Full Project – The role of government in cooperative development

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CHAPTER ONE

1.0 INTRODUCTION

Since the era of the colonial government in Nigeria, government have in one way or the other shown some interest in cooperative development. The then colonial government enacted the cooperative ordinance of 1935 through the report of an India cooperative expert known as Mr. C. F. Strictland. The historical development of Nigeria cooperative sector necessarily lined up closely with the federal and state governments. The movement was supervised and is still being supervised by a department within a ministry at both levels of government. The Nigerian successive governments have also given special privileges and concessions to cooperative (e.g.) the Eastern Nigeria Cooperative Law of 1960-63, the Nigerian Cooperative Societies Decree No. 90 of 1993 etc.

Government also showed commitment in the form of financial assistance and otherwise. Inspite of the obvious disadvantage of heavy official involvement, it cannot be ruled-out that the governments commitment was one of the reasons that lead to the accelerated modernization of the cooperative movement in the regions of Nigeria.

However, cooperative is taken as in indispensable tool for socio-economic development. Since it’s inception, cooperatives nature, effects values and ethical and organizational structure are keen at meeting common economic, social and cultural needs and aspiration of its members and the society through a jointly owned and democratically controlled enterprise. The introduction of cooperative is a key to economic empowerment and poverty reduction in the nation.

Nonetheless, this research work is a bold attempt to examine critically the role which government plays as sufficient inducement for improving and promoting cooperative and its movement.

1.1 BACKGROUND OF THE STUDY

The Government participation in the development of cooperative movement where more noticeable in the Northern Nigeria than any other part of the country. During the period under review, the governments were the alpha and omega in the Northern Nigeria cooperative movement. Although the cooperative law of the Northern Nigerian were almost the same as those of other regions , the historical background of the movement shows governments active participation.

The government played an important role at the formative stage of cooperative movement in Northern Nigeria while the promotion of cooperatives in other regions were left in the hands of the cooperative department, in the Northern region, all the arms of government were involved. Also the local and provincial administration also played important role to support the cooperative department.

The Nigerian successive governments have also given special privileges, concessions, financial assistance, technical assistance, education assistance, extension services etc for promoting, improving and protecting cooperative and its movement. Cooperative has been defined by different schools of thought but the various schools in their degree emphasizes on one aspect or the other. A school of thought describes cooperative as business undertaking owned and operated by voluntary association of person in other to provide themselves with work and wages or with goods or services.

Moreover, the International Cooperative Alliance (ICA) which is the apex body of cooperative society defined cooperative as an autonomous association of person, united voluntary to solve their common, economic, social and cultural needs and aspiration through a jointly owned and democratically controlled enterprise. In aspect of adequate storage system in the sector of agricultural cooperative societies it requires a particular framework. One of such framework of the system, which related workers, or business men are organized to help members increase their productivity and profit from their business (Ogujiofor, 2001). Cooperative offer an ideal way of mobilizing the resources and energies of these masses for their own good and under their own initiative and control. In this way, they contribute in the development of agricultural product hereby increasing the method of storing agricultural products.

Agricultural cooperative has justify its storage role of some economic and political development particular in developed countries like England known for consumer cooperative and Germany for credit cooperative. Agricultural cooperative achieve this goal by providing members with the products and services the need to lower their operational costs and to operate more efficiently. Emphasis is on the members of cooperative society.

1.2 STATEMENT OF PROBLEM

Government generally are involved in cooperative developments. This is because cooperative societies serve as a channel for the government in grassroot mobilization and empowerment. Government gives grants and aids to cooperatives as a financial support. They also give guaranteed/subsidized loans to the cooperatives. But there are setbacks/disadvantages of government loans/grants to cooperative. Firstly, members usually mistake it to be their own share of the national cake. They find it difficult to repay such loans. With this effect, the society is ruined financially to the extent of being incapable of fulfilling its objectives and as well result in irrecovable heavy debts on which the societies has continuously been paying interest.

Secondly, there is usually a chance of embezzlement on the part of government officers. Thirdly, it may lead to government interference on the activities of cooperative. There is this increase in government’s control of the movement and some attempts by politicians to use it as political tools will not improve the progress of the movement.

This research work intends to identify and as well provide suggested remedies to the above negative factors affecting the progress of cooperatives. With this atmosphere, there is need for probability of both the cooperative management and government officer’s efficiency and responsibility and effectiveness of control. Because it is vital to raise the standard of management efficiency and responsibility to remedied those problems with the society. Also on no account should politicians be allowed to use the movement as political tools.

1.3 OBJECTIVES OF THE STUDY

The main objective of this research is to determine the role of government in cooperative development. Other objectives include:

To determine government contributions to the development of small scale business enterprise e.g. small scale agro-based industries for increase food production.
To investigate and know the problems facing smooth running of cooperative business enterprise.
To determine the extent to which government has created business and job opportunities for cooperatives and the entire community as well.
To determine the level to which cooperatives has created job opportunities for its members.
To determine the role of cooperative in development as well as examining the impact of cooperative.
To suggest pragmatic ways/ means for mitigating or alleviating problems confronting cooperative development.
To make recommendation base on findings.

