The Role Of Multipurpose Cooperatives In Social And Economic Empowerment, Gambella Town, Ethiopia

Abstract

The study was conducted in Gambella town South Western part of Ethiopia with the objectives: (1) Assessment of the role of multipurpose cooperatives in social and economic empowerment. (2) To study the status of multipurpose cooperatives and its contribution to the socio-economic empowerment of their members. (3) And to introduces some useful concepts from the background, result and discussion of the study: The performance of multipurpose primary cooperatives, know-how about benefit of the MPCs and the members’ participation which indicate interpersonal relationship between the members and non-members who are the users of MPCs and participative behavior in its governance. It investigates the policies that the multipurpose cooperatives used regarding the socio-economic empowerment of their members and non-members. The results showed that there is poor administration which had prevented the effectives facilitating of the role of multipurpose cooperative to bring change on the economic empowerment to the members, non-members and their participation in the governance of multipurpose cooperatives. It also observed the perceptive or affective natures of members and non-members expectation which could lead them to the success of their economic empowerment. The study was designed to assess the role of multipurpose cooperatives in social and economic empowerment, the social and economic role of cooperatives is ensured through voicing of common goals via cooperative that there was a transformation of the socio-economic empowerment through making many development activities by providing credit services to the members and non-members who get services from cooperatives. Multipurpose primary cooperatives were consider that they have enough capital to make a positive activities to change members and non-members socio economic, the sample size that was selected are 98 members and 89 non-members from ten multipurpose cooperatives in the study area, the interviewees provided many answer a necessary information that prevent their marketing service or activities. ’The factors that hind the development of multipurpose cooperatives which prevent an economic growth of members and non-members, it was identifies by both side, therefore, the government interference and lack of capital and other issues, three basic weaknesses are, economic feasibility of the major activities must be accepted, this was due to the problems from cooperative leadership and management capacity, and the lack of democratic control by the members. As indicated that one major cause of this has been outside interference and control the activities of the multipurpose cooperatives society. A weak objectivity dishonorable of important of benefit of the multipurpose cooperatives is one fundamental problem that has threatened their feasibility and development potential. the study also show many problem such as, Lack of good security in the area, tribalism and political interference, lack of awareness, low participation of members to the management system are the main factor that hinder the development of the cooperatives, moreover, regional government should carry out awareness and provides loans to all multipurpose cooperatives, as a system of cost reduction, and to re-organized all failures of multipurpose cooperatives societies in the way how the cooperatives principles are follows.