The Role of Co-operative Societies Towards Development of Rural Areas (A Case Study of Idah Local Government Area, Kogi State)
Chapter One
THE AIM AND OBJECTIVE OF THE STUDY
The broad objective of the study is to examine the contribution of cooperative societies to the development of the Idah Local Government Area.
The specific objectives are as follows:
- To identify or determine whether co-operatives societies have contributed to the development of rural areas in Idah Local Government Area.
- To find out the financial problem areas affecting the contribution of cooperative societies to the development of Idah Local Government Area.
- To determine the impact of the strategies designed and adopted by cooperative societies in rural development
- Make recommendations on ways to ensure the greater success of co-operative societies in the 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 CO-OPERATIVE SOCIETY
The term co-operative is derived from the Latin word co-operatic, where the word co” means “with” and opera means “to work” thus co-operative means working together. So those who want to work together with some common economic objective can form a society, which is termed as “co-operative society”. It is a voluntary association of persons who work together to promote their economic interest.
According to the international labour organization (ILO) in 2004 define co-operative societies as an association of persons usually of limited means who have joined together to achieve common economic goals through the formation of democratically controlled business organization, making equitable contribution t the capital required and accepting a fair share of risks and benefits of understanding. That is to say that co-operative operate on the achieve common socio-economic goals.
According to encyclopedia American (2004) refers to co-operative societies as an organization established by individuals to provide themselves with goods 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.
A cooperative society is an association of persons who have voluntary joined together to achieve a common end- through the formation of democratically controlled organization, making equitable contribution to capital required and accepting a fair share of the risks and benefits of the undertaking in which members actively participate. ICA Recommendations No. 27. 1986. Okonkwo (1999:5) defines co-operative societies as free independent persons for the betterment of their economic conditions.
Helms (2005:80) on the other hard defines co-operative societies as a voluntary association of persons having mutual ownership in providing themselves some needed services on non, profit basis usually organized as a legal entity to accomplish objections through joint participation of its members.
Lastly, Levenson and Solomon (1999) succinctly put co-operative societies as a business organization run for mutual benefit of a group having common interest in accordance with the co-operatives principles.
The above definitions have certain things in common which also reveal the native of co-operative enterprises or societies. A good example of co-operative society in Idah local government area in the Ujogha consumers’ co-operative society, Allushe co-operative farming society among others, which work on the principle of self-help as well as mutual help.
Let us take one example. Suppress a poor villager in Idah local government has two cows and gets ten liters of milk. After consumption by his family everyday he finds a simples of five 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 town or city. 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 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 sale proceeds. That village agreed to the knowledgeable persons idea and told everybody about this new we 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 finding a market the simples milk. One day some body 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 better price?
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
The methodology adopted for this research involves evaluation of the “Role of Co-operative societies towards development of rural areas” with reference to Idah Local Government Area in Kogi 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 got from oral interview, questionnaires, and face-to-face observation of the respondents. The secondary source involved the use of textbooks, seminar papers, Journals, Newspapers and magazines called mostly from university, polytechnics, public and specialized libraries.
RESEARCH DESIGN
The aim of this chapter is to discuss 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 subsequently produce data for such research.
The basis research designs employed in this study were descriptive design. The choice of this design was chosen due to the fact that it enhances the data 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 of co-operative societies towards development of rural areas. It covers only Idah Local Government Area in Kogi State.
POPULATION OF THE STUDY
The population of the study comprises of the population of Idah Local Government in Kogi State and limited to the alone. The population size is 172,000.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
INTRODUCTION
This chapter is designed to present, analyze and interpret the data collected via questionnaires. However, only questions that are most relevant for testing the research will be analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
Based on the result of the data analyzed and findings both primary and second any data the following findings are made by the researcher.
A co-operative society is a voluntary asseveration 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 section of the society especially the financially hand capped people and to promote the economic interest of the people. It works on the principle of self-help through co-operation of members.
A co-operative society can be formed under the co-operative Act, with a minimum of ten members, for registration, an application along with by-laws of the society has to be submitted to the registrar of cooperative societies. Co-operative societies may be classified as follows, consumers’ cooperative society-formed to eliminate the role of middlemen and supply high quality goods and services at reasonable price to consumers, producers’ co-operative society-formed to help producers to procure raw materials, tools, equipment etc, co-operative marketing society formed to ensure a favorable market for small producers to sell the output and get a good return on sale, co-operative credit society-formed to provide financial help to members through loans at low interstates, they encourage saving habit among members, co-operative farming society-formed to achieve economics of large scale farming and maximum of agricultural output, Housing co-operative society-formed to provide residential houses to members by constructing them or provide loans to members to construct their own houses.
Co-operative 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, co-operative societies suffer from insufficient capital, problem in management, conflict among members, government policy, illiberally and 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, co-operative societies are suitable in protecting the weaker section of the rural area from exploitation and promoting their economic interest.
CONCLUSION
The research work has been able to bring to the fore problems encountered by these co-operative societies these problems are, illiberally, 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 co-operative societies; their contributions to rural development will definitely be maximized.
The study also indicates that co-operative societies suffer some negligence from the government and other top functionaries such as.
The worst of 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 soubrettes that much attention should be paid to the development of co-operatives irrespective of their nature so that their confirmation to the rural development can be ultimately realized.
RECOMMENDATION
The research project offered the re commendation to ameliorate problems areas of co-operative society in rural development.
- Immediate review of the co-operative law in line with the co-operative 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 co-operative societies existing in the country, that are required for effective planning.
- Research suitable for planning more effective cooperative education and paining programmers for committees, members and employees of co-operative is highly essential to fit with the changing environment.
- Government should liberalized co-operatives by loosening its grip on co-operatives 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. On- line update of members passbooks, loan application, etc should he 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 upon.
- Fund canalization through the cooperative societies by the government, NGOs and commercial banks for sustainable small, medium enteritis’s should be protruded.
- Mable (2004); stated that the local government should also give and support credit facilities in their areas of domain to enable people to borrow and enhance their standard of living.
BIBLIOGRAPHY
TEXTBOOKS
- Abrahamsen, M.A. (1976). Cooperative Business Enterprises. New York: Mc Craw Hill Books Company.
- Akowe, J. (2002). Rural Development In Nigeria. The Democratic Formula For The Current Dispensation. Lokoja: Haward Printers.
- Arvindrai, N.D. (2008). Research Methodology In Management. New Delhi: APH Publishing Cooperative.
- Asaolu, T.O. (2004). Evaluation Of The Performance Of 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.
- Ezeani, O.E. (2004). Local Government Administration. Enugu: Zik Chukka Printing Press.
