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Role of Cooperatives in Rural Development, the Case of South Nations Nationalities and People Region, Ethiopia

Received: 27 May 2015     Accepted: 22 June 2015     Published: 21 July 2015
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Abstract

For small land-holding, developing and agricultural based economic countries like Ethiopia, cooperative type of business is recommended as a solution to promote income distribution, reduce poverty and vulnerability, and improve quality of life and social welfare. Ethiopia is a second largest populace country in Africa and has nine regions and two city administrations. South Nations Nationalities and Peoples Region (SNNPR) state is third populace and most densely populated region in Ethiopia. Most of the farmers’ in this region have small plot of lands for their living, farming and raising animals. It is obvious that such smallholder farmers are characterized by producing small amount of produce. They might bring small portion of their product to market, and the earnings might goes to cover their routine expenditure and might save the remaining for next farming season. Having this clear fact in to consideration, Since 1960s, the government of Ethiopia is promoting the significance of cooperatives as an organization that could enhance the development of small scale-farmers and other communities. Unlike other regions, SNNPR is the pioneer for starting cooperatives type of business; cooperatives are still flourishing in the region. Cooperatives are expected to serve farmers by providing agricultural inputs, output marketing and mobilizing savings and providing credit services to their members. The objective of this paper is to show role of cooperatives in rural development the case of South Nations Nationalities and Peoples Region. Until June 2011, in SNNPR state there were about 8872 primary cooperatives, 44 Cooperative Unions and One Regional Farmers Cooperative federation are established. These cooperatives have a membership of male 693,898 (77%) and female 209, 861 (23%) totally 903, 759. This is about 30.3% from the total households of the region. Despite early establishment of cooperatives across the region and country wide, cooperatives couldn’t flourish as expected. Past attitude (ideology), lack of committed leadership, lack of good governance (management), lack of working capital, attitude and practice of corruption, lack of knowledge and skill, lack in provision and utilization of improved technology, weak vertical and horizontal linkage within and among cooperatives, lack and inappropriate support from government and other stakeholders.

Published in Science Journal of Business and Management (Volume 3, Issue 4)
DOI 10.11648/j.sjbm.20150304.12
Page(s) 102-108
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Cooperative, Agricultural Inputs, Marketing, Saving and Credit

References
[1] Ann Hoyt. And Then There were Seven: Cooperative Principles Updated. Athens, University of Wisconsin, 1996.
[2] Bezabih Emana. Cooperative: a path to economic and social empowerment in Ethiopia. Dare Salam, CoopAFRICA working paper No.9, ILO 2009.
[3] Bureau of Marketing and Cooperative Ethiopia.“Annual Report.” Hawassa, SNNPR Ethiopia, 2011.
[4] FAO. Agricultural Cooperatives are Key to reduce hunger and poverty. 2011
[5] FAO. Agricultural Cooperatives: Key To Feeding The World. World Food Day2012,
[6] Michael Gertler. Rural Cooperatives and Sustainable Development. Canada, University of Saskatchewan, 2001.
[7] Markus H.A governance Perspective on the role of Cooperative in Rural Development., 2005. Laidlaw, A.F (1974): The Cooperative Sector, Columbia: University of Missouri
[8] Paul G. and Isaac K. Evolution, Growth and Decline of the Cooperative Sector. Nairobi, Centerfor Governance and Development.
[9] USAID Policy Paper: Cooperative Policy. Washington D.C. 20523, Bureau for Program and Policy Coordination, 1985.
[10] World Council of Credit Unions.“Statistical Report.” Washington DC, USA, 2011.
[11] Zhang-Y. Z. China’s Experience with Agricultural Cooperatives in the era of Economic Reform. Asian Agribusiness Research Centre, The University of Sydney, Orange NSW 2800, 2004.
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    Nuredin Mohammed, Byeong Wan Lee. (2015). Role of Cooperatives in Rural Development, the Case of South Nations Nationalities and People Region, Ethiopia. Science Journal of Business and Management, 3(4), 102-108. https://doi.org/10.11648/j.sjbm.20150304.12

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    ACS Style

    Nuredin Mohammed; Byeong Wan Lee. Role of Cooperatives in Rural Development, the Case of South Nations Nationalities and People Region, Ethiopia. Sci. J. Bus. Manag. 2015, 3(4), 102-108. doi: 10.11648/j.sjbm.20150304.12

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    AMA Style

    Nuredin Mohammed, Byeong Wan Lee. Role of Cooperatives in Rural Development, the Case of South Nations Nationalities and People Region, Ethiopia. Sci J Bus Manag. 2015;3(4):102-108. doi: 10.11648/j.sjbm.20150304.12

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  • @article{10.11648/j.sjbm.20150304.12,
      author = {Nuredin Mohammed and Byeong Wan Lee},
      title = {Role of Cooperatives in Rural Development, the Case of South Nations Nationalities and People Region, Ethiopia},
      journal = {Science Journal of Business and Management},
      volume = {3},
      number = {4},
      pages = {102-108},
      doi = {10.11648/j.sjbm.20150304.12},
      url = {https://doi.org/10.11648/j.sjbm.20150304.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20150304.12},
      abstract = {For small land-holding, developing and agricultural based economic countries like Ethiopia, cooperative type of business is recommended as a solution to promote income distribution, reduce poverty and vulnerability, and improve quality of life and social welfare. Ethiopia is a second largest populace country in Africa and has nine regions and two city administrations. South Nations Nationalities and Peoples Region (SNNPR) state is third populace and most densely populated region in Ethiopia. Most of the farmers’ in this region have small plot of lands for their living, farming and raising animals. It is obvious that such smallholder farmers are characterized by producing small amount of produce. They might bring small portion of their product to market, and the earnings might goes to cover their routine expenditure and might save the remaining for next farming season. Having this clear fact in to consideration, Since 1960s, the government of Ethiopia is promoting the significance of cooperatives as an organization that could enhance the development of small scale-farmers and other communities. Unlike other regions, SNNPR is the pioneer for starting cooperatives type of business; cooperatives are still flourishing in the region. Cooperatives are expected to serve farmers by providing agricultural inputs, output marketing and mobilizing savings and providing credit services to their members. The objective of this paper is to show role of cooperatives in rural development the case of South Nations Nationalities and Peoples Region. Until June 2011, in SNNPR state there were about 8872 primary cooperatives, 44 Cooperative Unions and One Regional Farmers Cooperative federation are established. These cooperatives have a membership of male 693,898 (77%) and female 209, 861 (23%) totally 903, 759. This is about 30.3% from the total households of the region. Despite early establishment of cooperatives across the region and country wide, cooperatives couldn’t flourish as expected. Past attitude (ideology), lack of committed leadership, lack of good governance (management), lack of working capital, attitude and practice of corruption, lack of knowledge and skill, lack in provision and utilization of improved technology, weak vertical and horizontal linkage within and among cooperatives, lack and inappropriate support from government and other stakeholders.},
     year = {2015}
    }
    

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Author Information
  • Ethiopian Agricultural Transformation Agency, SNNPR, Ethiopia

  • Park Chung Hee School of Policy and Saemaul of Yeungnam University, Gyeongsan, South Korea

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