Full Project – Repositioning cooperative development to aid in achieving of vision 2020

Full Project – Repositioning cooperative development to aid in achieving of vision 2020

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CHAPTER ONE

1.0  INTRODUCTION

The increase farmer smallholder productivity, particularly in rural areas, the government sought to strengthen farmer cooperatives, which according to a 2013 country programme document by UNICEF, significantly increased production of staple food and export crops. With support from the United Nations, the Ministry of Agriculture and Animal Resources helped farmers develop new skills and reduce post-harvest losses. This resulted in higher incomes for 25,000 farm families.

Maliehe Maliehe, Deputy Ministry of trade and industry, cooperative and marketing of Lesotho has welcomed the Rwandan government’s decision to strengthen the cooperative movement as a means to eradicate poverty.

He said: “we learnt from our research that the government of Rwanda is busy working on strengthening cooperative movement and we are here to learn how cooperatives are run and administered”.

The delegation of Lesotho will be visiting agricultural cooperatives in the Northern province of Rwanda, sharing experience of legislation, access to finance and value chain. Along with representatives of the Rwandan government, they discussed about areas of collaboration such as cooperative training, supervision and regulation.

Already over 5,000 cooperatives are contributing to the wellbeing of more than two million people in Rwanda, not only in agriculture, but also in other sectors such as transport or commodity transformation, with farmers buying trucks and milling machines.

The important contribution of cooperatives to Rwanda’s agriculture has been recognized by two non-governmental organizations that named a Rwandan agricultural cooperative as the African farmer organization of 2013. Impabaruta, a cooperative of smallholder farmers in Kamonyi district, beat over 60 contestants to take the prize for Africa’s top farmer organization.

The award was an initiative of African investment climate research (AFRICRES) and the alliance for a green revolution in Africa (AGRA). Impabaruta was recognized for its good governance as well as its exceptional involvement of women and youth in agriculture.

 

Executive Summary

The CDA vision 2020 is proposed as the CDA medium-term plan for the period 2015 to 2020. It is crafted based on the 1987 constitution provisions, CDA charter, cooperative code of 2008, Philippine development plan 2011-2016, ASEAN economic integration and the status of cooperative development in the Philippines.

The plan seeks to have an efficient and effective delivery of government programs and initiatives to cooperatives, upscale the status and performance of micro and small cooperatives, and ensure that all cooperatives are complying with the existing laws, rules and regulations on cooperatives.

The formulation of the plan was initiated upon the assumption of administrator Eulogio T. Castillo as officer-in-charge of CDA on August 16,2014. The framework was presented in a seminar in CDA central office on August 18,2014. The draft plan was presented in the CDA performance assessment and planning conference (CPAPC) held on October 2-3, 2014 at Brentwood hotel, Quezon city. It was attended by the members of the board of administrators, regional directors, assistant directors and members of the execom. The revised draft plan was unveiled in 12th National cooperative summit in waterfront hotel, Lahug, cebu city on October 17, 2014.

The plan embraces a balance approach in the execution of the CDA’s  twin functions of development and regulation of cooperatives. The strategies and approaches in the implementation of the plan necessitates the re-structuring the CDA administrative machinery to effect a meaningful implementation of all initiatives under the CDA vision 2020.

Under proposed structure of the CDA, a new department, the general administrative and support department (GASD) shall be instituted in addition to the existing institutional development department (IDD) and legal and registration department (LRD). The LRD, however, shall be strengthened by converting it to registration and regulation department to give emphasis to the regulatory  function of the CDA. A legal affairs office, as staff office of the board of administrators (BOA), shall be created, to handle the assets recovery initiatives of CDA, resolution of conflicts among cooperatives and other legal issues on cooperatives. Likewise, the public affairs office, as staff office of the BOA, shall be created to handle the promotional and public relation activities on cooperatives of the CDA.

The CDA envisions that by 2020, 50% of micro cooperatives shall have graduated to small category (2013 as baseline) and 50% of small cooperatives shall have elevated to medium category.

