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CO-OPERATIVE FEDERATIONS: OPPORTUNITY AND THREATS IN A CAPITALIST ECONOMY

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CO-OPERATIVE FEDERATIONS: OPPORTUNITY AND THREATS IN 

 

ABSTRACT

Capitalism is seen as an economic system or market economy was there is free allocation of market resources and free private participation in economic activities. The capitalist concept is manifested in the early 19th century, the period of industrial revolution. Since this period to the present date, capitalism has controlled the economic of some developed countries and the undeveloped ones, such countries include Europe, South Africa, America, Israel, Japan, and Nigeria. Despite the effort of the government to help these countries to regulate the excess of capitalism.    In the wake of the excesses of capitalism, which resulted, the suffering of the poor masses, co-operative emerged. The co-operative concept tends to oppose the capitalists mod of business practices. Co-operative is a movement, which aims at bringing better living to the poor by returning to them the best economic power and dignity of laboure. This they lost through the shrewd influence of capitalism. This research work was carried out in three commercial towns in Abia state. This piece of work analyses the opportunities that exist for the co-operative alongside with the threats existence of capitalism.

CHAPTER ONE

 INTRODUCTION

BACKGROUND OF THE STUDY

 There are different economic systems, which exist in the world economy. Among these systems, three types are prominent namely, Socialist, capitalist, Mixed Economic system. The socialist system is seen as a type of economy where all the activity and sector of the economy are controlled by the government. This implies that there is government ownership on every investment in the system. Today, socialism is giving in to other type of economic system in that most countries of the world that practice socialism are losing their holds in the economy of their respective country. The union of soviet socialist republic (U.S.S.R) is a good example of such dwindling socialist country.

Capitalism on the other hand is a reserve of what is obtainable in a socialist economy. This is because capitalism is seen as an economic system whose individual controls the economic activities of the country. It is characterized by an interplay of the market force , E.I. force of demand and supply, cut the throat competition and indiscriminate like in the price of goods and services.

A mix economy is an economic which comprises the features of the socialist and the capitalist economy. In a mixed economic system, there is joint ownership of the factors of production by the government and private entrepreneurs. The private interprise takes count of the key service, which is special to the masses. It is too exhurbitant to procure or reserve for the social class. The government therefore takes charge of the administration. Statutory service in a mixed economy system. The individuals on the other hand exercises the legal right of embarking on any type of business enterprise as the demands

This price work emphasis on how capitalist system of economy affects the co-operatives society and the opportunity they have to excel. In there drive towards archiving their set objectives, they face a lot of challenges especially those that are posed by the capitalist businessmen. The project look into he very nature of capitalism and its general principles as it affects the growth of the co-operative society is analyzed.

Co-operative started as a proverbial necessity being the mother of invention. It arose in the 19th century out of the atrocities of the shrewd capitalist businessmen. The adulteration of the commodities , the use of false weight, unemployment was rife, wages were extremely low and below the subsistence level among others. This is because capitalist businessman is aimed at maximizing profit. At the detriment of the consumers. As a result of this , the spirit of cooperation in the minds of the great father of the movement and a form of business enterprise which by its principle and practice a negative attitude towards capitalism emerge and still remains today as what it knows as and is referred to as the co-operative societies.

STATEMENT OF PROBLEM

Most often, business activities are faced with numerous problems, which hinders archiving of their objective. Some of this problem is posed by the vagaries in the economy such as inflation. Why some arises as a result of the type of the type of the economic system in which the business enterprise operates. This project take a direct look into the problem posed by capitalism to a unique form of business enterprise known as the co-operative society. Giving a case of study of Abia state, the activities of capitalist businessmen and the problem it poses against the growth and the development of the co-operative societies are disused. Co-operative society is faced with many problems in a capitalist economy, which hinders their growth and development. Such problem that the cooperative society has to contend with the capitalist economy includes;

a.     Stiffen and cut threat competition 

b.     Lack of enough financial resources

c.      Lack of adequate government support

d.     Lack of proper legislation

e.      Lack of people interest in co-operatives

This problem highlights above are among the numerous problem which faces cooperative society in a capitalist economy

PURPOSE OF STUDY

The is research is aimed at looking specifically into co-operative society as agents of social and economic development thereby bringing into play their problem as it affect or hinders their development.

The study also considers capitalism as a contrast to the very principles on which cooperation is founded. It focuses on the numerous problem created by the capitalist economy and the threat which this problems brings to the co-operative enterprises. The study also looks at opportunities and tries to relate as factors necessary for social and economic development. In addition to this, it also throws more light on the activities of the co-operative society as unique form of business organization. Finally, this writ-up is also aimed at improving the general knowledge about the co-operative for the lack of proper knowledge on the part of general has contributed immensely the setback that the co-operative society has witnessed for a long time.

SIGNIFICANCE OF THE STUDY

He important of this research work cannot be overemphasis, this is because this writ-up will brig up the hidden problems that the cooperative societies are facing and at the same time put up some suggestion that will help in solving this problems.

This will ensure proper and well-articulated programme aimed at withstanding the problems posed by the capitalist concept. This can be attributed to people’s ovine to maximize profit and this brought about serous competition in the economy. In the wake of this, this work will related the effect of the co-operative society in trying to cob the bad business practices with the aim of bridging a relief to the poor masses by breaking the chains of capitalism.

This believe will usher in a new socio-economic world where the suffering populates will enjoy some form of economic freedom

SCOPE OF THE STUDY

This borders on the influence of the capitalist phenomena on the co-operative believe and principles taking into consideration in giving area where there is greatly activity of capitalist businessmen.

The case study is in Abia state where there is high level of capitalist oriented business activities. The interplay of forecast of demand and supply and the spirit of profit maximization as can be seen in most commercial town of Abia state.

LIMITATION OF THE STUDY

In caring out this study within the giving school, some limiting factors existed which reduced the pace at which the study was carries out. The limiting factors ranges from the following;

(a). Financing: the research work faced a lot of financial constraints, which provided enough financial resource, the work could giving a more vivid study of the study of the school.

(b). Ignorance and secretiveness of the cooperators: the cooperators on the area of the study were unwilling to volunteer information to the researcher after even educating them on the aim of the study

(c). Scarcity of the co-operative society: there is scarcity of co-operative establishment within the area of the study, which made it impossible for the accessibility of the co-operative inspector of the government ministry

(d.) Bad road: due to bad road, it was not easy to get this selected or the study.

Research question

For the purpose of this research work, some research questions has been formulated, they include the following

i.                   How has capitalism affected the general economic of Abia state?

ii.                 What rate threat has capitalism posed on the co-operative societies in Abia state?

iii.              How has the practice of capitalism provided opportunities for the growth of cooperatives societies?

iv.              What role can government plays to help the co-operative societies in a capitalist economy?

DEFINITION OF TERMS

For the purpose of clarification, definition of some terms in this project topic is needed.

1.     Co-operative societies: a co-operative society is an enterprise whose owners are at the same time the costumers and users of the facilities, goods and services provided.

2.     Opportunities: favorable choices or opening offered by circumstances

3.     Threats: declaration of the an intention to punish or to hot

4.     Capitalist: economic or political system, which depends on private capital and profit making.

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