Cooperation started from the creation of human beings. People assured their survival by bringing pieces together to accumulate capitals that can solve their socio-economic issues.
This review was carried out to identify the trends of cooperative development of Ethiopia and its challenges. In doing so, the review tries to show the status of cooperatives in the Ethiopia, the gaps existing within the founders (members) and the government structures whose concern is on the sector, and ultimately briefs about the challenges encountering the sector as a result of the mentioned shortcomings and ultimately indicates the direction to escape cooperatives out of the challenges.
Table of Contents
1. Introduction
2. Methods
3. Emergence and Historical Development of Cooperatives
3.1 Emergence of Cooperatives at Global Level
3.2 Historical Development of Modern Cooperatives in Ethiopia
4. Tendencies and Status of Modern Cooperatives in Ethiopia
4.1 Analyzing the Trends and Status of Cooperatives by Geographical Distribution
4.2 Analysis in terms of the Trend and Status of Secondary Cooperatives (Cooperative Unions)
5. Challenges of Cooperatives
6. Conclusion and Recommendations
6.1 Conclusion
6.2 Recommendations
7. References
Research Objectives and Themes
This article aims to provide a comprehensive analysis of the development trends of the cooperative sector in Ethiopia and to identify the multifaceted challenges hindering its growth. By reviewing policy documents and empirical literature, the study evaluates the performance of cooperatives from their historical inception to their modern status, seeking to provide actionable strategies for institutional improvement and long-term socio-economic impact.
- Historical evolution of cooperatives in Ethiopia across different political regimes.
- Statistical analysis of the growth of primary cooperatives and cooperative unions.
- Evaluation of the socio-economic benefits and contributions of the cooperative sector.
- Identification of critical operational and governance challenges such as low member participation and lack of professionalism.
- Strategic recommendations for enhancing cooperative independence and financial sustainability.
Excerpt from the Book
3.2 Historical Development of Modern Cooperatives in Ethiopia
Modern cooperatives movement introduced to Ethiopia in 1960. Of the ruling body existed in the country, main emphasis in this article review is given to the three regimes that have contributed to the cooperatives’ development in Ethiopia, viz., Hailesillasie (1916-1974) Derge/military (1974-1991) and EPRDF regime (1991 onwards).
During the imperial Hailesillasie regime, cooperatives have got recognition by Decree No. 44 of 1960 (FCA, 2005 cited in Bezabih, 2009). This decree had its own limitations then another new Cooperative Society Proclamation No. 241/1966 was to come to operative with concern of previous Decree’s short comings. This enabled the cooperative society to realize their objectives. In its Five Year Development Plan, the Imperial regime envisioned an important role for coops in transforming smallholding agriculture. Thus, the Farmer Workers Cooperative Decree No. 44 was provided the first legal framework, which was later replaced by the Cooperative Societies Proclamation No. 241/1966. This was relatively comprehensive and contained most of the essential contents of the legal framework. However, success was limited during the period due to several limitations with it (Mojo et al., 2015). It was also failed to be in line with the international cooperative principles and they were exclusive to farmers with larger farm sizes (Abate et al., 2014). Hence, they failed to survive in the succeeding regime.
Summary of Chapters
1. Introduction: This chapter introduces the role of cooperatives as essential tools for poverty alleviation and socio-economic development, tracing their conceptual foundations and early implementation in Ethiopia.
2. Methods: This section details the "best evidence review" approach, describing how secondary data from government reports, policy frameworks, and academic literature were synthesized to analyze the cooperative sector.
3. Emergence and Historical Development of Cooperatives: This chapter covers the global origins of the cooperative movement and provides a historical analysis of how cooperatives were adapted and institutionalized in Ethiopia under three successive governments.
4. Tendencies and Status of Modern Cooperatives in Ethiopia: This section provides a quantitative evaluation of the growth of primary cooperatives and cooperative unions, including a geographical breakdown and analysis of trends in membership and capital.
5. Challenges of Cooperatives: This chapter identifies the major systemic hurdles facing Ethiopian cooperatives, including governance issues, lack of member awareness, professionalism deficits, and inadequate government support.
6. Conclusion and Recommendations: This concluding section summarizes the research findings and proposes specific interventions, such as the establishment of a national cooperative bank and the implementation of robust cooperative education programs.
Keywords
Challenges, Cooperatives, Cooperative Policy, Participation, Role of Cooperatives, Ethiopia, Socio-economic Development, Governance, Institutional Framework, Agricultural Cooperatives, Cooperative Unions, Poverty Reduction, Economic Liberalization, Member Education, Sustainability.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on the developmental trajectory and the prevailing challenges of the cooperative sector in Ethiopia, aiming to understand its role in poverty reduction and socio-economic growth.
What are the core themes addressed in the paper?
The paper covers the history of Ethiopian cooperatives, their growth statistics, their organizational structure, and the external and internal challenges that currently impede their full potential.
What is the main objective of this study?
The objective is to identify trends in cooperative development and pinpoint the specific gaps and obstacles within the sector that require strategic intervention and policy reform.
Which methodology does the author employ?
The author utilizes a "best evidence review" methodology, which involves the systematic selection and exploration of secondary data, including regulatory frameworks, government activity reports, and published academic research.
What does the main body of the paper cover?
The main body examines the evolution of cooperatives through different Ethiopian regimes, evaluates current growth trends, analyzes regional distribution, and discusses critical challenges like poor governance and lack of professionalism.
Which keywords best characterize this work?
The most relevant keywords include cooperatives, Ethiopia, socio-economic development, governance, member participation, and cooperative policy.
How have cooperatives evolved in Ethiopia since 1960?
Cooperatives shifted from being state-controlled entities during the Derg regime to more autonomous, though still challenged, organizations under the subsequent EPRDF framework, which aimed to integrate international cooperative principles.
Why is capital accumulation considered a major issue for Ethiopian cooperatives?
Many cooperatives lack sufficient working capital to scale their operations or invest in infrastructure, leading to a reliance on government support rather than self-reliance, which necessitates the proposed creation of a national cooperative bank.
What role do stakeholders play in the policymaking process?
The study highlights that stakeholders, including the members themselves, have historically had limited participation in the top-down policy formulation process, which often ignores the practical realities faced by those on the ground.
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- Desalegn Fekadu Etefa (Autor:in), 2021, Cooperative Development Trends and Its Challenges in Ethiopia, München, GRIN Verlag, https://www.grin.com/document/1148823
