History of Economic Thought. Organizational and production school of A. V. Chayanov (the most important)

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History of Economic Thought. Organizational and production school of A. V. Chayanov (the most important)

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68. ORGANIZATIONAL AND PRODUCTION SCHOOL OF A. V. CHAYANOV

Organizational and production school (A. V. Chayanov, N. P. Makarov, A. N. Minin, A. A. Rybnikov etc.) arose in the pre-revolutionary period in connection with the rapid growth of peasant cooperatives.

The leader of this school was a major Russian economist Alexander Vasilievich Chayanov (1888-1937). Main works: “Organization of Peasant Farming” (1925), “Short Course in Cooperation” (1925).

The greatest interest for Chayanov represented family-labor peasant farmaimed at meeting the needs of family members. First of all Chayanov interested in the natural-consumer features of this economy and, to a lesser extent, its commodity-market features. The main concepts here are the organizational plan and the labor-consumer balance of the peasant economy.

Organizational planBy Chayanov, is the peasant’s subjective reflection of the system of goals and means of economic activity. It includes the choice of the direction of the economy, the combination of its industries, the linking of labor resources and volumes of work, the division of products consumed and sold on the market, the balance of cash receipts and expenses.

The concept of labor balance proceeded from the fact that the peasant does not strive for the maximum net profit, but for the growth of total income, respectively, production and consumption, the balance of production and natural factors, the even distribution of labor and income throughout the year.

Chayanov singled out six types of farms:

1) capitalist;

2) semi-labor;

3) wealthy family-labor workers;

4) poor family and labor;

5) semi-proletarian;

6) proletarian.

Chayanov believed that improve the efficiency of the agricultural sector is possible only in the case of a massive expansion of cooperation, which should have an anti-capitalist and anti-bureaucratic orientation.

According to Chayanov, the benefits of cooperation are in relatively low product prices and in the additional income of its members. Chayanov opposed the nationalization of cooperatives.

According to Chayanov, individual peasant farms are able to carry out efficient tillage and animal husbandry, while other types of activity are subject to gradual and voluntary cooperation, since their technical optimum exceeds the capabilities of an individual peasant economy.

Chayanov created theory of differential optima of agricultural enterprises.

The optimum exists where, other things being equal, the cost of the products obtained will be the lowest. The optimum depends on natural-climatic, geographical conditions, biological processes.

All cost elements in agriculture Chayanov divided into three groups:

1) decreasing with the consolidation of farms (administrative expenses, costs of using machines, buildings);

2) increasing with the enlargement of farms (transport costs, losses from the deterioration of control over the quality of labor);

3) not dependent on the size of farms (the cost of seeds, fertilizers, loading and unloading). The optimum comes down to finding the point at which the sum of all costs per unit of output will be minimal.

Author: Tatarnikov E.A.

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