| Experiences From Asias Rural Co-Operatives Workshop report 9 |
|Abstracts of papers|
by John G Rouse
The paper builds up the arguments for expounding a testable hypothesis for field research. The urgent need for this research is for developing policy correctives for public and external funding of co-operatives in developing countries.
The hypothesis is that, the main cause for failures of co-ops is the inadequate member stakes in the capital funds, resulting in inadequate member-control on decisions and performance of co-ops and making them less member-oriented. The paper also suggests that there have been isolated instances of innovative methods to get member contribution to capital funds and these could show the way for the future.
The paper holds that the co-ops have indeed failed in developing countries, basing its conclusions on several case studies.
If this were true, the governments and donor agencies are directly responsible for the situation by providing easy and cheap capital from sources external to members. The proposed structural changes in several developing countries which among other things would rapidly reduce consessional financing may then be really a blessing in disguise. The rural peoples would not only learn to finance themselves but also to control the co-ops better.