Innovation, ed. Nicolopoulou K. et al.,. Routledge. https://core.ac.uk/reader/80796200
European Commission. (2020). Social enterprises and their ecosystems in Europe: Comparative synthesis report. Directorate General for Employment, Social Affairs and Inclusion. https://data.europa.eu/doi/10.2767/567551
Gardner, B., & Lerman, Z. (2006). Agricultural Cooperative Enterprise in the Transition from Socialist Collective Farming (Discussion Paper No. 9.06). The Center for Agricultural Economic Research, The Hebrew University of Jerusalem.
Gezahegn, T. W., Passel, S. V., Berhanu, T., D’Haese, M., & Maertens, M. (2019). Big is efficient: Evidence from agricultural cooperatives in Ethiopia. Agricultural Economics, 50(5), 555–566. https://doi.org/10.1111/agec.12509
Golovina, S., Nilsson, J., & Wolz, A. (2012). The Development of Agricultural Production Cooperatives in the Russian Federation. Journal of Rural Cooperation, 40(issue 1, 17).
Hagedorn, K. (2014). Post-Socialist Farmers’ Cooperatives in Central and Eastern Europe. Annals of Public and Cooperative Economics, 85(4), 555–577. https://doi.org/10.1111/apce.12051
Hansmann, H. B. (1980). The Role of Nonprofit Enterprise. The Yale Law Journal, 89(5), 835. https://doi.org/10.2307/796089
Hoover, M., & Abell, H. (2016). The Cooperative Growth Ecosystem. Inclusive Economic Development in Action. Democracy at Work Institute.
Hussi, P., Murphy, J., Lindberg, O., & Brennernan, L. (1993). The Development of Cooperatives and Other Rural Organizations: The Role of the World Bank. World Bank Technical Paper n.199, 122.
Iliopoulos, C., & Valentinov, V. (2018). Cooperative Longevity: Why Are So Many Cooperatives So Successful? Sustainability, 10(10), 1–1.
ILO. (2001). Promotion of cooperatives, ILO International Labour Conference, 89th Session, June 2001 (89th Session, June 2001) [Report V (1)]. International Labour Office. https://www.ilo.org/public/english/standards/relm/ilc/ilc89/rep-v-1.htm
Isenberg, D. J. (2016). Applying the Ecosystem Metaphor to Entrepreneurship: Uses and Abuses. The Antitrust Bulletin, 61(4), 564–573. https://doi.org/10.1177/0003603X16676162
Isenberg, D., & Onyemah, V. (2016). Fostering Scaleup Ecosystems for Regional Economic Growth ( Innovations Case Narrative: Manizales-Mas and Scale Up Milwaukee). Innovations: Technology, Governance, Globalization, 11(1–2), 60–79. https://doi.org/10.1162/inov_a_00248
JICA. (2012). Development of Agricultural Cooperatives in the Kyrgyz Republic. Japan International Cooperation Agency.
Kurakin, A., & Visser, O. (2017). Post-socialist agricultural cooperatives in Russia: A case study of top-down cooperatives in the Belgorod region. Post-Communist Economies, 29(2), 158–181. https://doi.org/10.1080/14631377.2016.1267974
Lerman, Z. (2013). Cooperative development in Central Asia (N° 2013-4; Policy Studies on Rural Transition). FAO Regional Office for Europe and Central Asia.
Lerman, Z., & Sedik, D. (2009). Agrarian Reform in Kyrgyzstan: Achievements and the unfinished agenda,. FAO Regional Office for Europe and Central Asia Policy Studies on Rural Transition, No. 2009-1, 26.
Lerman, Z., Sedik, D., & Csaki, C. (2016). Agricultural Cooperatives in Transition Countries.
Mansuri, G., & Rao, V. (2013). Localizing Development: Does Participation Work? (p. 347) [A World Bank Policy Research Report]. The World Bank.
Mason, C., & Brown, R. (2014). Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship. Paper Prepared for the Workshop Organised by OECD LEED Programme and the Dutch Ministry of Economic Affairs on Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship, 38.
