CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Cooperative
societies are a unit of business organization. In recent times, the importances
of cooperatives have come into focus in West Africa countries. Cooperatives
society origin is traced to the Rochadale Pioneers of 1844. It is believed that
cooperative societies were in cooperative before 1844, but is the Rockdale
Pioneers of 1844 who popularized the modern day cooperatives movement. The
Rockdale consisted of 28 members who were mostly wavers. Their sole aim of
farming cooperative was to raise their standard of living during this time
(1844) people were experiencing economic hardship. This was mostly pronounced
among the law income earners. The Rockdale pioneers started by contributing or
subscribing a few pence a wee, they managed to obtained 28 with which they
vented a store in Toad Lane, Rockdale. They started tracing with small stocks
of fairs out meal and candles. Profits were distributed to members in the
proportion of their purchases. The Rockdale cooperative was a consumer
cooperative society. In Nigeria, the formation of age group societies for team
work and group financial assistance among members in respect of farm work, road
construction, house erection and social festivities marked the beginning of
cooperative society’s movement. The idea of cooperative societies was first
conceived in 1934 and in February 1936. The legislative council passed the
cooperative bill before the movement was officially launched in the country, in
the beginning of cooperative societies in Nigeria; the running of registration
was at the regional levels. The word “Cooperative” could be used in two
different ways; a. Working together or “ready to help”.
b. An organized kind of business organization.
Cooperative
is an old as mankind, for each other. Thus, this is particularly important in
all rural areas of the world. The herding of all livestock’s is often carried
out in turns by the herdsmen. The gathering in and the thrashing of each
farmers harvest area often carried out by all neighbors joining together to
help one another iun a manner, which though voluntary, is morally compulsory by
tradition of certain countries. This same method is used for skinning well,
building irrigation reservoirs and ditches putting up houses and even burying
the dead. Also cooperative is known as a type of business organization. Its
introduction to industrial and business lives in West Africa generally and the
rural areas of Nigeria in particular, are however new. Cooperative in his
modern world is varied and it covers the work in all its business entities. The
importance of cooperative societies in Nigeria cannot be over emphasized. The
cooperative development in any place must be conditionally by its economic
pattern Nigeria has an agricultural economy and cooperative was first developed
in Nigeria.
At present, many types of cooperative
societies are existing in Nigeria. They are as follows./ agricultural products
marketing societies, consumers, cooperative thrift and loan societies,
cooperative craftsman’s societies and multi-purpose cooperative societies. Some
of these societies exist in Oredo Local Government Area of Edo State.
Cooperative society played a vital role by establishing a cooperative school
where auditors and inspectors are being retained to audit and inspectors the
activities of various cooperative societies to avoid fraud, misappropriation
and mal-administration. In conclusion, even though cooperative society has not
and cannot cover all facets of economic activities, it has covered the salient
parts of the activities of the common man, particularly the area under which
they have been suffering.
1.2 STATEMENT OF THE PROBLEMS
The
major problems of cooperative societies include among others;
1. Inadequate financing
2. Mismanagement
of resources by the management committee (board of directors)
3. Unqualified/inexperienced
management committee
4. Uncommitted
membership
5. Lack
of clear policy guideline on cooperatives
6. Outdated/inherited
colonial cooperatives law that determinates cooperative autonomy and
officialized and existing cooperatives
7. Government
attitudes towards cooperatives development 8. Lack of
infrastructural facilities like regular and stable electricity, accessible
roads, pipe-borne water etc.
1.3 OBJECTIVES OF STUDY
The objectives of this study as follow;
1. To
identify the principles and economic importance of cooperative societies in
Oredo Local Government Area of Edo State. 2. To defined
and trace the origin of cooperative societies in Oredo Local Government Area of
Edo State.
3. To
recognize the different types of cooperative societies in Oredo Local
Government Area of Edo State.
4. To
recognize the constraints and the possible solutions of cooperative societies
in Oredo Local Government Area of Edo State.
1.4 RESEARCH QUESTIONS
1. The
cooperative movement is spreading its tentacles into various economic
activities in Oredo Local Government Area of Edo State.
2. Lack
of education has made people to neglect the importance of cooperative societies
in Oredo Local Government Area of Edo State.
3. Cooperative
societies are now used as a dumping ground for partisan politics.
1.4 RESEARCH HYPOTHESIS
H0:
Lack of proper education has no significant on co-operative societies in
Nigeria.
H1:
Lack of proper education has significant on co-operative societies in Nigeria.
H0:
Co-operatives societies have no significant effect on the economic development
of Nigeria
H1:
Co-operatives societies have significant effect on the economic development of
Nigeria
1.5 SCOPE OF STUDY
This study is limited to Oredo Local
Government Area of Edo State. it examines the cooperative societies in Oredo
Local Government Area and how cooperative societies have been able to render
help to the people around Oredo Local Government Area. This study will cover
producers cooperative societies, consumer thrift cooperatives.
1.6 SIGNIFICANCE OF THE STUDY
The
study is important because cooperative society is important in our country and
it is important to know the role which cooperative society plays in Oredo Local
Government Area and the important cooer5pative societies plays to the people in
Oredo Local Government Area.
1.7 DEFINITION OF TERMS
Society:
what is society: A society or a human society is a group of people related to
each other through persistent relations or a large social grouping sharing the
some geographical or virtual territory, subject to the same political authority
and dominant cultural expectations human societies are characterized by
patterns of relationship (social relations) between individuals who share a
distinctive “culture” and institutions or given society may be described as the
sum total of such relationship among its constituent members. In the “social
sciences” a larger society often evinces stratification and or dominance
patterns in sub-group. Cooperative: A cooperative is a group of people acting
together to meet the common needs and aspirations of its members, sharing
ownership and making decisions democratically. Cooperative are not about making
big profits for shareholders but creating value for customers. This is what
gives cooperative a unique character and influence. There are many cooperative
businesses around the world, of which the cooperative group is one of the
largest. Economy: An economy consists of the economic
systems of a country or other area, the labour, capital, and land resources and
the manufacturing, production, trade, distribution and consumption of goods and
services of that area. A given economy is the result of a process that involves
its technological evolution, history and social organization as well as its
geography, natural resources endowment and ecology, as main factors, these factors
give context, content, and set the conditions and parameters in which an
economy functions. Role: A role or (social role) is a set of connected
behaviours, rights, and obligations as conceptualized by actors in social
situations. It is an expected or free or continuously changing behaviour and
may have a given individuals social status or social position. It is vital to
both functionalist and interactions understanding of society –