ABSTRACT
Separate small collectives in villages, such as in Pecsely, were formed on the basis of social, rather than economic considerations. Formation of larger units were initiated in 1960, on the argument of the advantages of 'economies of scale'. The first mergers initiated aimed at better exploitation of machinery, buildings and equipment and better cost effectiveness of large scale production. In the course of the mass collectivization campaign in 1959, the district council in charge of collectivization in Pecsely had put before the villagers the recommendation that a single collective be founded instead of three; this advice had been disregarded. In the event of a merger, such routine interaction would necessarily extend over a much wider social field and would bring together people who were not as tightly bound by long-standing social ties. The merger of 1961 in fact opened the way for a new phase of economic development and the possibility of more rationalized, large-scale production came within reach.