The strategy to develop the micro and small cooperatives is two-pronged: first, there should be a rationalized regulatory environment on reportorial requirements by simplifying the tools and instruments for micro cooperatives during their infancy and development stages. Second, there should be a coordinative system of infusion of assistance, financial, technical or otherwise to avoid the duplication of development interventions by the relevant partner government agencies catering to the same group of cooperative beneficiaries.

It is further envisioned that by 2020, all cooperatives shall have been inspected (100%) and are compliant with the laws, rules and regulations on cooperatives. All efforts shall be exerted, in the regulation of cooperatives so that the interests of the members are protected, and the privileges and incentives granted under the laws on cooperatives are not abused.

In support of the plan, a national cooperative data and information repository (NCDIR) shall be established to have an efficient system of data/information gathering, storage, retrieval, processing and dissemination.

The cooperative education system as important support component of the plan shall be strengthened. By 2020, CDA envisions that the ground work for the establishment of cooperative college shall have been prepared.

The rationalization of the cooperative audit system shall be introduced. The micro cooperatives whose assets are below P500 thousand may be exempt from the submission of the audited financial statements, performance, and social audit reports for five years from the date of registration. By the end of 2020, the integrated cooperative audit system shall already be established.

The system of consultation of cooperatives shall be enhanced, to have sound national policy guidance on cooperative development. Likewise, the mechanism to coordinate various national and local government agencies with programs on cooperatives shall be strengthened. The participation of CDA in the international conferences shall be vigorously pursued.

 

1.1  BACKGROUND OF THE STUDY

Repositioning which means a holistic approach and guide upliftments and effective capacity utilization as well sustainability of development, thus indispensable in cooperative society for achievement of vision 2020.

The minister for national planning pointed out that the achievement of vision 2020 will be realistic if there is focus sense of direction in repositioning cooperative societies in Nigeria by all tiers of government.

Cooperatives provide on domestic funding on budget and assist the nation to bring about fundament changes in rural transformation within the Nigerian economy. He further stated that cooperative indicates in clear terms whether the economy in the country is moving towards the right direction or not since it reflects the level of performance, confidence and implementation of overall government policies regarding the vision (2020, Obodoechi, 2006).

 

1.2  STATEMENT OF THE PROBLEM

The achievement of vision 2020 in Nigeria is a major concern of the federal government of Nigeria. Appropriate measure for Nigeria to be the 3th 20 largest economy in the world by the year 2020 is imperative and most challenging achievement to be realized due to the existing problems listed below:

  • Absence of political will of government to reposition cooperative development.
  • Inadequate funding available to cooperative societies.
  • Bribery and corruption on the part of cooperative organization.
  • High level of illiteracy among the members of cooperative societies.
  • Poor leadership and management style.
  • Giving cooperative societies a look as a rural setting in Nigeria.

It was against this back drop that statement of the problem of this research work was formed focusing on round measures of repositioning cooperative development to aid in the achievement of vision 2020 (business search, 2009).

 

 

 

1.3  OBJECTIVES OF THE STUDY

The formulation of an integrated and comprehensive development plan aims to:

  • Have an efficient and effective delivery of government programs and initiatives in cooperatives.
  • Create a balance growth of various types of cooperatives.
  • Upscale the status and performance of micro and small cooperatives; and
  • Ensure that all cooperatives are complying with the existing laws, rules and regulation on cooperatives.
  • Coherent efforts and initiatives of government and private sectors in the development of cooperatives.
  • Medium-term perspective and focus; and
  • Balance treatment between development and regulation of various types of cooperatives.

 

Guiding Principles

The following principles ushered-in the discussions and crafting of the integrated cooperative plan.

Characteristics of the Plan

In order for the cooperatives to become instruments for social justice and economic development, the integrated plan must also be comprehensive and cohesive to contribute to the overall socio-economic development of the country. Specifically, it possesses the characteristic of being responsive to the priority development thrusts of the government such as;

  • Economic growth which is sustained, rapid and inclusive.
  • Poverty reduction and empowerment of the poor and vulnerable; and
  • Employment generation.

