Contributions Of Government To The Growth And Development Of Cooperatives In State

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Contributions Of Government To The Growth And Development Of Cooperatives In State



Cooperatives had been existing in Enugu state long before now. Then it hadn’t much government recognition because it was being operated in a low key and traditionally among women, men and traders dwelling in rural communities of Enugu. In those days, the people believed and had benefited so much from living a communal life with the saying that a “tree cannot make a forest”. To this effect people were so eager to belong or gain membership into some existing groups or associations in the likes of Age grade Association.

These three associations were the most popular associations then and members were guided with some orally stipulated rules and regulations. They were also financially committed in the sense that they do pay a little taken as registration fee. These associations introduced peace and unity in their various communities because members started showing love and concern to their fellow members. At a point the daughters association became a disciplinary instrument in the communities of the states.

As this cooperation continued to mingle among the people, some individuals saw the need to tackle or solve their individual problems or getting their individual task done through communal efforts.

This thought metaphorsized the formation of working groups i.e people voluntarily coming together to work for each other in turns. This idea relieved them the stress of one man cultivating so many hectres of land alone, what they do was to work as a group for one man and another person take turn.

On the other hand, traders and family members desired to start up a group contribution system. This led to the formation of a mode of contribution known as “Isusu”.

Isusu is or kind of arrangement whereby people on group of persons are willing to be contributing a certain amount of money daily, weekly or monthly which are given to members in turns to enable such member solve a financial need or start up a business with the bulk money.

All these forms of cooperatives have been existing in Enugu State with little or no assistance from the government yet it continued to strive on its own even to the extent of civil servants forming cooperative societies in their respective ministries. The government has of late see the impact of cooperatives in the state and also seen the need to contribute to the growth and development of cooperative in the state. In the literature review of this work, we shall see and discuss those contributions of government to the growth and development of cooperative movement in Enugu State.

Government is said to be the caretaker of every institution within its area of sovereignity. Hence the duty of the government to protect the interest of its subjects in ordinary public life, business or cultural environment is obvious and cooperative societies cannot deny the need for government concern.

However, the peculiar nature of cooperative principles and practices limits the extent the government can GET INVOLVED IN cooperative affairs. Cooperative system demands autonomy.

But when cooperation was formally introduced in Enugu, the prospective cooperative lacked the qualities that could promote healthy and rapid growth and development of Cooperative.

These qualities are: Good Educational background, knowledge of cooperative business, strong financial background, and lack of cooperative Education. Due to absence of the above in about 80% of the cooperators, government took the initiatives to lay strong foundation in cooperators to operate, hence government got involved in many aspects of cooperative activities thereby giving a rise to the following problems:-

Whether the government is exceeding its supposed area of involvement in cooperative affairs.
Whether the government or the cooperatives themselves are responsible for the poor retrogressive state of cooperatives.
What has been the impact of government cooperative promotion.
Why has government policies for cooperative development failed to achieve meaningful success in the economy.
The objectives of this study is to investigate positively or negatively to the contributions of government to the growth and development of the cooperative movement in Enugu State with a view to recommending how best to improve on the growth and development of the cooperative movement.


To determine why government is interested in cooperative affairs autonomy.
To determine the positive impact of government on cooperative growth and development. This will enable us know to encourage government to make positive contribution to cooperative growth and development.
To determine the negative impact of government on the growth and development of cooperative movement. This will enable cooperative planners to trace the obnoxious steps of the government that determine the positive growth and development of cooperatives with a view to stopping it.
To study and determine the area the cooperatives require government assistance.
The study will also determine the extent of government involvement in the cooperative movement with a view to know whether it is excessive, adequate or inadequate. This will help government enact a law that will limit the government to agree with the cooperative principles as practiced globally.
The study when completed will help the economic planners to know whether government participation in cooperatives affairs made negative or positive contribution to cooperative growth and development with reference to Enugu State.

The policy makers will be well informed of the roles or practices that need modification in order to raise their standard of performance and increase the level of grassroot development through cooperatives.

Cooperatives will also know the extent of gain or loss in their activities whether to continue or to stop it. The entire nation as a whole will benefit as the study can be used to promote grassroot development.

A research of this nature is an obstacle race that is not always concluded without encountering some difficulties.

Difficulties encountered by the researcher were as follows:

TIME: The time given to carry out this researcher work is small which makes it uneasy for the researcher to carryout an in depth study of the topic..

FINANCE: This also constituted a major constraint because the researcher is a student and does not have enough money to meet up with the high transportation cost.

INFORMATION: There were not much books on cooperatives to provide necessary information needed for the work.

There was also difficulty in obtaining the necessary information, for some people were loading information.

What is government; interested in cooperatives?
What positive contribution has government made on cooperative growth and development?
What is the negative impact has government made on cooperative development?
Where is the limit of government intervention on cooperative affairs?

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