Ukrainian cooperative movement
Encyclopedia
The Ukrainian Cooperative Movement was a movement based primarily in Western Ukraine
that addressed the economic plight of the western Ukrainian people through the creation of financial, agricultural and trade cooperative
s that enabled western Ukrainians (primarily peasants) to pool their resources, to obtain less expensive loans and insurance, and to pay less for products such as farm equipment. The cooperatives played a major role in the social and economic mobilization of the western Ukrainian people, most of whom were peasants. First begun in 1883, by 1939 cooperatives had 700,000 members in western Ukraine, employing 15,000 Ukrainians. The cooperatives were shut down by the Soviet authorities when western Ukraine was annexed by the Soviet Union in 1939
. However, they continue to exist and flourish among Ukrainian emigrants and their descendants in North and South America, Europe and Australia.
society which had been dedicated to educational and cultural efforts attempted to organize credit unions, stores and warehouses. Its ability to do so was limited, however, by lack of experience in economic matters. The need for an experienced organizer was fulfilled by Vasyl Nahirny, who had spent a decade in Switzerland
studying that nation's well-developed cooperative systems. In 1883 he organized Narodna Torhivlia ("People's Trade"), whose goal was to buy and sell products in large quantities, eliminate middlemen, and pass the savings on to the Ukrainian villagers. Through this cooperative Nahirny hoped to familiarize Ukrainians with commerce.
Many other cooperatives followed. In 1899, Silsky Hospodar, whose aim was to teach the peasants modern farming methods, was founded. By 1913 it had 32,000 members. Dnister, an insurance company, was established in Lviv
and by 1907 had 213,000 policyholders. Most important, however, was the rise of Ukrainian Credit unions
. Although some existed as early as 1874, the Vira credit union was the first to be stable and well-regulated. Typically charging approximately 10% interest for loans, hundreds of credit unions sprung up throughout Austrian-ruled Ukraine. They helped put traditional moneylenders out of business. In 1904, a central association of Ukrainian cooperatives was formed, which had 550 institutional affiliates and 180,000 individual members.
The Ukrainian Greek Catholic Church
and its clergy
were heavily involved in the cooperative movement, and an association of priests formed whose focus was on improving the peasants' socioeconomic conditions. Many priests took part in organizing cooperatives. The Church's leader, Andrei Sheptytsky, taught that the poor needed more than merely money and that the educated or well off had a duty to help the poor learn how to raise themselves from their circumstances - "teach them, show them how to improve their lot."
The rise of the cooperative movement in late 19th century Ukraine had several effects. It helped to bring about a close and harmonious relationship between the intelligentsia
of western Ukraine and the peasantry, something that the intelligentsia in Russian-ruled Ukraine was not able to accomplish. Because the cooperative movement was largely the project of Ukrainophiles (those western Ukrainians with a patriotic Ukrainian national orientation), its practical help to the Ukrainian population contributed to its allegiance to the Ukrainian national movement rather than to the competing pro-Russian orientation
. Indeed, improvement in economic standards developed concurrently with the increase in Ukrainian national consciousness. Because the professions of moneylending and shopkeeping had traditionally been Jewish vocations in western Ukraine, the cooperative movement also created financial hardship for the local Jewish community, by eliminating many Jewish jobs. The financial hardship caused antagonism between the two communities and was a cause for Jewish emigration from Galicia.
that was conquered and absorbed by Poland in 1919. This dramatically widened the scope of the Ukrainian cooperative movement. No longer merely a tool for economic progress, cooperatives came to be seen as a school for self-government and a method of economic self-defence against the Polish occupiers. The movement was particularly supported by western Ukrainians' largest and most significant political party, the Ukrainian National Democratic Alliance
. Many western Ukrainian veterans took part in the movement, claiming that "by working in the cooperatives we are once again the nation's soldiers." Every bit of capital that stayed in Ukrainian hands was seen as a victory against the Polish enemy. The cooperative organization grew and became elaborately organized. Credit Unions were united into the Tsentrobank ("Central Bank"). Narodnia Torhivlia (People's Trade") brought together urban retailers. Dairy cooperatives united to form Maslosoyuz, which included dairies supplied by over 200,000 farms. It dominated the western Ukrainian and even much of the central Polish market, and exported to Austria
and Czechoslovakia
. Women had their own cooperative, which by 1936 included 36,000 members. It taught women how to operate cooperatives and nursing schools, and established a cooperative that helped to popularize and sell folk art made at home.
