COOPERATIVE BUSINESS ORGANIZATION AS A VIABLE TOOL FOR SOCIAL AND ECONOMIC DEVELOPMENT (A CASE STUDY OF IMO STATE COOPERATIVE FEDERATION)
ABSTRACT
The role of cooperative movement in the social economic development of any society cannot be over emphasized. Cooperative movement plays an important role in the social economic development of any state. In Nigeria, cooperative movement has not much impact in the development of the economy, this contributed for this research study; Cooperative Business Origination as a Viable Tool for Social and Economic Development of Imo State. In this research study, the major aim is to identify the contribution, future prospects and problems. This research work will make the reader understand the importance of producer (agriculture) societies in the development of a developing country. This research work helps to analyze the importance of cooperative in the social-economic development of Imo State and at end of this research work, there were be need to improve the effectiveness of cooperative organization. To this research work, data were collated from the three selected cooperative organization in different local government areas in Imo State through questionnaires and interview. The data collected mode was that the contribution of cooperatives and the social economic development of Imo State has not been so effective. The major recommendation are that cooperative business should be injected with more capital to boost their business, proper education for the management, members and adequate government assistance, with these stand a better chance tom play a major role in social economic development of Imo State.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Cooperative organizations are autonomous bodies formed by people with similar economic and social interest; they exist in most advanced and developing countries of the world where they operate in the urban areas as well as in the rural areas.
Their business takes many forms ranging from primary organization formed by individuals of local level to secondary apex masses through the society’s contribution to the gross domestic product (GDP) and the spread effect of the derived benefits. This is an increase in a nation’s real gross domestic product which implies economic growth; cooperative movement needs to be given a solid foundation and proper nourishment to enhance economic development. The agricultural cooperative is a good example of how cooperative can lead to economic development of a state. The produce of farmers
cooperatives are usually higher than that of individual farmers especially when farmers cooperatives are able to achieve that level of food production necessary to satisfy the increasing population of a developing state.
The tendency will be the occurrence of a staff from the primary agricultural sector, this off course is a mark of economic development. The high production leads to rise in the demand for manufactured goods and it also extends the size of the market, lead further to the expansion of industrial or manufacturing sector. Mover, the demand for such inputs such as fertilizers, tractors, national facilities in the agricultural sector leads to greater expansion of the industrial sector.
Agricultural surpluses resulting from farmers cooperative in the rural areas also tends to increase rural income and improve peasants who now starts consuming more food especially of higher nutritional values, building better house and also receive direct satisfaction from such services such as school, health centers, and banks. All these improve the rural people’s standard of living which is a measure for economic development of a nation.
Imo State Government and local government have great need for cooperative development particularly at this period of economic emergency when elements like unemployment, high rate of inflation, ever-increasing population and the need for mechanized agricultural development can be found within the state.
A proper development of cooperative business particularly in Imo State as in any other form of business endeavor will help in determining the degree of state economic and social development of Imo State and it is one of the greatest activity, government can render effective support for effective development of the state’s economy
In most of the third world countries, cooperative societies are given adequate official recognition as a tool for social-economic development.
According to Ijere (1986), cooperative societies are remarkable instrument of development.
According to Helen (1986), economic and sociological factors are the factors that were responsible for the development of cooperative. The economic factors were formed by the desire of cooperative members to improve their economic status and to gain considerable economic benefit. The sociological factor was as a result of people’s need for security, leadership, self actualization and solidarity provided by cooperative society. Cooperative first started in Great Britain by social reformers called Dr. Williams King and Robert Owen. Cooperative was first established among people whose economic position, livelihood and living standard were jeopardizes bye evils of capitalist system such as exploitation.
The introduction of cooperative in Nigeria started after the enactment of Cooperative Ordinance in 1955 which marked a turning point in the development of cooperative movement in Nigeria as a legal status and governmental recognition and also conceptualized, it is an important instrument and strategy for Agrarian development. In 1935, the cooperative regulations were passed and the cooperative development established. The first cooperative produce marketing society was registered in the Western Nigeria on the Ibadan cooperative producer marketing society Plan Ltd. In 1940, the Western Nigerian Cooperative Federation in collaboration with the government of the
Northern Nigeria lunched the Mokwa Settlement Scheme. In 1943, an independent cooperative department was established, but in 1950, due to the tremendous growth in the number of societies in the country, the problem of administration became visible and decentralization became necessary.
Hence in 1951, separate cooperative department was set up in Northern Nigeria and Western Cameroon.
1.2 STATEMENT OF THE PROBLEM
Cooperative society is one of the major paths to social-economic development that is why government and other philanthropists have reasonable contributions to make in financing cooperative societies.
In 1980-1985, National Development Plan Government infected the total amount of 184.22 million naira for the operation of cooperative business in Nigeria. Some of these strategies used by government and some philanthropists could not make a reasonable impact in solving the problems associated with cooperative in this state. A lot of problems still exist and it is the purpose of this research work to identify and fin the solution to these problems.
Most registered cooperative in Imo State are not viable due to the following problems:
- Inadequate financial system
- Low membership coverage
- Mal-distribution of fund
- Misappropriation of funds
- Poor management
- Illiteracy
These are the major problems of cooperative societies as stated by Dr. E.V. Okeke in his course comparative and international cooperative (in published material), and those problems are what made up the statement of the problems.
1.3 OBJECTIVE OF THE STUDY
The objective of this study is to analysis the importance of cooperative in the social-economic development of Imo State under the following basis that this study can be appraised:
- To determine the socio-economic characteristics of the despondence
- To examine the factors which constrain to fund raising in cooperative society
- To examine the effect of the low membership coverage in cooperative society.
- To identify how fund are distributed in cooperative society
- To identify the effect of poor management in the study area
- To examine the level of literacy among members of cooperative society in the study area
- To make recommendation based on findings
1.4 RESEARCH QUESTION
Based on the objective of the study, the following research question have been formulated for an effective study of the phenomenon.
(ii) What are the effects of low membership coverage in cooperative society?
- To what extent has external interference affected cooperative society in the study area?
- How are funds distributed in cooperative society
- What are the effects of poor management in cooperative society in the study area?
- What is the literacy level of members of cooperative society in the study area?
1.6 SCOPE OF THE STUDY
Through the efforts made by Imo State cooperative federation towards developing the study area, the employees, state government, strangers, students and practitioners benefited from the performances of the cooperative societies in the study area.
1.7 SCOPE AND LIMITATION OF THE STUDY
In carrying out this research work, the following constraints were experienced:
Time: the time given for the study was rather too short coupled with short semester period, and the researcher being a full time or regular student had read and take lectures in other courses during the period of this study.
Finance: due to financial constraint as a result the present economic condition of students in the country, the researcher was able to select those registered cooperative society used in this study which includes Produce Marketing Cooperative Society, Wholesales Cooperative Society and others decentralized in Imo State these and many more constitute large sum of money both for transportation and for stationeries.
Transportation: The inadequate transportation system in Imo State as a result of high transportation fare made it extremely difficult for the researcher to visit all the cooperative societies in Imo State.
Literature: Due to financial and time constraint, the researcher limited her literature review to what was taught in class and what was obtained in some journal and textbooks like wise seminar paper concerning cooperative in Imo State and other parts of the country.
1.8 DEFINITION OF TERMS
Business organization: these are group of persons or individuals coming together in order to pull or put their resources together to execute or establish or transect or embark on a project so that the end, the initial capital will be receive.
A viable tool: These are some things used as a successful instrument in doing or achieving a goal or target.
Social: This means the organization of a society.
Economic: This has to do with the money the society having
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