Cooperative Society as an Agent of Rural Development (A Case Study of Ado-Odo/Ota Local Government Area)
Chapter One
The Objective of the Study.
The broad objective of the study is to examine the contribution of cooperative societies to the development of ADO-ODO/OTA local government areas.
The specific objectives are as follows:
- To identify or determine whether cooperative societies have contributed to the development of rural areas in ADO-ODO/OTA local government area.
- To find out the financial problem area affecting the contribution of cooperative societies to the development of ADO-ODO/OTA local government area.
- To determine the impact of the strategies design and adopted by cooperative societies in rural development.
- Make recommendation on ways towards ensuring greater success of cooperative societies in future.
CHAPTER TWO
LITERATURE REVIEW
This chapter of the research work focuses its attention on the work of other authors that are relevant to the topic and takes critical look at the various views expressed by various writers
Meaning of Cooperative Society
The term Cooperative is derived from the latin word “Cooperatic” where the “Co” means with and Öpera” means “to work” thus Cooperative means working together. So those who want to work together with some common economic objective can form a society, which is termed as :Cooperative society”. It is a voluntary association of persons who work together to promote their economic interest.
Zeuli (2002) defined cooperatives as development tools that promote bothe social empowerments and economic goals. Birchall (1994) assessed cooperatives as people-centered businesses in ownership and reward, and the International Cooperative Slliance (1995) defined a cooperative as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically \-controlled enterprise.
According to the International Labour Organization (ILO) in 2004 defined cooperative societis as an association of persons usually of limited means who have joined together to achieve common socio-economic goals.
According to encyclopaedia American (2004) refers to cooperative societies as an organization established by individuals to provide themselves with goals and services, or to produce and dispose the product of their labour, this means of production and distribution are thus owned in common and the earning reverts to the members, not on the basis of their investment in the enterprise but in proportion to their patronage or personal participation in it.
Okonkwo (1999 section 5) defines cooperative societies as free independent persons for the betterment of their economic conditions. Lastly, Levenson and Solomon (1999) succinctly put cooperative societies as a business organization run for mutual benefit of a group having common interest in accordance with the cooperative principles.
The above definitions have certain things in common which also reveal the native of cooperative enterprises or societies. A good example of cooperative society in ADO/ODO OTA Local government area are the Ujogha consumers’ cooperative society, Allushe cooperative farming society among others, which work on the principle of self-help as well as mutual help.
Let us take an example; suppress a poor villager in ADO-ODO OTA local government has two (2) cows and gets ten (10) liters of milk. After consumptions by his family everyday he finds a simple of five (5) liters of milk. What can he do with the simples? He may want to sell the milk but may not find a customer in the village. Somebody may tell him to sell the milk in the nearby city or town. Again he finds it difficult, as he does not have money to go to the town to sell milk. What should he do? He is faced with a a problem. So on his encounter with a knowledgeable person on the subject matter, he told him, you are not the only person facing this problem there are many others in your village and also in the nearby village who face a similar problem. Why don’t you all sit together and find a solution to your common problem? In the morning, you can collect the surplus milk at a common place and send somebody to the nearby town to sell it. Again in the evening, you can sit together and distribute the money according to your contribution of milk; of course first you have to deduct all expenses from the sales proceeds. That village agreed to the knowledgeable persons’ idea and told everybody about this new way and formed a group of milk producers in the village. By selling the milk in the nearby town they were all able to earn money. After that, they did not face any problem of marketing the simples milk. One day somebody suggested that instead of selling only milk, why not produce other milk product like ghee, butter, cheese milk powder etc. and sell them in the market at a butter price? All of them agreed and did the same. They produced quality milk product and found a very good market for their products not only in the nearby town but also in the entire country. Just think it over. A poor villager, who was not able to sell five (5) liters of milk in his village is now selling milk and milk product throughout the nation. He’s now enjoying a good life – How did it happen? Who made it possible? This is the reward of a joint effort or cooperation, which provide support to the members.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
The methodology adopted for this research involves evaluation of “Cooperative Societies as an agent of Rural development” with reference to ADO-ODO/OTA Local Government Area in Ogun State. This is a pure research that involved the collection and analysis of data that are intellectually interesting and has the capability of adding to the existing body of knowledge. The research is evaluative and analytical in nature.
It is quantitative in style even-though there are tables where certain statistical or mathematical conclusion can be drawn. The data used in this work was mainly called through primary and secondary source of data collection. The primary sources were gotten from oral interview, questionnaires, and facial observation of the respondents. The secondary source involved the use of text books, seminar papers, journals, newspapers and magazines called mostly from Universities, Polytechnics, Public and specialized libraries.
Research Design
The aim of this chapter is to address the research methods and design used to obtain concrete information on the project, which helped to build up a sound basis for the application of the findings and produced data for such research.
The basic research design employed in this study was descriptive design. The choice was chosen due to the fact that it enhances fata collection. Though the researcher is allowed to adopt any technique or combination of techniques most suitable for the study, but the research designs adopted on this study was carefully planned, so as to be able to obtain accurate and complete information about the research project being used.
