A Critical Review of Legal Framework as a Factor of Coops Development - Case of Serbia

Abstract

Contemporary cooperative movement must rest on the original cooperative principles that were confirmed and modernized by the Congress of International Co-Operative Alliance held in Manchester in 1995. Development of coops legislative framework in Serbia has a long history and presently the matter of cooperatives is governed by the federal Law on Cooperatives adopted in 1996. The text analyzes the extent to which a legislative framework can be an incentive for and/or impediment to cooperatives' operation in Serbia, and what sort of results can be expected from a modernized and improved legal framework. Interview of key players in the coop sector was one of the research methods. Other methods include historical, comparative analysis and case study. The paper includes four parts: a) historical and legal background of development of coops in Serbia; b) legislative framework; c) successful case study and d) framework for further development. The paper also analyses cooperatives within the environment of social enterprises and evaluates their role in the social inclusion process.