Browsing by Subject "Local rules"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Publication
    The potential of rural cooperatives development in Albania : challenges and benefits
    (2021) Sokoli, Olta; Doluschitz, Reiner
    Promising but particularly challenging remains the agricultural sector in Albania even after almost three decades of transition and the collapse of communism regime. The country is located in a very strategic geographical area of Europe, tempting for centuries to its neighbors is struggling to find the way to promote the agriculture sector. On the other hand, the agriculture sector contributes to almost half of the employment in Albania and accounts for about one-fifth of the gross domestic product (ILO - International Labour Organisation, 2018). Roughly 60% is subsistence farming meaning that small and family farms with an average of 1.2 ha to 2 ha is the most common profile of the farmers (INSTAT, 2018). Combining this with the land fragmentation, for instance two or more rather small parcels per farm, geographically spread, generates a challenge for farmers. As a consequence of the land reform implemented in the early 1990s, in which state agricultural land was equally distributed to the rural population, which resulted in small and fragmented farms that hampered the growth and competitiveness of agriculture. Due to negative experience in the past, Albania, farmers tend to be hesitant to form or join organizations such as cooperatives, as in many other post communism regime countries. However, there are signs of change, as the first movements of cooperatives establishment have started, even though initiated by external factor such as international projects provided by GIZ, FAO and many other foreigner programs. The two major objectives of this research are: first to highlight the obstacles why farmers are hesitant to participate in cooperation even after three decades of regime change. Secondly, the benefits and the mechanisms to promote this movement, as well as the impact it might have in further development of agriculture in the country. Based on this observations and consecutive problematic this dissertation analyzes the potential of cooperative development in the following key issues: cooperatives evolution within the last decades, governmental institution supporting role in this movement, the factors that influence the willingness of farmers to or not to cooperate. The research has taken place in the main villages/areas of Lushnja and Fier district covering about 25% of the Albanian national milk/dairy cow per head (INSTAT, 2018). The research sample included 238 farmers involved in cow milk production who were selected randomly by the interviewers. The interviewed farmers were all personally involved in farm activities, including the production and sale of cow milk Furthermore, the findings show the importance of governmental institutions in the promotion and the support for the development of cooperatives. Their role is fundamental as they play the leading and managerial role of the policy implementation. Moreover, a particular importance has shown the indirect affect that local rules have on cooperation. From the findings, it emerges that the main and most noteworthy mechanism of how local rules affect willingness to cooperate is by constructing social capital. Without leaving apart the determinants of the local rules, trust, and leadership skills in cooperation taken individually and in relation to each other (Agrawal 2001, Ostrom 2009, Ostrom and Mc Ginhis 2014). Summarizing the above mentioned major findings and in conclusion, innovative initiatives is a process in itself that should be elaborated and supported broadly to deliver the importance it brings in the development of the farm or in the farmers organization such as cooperatives, without leaving aside the impact it might have in the community (Dossa and Kaeufer, 2014; Bocken et al., 2013; Weltzien, 2011). A challenging initiative does not make it not valuable and uncertain but should intrigue the community to incorporate new possibilities.