Abstract
Cooperatives are autonomous organizations of people built on internationally recognized principles and core values. There are various types of cooperatives in East Africa largely dominated by the Agricultural Marketing Co-operatives (AMCOS). For decades, cooperatives have been fighting against inequalities by promoting members’ socio-economic development, democracy, and increasing people’s control over local economies. They also provide other opportunities such as inputs, and better negotiation position. Despite these efforts, rural poverty and inequality in East Africa is still high. This chapter presents a review of literature on the role of cooperatives in reducing rural poverty and enhancing social inclusion in East Africa, using Tanzania, Kenya, and Uganda as case studies. These three countries present good cases because, despite having a large population of people and cooperatives, their people still suffer from abject poverty. In this study, it has been established that, cooperatives are an organ for rural development in whichever form and model and can contribute to rural development whether they are weak or strong. This chapter promotes the use of Integrated Co-operative Model (ICM), which has proved to be effective in linking the rural poor in terms of production, marketing support, and financial services. It recommends member-based education to be given priority especially on how co-operatives can work in an ICM. Training is also needed on member’s roles and responsibilities, knowledge of production, marketing and management. Likewise, it recommends a positive government intervention on punishing the criminals who misused the cooperative funds.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Aber, J. L., Bennett, N. G., Conley, D. C., & Li, J. (1997). The effects of poverty on child health and development. Annual Review of Public Health, 18, 463–483.
Adisa, R. S. (2012). Rural development in the twenty-first century as a global necessity. Accessed September 11, 2018, from https://www.intechopen.com/books/rural-development-contemporary-issues-and-practices/introductory_chapter_rural_development_in_the_twenty_first_century_as_a_global_necessity.
Alldred, S. (2013). Cooperatives can play a key role in development. Accessed August 14, 2018, from https://www.theguardian.com/global-development-professionalsnetwork/2013/jul/06/international-day-of-cooperatives.
Alliance Africa. (2017). Africa co-operative development strategy 2017–2020. Accessed August 14, 2018, from https://icaafrica.coop/sites/default/files/basic-page-attachments/africa-cooperative-development-strategy-2017-2020-859927886.pdf.
Altman, M. (2010). History and theory of cooperatives. Accessed August 10, 2018, from https://www.researchgate.net/publication/228272144_History_and_Theory_of_Cooperatives.
Anríquez, G., & Stamoulis, K. (2007). Rural development and poverty reduction: Is agriculture still the key? (ESA Working Paper No. 07-02). Accessed September 12, 2018, from http://www.fao.org/3/a-ah885e.pdf.
Ashley, N. T. (2016). The role of agricultural cooperatives in poverty reduction: A case study of selected cooperatives in the four local municipalities of Vhembe district municipality, Limpopo Province, South Africa. A Dissertation Submitted in Fulfillment of the Requirements for the Master of Science Degree in Agriculture (Agricultural Economics). School of Agriculture, University of Venda, Thohoyandou, Limpopo, South Africa.
Bee, F. K. (2016). Mobilizing co-operatives for a higher regional development impact: A paper presented to the First East African Co-operative Conference on Harnessing East Africa’s Industrial Potential, organized at the Intercontinental Hotel, Nairobi Kenya from 29 February to 2 March 2016.
Braverman, A., Guasch, L., Huppi, M., & Pohlmeier, L. (1991). Promoting rural cooperatives in developing countries: The case of sub-Saharan Africa. Washington, DC: World Bank.
Callan, T., Nolan, B., & Whelan, C. T. (1993). Resources, deprivation, and the measurement of poverty. Journal of Social Policy, 22, 141–172. https://doi.org/10.1017/S0047279400019280.
Celli, M. (2013). Determinants of economies of scale in large businesses—A survey on UE listed firms. American Journal of Industrial and Business Management, 3, 255–261.
Chambo. (2018). Keynote address to the conference on innovations for sustainable co-operative development. CO-operative Training Retreat Center, Co-operative University of Kenya (CUK), 26–27 March 2018.
Coutinho, D., Moreno, A. S., & Matsuzawa, V. R. O. (2015). Cooperatives: An important tool for economic and social inclusion. Accessed July 8, 2018, from http://www.admpg.com.br/2015/down.php?id=1906&q=1.
Develtere, P., Pollet, I., & Wanyama, F. (2008). Cooperating out of poverty: The renaissance of the African cooperative movement. Accessed July 3, 2018, from https://www.ilo.org/public/english/employment/ent/coop/africa/download/coop_out_of_poverty.pdf.