Area of study
This study centers on the Nigerian environment. To uncover the role cooperative societies towards development of rural areas. It covers only ADO-ODO/OTA Local Government Area in Ogun State.
Population of the study
The population of the study comprises of the population of ADO-ODO/OTA Local Government in Ogun State and limited to that alone. The population size is 172,000
CHAPTER FOUR
DATA ANALYSIS PRESENTATION AND INTERPRETATION
Introduction
This chapter is designed to present, analyze and interpret the data collected via questionnaire. However, only questions that are most relevant for testing the research will be analyzed.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
Based on the result of the data analyzed and findings both primary and secondary data, the following findings are made by the researcher:
A cooperative society is a voluntary association of individuals having common needs that join hands for the achievement of common interest through mutual help. Membership of cooperative societies is voluntary and open to all. It is democratically managed and it has a separate legal existence.
The main motive is to provide service to the members as well as to protect the weaker sector of the society especially the financially handicapped people and to promote the economic interest of the people. It works on the principle of self-help through cooperation of members.
A cooperative society can be formed under the cooperative Act, within a minimum of ten members, for registration an application along with bye-laws of the society has to be submitted to the registrar of cooperative societies. Cooperative societies may be classified as follows:
Consumer Cooperative society – formed to eliminate the role of middlemen and supply high quality goods and services at reasonable price to consumers.
Producers’ Cooperative society – formed to help producers to procure raw materials, tools, equipment, etc.
Cooperative Marketing society – formed to ensure a favourable market for small producers to sell the output and get a good return on sale.
Cooperative credit society – formed to provide financial help to members through loans at low interests, they encourage saving habit among members;
Cooperative farming society – formed to achieve economics of large scale farming and maximum of agricultural output.
Cooperative societies are easy to form and have a stable life. Membership is open to all and members have limited liability; there is democratic management based “One man, one vote”. The societies have stable life and they enjoy government patronage.
However, cooperative societies suffer from insufficient capital problem in management, conflict among members, government policy, lack of training facilities as well as personnel. There is lack of motivation on members due to absence of direct reward for individual effort. Excessive government regulation and control may also pose problem for them.
Lastly, cooperative societies are suitable in practicing the weaker section of the small scale business from exploitation and promoting their economic interest.
Conclusion
The research work has been able to bring to the fore problems encountered by these cooperative societies, these problems are illiteracy, lack of finance, conflict among members, uncooperative attitude of government officials, government policy and lack of training facilities as well as personnel.
It has been observed that of confute attention is given to the problems of the cooperative societies, their contributions to small scale development will definitely be maximized.
The study also indicates that cooperative societies suffer some negligence from the government and other top functionaries.
Above all is the lack of storage facilities for their perishable goods, which of course discourage the rural people from producing enough for consumption and industries.
On a final note, it is hereby noted that much attention should be paid to the development of cooperatives irrespective of their nature so that their confirmation to the small scale development can be ultimately realized.
Recommendation
The research project offered the recommendation to ameliorate problems areas of cooperative society in rural development.
- Immediate review of the cooperative law in line with the cooperative development policy that would re-position the Director of Cooperative service was suggested.
- A base line study; to allow data base and statistics on registries societies, members and types of cooperative societies existing in the country, that are required for effective
- Research suitable for planning more effective cooperative education and planning programmes for committee members and employees of cooperative is highly essential to fit with the changing environment
- Government should liberalize cooperatives by loosening its grip on cooperatives to allow for self-help and self-responsibility principles of cooperativeness.
- Investment in Information and Communication Technology (ICT) has become imperative for success-drives cooperatives. Online update of members passbooks, loan application, etc. should be incorporated into the business of cooperatives. Otherwise, such a cooperative will be living in the past.
- A guided recapitalization of cooperative sub-sector should be embarked
- Fund canalization through the cooperative societies by the government, NGOs and commercial banks for sustainable small, medium entries should be pro*****
- Mable (2004); stated that the local government should also give and support credit facilities in their areas of domain people to borrow and enhance their standard of living.
REFERENCES
- Abrahamsen, M.A (1976). Cooperative Business Enterprise. New York: Mc Craw Hill Books Company.
- Akowe, J. (2002). Small scale development in Nigeria. The Democratic Formula for the Current Dispensation. Lokjoja: Haward Printers.
- Arvindrai, N.D. (2008). Research Methodology In Management. New Delhi: APH Publishing Cooperative.
- Asaolu, T.O. (2004). Evaluation Of The Performance Of The Cooperative Societies Investment And Credit Societies (CICS). Osun State: Ben Johnson Publishing.
- Bardam, D.M. (1990). Research Method In Administered Sciences. Port Harcourt: Belk Publishers.
- Eboh, E.C. (2004). Social And Economic Research, Principles And Methods. Lagos: Academic Publication And Development Resource Limited.
- Eprtimehin, F.M. (2006). Understanding The Dynamics Of Cooperatives. Ibadan: Tadon Publishers.
