Cooperatives Are Autonomous Associations Of Persons United Voluntarily To Meet Their Common Economic

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY FACULTY OF AGRICULTURE

AGEC 356: AGRICULTURAL COOPERATIVES Individual Assignment

CEPHAS JOSHUA BEUJUNG SAMWINI INDEX NUMBER: 9842106

Course Tutor:

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Mr. Patrick Appiah

Cooperatives play a very important role in the socio-economic and agricultural development of both developed and developing countries in which they operate. The world summit for social development (1995) recognized this people centered approach to development and committed to using this paradigm in poverty eradication and generation of employment and social integration. The International Labour Conference (2002) also adopted the recommendation that the promotion of cooperatives should be considered as one of the pillars of national and international economic and social development. These events underline the essence of cooperatives. This essay seeks to summarize the roles of cooperatives in socio-economic and agricultural development as outlined in the UN secretary- general’s report dated 21 July 2005.

Cooperatives contribute both directly and indirectly to the eradication of poverty through social progress of their members and employees and by stimulating the economies and enhancing the social fabric of the community respectively. They help farmers with appropriate channels to increase and stabilize their incomes. They again provide farmers with the agricultural supplies they need to increase their productivity at a lower cost, they help farmers with mechanisms for the sale of their produce; again they give essential services such as marketing, credit, insurance, and transportation. Through mutual insurance and farm credit, members of cooperatives are better able to cope with crop failures and other emergencies.

Cooperatives members by their sharing of common equipment are able to reap economies of scale and better access to markets. The increased efficiency of cooperatives places them in a better position to compete with larger businesses. They have better bargaining power as buyers

and sellers in the market and are able to mobilize for collective action, help farmers with small savings accounts, loan services and microfinance to maintain or expand their production. Cooperatives also help curb social disintegration, dysfunction, ethnic tension and civil conflicts which occur partly due to increasing poverty and deepening inequalities by creating wealth and distributing among members on the basis of their use.

Cooperatives are also involved in other activities such as the provision of electricity, provision of housing for slum-dwellers, health services, rehabilitation and health education and provision of safe drinking water for tier members and the community at large which reflects their principle of concern for community.

We can conclude by saying that Cooperative “by pooling the limited individual resources of members to create business enterprises that enable them to participate in production profitsharing cost saving, or risk-sharing activities” promote the economic and social well-being of individuals who may never be able to form their own businesses, acquire certain inputs and services and market their products and services as individuals acting alone “especially when they are poor”.

REFERENCES  UN General Secretary’s report on cooperatives 2005  UN General Secretary’s report on cooperatives 2007  www.copac. Coop  www.ica.coop