1.0 Introduction
1.1 Background of the Study
The general history of co-operative can be traced back to industrial revolution which took place in the 19th century in England.
Co-operative societies are autonomous bodies formed by human beings with similar economic and socio-interest. Their major object is to improve on the socio-economic contributions of their members by mutual assistance.
The effort of the government basically is to enhance the socio-economic conditions of the citizens, this is prevalent in both developing and developed countries. There is a common task by the government and the citizen in trying to the vicious circle of underdevelopment. In pursuing and attaining these goals the formation of co-operative was advocated.
Co-operative can be viewed from different angles. According to Berko (1989) he gave a comprehensive definition of co-operative “as association of persons with variable membership, who have pooled themselves and their resources together on mutual or self-help basis to form a business enterprise which seeks to solve the socio-economic problems of these members by directly providing goods and service to them in their capacity as either the customers or employees of the co-operative enterprises.
In the above definition, some points are very important. First the society membership is voluntary and not by force, secondly the members must be free unlike what happen between the capitalist and their work where they were exploited and so many evils were made upon them. So co-operative can be seen as an effective instrument for obliterating the evils of capitalism.
The factory workers sufferings includes high prices of goods, very low wages, adulteration of goods and short weight and measures, long hours of work, unsanitary living and working conditions. As a result of these evils, a philanthropist and social reformer by name Sir Robert Owen (1771-1858) came to rescue of these poor workers by the formation of a consumer co-operative.
In Nigeria 1934, Mr C.P Shickland presented a report on the advisability of introducing co-operative in Nigeria 1935 marked the passing of the of the first co-operative ordinance known as the ordinance No 39 of 1933 with Mr. E.F.G Haig as the first registrar of co-operative. The first co-operative was the cocoa co-operative followed by credit and consumer co-operative societies.
Seeing the impact of co-operative in Nigeria, the Shagari's led administration in 1980 established the federal department of Agriculture co-operative as one major step taken towards boasting food production in the country for the development plan period 1981-1985.
Later different types of co-operative were formed; their major objective is to increase the socio-economic of the members. This invariably contributed to the gross domestic product (GDP) which implies increases in economic development movement.
One of the ways co-operative led to economic development is through Agricultural co-operative. The resultant effect is shift to the secondary manufacturing sector. The total effect of this is large scale production, rise in the demand for manufactured goods and extend in the market size.
Agricultural co-operative also leads to expansion of the Agro-based industries. It leads to increase rural income and welfare, better feeding and housing, better services from schools, health centers, banks, and transport and communication facilities. All these improve the rural people's standard of living which is a measure for economic development of a nation.
Co-operative business determines the degree of economic and social development of Ekwusigo Local Government Area and it is e very of the greatest activities which government can give support for effective development of the state.
Co-operative is seen as a tool for socio-economic development in most third world countries. Ijere (1986) stated that co-operative societies are remarkable instrument in development of developing states.
Helin (1986) stated that economic and socio-logical factors are the factors that were responsible for the development of co-operative. The economic factors was informed by the desire of the co-operative members to improve as their economic status to gain a considerable economic benefit. The sociological factor was as a result of people's needs for security, leadership, self actualization and solidarity provided by the co-operative society.
1.2 Statement of the Proble
The statement of problem in this study is to investigate the impact of co-operative business organization in socio-economic development in Ekwusigo Local Government Area. On the basis of this knowledge gained from this investigation, some recommendations will be made for improvement.
1.3 Objective of the Study
The objective of this study is to focus on the efforts of basic social and economic needs in order to narrow the disparities in standard of living of population in Ekwusigo Local Government Area and stress on renewed poverty alleviation. Under these following base that this study can be appraised.
- To identify the activities of the study co-operative society in Ekwusigo Local Government.
- To find out the achievements and contributions of the societies to the development of Ekwusigo Local Government.
- To identify problems facing co-operative societies in the Ekwusigo local government area.
- To examine the source of finance of the cooperative society Ekwusigo Local Government
- To find out how to reduce poverty in Ekwusigo Local Government
1.4 Research Question
For the purpose of this study or based on the objectives as well as the problem statement of the study the following research question were postulated or formulated. This will enable the research to thoroughly examine the viability of the cooperative in the socio-economic development of Ekwusigo Local Government Area.