Dollery, B., & Fleming, E. (2005). A conceptual note on scale economies, size economies and scope economies in Australian local government. Accessed August 9, 2018, from https://www.une.edu.au/__data/assets/pdf_file/0005/67964/econ-2005-6.pdf.
Dondo, A. M. (2012). The cooperative model as an alternative strategy for rural development: A policy analysis case study of Kenya and Tanzania 1960–2009 (ETD Collection for AUC Robert W. Woodruff Library, Paper 283).
Evans, P. (2002). Collective capabilities, culture, and Amartya Sen’s development as freedom. Studies in Comparative International Development, 37(2), 54–60.
Fanta, F., & Upadhyay, M. P. (2009). Poverty reduction, economic growth and inequality in Africa. Applied Economics Letters, 16(18), 1791–1794. https://doi.org/10.1080/13504850701719587.
Flygare, S. (2006). The cooperative challenge farmer cooperation and the politics of agricultural modernisation in 21st century Uganda. Accessed August 29, 2018, from http://www.divaportal.org/smash/get/diva2:169231/FULLTEXT01.pdf.
Gumede, V. (2016). Poverty and inequality in Africa: Towards the post-2015 development agenda for sub-Saharan Africa. Accessed June 10, 2018, from www.vusigumede.com/content/…/Poverty%20and%20Inequality%20in%20Africa.pdf.
Gunga, S. O. (2013). The cooperative movement in Kenya and its potential for enhancement of ICT livelihoods. Accessed August 29, 2018, from http://erepository.uonbi.ac.ke/bitstream/handle/11295/45953/Samson%20O.%20Gunga.pdf?sequence=1.
Gweyi, M. O., Ndwiga, P. M., & Karagu, J. M. (2013). An investigation of the impact of co-operative movement in rural development in Kenya. International Journal of Business and Commerce, 3(2), 1–13.
Hoffman, J. (1986). The problem of the ruling class in classical marxist theory: Some conceptual preliminaries. Science & Society, 50(3), 342–363.
Imungi, J. K. (2016). Synergy between the cooperative sector and the academia in promoting research and innovation to enhance industrial and socio-economic development in east Africa. Paper for presentation in the First East African Co-operative Conference on 29 February to 2 March 2016, Nairobi, Kenya. Accessed August 18, 2018, from http://www.industrialization.go.ke/images/downloads/feacc-materials/synergy-between-the-cooperative-sector-and-the-academia.pdf.
Johnston, B. F. (1970). Agriculture and structural transformations in developing countries: A survey of the research. Journal of Economic Literature, 8(2), 369–404.
Joint Acholi Sub-Regional Leaders’ Forum and Trócaire (JASLF). (2017). Development of Inclusive Business Model (IBM) for leveraging investments and development in Acholi sub-region. User Guide. https://www.trocaire.org/sites/default/files/resources/policy/180215_final_inclusive_business_models_ibm_user_guide.pdf.
Jossa, B. (2005). Marx, Marxism and the cooperative movement. Cambridge Journal of Economics, 29, 3–18. https://doi.org/10.1093/cje/bei012.
Kwapong, N. A. (2013). Restructured agricultural cooperative marketing system in Uganda: Study of the “Tripartite Cooperative Model” (Euricse Working Paper No. 57 | 13).
Kwapong, N. A., & Hanisch, M. (2013). Cooperatives and poverty reduction: A literature review. Journal of Rural Cooperation, 41(2), 114–146.
Kwapong, N. A., & Korugyendo, P. L. (2010). Revival of agricultural cooperatives in Uganda. Accessed August 29, 2018, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.227.1042&rep=rep1&type=pdf.
Kyamulesire, A. R. (1988). A history of the Uganda cooperative movement, 1913–1988 (207 pp). Kampala: Uganda Cooperative Alliance.
Kyazze, L. M. (2010). Cooperatives: The sleeping economic and social giants in Uganda (Coop AFRICA Working Paper No. 15). Accessed August 29, 2018, from http://ilo.org/public/english/employment/ent/coop/Africa/download/wpno15cooperativesinuganda.pdf.
Mendoza, I. V. (2016). The role of cooperatives in empowering indigenous people and older persons. The United Nations for the Expert Group Meeting: “Ensuring That No One Is Left Behind: The Cooperative Sector as a Partner in the Implementation of the United Nations 2030 Agenda for Sustainable Development” New York, November 2016. Accessed August 18, 2018, from www.un.org/esa/socdev/egms/docs/2016/Coops-2030Agenda/Mendoza.pdf.
