Stages of Formation of Credit Cooperatives on the Level of Zemstvo in Russia

The article analyzes formation of credit cooperatives of Zemstvo in Russia, distinguishes stages of this process. The legal policy of the government in the field of formation and development of small credit institution in prerevolutionary Russia from the middle of the 19th to the early 20th century is considered. Causes that obstructed Zemstvo`s activity in lending and cooperation are revealed. It is the lack of qualified personnel, insufficient external support from the state, the lack of proper oversight and legislative acts regulating this activity, the line of the state for conservation of old caste patriarchal credit institutions, lack of own funds. The activity of the banks of Zemstvo, the mechanisms of interaction between local governments and artel, credit associations and societies, zemstvo's small credit bureau are analyzed. Effectiveness of local government in dissemination of small loans in rural areas that improved the welfare of the local population and promoted more intensive joining of peasantry into the market economy is considered.