Co-Operative Development in Tanzania: A Tool for Equality and Socio-Economic Development

Abstract

Cooperative development in Tanzania has passed different down falls. They were imposed by colonialist during 1920s for the purpose of obtaining the agricultural produce. Despite of these missions, the cooperative in Tanzania had been agricultural based up to 1960s on independence. That went on up to 1980s when cooperatives were used as a tool for rural development. Afterwards, different cooperative forms started, such as saving and credits, consumers and others. The objective of these papers is to explore the genesis and growth of cooperatives in Tanzania as well as different downfall that cooperative had been experiencing. The theoretical reviews co-operative promotions and institutional capacity on co-operative promotion in its history, co-operative schemes through MSMES strategy, policy reforms and co-operative development, group action promotions through co-operative and funds promotions in co-operative development, promotion of nontraditional co-operative enterprises. The hindrance on cooperative development had been viewed in assessing the the status of co-operatives in Tanzania on the position of co-operative in the bargaining power, members’ role in co-operative governance, the politicization of co-operative institutions, economic liberalization and co-operative development, agency problem to member ownership, unions formed on tribal and ethnic base as a common bond. empowering the Union on the expense of primary societies, change of co-operative management from weberian to democratization, co-operative being agents of the government, cut on prices syndrome to members profit gain, the economic democracy and co-operative competition, Global worming impacts on co-operative production margins, the blue print training on socialism co-operatives to member’s participation and politician’s decisions on co-operative statusThe recommendations is based on promoting new forms of co-operatives that should be promoted as a co-operative had becomes a new sector of its own in promoting different sectors. In that we can promote co-operative new venture business in the area of new crops in agriculture that had no room on co-operative sector. Other promotion sectors being transport co-operatives is a new sector to be promoted in Tanzania. Other sector includes Health sector, tourism, and many more that should base on participatory policy reforms which should reflect shareholders on board. That will ensure member inclusion that will also support its implementation which will solve social economic member’s needs.