Mood, C., & Jonsson, J. O. (2016). The social consequences of poverty: An empirical test on longitudinal data. Social Indicators Research, 127, 633–652. https://doi.org/10.1007/s11205-015-0983-9.
Mumanyi, E. A. L. (2014). Challenges and opportunities facing SACCOS in the current devolved system of government of Kenya: A case study of Mombasa County. International Journal of Social Sciences and Entrepreneurship, 1(9), 1–26.
Mwejune, N. N. (1993). Problems of the cooperative movement in Uganda: A case study of Banyankore Kweterana Cooperative Union Limited. A Dissertation Submitted in Partial Fulfilment of the Degree of Masters of Arts (DS) University of Dar-Es-Salaam, Tanzania. Accessed August 18, 2018, from https://www.codesria.org/IMG/pdf/m_mwejune_nuwagira_naboth-3.pdf?7785/0706bf001ba7f31528b1dbb8d52e0e2ca5f3eef.
National Rural Electric Cooperative Association (NRECA). (2016). Understanding the seven cooperative principles. Accessed June 20, 2018, from http://www.westerncoop.com/content/seven-cooperative-principles.
Nkhoma, A. T. (2011). Factors affecting sustainability of agricultural cooperatives: Lessons from Malawi: A thesis presented in partial fulfillment of Master of AgriCommerce at Massey University, New Zealand.
Obadire, O. S., Mudau, M. J., Sarfo-Mensah, P., & Zuwarimwe, J. (2013). Active role of stakeholders in the implementation of comprehensive rural development programme in South Africa. International Journal of Humanities and Social Science, 3(13), 273–280.
Okello, L., & Ahikire, J. (2013). The cooperative movement and the challenge of development: A search for alternative wealth creation and citizen vitality approaches in Uganda. Accessed August 29, 2018, http://www.actionaid.org/sites/files/actionaid/cooperatives_report.pdf.
Osabuohien, E., Efobi, U. R., Herrmann, R., & Gitau, C. M. (2019). Female labor outcomes and large-scale agricultural land investments: Macro-micro evidence from Tanzania. Land Use Policy, 82, 716–728.
Osabuohien, E. S., Gitau, C. M., Efobi, U. R., & Bruentrup, M. (2015). Agents and implications of foreign land deals in east african community: The case of Uganda. In E. Osabuohien (Ed.), Handbook of research on in-country determinants and implications of foreign land acquisitions (pp. 263–286). Hershey, PA: Business Science Reference.
Owuor, S. O. (2003). Rural livelihood sources for urban households: A study of Nakuru town, Kenya. Accessed September 12, 2018, from https://www.ascleiden.nl/pdf/workingpaper51.pdf.
Rutaremara, V., Jean, N., Tumusabyimana, V., Semana, J., Habiyaremye, G., Hakizimana, E., & Butera, A. (2016). Examining success factors for sustainable rural development through the integrated co-operative model. Accessed September 1, 2018, from http://usaskstudies.coop/documents/pdfs/Africa%20Project_Sec%205_Rwanda%20report%20FINAL.pdf.
Ruttan, V. W. (1984). Integrated rural development programmes: A historical perspective world-development. World Development, 12(4), 393–401.
Schwettmann, J. (2014, September 2). Cooperatives in Africa: Success and challenges. In A Contribution to the International Symposium on Cooperatives and Sustainable Development Goals: The Case of Africa Berlin. Accessed August 14, 2018, from https://www.dgrv.de/webde.nsf/7d5e59ec98e72442c1256e5200432395/0773f60d3d0e5ab8c1257d4f003fa05e/$FILE/Vortrag_J%C3%BCrgen%20Schwettmann_ILO.pdf.
Seimu, S. M. L. (2015). The growth and development of coffee and cotton marketing co-operatives in Tanzania, c.1932–1982. A thesis submitted in partial fulfilment for the requirements for the degree of Doctor of Philosophy at the University of Central Lancashire University, UK.
Silberston, A. (1972). Economies of scale in theory and practice. The Economic Journal, 82(325), 369–391.
Stiglitz, J. (2012). The price of inequality: How today’s divided society endangers our future. New York: Norton and Company.
Sumelius, J., Tenaw, S., Bäckman, S., Bee, F., Chambo, S., Machimu, G., & Kumburu, N. (2013). Cooperatives as a tool for poverty reduction and promoting business in Tanzania (University of Helsinki Department of Economics and Management Discussion Papers No. 65). Accessed April 2, 2018, from http://formin.finland.fi/public/download.aspx?ID=128559&GUID=%7BB4BB921C-3E40-4D4B-AD04-EDB2B4A954BE%7D.