- To what extent have the cooperative societies enhanced the socio-economic development in Ekwusigo Local Government Area.
- What are the major problems encounter by the cooperative societies in Ekwusigo Local Government Area?
- What are the source of financing Cooperative societies in Ekwusigo Local Government Area?
- What are the achievement and contributions for the cooperative society to the development of Ekwusigo Local Government Area?
- What are the contributions of cooperative in Ekwusigo Local Government Area towards poverty alleviation.
1.5 Research Hypotheses
For this purpose of this study the following hypotheses were tested and come up with the following results:
- Ho: lack of infrastructural facilities did not pose any problem to the realization of the dreams and aspiration of cooperative in Ekwusigo Local Government Area
- Hi: Lack of infrastructural facilities posed a lot problems to the realization of the dreams and aspirations of the cooperative in Ekwusigo Local Government Area
- Ho: Cooperative has not contributed in the upliftment of the living standard of the members in Ekwusigo Local Government Area
- Hi: Cooperative has contributed in the upliftment of the living standard of the members in Ekwusigo Local Government area.
2.6 Significance of the Study
The research work is aimed to analyse the importance of socio-economic development of co-operative societies of Ekwusigo Local Government Area especially to the rural communities.
- The research work can be also notice on the socio-economic amenities for the up keep of the areas where these co-operative may include construction of good roads.
- This research work can also give a directive to the state development planner and help them to identify areas which need crucial rehabilitation.
- This research work will help to eliminate doubts as to whether or not cooperative are of any significance in rural development of Ekwusigo Local Government Area.
- This research can give people who are ignorance of cooperative movement an open eye to the significance of cooperative societies which can help them be aware or knowledge about the activities of cooperative In existence.
Finally, the study will teach the members of cooperative societies the new economic and social order which will help the members to understand the rationality of organization in both cooperative and business.
1.7 Scope of the Study
The scope of this study is that it should take proper care of socio-economic development in Ekwusigo Local Government Area. This research work will be limited to co-operatives in Ekwusigo Local Government Area.
1.8 Limitations of the Study
The study emphasizes on the impact of co-operative business organization in socio-economic development in Ekwusigo Local Government Area. In carrying out this research work. The following constraints were experience.
Time:
Due to limited time and resources available for this study, the time given for the study was rather too short coupled with short semester period, the researcher being a regular student had to read and take lectures in other courses during the period of this study. This research requires concentration time and effort to enable the researcher come up with an exhaustive result.
Finance:
Due to financial constraint as a result of the present economic condition of the students, the researcher was able to obtain review from libraries in Ekwusigo Local Government Area respectively.
Transportation:
Due to inadequate transportation system in Ekwusigo Local Government Area as a result of that, the transportation fare is costly which made it extremely difficult for the research to visit all the cooperative societies in Ekwusigo Local Government Area.
Literature:
Due to finance and time constraint, the researcher limited literature view to what was obtainable in some textbooks, journals and seminar paper concerning cooperatives in Ekwusigo Local Government Area and also what were taught in the class. All these mentioned above are the major limitation in this research work
1.9 Definition of Terms
For more classification and easy understanding some of the terms used by the researcher are defined below:
International co-operative Alliance (1995) defines co-operatives 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 enterprise
Calvert defined co-operative as an association of human beings where in persons invariably of limited or moderate means, voluntarily associate as human beings on a basis of equality for the promotion of their common economic, social and moral interests by honest means and distribute their profits or surplus amongst themselves in proportion to their contribution made for earning that surplus or service.
Berko (1989) defined co-operatives as an association of persons with variable membership and variable capital who have pooled their resources together on mutual or self-help basis to form a business enterprise which seeks to solve the socio-economic problems of these members by directly providing goods and services to them as owner/customer or owner /employee of the co-operative enterprise.
It is also defined as a collection of persons who have voluntarily joined together their resources and having as its primary objectives the promotion of the socio-economic needs of the members through self-help efforts. Such an association is democratically managed by members in line with agreed co-operation principles.
Others see co-operative as an association for business social and political services. Only one concrete agreement is that co-operatives are socio-economic as well as social services to the patrons and investors alike.
