Question
2.1.1 Basic concept
As cited by Alemu (2008), cooperation has been the very basis of human civilization. The inter-dependent and the mutual help among human beings have been the basis of social life. It is the lesson of universal social history that man cannot live by himself and for himself alone. Since the beginning of human society, individuals have found advantage in working together and helping one another in all over the world.
In Ethiopia, it is common for people to be inter-dependent in mutual help and self help activities in their day-to-day socio-economic conditions. The traditional cooperatives like edir, equb, debo and senbete are traditional form of associations, which should be basis to modern form of cooperatives in Ethiopia.
2.1.2. Definition
The US department of agricultural farmer’s service definition (1971) “cooperative is business organization of agricultural producer’s development, owned and control by member patrons and designed to perform needed services to the people.”
As ICA 1995 definition “Cooperative is an autonomous association of a person united voluntary to meet their common economic, social, and cultural needs and desperation through a jointly owned and democratically controlled enterprises.”
Also ILO define “cooperative is an association of a person usually of a limited means, who have voluntary joined together to achieve a common economic ends through the formation of democratically controlled business organization making equitable distribution to the capital required accepting a fair share as a risk and benefit under taking.”
Another widely accepted cooperative definition is the one adopted by the USDA in 1987. “A cooperative is a user-owned, user-controlled business that distributes benefits on the basis of use.”This definition captures what are generally considered the three primary cooperative principles such as user ownership, user control and proportional distribution of benefits (Alema w, 2008).
2.1.3. Principles of cooperatives
According to ICA (1995, cited by Eshetu T, 2008), any cooperative should pass through the following guiding principles:
A: Voluntarily and Open Membership. Co-operative societies are voluntary organizations open to all persons able to use their services and willing to accept the responsibilities of membership without gender, social, racial, political or religious discrimination.
B: Democratic Member Control. Co-operative societies are democratic organizations controlled by their members who actively participate in setting their policies and making decisions. Every member has equal voting rights and accordingly one member shall have one vote.
C: Member Economic Participation. Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
D: Autonomy and Independence. Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
E: Education, Training, and Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the public - particularly young people and opinion leaders - about the nature and benefits of cooperation.
F: Cooperation among Cooperatives .Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
G: Concern for Community. Cooperatives work for the sustainable development of their communities through policies approved by their members.
2.1.4. Role of cooperatives
Currently, cooperatives are recognized as an important instrument for socio-economic improvement of the community. This importance is recognized in their definition, which considers cooperatives to be: An association of persons who have voluntarily joined together to a common end through the formation of a democratically controlled organization, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking, in which the members actively participate (FCA, 2007c: 1, cited by Yehulashet A).
Cooperatives are economic associations; they provide the opportunity for poor people to raise their incomes. Because they are democracies with each member having one vote, they empower people to own their own solutions, and because they pool risks at the level of the enterprise and offer micro-insurance they increase security.
In addition, there is increasing evidence indicating that cooperatives also contribute directly and indirectly to meeting several of the other MDGs, such as primary education for children, gender equality and reducing child mortality. The cooperative enterprise also presents an important model as many of the worlds poorest and disadvantaged face social exclusion, lack of access to opportunities and growing economic inequality (cited by yehulashetA.Argaw, 2008)
A cooperative is made up of a group of individual who have come together to pool resources to specific purpose and can play a significant role on economic development. The objective is mostly economic in nature (Berdegue, 2001). Cooperatives are those which have direct effect on the economic life of members. According to (Berdegue, 2001), member join cooperatives because it`s promises to be the most effective instrument towards gaining improved income. As cited by Yehulashet (2007),
transform based on recent researches and citations
As cited by Alemu (2008), cooperation has been the very basis of human civilization. The inter-dependent and the mutual help among human beings have been the basis of social life. It is the lesson of universal social history that man cannot live by himself and for himself alone. Since the beginning of human society, individuals have found advantage in working together and helping one another in all over the world.
In Ethiopia, it is common for people to be inter-dependent in mutual help and self help activities in their day-to-day socio-economic conditions. The traditional cooperatives like edir, equb, debo and senbete are traditional form of associations, which should be basis to modern form of cooperatives in Ethiopia.
