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PRIMARY
COOPERATIVE AND MEMBERS SOCIO-ECONOMIC WELL BEING
CHAPTER
ONE
INTRODUTION
1.1 Background of the Study
In
order to get a clear picture of the subject matter it is imperative to defined
cooperative. ICA Statement on the cooperative defines cooperative as an
autonomous association of persons economic, social and cultural needs and
aspirations through a jointly-owned and democratically-controlled enterprise.
However,
primary cooperative which is the subject matter is defined as a society which
has as its object the promotion of the socio-economic interest of its members
through a common enterprise managed in accordance with cooperative principles.
A primary cooperative society must have at least ten individuals if it is an
auxiliary cooperative and six persons if it is a productive or industrial
cooperative. Each of these must have qualified for membership (NCSA, 1993).
Primary
cooperatives are basically established to meet member’s social-economic need.
The operations of primary societies permits the people who live in the same
locality with the same goals and aspiration to go into synergy in order to
actualize such goals collectively (Ijere, 1998).
The
prospect of primary cooperative in promoting member’s economic welfare cannot
be overemphasis sequel to the economic benefits arising from membership of
primary societies: primary cooperatives in this regard pursue mutually beneficial,
social and economic interest, provide goods and services to each other and the
general public in the most cost effective way, prevent exploitation of the
weaker members of the society by bringing them together to help themselves,
protect the rights of the people as producers and consumers of goods and
services, and promote mutual understanding and peaceful coexistence among the
people of the community in which such primary cooperative is located.
The
economic results of establishing primary societies arise out of the operation
of a society that is jointly own through synergy and the gains of such
enterprise is distributed in such manner as would avoid one member gaining at
the expense of the others. Primary cooperatives have been recognised as a
veritable instrument for the promotion of member economic welfare owing to its
ability in mobilizing and organising people of the same economic and social
aspiration into a common enterprise or primary societies therefore becomes very
appropriate and suitable for improving the economic welfare of people through a
common and collective enterprise that is people oriented (Okoh, 2003).
The
prospect of primary cooperative in promoting members economic welfare cannot be
overemphasis sequel to the economic benefits arising from being a member of
such society. It is against this background that the researcher deemed the
subject matter worthy of investigation.
1.2 Statement of the problem
Primary
cooperatives have the potentials to boost the economic capacity of its members
by mobilizing savings and granting soft loans to it members, providing other
services as well as investment opportunities for its members (Okoh, 2003).
But
inspite of this laudable prospect of primary cooperative in promoting member
welfare, membership of primary cooperatives in the area of study is loe and
insignificant, as such, doubt is expressed about the prospect of primary
cooperative in promoting members welfare in the area understudy. This is so
because if indeed primary cooperatives
promotes members welfae as opined by (Okoh, 2003) then why is the membership of
primary cooperative low and insignificant and their impact vague and obscure in
the study area? It is in this light that the subject matter of this research is
seen as a problem worthy of investigation.
1.3 Objective of the study
The
central objective of the study is to examine the prospect of primary cooperatives
in promoting members welfare. The specific objectives are:
i.
To identify how primary cooperatives
promote member’s economic welfare.
ii.
To findout how primary cooperative
improves member’s social wellbeing.
iii.
To findout the functions of primary
cooperatives.
iv.
To determine the type of practical
welfare assistance primary cooperative render to their members.
v.
To identify the problems militating against
primary cooperative from promoting members welfare.
vi.
To proffer solution to the identified
promote.
1.4 Research Questions
i. How
does primary cooperativespromotes member’s economic welfare?
ii. How
can primary cooperative be used to improve member’s social wellbeing.
iii. What are the functions of primary
cooperatives.
iv. What type of practical welfare assistance
does primary cooperatives
render
to their members?
v. What
are the problems militating against primary cooperatives in promoting members welfare?
vi. What are the soloutions to these problem?
1.5 Significance of the study
This
study will be of great benefit to policy makers, cooperative societies, members
of the general public as well as students and researchers.
The
study will aid policy framework regarding cooperatives development.
The
study will also be useful to cooperative societies in creating cooperative
awareness by showcasing the functions and benefits of primary societies to
members and potential members.
To
student and researchers, the study will serve as a springboard to undertake
similar research. This is so because the study will be a useful reference
material to students and researchers undertaking similar study. As such the
study will add to already existing body of knowledge regarding primary
cooperative societies.
1.6 Scope of the study
The
boundaries of this study is restricted to the period of investigation, the
environment in which the research data were collected and the cooperatives
societies investigated. The study covers the activities of synergy artisan
cooperative society from 2010-2011. The research is limited to synergy artisan
cooperative as regard the collection of primary data. The subject matter is
restricted to the examination of the prospect of primary cooperative in
promoting member’s welfare.
1.7 Clarificaton of Terminologies
Cooperative: This
is an autonomous association of persons united voluntarily to meet their
common, economic, social and cultural needs and aspiration through a jointly
own and democratically controlled enterprise (I.C.A, 1995).
Primary Cooperative:
This is a cooperative society which has as its object the promotion of the
socio-economic interest of its members through a common enterprise managed in
accordance with cooperative principles. A primary cooperative society must have
at least ten individuals if it is an
auxiliary cooperative and six persons if it is a productive or industrial
cooperative (Ishyaku 2010).
Cooperative Union: This
is the association of affliation of registered cooperative societies in every
state or a particular geographical area.
Cooperative failure:
This refers to a situation when cooperative societies cease to actualise or
practice cooperative values as enshined in it principles (Isyaku, 2010).
Cooperative Nexus:
This refers to the functional relationship and inter-linkages between the
cooperative organisation and member’s private business enterprise (Chukun,
1995).
Mutuals:
A term used to describe businesses owned and controlled by their members. This
includes building societies, cooperatives, credit unions, friendly societies
and many associations (operational definition, 2011).
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