Reconceiving cooperatives : the case of Ethiopia

• Main Author: Woldie, Mesganaw K.
• Format: Thesis
• Language: unknown
• Published: 2015
• Subjects: KN Asia and Eurasia; Africa; Pacific Area; and Antarctica; Pacific; Antarc*; Antarctica
• Online Access: http://wrap.warwick.ac.uk/77606/; http://wrap.warwick.ac.uk/77606/1/WRAP_THESIS_Woldie_2015.pdf; http://webcat.warwick.ac.uk/record=b2863240~S1

This research argues that cooperatives have become uncategorizable in terms of their identity, especially when one attempts to distinguish them from investor-owned firms and hence it is further argued that they should have specified objectives that match with their historical not-for-profit objectives so that they can easily distinguishable. The cooperatives have become uncategorizable mainly due to the gradual adaptation of the idea of investor owned firms into cooperatives and the possibility of organizing business enterprises in the form of cooperatives. The problems are further exacerbated in Ethiopia due to (1) the existence of state incentives to cooperatives,(2) the legislative failure to properly define cooperatives,(3) the policy failure to properly define cooperatives objectives (4) the absence of state regulation of cooperatives or self- regulation by the cooperatives themselves. Cooperatives could easily be categorized if they have specified objectives that match with their historical not-for-profit objectives. Historically, they were intended to solve problems left unsolved by market forces or state intervention or even the charities. Currently, it is the issue of trust that remains unsolved by these alternatives. Although trust is a foundation of any society, it is an attribute which is in decline due to changing nature of community. Consumer cooperatives are viable alternatives of reviving trust by rebuilding traditional communities in a contemporary world. This argument is advanced by reviewing academic writings and critically analyzing the Cooperative Society Proclamation No. 147/1998 in comparison to the Commercial Code of Ethiopia. This is further followed by critical examination of policy documents of the Federal Government of Ethiopia concerning cooperatives. The actual motives and practical regulation of Ethiopian Cooperatives are evaluated on the basis of interviews. Academic literature is used to review the importance of trust and the role of the cooperative in safeguarding and rebuilding it.