BY LAKACHEW ATINAFU
The establishment of cooperatives in Ethiopia has a long history. Many believe that Ethiopians have traditions of cooperating in times of both good and bad times. Through establishing social associations and strengthening social bonds they support one another. For instance, Ikub Idir and Debo have been long practiced traditions and social institutions that serve the public throughout the country before the establishment of formal cooperatives. The nation had been managing risks and resolving social crisis using such institutions as banking, insurance firms.
Presently in Ethiopia, there are a number of cooperative associations that are established to benefit the communities for inclusive socioeconomic achievements. Hence they are serving nation with the spirit and values of self-help, self-responsibility, democracy, equality, equity, and solidarity. Members of the cooperative also respect the ethical values of honesty, openness, social responsibility, and caring for others and act accordingly.
The establishment of cooperatives is enshrined in legal framework as that of proclamation number 147/1998 a proclamation to provide for the establishment of cooperative society. In accordance with the legal document the issuance of proclamation has become necessary to establish cooperative societies which are formed by individual own voluntary bases and who have similar needs for creating saving and mutual assistance among themselves by pooling resources, knowledge and property.
In accordance with article 55(1) of the Constitution of the FDRE, it has become necessary to enable cooperative societies to actively participate in the free market economic system. It has also become imperative to issue a comprehensive legislation by which cooperatives societies are organized and managed in order to achieve the above mentioned objectives.
Recently, the world cooperation day has been marked at national level in Adama in the presence of senior government officials, prominent personalities and public figures.
Opening the event, Federal Cooperative Agency, Director General Ousman Surur stated that the fundamental objective of celebrating such grand occasion reinforces cooperatives as they are strategic entities in reduction of poverty, ensuring gender equality, environment protection, climate change, and maintaining peace and stability.
Mentioning that the 99th world cooperative society’s day marked on a theme “Rebuild Better Together” Ousman further stated that cooperatives across the world and in unison and solidarity are serving the public providing humanistic support and granted environment safety at the light of the global pandemic.
In Ethiopia, notably over the last ten years, cooperative societies have been devoting to bring about substantial development, peace and democratization policies. Accordingly, in Ethiopia there are more than 23.3 million individuals enrolled in basic cooperatives, 395 unions and four federations. Their capital is said to be 30 billion Birr while they are able to save more than 21 billion Birr creating jobs for more than two million citizens, particularly for women and the younger segment of the society, according to the Director General.
Beyond sustaining economic beneficiary, cooperatives have been showing public allegiance when the country were under threats of either natural disasters or chaos due to circumstances. For instance, cooperatives have been playing irrepressible role in rescuing the neediest delivering consumption goods at affordable price amid COVID-19. They are also discharging duties in engaging community engagement and social responsibility like filing shortcoming of the government mainly involving in infrastructure development. They also greatly engage in affording updated technological inputs for agriculture mechanization, artifacts eco-tourism, consumers and housing developments, said Ousman.
The Director has also unveiled that in spite of the fact that cooperatives have contributed a lot for social and economic achievements and back government’s effort, there is a lot to be done ahead and he called on stakeholders and relevant authorities to work hand in hand.
It is also stated that, envisaging and putting in place the 10 years pilot plan which is emanated from the national reform and home grown economy is of great significance for cooperatives’ contribution in building prosperous Ethiopia.
On the other hand, the Director conveyed his message across cooperative society to inscribe their fingerprints in the greenery legacy, “Lets us dress Ethiopia”, and thereby contribute their own part for the overall development of eco-tourism.
In the occasion of celebrating the national Cooperative Societies Day in the theme “Cooperatives for prosperous Ethiopia”, it was also emphasized that the role of cooperatives is pillar for the existence of the country as this institution engage in socio- economic and maintain values and norms or societal bonds for harmony and peaceful coexistence among Ethiopians.
Cooperatives play crucial roles in economic and social development of a given country. Cooperatives created and diversifying jobs for the teaming youth and generated staggering amount wages for employees and laborers. The participation of cooperatives in agro-processing, marketing and finance (saving, credit and banking); and social services and responding to disasters is bright hope for the country.
Documents stated that the history of formal co-operative development in Ethiopia started in the Imperial Period between 1950 and 1974. A co-operative development program was initiated to improve the growth of the agricultural sector and the rural economy.
A study conducted by Lemma also reveals that the practice of cooperation to solve mutual problems through organized and coordinated efforts has a long history in Ethiopia. Cooperation exists within the wide variety of institutional and organizational landscapes, such as public and civil society organizations, private companies and industries, and traditional and party-based governance institutions, etc. Parallel to the modern way of cooperation, traditional collective action associations have also been playing a vital role among rural and urban communities.
However, in Ethiopia informal cooperatives incepted and became operational ever since ancient times. However, owing to various shortcomings evolve in those intuitions; such as limited access to banks, insurances and other services they could not thrive at the desired level. As a result, they rather remained to be mere traditional social values for ages. To this end and flourish them in a manner they contribute for the social and economic development of the country, the government and stakeholders should exert utmost effort.
The Ethiopian Herald June 30/2021