 

1.4  RESEARCH QUESTIONS

Below are the research questions that are in line with this research work:

  • Will cooperative development aid in the realization of vision 2020?
  • What are the various measures/method that will be adopted to help in repositioning of cooperative development so that the vision 2020 will be realized?
  • If this could be achieved, what are the factors militating against the repositioning of cooperative development and are there any possible solutions to tackle it?
  • Does cooperatives’ repositioning have an impact on overall realization of vision 2020 in Nigeria?

 

1.5  STATEMENT OF HYPOTHESIS

Ho:  Repositioning of cooperative development will not aid in the achievement of vision 2020.

Hi:   Repositioning of cooperative development will aid in the achievement of vision 2020.

Ho:  The problem of funding is not a major setback in repositioning cooperative to aid in the achievement of vision 2020.

Hi:   The problem of funding is a major setback in repositioning cooperative to aid in the achievement of vision 2020.

1.6  SIGNIFICANCE OF THE STUDY

The information from this research work will be at the utmost value in the following ways:

  • The research work gives me an improved and understanding of event, activities, phenomena and problems of the economy.
  • This study provides available data on the ways to reposition cooperative development and various contribution of cooperative society in the achievement of vision 2020.
  • The overall progress of this research work provides a reference material for student of cooperative economics and managing in carrying out research on the ways to reposition cooperative development in achievement of vision 2020.
  • This research work is important in that it will instruct the public on the need to reposition the cooperative development to aid in the achievement of federal government vision 2020.
  • This research work will dictate areas of deficiencies in cooperative development to offer a sound to government on the most effective way of improving the affairs of cooperative societies.

 

1.7  SCOPE OF THE STUDY

This research work delimits to the repositioning of cooperative development to aid in the achievement of vision 2020 in cooperative staff society: consolidate breweries Plc Awo-mmama Imo State. Thus, the study will serve as an available materials for academic and libraries within federal polytechnic Nekede of which the research is a student to make necessary update in this research work.

However, this study will provide all readily available data information on the repositioning of cooperative development of vision 2020.

 

 

 

1.8  LIMITATIONS OF THE STUDY

Below are some of the hindrances encountered in this research:

  • The time limit allowed for the completion and submission of this research work is limited. Moreover, the time to read for the coming examination and carry out the research also limits this work.
  • The problem of limited fund at the research disposal also limits this research work, as there is little or no money sometimes to travel to various research academic works.
  • Another outstanding limitation of this research work is bureaucratic bottleneck in cooperative organization used as case study to give out relevant about the operational ways repositioning cooperative development for the achievement of vision 2020 in their establishment also limits the study.

 

 

 

1.9  DEFINITION OF TERMS

  • BUDGET: (John, 1996) defined budget as a financial and quantitative plan of action over a period.
  • COOPERATIVE SOCIETIES: ICA (1995) defines cooperative societies as an autonomous association of person united voluntarily to meet up their common social economic and cultural need and aspirations through a jointly owned and democratically controlled enterprise.
  • DEVELOPMENT: Iheriohamma (1999) defined development as the improvement by rising of standard of living and the wealth of citizen over a period.
  • ECONONMY: Iheriohamma (1999) defined economy as a complex social system that represents mode of production, distribution, exchange and consumption, of goods and services over time in the process of accomplishing the socio-economic growth of a society.
  • FINANCIAL SYSTEM: Iheriohamma (1999) defined financial system as the totality of all the financial intuitions, operating and instruments that give the system its character and uniqueness.
  • GOVERNMENT: Obodoechi (2006) defined government as that organ of the state which exercise the highest scanty and justice according to law of customs that allow the awards of the society to be distributed peacefully.
  • REPOSITION: Oxford dictionary defined repositioning as structuring things to have a new look.
  • VISION 2020: Yar’adua (2008) defined vision 2020 as those things that must be done and done correctly so that the Nigerian economy has to grow by double digit which will enable the country to have a modernized economy to fall with the region of 20 development economies of the world.

 

 

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Full Project – Repositioning cooperative development to aid in achieving of vision 2020