All of these organizations were further subordinated into an umbrella organization called the Audit Union of Ukrainian Cooperatives (RUSK). The number of Ukrainian cooperatives in Galicia grew from 580 in 1921 to 2,500 in 1928 and approximately 4,000 by 1939. Membership on the eve of the second world war was estimated at 700,000 people, and the cooperatives employed over 15,000 Ukrainians.
The Polish government was alarmed by the growth of Ukrainian cooperatives and attempted to limit them by supporting Polish cooperatives and creating problems through allegations of hygiene code violations or incorrect filing of reports. In 1934, the Polish government passed a law forcing Ukrainian cooperatives outside Galicia to unite with Polish ones. Despite such tactics, Ukrainians had twice as many cooperatives per capita than did Poles.
When the Soviet Union annexed western Ukraine in 1939
, the Soviet authorities liquidated most Ukrainian community institutions, including Ukrainian cooperatives.
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
that addressed the economic plight of the western Ukrainian people through the creation of financial, agricultural and trade cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
s that enabled western Ukrainians (primarily peasants) to pool their resources, to obtain less expensive loans and insurance, and to pay less for products such as farm equipment. The cooperatives played a major role in the social and economic mobilization of the western Ukrainian people, most of whom were peasants. First begun in 1883, by 1939 cooperatives had 700,000 members in western Ukraine, employing 15,000 Ukrainians. The cooperatives were shut down by the Soviet authorities when western Ukraine was annexed by the Soviet Union in 1939
Soviet annexation of Western Ukraine, 1939–1940
On the basis of a secret clause of the Molotov–Ribbentrop Pact between Nazi Germany and the Soviet Union , the Soviet Union invaded Poland on September 17, 1939, capturing the eastern regions of Poland , with Galicia and Volhynia, facing little Polish opposition and occupying the principal city of...
. However, they continue to exist and flourish among Ukrainian emigrants and their descendants in North and South America, Europe and Australia.
Under Austrian Rule
The Ukrainian cooperative movement originated in Galicia, a western Ukrainian region that was part of Austria–Hungary. Initially, the Ukrainian ProsvitaProsvita
Prosvita is a society created in the nineteenth century in Ukrainian Galicia for preserving and developing Ukrainian culture and education among population....
society which had been dedicated to educational and cultural efforts attempted to organize credit unions, stores and warehouses. Its ability to do so was limited, however, by lack of experience in economic matters. The need for an experienced organizer was fulfilled by Vasyl Nahirny, who had spent a decade in Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
studying that nation's well-developed cooperative systems. In 1883 he organized Narodna Torhivlia ("People's Trade"), whose goal was to buy and sell products in large quantities, eliminate middlemen, and pass the savings on to the Ukrainian villagers. Through this cooperative Nahirny hoped to familiarize Ukrainians with commerce.
Many other cooperatives followed. In 1899, Silsky Hospodar, whose aim was to teach the peasants modern farming methods, was founded. By 1913 it had 32,000 members. Dnister, an insurance company, was established in Lviv
Lviv
Lviv is a city in western Ukraine. The city is regarded as one of the main cultural centres of today's Ukraine and historically has also been a major Polish and Jewish cultural center, as Poles and Jews were the two main ethnicities of the city until the outbreak of World War II and the following...
and by 1907 had 213,000 policyholders. Most important, however, was the rise of Ukrainian Credit unions
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
. Although some existed as early as 1874, the Vira credit union was the first to be stable and well-regulated. Typically charging approximately 10% interest for loans, hundreds of credit unions sprung up throughout Austrian-ruled Ukraine. They helped put traditional moneylenders out of business. In 1904, a central association of Ukrainian cooperatives was formed, which had 550 institutional affiliates and 180,000 individual members.
The Ukrainian Greek Catholic Church
Ukrainian Greek Catholic Church
The Ukrainian Greek Catholic Church , Ukrainska Hreko-Katolytska Tserkva), is the largest Eastern Rite Catholic sui juris particular church in full communion with the Holy See, and is directly subject to the Pope...
and its clergy
Western Ukrainian Clergy
The Western Ukrainian clergy of the Ukrainian Greek Catholic Church were a hereditary tight-knit social caste that dominated western Ukrainian society from the late eighteenth until the mid twentieth centuries, following the reforms instituted by Joseph II, Emperor of Austria...
were heavily involved in the cooperative movement, and an association of priests formed whose focus was on improving the peasants' socioeconomic conditions. Many priests took part in organizing cooperatives. The Church's leader, Andrei Sheptytsky, taught that the poor needed more than merely money and that the educated or well off had a duty to help the poor learn how to raise themselves from their circumstances - "teach them, show them how to improve their lot."