McKague, K., Wong, J., & Siddiquee, N. (2017). Social franchising as rural entrepreneurial ecosystem development: The case of Krishi Utsho in Bangladesh. The International Journal of Entrepreneurship and Innovation, 18(1), 47–56. https://doi.org/10.1177/1465750316686240
Miles, M. P., & Morrison, M. (2020). An effectual leadership perspective for developing rural entrepreneurial ecosystems. Small Business Economics, 54(4), 933–949. https://doi.org/10.1007/s11187-018-0128-z
Nilsson, J., Golovina, S., Hess, S., & Wolz, A. (2016). Governance of Production Co-Operatives in Russian Agriculture. Annals of Public and Cooperative Economics, 87(4), 541–562. https://doi.org/10.1111/apce.12123
Niyazmetov, D., Soliev, I., & Theesfeld, I. (2021). Ordered to volunteer? Institutional compatibility assessment of establishing agricultural cooperatives in Uzbekistan. Land Use Policy, 108, 105538. https://doi.org/10.1016/j.landusepol.2021.105538
Pereira, L. D., Santos, N., Henrÿ, H., Benmokhtar, A., & Azenfar, A. (2018). Investing in collective action: Opportunities in agrifood cooperatives (p. 143). Food and Agriculture Organization of the United Nations.
Porras-Paez, A., & Schmutzler, J. (2019). Orchestrating an Entrepreneurial Ecosystem in an emerging country: The lead actor’s role from a social capital perspective. Local Economy: The Journal of the Local Economy Policy Unit, 34(8), 767–786. https://doi.org/10.1177/0269094219896269
Sexton, R. J., & Iskow, J. (1988). Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives (Giannini Foundation Information Series No. 88-3, p. 59). Department of Agricultural and Resource Economics University of California, Davis.
Shrestha, R. B., Bhandari, H., & Islam, A. (2020). Family Farmers’ Cooperatives Ending Poverty and Hunger in South Asia. SAARC Agriculture Center, Bangladesh; Asian Farmers’ Association, Philippines; and National Dairy Development Board, India. 228 p.
Stam, E. (2015). Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique. European Planning Studies, 23(9), 1759–1769. https://doi.org/10.1080/09654313.2015.1061484
Tomohito, S. (2021). Cooperation among Cooperatives in Action between Japan and Africa. International Labour Office (ILO).
Tulus, R. (2020). Chapter 5 – Asian cooperatives and public policy: Approach, process, and prospect. In M. Altman, A. Jensen, A. Kurimoto, R. Tulus, Y. Dongre, & S. Jang (Eds.), Waking the Asian Pacific Co-Operative Potential (pp. 47–58). Academic Press. https://doi.org/10.1016/B978-0-12-816666-6.00005-7
Uphoff, N. (1992). LOCAL INSTITUTIONS AND PARTICIPATION FOR SUSTAINABLE DEVELOPMENT. International Institute for Environment and Development. https://www.jstor.org/stable/resrep01670
Verhofstadt, E., & Maertens, M. (2014). Smallholder cooperatives and agricultural performance in Rwanda: Do organizational differences matter? Agricultural Economics, 45(S1), 39–52. https://doi.org/10.1111/agec.12128
World Bank. (2004). Kyrgyz Republic Agricultural Policy Update Sustaining Pro-poor Rural Growth: Emerging Challenges for Government and Donors (Europe and Central Asia Region Environmentally and Socially Sustainable Development 31040). World Bank.
World Bank. (2018). Kyrgyz Republic: Developing Agri-Food Value Chains (Agriculture Global Practice The World Bank Group) [Policy Note]. International Bank for Reconstruction and Development / The World Bank.
World Economic Forum. (2014). Entrepreneurial Ecosystems Around the Globe and Early-Stage Company Growth Dynamics. World Economic Forum.
Yin, R. (2013). Case Study Research: Design and Methods (5th edition). SAGE Publications.
Zhang, S., Ding, Y., & Wolz, A. (2019, August 21). Is There a Niche for Agricultural Production Cooperatives? Evidence from Chongzhou District in Sichuan Province, China. ICA CCR European Research Conference, Berlin, Germany.