COOPERATIVE SOCIETIES ACTIVITIES AND POVERTY REDUCTION IN CROSS RIVER STATE

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COOPERATIVE SOCIETIES ACTIVITIES AND POVERTY REDUCTION IN CROSS RIVER STATE

 

CHAPTER ONE

                                                              INTRODUCTION                              

  • Background to the Study

Despite successive government’s efforts in reducing poverty, its situation in Nigeria is quite worrisome as the story of poverty alleviation seems to be gloomy over the years (Abbas, 2013). It is therefore not surprising that poor people in Nigeria are left vulnerable to all kinds of inhumane treatment and exploitation by both agents of state and private authorities from which they seek for assistance. Unfortunately, since poor people lack independence, power and voice which to rely on for daily survival, they become cheap for all kinds of political and economic exploitation. The gravity of poverty and its situation is however dynamic across the globe. For example, the number of people living in poverty in Africa and Nigeria inclusive is unfortunately on the increase (MDG, 2015). The poverty trend in Nigeria is further aggravated due to lack of basic needs for decent life; access to clean or portable water, healthcare services, education opportunities, shelter, housing (MDG, 2013, UNDP, 2015)

Considering the seriousness of the matter, successive political regimes have come up with one strategy or the other to alleviate poverty in the country. However, none of the government policies seems to be yielding positive result as poverty situation till date remain pervasive (Abbas, 2013). Such poverty alleviation strategies used by the government to tackle poverty in the country include micro-credit loans, skill acquisition, training, job creation etc. The reality in Nigeria, however is that most of the poverty alleviation strategies do not recognize people as supreme in its policy making or implementation. Most of the strategies of poverty alleviation are prepared within the top executives and are later introduced to the public. Any control which the ordinary people might have enjoyed is obviously indirect as only top executives who do not really understand the situation of the ordinary poor make such policies and strategies.

It is in view of such failures of policies and strategies by successive governments that strategic alternatives are desired towards addressing poverty situation in the country. Sizya (2001) for instance found that cooperative societies paly significant role in efficient marketing and distribution of goods and services especially for small scale farmers and the rural poor people. In terms of policy choice or making important decisions, cooperative societies provides voice to its members as it creates social, economic and political structure to represent their collective interest (Ezekiel, 2014). Other benefits of cooperative societies that are achieved according to Sizya (2001) and Fapojuwo, Alarima and Abiona (2012) also include improvement in member’s income earned and other economic benefits, facilitation of social welfare among its members, creating job opportunities, financial inclusion, educational support for members and their children and women and youth’s participation in economic activities, among others.

Looking through the activities of cooperative societies, the Nigerian system which is fundamentally democratic in nature must also embody the wishes and aspirations of the people. In the case of poverty alleviation efforts the situation should not be in anyway different as efforts made by government have failed over time. For instance in the new thinking Sapru (2008:136) emphasised that demands for policy action are usually made on political system by different constituents including civil society organisations, non-governmental organisations, pressure groups, political parties, citizens, etc. Thus, since poverty still remains a serious menace in Nigeria, and particularly in Cross River State, despite various efforts made by successive governments to reduce it, the role that such non-governmental organizations and bodies like cooperative societies play in poverty alleviation in recent time becomes imperative.

  • Statement of Problem

Poverty is a menace that continues to pose serious threat to the development prospects of Nigeria in general Cross River State in particular. The alarming incidence of poverty in Cross River State especially among the most vulnerable in the society; women, children, youths is serving as hindrance to socio-economic development of most of its communities. Its consequences have also resulted in to population explosion, diseases, malnutrition, high rate of illiteracy, high rate of crime, infant mortality rate etc. This unfortunate situation becomes manifest in the increased rate of unemployment, joblessness as people’s standard of living in the areas has been falling drastically in the society. Thus, since poverty still remains a serious menace in Nigeria, and particularly in Cross River State, despite several efforts made by successive governments to reduce it, the role that such non-governmental organizations like cooperative societies play in poverty alleviation in recent time becomes imperative.

The study will therefore be invaluable to concerned stakeholders towards opening fresh ideas on roles of cooperative societies towards poverty alleviation. The study will equally provide alternative policy input and institutional framework through new dimensions, dynamics and trends thereby sparking more interest for further research. It is against this background that, this study assessed the roles of cooperative societies and what impact it makes in alleviating poverty in Cross River State, Nigeria.

  • Research Objectives
    • General Objectives

The general objective of the study was therefore to assess the roles of cooperative societies in alleviating poverty in Cross River State, Nigeria.

  • Specific Objectives

Specifically, the objectives of the study are:

  1. To ascertain the extent to which Consumer Cooperative Society hasreduced Poverty in Cross River State.
  2. To examine the extent to which Credit Cooperative Society has reducedPoverty in Cross River State.

iii. To determine the extent to which Agriculture\ Farmers’ Cooperative Society reducedPoverty in Cross River State.

  1. To find out the extent to which Housing Cooperative Society has reduced poverty in Cross River State.
  2. To determine the extent to which multipurpose Cooperative Society has reduced Poverty in Cross River State.

1.4 Research Questions

  1. To what extent has Consumer Cooperative Society reduced Poverty in Cross River State?
  2. To what extent has Credit Cooperative Society reduced Poverty in Cross River State?

iii. To what extent has Agriculture\ Farmers’ Cooperative Society reduced Poverty in Cross River State?

  1. To what extent has Housing Cooperative Society reduced poverty in Cross River State?
  2. To what extent to which multipurpose Cooperative Society reduced Poverty in Cross River State?

Research Hypothesis

H01; There is no significant relationship between Consumer Cooperative Society and Poverty reduction in Cross River State

H02; There is no significant relationship between Credit Cooperative Society and Poverty reduction in Nigeria

H03; There is no significant relationship between Agriculture\Farmers Cooperative Society and Poverty reduction in Nigeria
H04; There is no significant relationship between Housing Cooperative Society and Poverty reduction in Nigeria

H05; There is no significant relationship between Multipurpose Cooperative Society and Poverty reduction in Nigeria

Significance of the Study

Cooperative Society are drivers of change and progress. They move the society from a crude one to a highly sophisticated level. It is deserving to empower the poor by organizing their thoughts and resources for delivering values and choices to the society. It is also important to harness their potentials for producing a fitness for entrepreneurial life and also preserve the lifestyle of an entire cultures.

The research makes a significant contribution to knowledge which is directly relevant to policy makers, families, employers, mentoring managers, unemployed youths and development agencies.

The study is intended to provide insights into changes in family lifestyles as a result of effectiveness of cooperative society on modern society. This knowledge would be of great value to these classes of people who will design programmes that will help people cope with problems.

The study will also help educate rural dwellers on the important of joining a cooperative society and how these NGOs has improved the lives of rural dwellers especially the Farmers and agriculture cooperative society.

Scope of the Study

The study aims at analyzing the impact of cooperative society on poverty reduction with particular reference to rural areas in Cross River state. The study will be focused on rural areas based on the fact that there is high prevalence of cooperative societies in the rural areas than in urban areas.

The study also looked at four different type of cooperative society which include; Consumer, Credit, Agriculture\Farmers, Housing and Multipurpose cooperative society.

Definition of Terms

Cooperative Society; A cooperative society is a form of a business organisation or a group of people who agree to voluntarily associate on the basis of equality for the promotion of their economic interests (Todaro & Smith,2013).

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