The rise of the cooperative movement in late 19th century Ukraine had several effects. It helped to bring about a close and harmonious relationship between the intelligentsia
Intelligentsia
The intelligentsia is a social class of people engaged in complex, mental and creative labor directed to the development and dissemination of culture, encompassing intellectuals and social groups close to them...
of western Ukraine and the peasantry, something that the intelligentsia in Russian-ruled Ukraine was not able to accomplish. Because the cooperative movement was largely the project of Ukrainophiles (those western Ukrainians with a patriotic Ukrainian national orientation), its practical help to the Ukrainian population contributed to its allegiance to the Ukrainian national movement rather than to the competing pro-Russian orientation
Ukrainian Russophiles
The focus of this article is part of a general political movement in Western Ukraine of the nineteenth and early 20th century. The movement contained several competing branches: Moscowphiles, Ukrainophiles, Rusynphiles, and others....
. Indeed, improvement in economic standards developed concurrently with the increase in Ukrainian national consciousness. Because the professions of moneylending and shopkeeping had traditionally been Jewish vocations in western Ukraine, the cooperative movement also created financial hardship for the local Jewish community, by eliminating many Jewish jobs. The financial hardship caused antagonism between the two communities and was a cause for Jewish emigration from Galicia.
Under Polish Rule
After Austria–Hungary collapsed following the first world war, in 1918 western Ukrainians declared an independent stateWest Ukrainian National Republic
The West Ukrainian People's Republic was a short-lived republic that existed in late 1918 and early 1919 in eastern Galicia, that claimed parts of Bukovina and Carpathian Ruthenia and included the cities of Lviv , Przemyśl , Kolomyia , and Stanislaviv...
that was conquered and absorbed by Poland in 1919. This dramatically widened the scope of the Ukrainian cooperative movement. No longer merely a tool for economic progress, cooperatives came to be seen as a school for self-government and a method of economic self-defence against the Polish occupiers. The movement was particularly supported by western Ukrainians' largest and most significant political party, the Ukrainian National Democratic Alliance
Ukrainian National Democratic Alliance
The Ukrainian National Democratic Alliance, was the largest Ukrainian political party in the Second Polish Republic, active in territory that is currently Western Ukraine. It dominated the mainstream political life of the Ukrainian minority in Poland, which with almost 14% of Poland's population...
. Many western Ukrainian veterans took part in the movement, claiming that "by working in the cooperatives we are once again the nation's soldiers." Every bit of capital that stayed in Ukrainian hands was seen as a victory against the Polish enemy. The cooperative organization grew and became elaborately organized. Credit Unions were united into the Tsentrobank ("Central Bank"). Narodnia Torhivlia (People's Trade") brought together urban retailers. Dairy cooperatives united to form Maslosoyuz, which included dairies supplied by over 200,000 farms. It dominated the western Ukrainian and even much of the central Polish market, and exported to Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
and Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
. Women had their own cooperative, which by 1936 included 36,000 members. It taught women how to operate cooperatives and nursing schools, and established a cooperative that helped to popularize and sell folk art made at home.
All of these organizations were further subordinated into an umbrella organization called the Audit Union of Ukrainian Cooperatives (RUSK). The number of Ukrainian cooperatives in Galicia grew from 580 in 1921 to 2,500 in 1928 and approximately 4,000 by 1939. Membership on the eve of the second world war was estimated at 700,000 people, and the cooperatives employed over 15,000 Ukrainians.
The Polish government was alarmed by the growth of Ukrainian cooperatives and attempted to limit them by supporting Polish cooperatives and creating problems through allegations of hygiene code violations or incorrect filing of reports. In 1934, the Polish government passed a law forcing Ukrainian cooperatives outside Galicia to unite with Polish ones. Despite such tactics, Ukrainians had twice as many cooperatives per capita than did Poles.
When the Soviet Union annexed western Ukraine in 1939
Soviet annexation of Western Ukraine, 1939–1940
On the basis of a secret clause of the Molotov–Ribbentrop Pact between Nazi Germany and the Soviet Union , the Soviet Union invaded Poland on September 17, 1939, capturing the eastern regions of Poland , with Galicia and Volhynia, facing little Polish opposition and occupying the principal city of...
, the Soviet authorities liquidated most Ukrainian community institutions, including Ukrainian cooperatives.