2.1.2. Definition
The US department of agricultural farmer’s service definition (1971) “cooperative is business organization of agricultural producer’s development, owned and control by member patrons and designed to perform needed services to the people.”
As ICA 1995 definition “Cooperative is an autonomous association of a person united voluntary to meet their common economic, social, and cultural needs and desperation through a jointly owned and democratically controlled enterprises.”
Also ILO define “cooperative is an association of a person usually of a limited means, who have voluntary joined together to achieve a common economic ends through the formation of democratically controlled business organization making equitable distribution to the capital required accepting a fair share as a risk and benefit under taking.”
Another widely accepted cooperative definition is the one adopted by the USDA in 1987. “A cooperative is a user-owned, user-controlled business that distributes benefits on the basis of use.”This definition captures what are generally considered the three primary cooperative principles such as user ownership, user control and proportional distribution of benefits (Alema w, 2008).
2.1.3. Principles of cooperatives
According to ICA (1995, cited by Eshetu T, 2008), any cooperative should pass through the following guiding principles:
A: Voluntarily and Open Membership. Co-operative societies are voluntary organizations open to all persons able to use their services and willing to accept the responsibilities of membership without gender, social, racial, political or religious discrimination.
B: Democratic Member Control. Co-operative societies are democratic organizations controlled by their members who actively participate in setting their policies and making decisions. Every member has equal voting rights and accordingly one member shall have one vote.
C: Member Economic Participation. Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
D: Autonomy and Independence. Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
E: Education, Training, and Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the public - particularly young people and opinion leaders - about the nature and benefits of cooperation.
F: Cooperation among Cooperatives .Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
G: Concern for Community. Cooperatives work for the sustainable development of their communities through policies approved by their members.
2.1.4. Role of cooperatives
Currently, cooperatives are recognized as an important instrument for socio-economic improvement of the community. This importance is recognized in their definition, which considers cooperatives to be: An association of persons who have voluntarily joined together to a common end through the formation of a democratically controlled organization, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking, in which the members actively participate (FCA, 2007c: 1, cited by Yehulashet A).
Cooperatives are economic associations; they provide the opportunity for poor people to raise their incomes. Because they are democracies with each member having one vote, they empower people to own their own solutions, and because they pool risks at the level of the enterprise and offer micro-insurance they increase security.
In addition, there is increasing evidence indicating that cooperatives also contribute directly and indirectly to meeting several of the other MDGs, such as primary education for children, gender equality and reducing child mortality. The cooperative enterprise also presents an important model as many of the worlds poorest and disadvantaged face social exclusion, lack of access to opportunities and growing economic inequality (cited by yehulashetA.Argaw, 2008)
A cooperative is made up of a group of individual who have come together to pool resources to specific purpose and can play a significant role on economic development. The objective is mostly economic in nature (Berdegue, 2001). Cooperatives are those which have direct effect on the economic life of members. According to (Berdegue, 2001), member join cooperatives because it`s promises to be the most effective instrument towards gaining improved income. As cited by Yehulashet (2007),
transform based on recent researches and citations
Answers
GPT-4o mini
### 2.1.1 Basic Concept
As articulated by Alemu (2008), cooperation forms the foundational bedrock of human civilization. The interdependence and mutual support among individuals have been pivotal to social life throughout history. The narrative of universal social history emphatically highlights that humans cannot thrive in isolation; cooperation has been essential since the dawn of societal structures. Across the globe, individuals have recognized the advantages of collaboration, aiding one another in various aspects of life.
In Ethiopia, communal interdependence is prevalent, particularly through mutual aid and self-help initiatives that characterize daily socio-economic interactions. Traditional cooperatives such as **edir**, **equb**, **debo**, and **senbete** exemplify local association forms that serve as precursors to contemporary cooperative models in the country.
### 2.1.2 Definition
According to the U.S. Department of Agriculture Farmer’s Service (1971), a "cooperative" is defined as a business organization comprised of agricultural producers, owned and controlled by member patrons, aimed at delivering essential services to its members.
