| Abstract: | The study examines and discusses the role Primary Agricultural Cooperatives play in promoting
rural development and enhancing the welfare status of the rural poor through socio-economic
development. The Evolution and concepts of cooperatives movements in Ethiopia are also
presented.
Data Collection was achieved through questionnaires, interviews, observations, and the study of
published materials in the field from various sources.
Various data in the study demonstrates that the selected case study cooperatives significantly
contributed to rural development through agricultural cost reduction, access to market and better
price for outputs to their members. On the other hand, the study also shows that cooperatives’
potential and their growth was not as anticipated due to weak performance, limited package of
services, poor management, financial limitations etc. The Thesis concludes that agricultural
cooperatives in Ajje, Shalla District have shown a great potential in promoting rural
development. If properly supported and the capacity of the leadership is enhanced, the
cooperatives could respond favorably to the required attributes for rural development process.
Recommendations to improve the current status includes, revisiting the objective of forming
agricultural cooperatives, ensure that only institutions with viable economic plans which are
member centered and with community driven ideas shall be promoted and encouraged; and that
the agricultural cooperatives shall be treated as grass-root level organizations, with tremendous
potential to link the rural communities to other institutions. In order to stimulus rural
development, the rural communities shall be linked through the cooperatives to wide ranging
service providers and institutions with a view of brining various services to the members.
Furthermore, at the center of their entire functions and business dealings, the cooperatives shall
operate in such a way that won’t undermine and compromise members’ sense of belongings and
ownership. |