1.4 RESEARCH QUESTION

For the purpose of this study, the following research questions were postulated. This will enable the research to thoroughly examine the viability of the government role in the socio-economic development of cooperative societies in Ahiazu Mbaise L.G.A. Also, the researcher selected some questions which he felt will enhance the report information on the subject matter. The questions are as follows:

Does government contributes to the development of small scale business enterprise established by cooperatives in Ahiazu Mbaise L.G.A?
What are the problems facing smooth running of cooperative business enterprises?
Has government created business and job opportunities for cooperative and the entire community?
What are the positive contributions and impacts of cooperative in the socio-economic development of Ahiazu Mbaise LG.A?
Is your society managed by government or individual members of the society?
To what extent has cooperative improve the evaluation of the funding and investment activities of cooperative societies in Ahiazu Mbaise L.G.A?

1.5 SIGNIFICANCE OF THE STUDY

It is the belief of this researcher that at the end of this study, one would be in a position to appreciate in its totality, the various essential roles, contributions and services of government towards cooperative development. It will be interesting to know that the outcome of the research would help in knowing the problems facing smooth running of cooperative business enterprise.

It would serve as a good secondary material for further research on the relationship between government and cooperative i.e. government involvement/interference in cooperative affairs. Particularly, the findings of this research work will be of immense benefit to all the stakeholders in the cooperative sector and after sector of the economy. Based on the findings of this study and suggestions proferred, it is strongly believed that the policy makers (government) would encourage our peasant farmers to voluntary join cooperative society.

Moreover, healthy program and policies on cooperative and development would be mounted in addition, the manager of cooperative and organization to adequately organize who wish to carry out research in this field have been provided spring board from where they can take off.

The society is also expected to benefit from improved cooperative services and stimulation of economic activities through small-scale business promotion /findings. Lastly, the finding and recommendations to be made from this study will be very useful to the student of management and others in the related field. The study will help researchers who will undertake research on the role of government in the development of cooperative.

1.6 SCOPE OF THE STUDY

This research work is a comparative study that involves a few randomly selected cooperative societies in Ahiazu Mbaise L.G.A Imo State. The cooperative societies are agricultural cooperative society, consumers cooperative society and cooperative society. All the societies in Ahiazu Mbaise L.G.A.

This study will be limited to randomly selected top, middle and lower level employee in the different units/selections of both societies. The ideal state of the research work is on how government can contribute in cooperative development (those selected societies) in Ahiazu Mbaise L.G.A in Imo State, because cooperatives is well known as a veritable tool or key to economic empowerment and poverty reduction in grass-root level if the government is keen on improving the general welfare of rural dwellers and its entire condition.

1.7 LIMITATION OF THE STUDY

In a research of this magnitude, a lot of factors are expected to constitute hindrances. Time, financial constraints, inadequate data, lack of physical facilities, bureaucratic bottle-neck and employee attitude are expected to constitute a major setback to the study.

Most of the employees for fear of being personally identified may out rightly refuse to respond to the administered questionnaires. However, in spite of these anticipated limitations, it is the belief of the researcher that the research findings will definitely improve the stock of knowledge in the area of the several roles of government towards cooperative development.

However, in spite anticipated limitations, it is the belief of this researcher that the research findings will definitely improve the stock of knowledge in the area of the several roles of government towards cooperative development.

1.8 DEFINITION OF TERMS

For more classification and easy understanding, some of the terms used by the researcher are defined below:

Government: Government consist of a group of people who are responsible for governing a country or state; where they make laws, executes or implements it and enforce the course of the law on offenders of it. It could consist of the activities, methods, and principles involved in governing a country, state, organization/institutions, or other political unit.
Cooperative Society: According to the ICA (1995 Principles), defined cooperative society as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled enterprise.
Development: Development is the gradual growth or formation of something such as a business or an industry so that it becomes more better, advanced, stronger, etc in the future.
Role of Government: This explains government, particular position, function and character in a given affair. In the course of the study, it shows those several functions and positions of government in cooperative affairs. These roles consist of the promotional effort of government towards cooperative and which include: registration, supervision, education, legislation, financial assistance, technical assistance as a role.
Registration: According to Oxford Advanced Learners Dictionary, defined registration as an act of making an official record of something or somebody, or a document showing that an official record has been made of something/somebody.
Supervision: This is the supervising of people, activities, or places. In other words, it is to be in charge of somebody/something and make sure that everything is done correctly and safely etc.
Legislation: This means a process of making and passing a law or set of laws by a parliament. While cooperative legislation means the principal and subsidiary legislation drawn from the cooperative principles and made to regulate the internal administration and external relationships of various types of cooperative societies in a country.
Financial Assistance: This means giving help in form of finance, information, or advice to an individual, corporate body (organization) or government. It is one important role and help government give to cooperative.

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