The International Cooperative Alliance (ICA) (1995) defines a cooperative 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 enterprises."
The International Labour Organization (ILO) characterizes a cooperative as "an association of individuals, usually of limited means, who have voluntarily joined together to achieve shared economic goals through the establishment of a democratically controlled business organization that ensures equitable distribution of the capital required, with the acceptance of shared risks and benefits."
Additionally, a widely accepted definition from the USDA in 1987 describes a cooperative as "a user-owned, user-controlled business that distributes benefits based on usage." This definition encapsulates the core cooperative principles of user ownership, user control, and proportional benefit distribution (Alema W, 2008).
### 2.1.3 Principles of Cooperatives
According to the ICA (1995, as cited by Eshetu T, 2008), all cooperatives should adhere to the following guiding principles:
A. **Voluntary and Open Membership**: Cooperative societies are voluntary organizations open to all individuals capable of utilizing their services and willing to fulfill membership responsibilities, without discrimination based on gender, social class, race, political affiliation, or religion.
B. **Democratic Member Control**: Cooperatives operate democratically, with members actively participating in policy setting and decision-making processes. Each member enjoys equal voting rights, adhering to the principle of one member, one vote.
C. **Member Economic Participation**: Members contribute equitably to and democratically control the cooperative's capital. A portion of this capital typically remains common property. While members may receive limited compensation for their contributions, surpluses are generally allocated for cooperative development, providing benefits in proportion to members' transactions, and supporting approved community initiatives.
D. **Autonomy and Independence**: Cooperatives are self-directed organizations governed by their members. Any agreements with external parties, including government entities, are made with terms that safeguard members' control and preserve the cooperative’s independence.
E. **Education, Training, and Information**: Cooperatives prioritize education and training for members, elected representatives, managers, and employees, empowering them to effectively contribute to cooperative growth. They also undertake initiatives to inform the broader public, particularly youth, about the benefits of cooperative models.
F. **Cooperation among Cooperatives**: For maximum effectiveness, cooperatives work collaboratively at local, national, regional, and international levels to strengthen the cooperative movement.
G. **Concern for Community**: Cooperatives actively seek sustainable development for their communities, guided by policies approved by their members.
### 2.1.4 Role of Cooperatives
In contemporary society, cooperatives have emerged as crucial instruments for the socio-economic enhancement of communities. Their significance is reflected in definitions that describe cooperatives as associations formed by individuals who voluntarily unite for a shared purpose through democratically controlled organizations, contributing equitably to the necessary capital and sharing the associated risks and rewards (FCA, 2007c: 1, cited by Yehulashet A).
Cooperatives serve as economic entities that empower marginalized populations to elevate their incomes. Their democratic structure, where each member holds a single vote, facilitates a sense of ownership over their solutions. By pooling risks on an enterprise level and providing micro-insurance options, cooperatives enhance economic security for their members.
There is growing evidence demonstrating that cooperatives play a direct and indirect role in addressing various United Nations Sustainable Development Goals (SDGs), including improvements in primary education, gender equality, and reductions in child mortality rates. They also represent a viable model for addressing social exclusion, lack of access to opportunities, and increasing economic disparities, which many disadvantaged individuals face globally (cited by Yehulashet A. Argaw, 2008).
Ultimately, a cooperative is comprised of individuals pooling resources for a specific purpose, significantly influencing economic development. The primary objective of cooperatives is often economic, as asserted by Berdegue (2001), emphasizing their direct impact on the economic lives of their members. Individuals are motivated to join cooperatives primarily due to their promise of improved incomes and collective strength in achieving economic objectives (Yehulashet, 2007).
As articulated by Alemu (2008), cooperation forms the foundational bedrock of human civilization. The interdependence and mutual support among individuals have been pivotal to social life throughout history. The narrative of universal social history emphatically highlights that humans cannot thrive in isolation; cooperation has been essential since the dawn of societal structures. Across the globe, individuals have recognized the advantages of collaboration, aiding one another in various aspects of life.
