Barriers to Cooperation among the co-operatives

danger1Co-operative survival in future will depend on the extent of the co-operation or integration among the various co-operative societies. In recent times, there were a number of splits of otherwise large co-operatives into small unviable units which have found it difficult to survive or even break even. Reasons include:-

  1. Clamour for leadership positions in the small splinter co-operative society. It is clear that if societies united, many present day leaders would lose or have to relinquish their positions in an enlarged co-operative society.
  2. Suspicion and jealousy among some leaders. There are those leaders who have inherent suspicion and jealousies and therefore will oppose integration or co-operation at all cost.
  3. Lack of appreciation of the principle of large numbers or the benefits of economic of scale. You will hear some leaders argue that the society is too large to manage. This far from the truth. It becomes too large only because the elected leaders to run them are “too small” in management skills. If the right people are elected into the management, with necessary skills, then integration will be the way for the future and the writing is clearly on the wall for all to read that corporation in future is irreversible.
  4. Lack of exposure. Most leaders have not travelled beyond the confines of their own societies to see that the way forward for international trade is through the formation of large bargaining economic blocks. Co-operatives cannot afford to be left behind in a fast globalizing and integrating world.

Co-operatives are faced with major crisis which they cannot face individually. These are:

  1. Crisis of management
  2. Crisis of capital
  3. Crisis of ideology, and
  4. Crisis of credibility.

If they are not careful, they may sooner face the crisis of legitimacy and relevance.

From the book?:

Title A commentary on the Co-operative Societies Act, 1997: No. 12 of 1997
Authors Murungi Kibanga ManyaraKenya. Co-operative Societies Act, 1997
Publisher Pearl Marketing Ltd., 2001
ISBN 9966969535, 9789966969538
Length 238 pages
Subjects Cooperative societies

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  1. […] Barriers to Cooperation among the co-operatives […]

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