Cooperatives are associations established and managed by private persons in order to address the economic and social needs of their members. Human cooperation is an age-old phenomenon, so much so that one can trace the history of cooperation to the time when people started to live together. Thus, it is difficult to give the credit of origination to this or that society.
The earliest cooperative movement is believed to have appeared in Europe in the late 18th and 19th centuries, during the era of the industrial revolution. In Africa, the concept of cooperatives existed long before and during the colonial period, but it flourished in its present form only after independence.
An understanding of the status of cooperatives in present-day Ethiopia demands the knowledge of traditional forms of cooperation that existed long ago, as they are the building blocks for the development of cooperatives.
Having this general highlight on cooperatives, this paper entails three parts. The first part which is devoted to the general overview of cooperatives deals with the definition, historical background, and various types of cooperatives. In the second part, we shall capitalize on the distinguishing marks of cooperatives from other forms of business organizations and their common features. The last, but not least, part mainly discusses the underlying principles guiding the operation of cooperatives in general and their status in Ethiopian legislation.
Table of Contents
Part One: General overview
1.1 Definition of cooperatives
1.2 The historical development of cooperatives in Ethiopia
1.3 Types of cooperatives in Ethiopia
1.2.1. Housing cooperatives
1.2.2. Building cooperative
1.2.3. Retailers' cooperative
1.2.4. Worker cooperative
1.2.5. Producer cooperatives
1.2.6. Consumer Cooperatives
1.2.7. Agricultural cooperative
1.2.8. Credit cooperatives
Part Two
2.1 Basic features of Cooperatives
2.1.1. Unique features of cooperatives
2.2 The Common features of cooperatives with business organizations.
2.2.1. Contract
2.2.2. Plurality of persons
2.2.3. Common Interest
2.2.4. Collaboration
2.2.5. Contributions
2.2.6. Purpose
2.2.7. Formality
2.2.8. Legal personality
2.2.9. Limited liability
2.2.10. Role of members
Part Three
3.1 The Guiding Principles of cooperatives and their Legal Regimes in Ethiopia
3.1.1. Guiding Principles of Cooperatives
3.1.2. Voluntary and Open Membership
3.1.3. Democratic member control
3.1.4. Member Economic Participation
3.1.5. Autonomy and Independence
3.1.6. Education, Training and Information
3.1.7. Cooperation among Cooperatives
3.1.8. Concern for Community
3.2 Principles of cooperatives in Ethiopian laws
Research Objectives and Themes
This study aims to provide a comprehensive legal analysis of the principles governing cooperatives in Ethiopia, examining their socio-economic foundations, their evolution within existing national legislation, and their functional operation compared to traditional business organizations.
- Historical development and evolution of cooperative movements in Ethiopia.
- Comparative analysis of cooperatives versus standard business organizations.
- Detailed classification and specific operational types of cooperatives.
- Legal status and guiding principles of cooperatives in modern Ethiopian law.
- The role of self-help and democratic member control in cooperative success.
Excerpts from the Book
1.1 Definition of cooperatives
The cooperative model has been adapted to numerous and varied businesses. The diversity of cooperatives is kaleidoscopic and their variability is literally infinite. As a consequence of this diversity, there is no universally accepted definition of a cooperative. However, the following definitions are commonly used.
The International Co-operative Alliance defined cooperatives as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprises. This definition recognizes the essential element of cooperatives: membership is voluntary. Coercion is the antithesis of cooperation. Persons compelled to act contrary to their wishes are not truly cooperating. True cooperation with others arises from a belief in mutual help; it can't be dictated. In authentic cooperatives persons join voluntarily and have the freedom to quit the cooperative at any time.
Another widely accepted definition of cooperatives is the adapted by the United States Department of agriculture in 1987: A cooperative is a user-owned, a user-controlled business that distributes benefits on the bases of use. This definition captures what are generally considered as the three primary cooperative principles: user ownership, user control and proportional distribution of benefits.
Summary of Chapters
Part One: General overview: Provides a foundational definition of cooperatives, explores their historical trajectory in Ethiopia, and classifies various forms of cooperative societies.
Part Two: Analyzes the fundamental and distinguishing characteristics of cooperatives, while highlighting shared operational elements with other business entities.
Part Three: Discusses the internationally recognized guiding principles of cooperatives and details their specific codification and application within the Ethiopian legal framework.
Keywords
Cooperatives, Ethiopia, Cooperative principles, Legal analysis, Voluntary membership, Democratic control, Member participation, Socio-economic development, Business organizations, Proclamation 147/1998, Self-help, Autonomy, Patronage refunds, Cooperative laws, Human resources.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the legal principles of cooperatives in Ethiopia, analyzing their definition, development, and how they function as organizations compared to other business structures.
What are the primary themes discussed in the work?
The study covers the history of Ethiopian cooperatives, their classification, their unique operational features, and their adherence to international cooperative principles under national law.
What is the ultimate objective of the research?
The goal is to provide a legal analysis that illustrates how cooperative principles are integrated into Ethiopian legislation and how they contribute to social and economic empowerment.
Which scientific or analytical method is employed?
The authors use a normative and comparative legal approach, reviewing existing proclamations, international guidelines, and historical data to define the status of cooperatives in Ethiopia.
What topics are covered in the main body (Part 1-3)?
The body covers definitions and history (Part 1), basic and common features compared to businesses (Part 2), and the guiding principles of cooperatives within Ethiopian legal regimes (Part 3).
Which keywords define this document?
Key concepts include cooperative principles, legal frameworks, self-help, democratic management, and Ethiopian cooperative society establishment.
How does a cooperative differ from a private limited company?
Unlike capital-focused private limited companies, cooperatives are user-owned, user-controlled, and emphasize the role of members over mere capital investment.
What role did the Derg regime play in Ethiopian cooperative development?
The Derg period, specifically the 1975 and 1978 proclamations, focused on nationalization and collective ownership models that were highly regulated and state-directed.
Are the seven international cooperative principles codified in Ethiopian law?
Yes, the study concludes that the seven basic principles adopted by the International Cooperative Alliance are integrated into the Ethiopian Cooperative Societies Proclamation No. 147/1998.
- Arbeit zitieren
- Zerihun Shiferaw (Autor:in), 2014, Legal Analysis of the principles of Cooperative laws in Ethiopia, München, GRIN Verlag, https://www.grin.com/document/1313301