Tacoli, C., McGranahan, G., & Satterthwaite, D. (2015). Urbanization, rural–urban migration and urban poverty. Accessed September 12, 2018, from pubs.iied.org/pdfs/10725IIED.pdf.
Tefera, A. A. (2014). Rural-urban migration: Causes, migrants’ town livelihood activities and social capital in Berehet District, Ethiopia. Accessed September 12, 2018, from https://brage.bibsys.no/xmlui/bitstream/handle/11250/2447226/Adefris%20Tefera%20Abebe.pdf?sequence=1.
USDA. (2006). United States Department of Agriculture—2007 farm bill theme papers rural development executive summary. Accessed September 10, 2018, from http://www.usda.gov/documents/Farmbill07ruraldevelopmentsum.pdf.
van der Ploeg, J. (1998). Continuity and change: The continuous elements of rural development, The Hague (The Netherlands), National Council for Agricultural Research (NRLO) (NRLO Report 97/42).
Wanyama, F. O. (2007). The impact of liberalization on the cooperative movement in Kenya. A paper presented at the First International Ciriec Social Economy Conference on Strengthening and Building Communities: The Social Economy in a Changing World, October 22–25, 2007, Victoria, British Columbia, Canada. Accessed August 29, 2018, from https://www.researchgate.net/profile/fredrick_wanyama/publication/255581291_the_impact_of_liberalization_on_the_cooperative_movement_in_kenya/links/5564af2808ae89e758fd951d/the-impact-of-liberalization-on-the-cooperative-movement-in-kenya.pdf.
Wanyama, F. O. (2013). Cooperatives for African development: lessons from experience. Accessed August 2, 2018, from https://social.un.org/coopsyear/documents/wanyamacooperativesforafricandevelopment.pdf.
Wanyama, F. O., Develtere, P., & Pollet, I. (2008). Encountering the evidence: Cooperatives and poverty reduction in Africa (Working Papers on Social and Co-operative Entrepreneurship WP-SCE 08-02). Accessed August 29, 2018, from http://dx.doi.org/10.2139/ssrn.1330387.
White, C. (1985). Agricultural planning, pricing policies and cooperative in Vietnam. World Development, 13(1), 97–114.
WHO. (2010). Rural poverty and health systems in the WHO European Region. Copenhagen: WHO Regional Office for Europe.
Wilkinson, R., & Pickett, K. (2010). The spirit level: Why greater equality makes societies stronger. New York: Bloomsburry Press.
World Bank. (2003). Reaching the rural poor: A renewed strategy for rural development. Accessed September 13, 2018, from documents.worldbank.org/…/en/…/271450REVISED010WB0Revised01PUBLIC1.pdf.
World Bank. (2005). Beyond the city, the rural contribution to development. Accessed September 11, 2018, from https://openknowledge.worldbank.org/bitstream/handle/10986/7328/32333.pdf.
World Bank. (2016). Poverty in a rising Africa. Africa poverty report overview. http://documents.worldbank.org/curated/en/994551467989467774/pdf/100260-REVISED-PUBLIC-PovertyInARisingAfrica-Overview.pdf.
World Bank. (2018). Decline of global extreme poverty continues but has slowed. Accessed June 7, 2019, from http://www.worldbank.org/en/news/press-release/2018/09/19/decline-of-global-extreme-poverty-continues-but-has-slowed-world-bank.
Zeleza, T. (1990). The development of the cooperative movement in Kenya since independence. Journal of Eastern African Research & Development, 20, 68–94.
Acknowledgements
I am grateful to Prof. Suleman Chambo, Dr. Nyanjige Mayalla, Dr. Neema Kumburu, Dr. Lukas Mataba and Dr. Benson Ndiege from the Moshi Cooperative University (MoCU) for their useful inputs during early stages of this Chapter. I also wish to thank independent reviewers for their useful inputs.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Katundu, M. (2020). Fostering Rural Development and Social Inclusion in East Africa: Interrogating the Role of Cooperatives. In: Osabuohien, E.S. (eds) The Palgrave Handbook of Agricultural and Rural Development in Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-41513-6_17
Download citation
DOI: https://doi.org/10.1007/978-3-030-41513-6_17
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-41512-9
Online ISBN: 978-3-030-41513-6
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)