In Ethiopia, communal interdependence is prevalent, particularly through mutual aid and self-help initiatives that characterize daily socio-economic interactions. Traditional cooperatives such as **edir**, **equb**, **debo**, and **senbete** exemplify local association forms that serve as precursors to contemporary cooperative models in the country.
### 2.1.2 Definition
According to the U.S. Department of Agriculture Farmer’s Service (1971), a "cooperative" is defined as a business organization comprised of agricultural producers, owned and controlled by member patrons, aimed at delivering essential services to its members.
The International Cooperative Alliance (ICA) (1995) defines a cooperative 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 enterprises."
The International Labour Organization (ILO) characterizes a cooperative as "an association of individuals, usually of limited means, who have voluntarily joined together to achieve shared economic goals through the establishment of a democratically controlled business organization that ensures equitable distribution of the capital required, with the acceptance of shared risks and benefits."
Additionally, a widely accepted definition from the USDA in 1987 describes a cooperative as "a user-owned, user-controlled business that distributes benefits based on usage." This definition encapsulates the core cooperative principles of user ownership, user control, and proportional benefit distribution (Alema W, 2008).
### 2.1.3 Principles of Cooperatives
According to the ICA (1995, as cited by Eshetu T, 2008), all cooperatives should adhere to the following guiding principles:
A. **Voluntary and Open Membership**: Cooperative societies are voluntary organizations open to all individuals capable of utilizing their services and willing to fulfill membership responsibilities, without discrimination based on gender, social class, race, political affiliation, or religion.
B. **Democratic Member Control**: Cooperatives operate democratically, with members actively participating in policy setting and decision-making processes. Each member enjoys equal voting rights, adhering to the principle of one member, one vote.
C. **Member Economic Participation**: Members contribute equitably to and democratically control the cooperative's capital. A portion of this capital typically remains common property. While members may receive limited compensation for their contributions, surpluses are generally allocated for cooperative development, providing benefits in proportion to members' transactions, and supporting approved community initiatives.
D. **Autonomy and Independence**: Cooperatives are self-directed organizations governed by their members. Any agreements with external parties, including government entities, are made with terms that safeguard members' control and preserve the cooperative’s independence.
E. **Education, Training, and Information**: Cooperatives prioritize education and training for members, elected representatives, managers, and employees, empowering them to effectively contribute to cooperative growth. They also undertake initiatives to inform the broader public, particularly youth, about the benefits of cooperative models.
F. **Cooperation among Cooperatives**: For maximum effectiveness, cooperatives work collaboratively at local, national, regional, and international levels to strengthen the cooperative movement.
G. **Concern for Community**: Cooperatives actively seek sustainable development for their communities, guided by policies approved by their members.
### 2.1.4 Role of Cooperatives
In contemporary society, cooperatives have emerged as crucial instruments for the socio-economic enhancement of communities. Their significance is reflected in definitions that describe cooperatives as associations formed by individuals who voluntarily unite for a shared purpose through democratically controlled organizations, contributing equitably to the necessary capital and sharing the associated risks and rewards (FCA, 2007c: 1, cited by Yehulashet A).
Cooperatives serve as economic entities that empower marginalized populations to elevate their incomes. Their democratic structure, where each member holds a single vote, facilitates a sense of ownership over their solutions. By pooling risks on an enterprise level and providing micro-insurance options, cooperatives enhance economic security for their members.
There is growing evidence demonstrating that cooperatives play a direct and indirect role in addressing various United Nations Sustainable Development Goals (SDGs), including improvements in primary education, gender equality, and reductions in child mortality rates. They also represent a viable model for addressing social exclusion, lack of access to opportunities, and increasing economic disparities, which many disadvantaged individuals face globally (cited by Yehulashet A. Argaw, 2008).
Ultimately, a cooperative is comprised of individuals pooling resources for a specific purpose, significantly influencing economic development. The primary objective of cooperatives is often economic, as asserted by Berdegue (2001), emphasizing their direct impact on the economic lives of their members. Individuals are motivated to join cooperatives primarily due to their promise of improved incomes and collective strength in achieving economic objectives (Yehulashet, 2007).