Between capitalism and socialism: Tugan-Baranovsky on cooperatives

Abstract This paper provides a comprehensive discussion of Tugan-Baranovsky’s (1916) seminal study about the working of cooperatives in a capitalist environment, which, due to historical and linguistic circumstances, has left only a limited trace in the subsequent economic literature in the Western world. He claimed to have provided the then only full analytical and historical account of economic cooperation in its several forms, especially producer and consumer cooperatives, and their impact on their members’ welfare. It was not until the 1950s and 1960s that cooperative organisations gradually occupied again the research agenda of economists under the guise of ‘labor-managed firms’. Tugan’s treatise on cooperation has been mentioned in that literature to a limited extent only, in connection with the issue of the life-cycle of producer cooperatives. Tugan’s economic treatment of cooperatives is discussed here as part of his broader social and political views of capitalism and socialism.