The Rise and Decline of the Israeli Moshav Cooperative: A Historical Overview
The moshav (village smallholder cooperative) emerged in the early 1 920s. In the next three decades, its cooperative structure and rules underwent some changes, in response to developments in its environment. During Israel's first statehood decade, the moshav became the country's most prevalent form of agricultural settlement. Then, for almost thirty years, structure and rules were "frozen", despite the transformations which swept Israel's social, political and economic landscape. This "freezing", it is claimed, was allowed by insulation: the Zionist Movement and the State of Israel set up barriers, partly separating the moshav from the economy of the country in each of the four markets of classical economics (commodities, labor, capital, and land). Stabilization also occurred through recurrent government bail-outs, often channeled through powerful regional organizations which were linked to the moshavim through unlimited mutual financial guarantees. These bail( Juts softened the "budget constraints" of the moshavim. In \985-86, almost all regional moshav organizations became insolvent, in the wake of stringent antiinflationary measures enacted by the government. An unprecedented financial crisis befell the moshavim, whose "budget constraints" were hardened as the government no longer provided them with unlimited (albeit unwritten) financial guarantees. The moshav "unfroze". Slow processes - decooperativization, the decline of agriculture, occupational change, suburbanization, loss of municipal autonomy and legal change - were considerably speeded up. We suggest that the acceleration of these processes was due to the hardening of the budget constraints of the moshavim as well as to the lowering of the barriers which had insulated them from other sectors of the country's society and economy.
Volume (Year): 27 (1999)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Web page: http://departments.agri.huji.ac.il/economics/en/jrc.htm
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:jlorco:61944. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.