An Assessemt of the Performance of Co-Operatives and Their Implications for Local Economic Development: The Case of Selected Co-Operatives in Ada' A Woreda, Oromiy A Regional State
No Thumbnail Available
Date
2007
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The study is conducted with the main objective of assessing the performance of co-operatives
and their implication for local economic developmenl. An al/empt is made to see the place of
co-operatives in providing input and output marketing services, capital accumulalion and
asset building, employment creation and community income diversification. To this end,
nineteen primary societies (which are broadly divided in to five categories depending on the
area of their activities) are selected and studied.
The study used primary data from in-depth interview with the leaders of study co-operatives,
interview with officials from relevant bureaus, focus group discussions with member
beneficiaries, personal observations and documentary materials. Secondary data are also
collected from different co-operatives bureaus and other sources and used to supplement
primary data. Simple descriptive statistical tools such as percentages, averages and the like
are used in presenting the results.
Generally, the study found that agricultural input supply and product marketing (such as
dairy products, minerals, and vegetables) are among the valuable marketing services being
provided by some study co-operatives to the local community (especially the members),
though the grain marketing service, which is provided by some of them, is far from being
adequate. Besides, some co-operalives are doing well in the area of developing rural finance
proper, local resource mobilization and capital accumulation, asset building, employment
creation and communities' income diversification; while some others are not performing
remarkably with this regard so far. Moreover, the role being played by some study cooperatives
in the area of technology diJjiJsions, linking local communities with difftrent
stakeholders within and outside the locality, and provision of social safety net services sounds
promising starts. It is also realized that the services by these co-operatives are encouragingly
contributing towards the bel/erment of local communities' livelihood, and the development of
local economy.
Yet, it is understood from the study that myriads of problems are deterring the realization of
the development potential of these co-operatives. Some of the major problems indicated in
many cases are inadequate financial capacity; lack of human resources (such as qualified,
visionary and commit/ed leadership); inadequate awareness and participation of members invarious ajfairs of their co-operatives; and absence of adequate, sustainable, relevant action
oriented training opportunity (both for the leaders and the member.l); lack of dependable
market; and no or limited access to various technologies. Besides, others problems such as
intensive competition from private sectors; limited information communication networh with
different parties; and lack of infrastructures such as ojjice, warehouse, roads; and inadequate
governmen/ support are also mentioned in some cases with varying degrees of seriousness.
Hence, to realize the immense development aptitude of these institutions in the area of input
and output marketing, resource mobilization, capital accumulation, employment creation and
communi/ies'income diversifica/ion, and in o/her socio-economic arenas, /0 /he bes/ merit of
the locali/y and local communi/y, priori/y based reac/ion to /he aforementioned problems
should be given appropria/e emphasis.
Description
Keywords
for Local Economic Development