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THE IMPACT OF COOPERATIVE ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

Cooperatives have been regarded as one of the main institutional machineries for empowering the economically weak members of the society. Despite the availability of cooperative societies, it appears that a significant proportion of rural women are either unaware of the existence of such co-operative societies or are lacking in the basic socioeconomic characteristics that form the prerequisite for participation in such activities. Women form the majority in the rural areas, and are involved at all stages of agricultural enterprises, responsible for about 80% of all food items produced (Njar, 1990; Mgbada 2002; Rahman, 2004) and 70 percent of food production and 50 percent of the domestic food storage in the country (Ritche, 1977). In addition, they form an active and reserve labor force but they rarely own the means of productions (Rahman 2004) suggesting that the position of women in agricultural development cannot be over emphasized.

Cooperatives have been regarded as one of the main institutional machineries for empowering the economically weak members of the society. Cooperatives are able to promote economic and social development because they are commercial organizations that follow a broader set of values than those associated purely with the profit motive. Cooperatives play an important role in job creation by directly providing self-employment to members and service provision for non-members. Enterprise development and particularly the promotion of small and medium enterprises, has been adopted as a prerequisite and a strategy for job creation and economic growth in a large number of countries (Essien, 2000). Despite the availability of cooperative societies and efforts of government at all levels, it appears that a significant proportion of rural women are either unaware of the existence of such co-operative societies or are lacking in the basic socioeconomic characteristics that form the prerequisite for participation in such activities (Idrisa et al., 2007). In some cultures, women are restricted from conducting business independently or without their husbands consent. This poses a serious challenge to participation in cooperative activities. Even though in some cases women’s legal rights may be stipulated in a cooperative they may not necessarily be enforced or they may be superseded by customary law. It is in line with this view that Ashanti (1993) observed that ”lack of social, economic and legal rights explains women's low participation in cooperative decision-making and leadership positions”. Besides cultural issues, women, especially in developing countries, are confronted by formidable constraints that block their active participation in cooperatives most especially, the traditional role of women in society and the prevalent misconception that women's reproductive and domestic responsibilities constitute their main role. However, Eboh (1988), recognized that despite women’s major responsibilities in the household health and nutrition, women’s role in agriculture cover all facts of agribusiness including food production, livestock production, fishery as well as farm management.

Therefore there is the need to embrace the cooperative options. Most members of cooperative societies engage in one economic activity or the other and thus contribute in no small measure to economic outputs of the nation. Economic development is better achieved through cooperation to solve the problem of scarcity. According to Kareem, Arigbabu, ,Akintaro, &Badmus, (2012) there is hardly any workplace in Nigeria today particularly government establishments, where a cooperative society is not operational. It's quite effective because transactions of money are carried out in conjunction with employers of labor on behalf of their staff. For example, staff's savings into the co-operatives are deducted at source and repayment of loans is done through deductions from staff salaries as requested by the operators of the societies (Godwin 2011). In the same vein, there are cooperative societies that have been set up by private initiative, i.e. group of people seeking a

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