Introduction to Cooperative

Topics: Cooperative, Cooperatives, Credit union Pages: 59 (17167 words) Published: February 7, 2013
Introduction to cooperative
1. Concepts of cooperatives

The sprit of association is inherent which all mankind acquire it naturally. Not only human being but also animals cooperate themselves in order to survive and get and get what ever they want. The association that started in the family extended to form an organization through which their social and economic needs could be satisfied. The urge and desire to fulfill the need became the main reason for people to come together for the purpose of cooperative. History tells us that man can’t successfully live by himself and for him self alone. He is dependent on other on one or other aspects. Therefore, in order to live successfully, these dependent organs form an organization which is known as cooperative society. We can see the concepts of cooperative classifying into ; i. Primitive concepts of cooperative

ii. Modern concepts of cooperative
i. Primitive concepts of cooperative
In primitive societies, the lives of the community were not complex or sophisticated; people led a simple way of life with only a few wants. Even during this simple way of life time/period, people had been cooperated in collecting fruit and the in hunting, later in agricultural aspect. So we can confidently say that cooperative was considered as a way of leading a better life. In primitive societies, cooperative societies were:

* Related to culture, religion and social aspects
* Not perceived as a type of business organization
* Considered as a way of leading a better life
* Play a great role in avoiding exploitation of one class by other. ii. Modern concepts of cooperative
A historical event existed in Europe in the end of 18th century. It was a period of considerable stress and challenges. Great changes took place in the economic, social and political system in Europe especially Great Britain. The result of industrial revolution were

* Production and mechanization expanded
* Consumption increased
* Living standard raised
* Low price
* Un securing employment
* Class division i.e. capitalist and wage earning
A blind capitalistic system of economy emerged. It was a system based on profit motive exploiting the poorer class. It promoted social evils, selfishness and exploitation of man by man. The dissatisfaction of workers and the evils of the capitalistic system made the social thinkers like Robert Owen (1771-1858) of England and Charles Fourier (1772-1837) of France to think of an alternative better system of economy. They visualized an ideal form of society based on cooperation and mutual help instead of competition and exploitation of man by man. The modern concept has an economic concept and is a formal organization. In that un favorable time, the cooperative movement gave hope to the economically weak peoples to live in a better condition of life in the modern world. 2. Formal and Informal cooperative

Cooperation is an association that established by interested peoples and by people who have the same (common) interests. It can be established informally as well as formally. * Informal cooperative or traditional cooperation

It is an association which established by people having common interests but it hasn’t a legal formality i.e. it established informally. This form of cooperatives is found in Africa, Asia, Latin America and Central Europe. In Ethiopia also considered as a part of traditional way of life. It practiced for many years, our ancestors have lived and worked together on a cooperative basis in various aspects of human activities. This form of cooperative has been exercised in both urban and rural areas of the country. In rural areas Debo, Jiggie, Wonfel or Guza are the major forms of informal cooperative; with the purpose of provision of scarce recourse such as labor, some financial support as required by the cooperator with in a short period of...
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