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CO-OPERATIVE SOCIETIES OPPORTUNITIES AND THREATS IN A CAPITALIST ECONOMY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 58  |  82 Users found this project useful  |  Price NGN3,000

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CO-OPERATIVE SOCIETIES OPPORTUNITIES AND THREATS IN A CAPITALIST ECONOMY (A CASE STYDY OF ANAMBARA STATE)

 

CHAPTER ONE

1.0   INTRODUCTION

Different economic system exists in the world economy, among these are prominent namely: socialist, capitalist and mix-economic system. In their drive towards achieving their set objectives, they face a lot of challenge especially that posed by the capitalist business men.  This piece of work looks into the very nature of capitalism and its general principle as it effects the growth of cooperative societies.

Cooperative societies started as the proverbial child of necessity, being the mother of invention, it arose in the 19th century out of atrocities of the shrewed capitalist businessmen. The use of false weight and measure among  others were some at the bad business practices which characterized the capitalist system of economy. This is because the capital business men aimed at maximizing profit at the determent of the consumer. As a result, the spirit of cooperation was born in the minds of the founding fathers of the movement who formed business enterprise which by its principle and practices has a negative attitude towards capitalist and still remains today what is known and referred to as cooperative societies.

1.1   GENERAL OVERVIEW

THE SOCIALIST SYSTEM: This is the type of economic system where type is government control of all sectors within the economy. This implies that there is government ownership of every investment in the systems today. Socialism is giving in to other types of economic systems, in that most countries of the world that practice socialism are loosing their hold in the economic countries, the unions of soviet is socialist republic (USSR) is a good example of dividing socialist countries.

CAPITALISM: On the other hand, is a reverse of what is obtainable in a socialist economy. This is because capitalism is seen as an economic system where individuals control the main of the economy. It s characterized by the interplay of market forces, the forces of demand and supply, cut throat completion and indiscriminate like in prices of goods and services.

MIXED ECONOMY: the mix economy is an economic system which comprises the feature of both capitalist and socialist systems of economy in the mixed economic system.

In the mixed economic system there is joint ownership of factors there is joint ownership of factors of production by the government and private. Entrepreneur although there is state control on vital or key industries and services very essential to the masses. These services are known as statutory service which if left in the hands of individuals will either be exorbitant to procure or be reserved for the higher social class.    

The government therefore, takes charge of administering such statutory services in a mixed economic system. The individuals on the other hand exercise the legal right of embarking on any type of business enterprise as the law demands.

The write up takes a look at capitalist system of economy as it effects cooperative societies. Cooperation is a unique form of business organization which aim of uplifting the living standard of their members.

1.2   STATEMENT OF PROBLEMS

Most often business activities are faced with numerous problems which hinder achievement of their objectives. Some of these problems are posed by the vagaries in the economy. Such as inflation, while some arises as a result of the type of economic system which the business enterprises operates.

This project piece takes a direct look into the problems passed by capitalism to a unique form of business enterprise known as cooperative societies.

Given a case a study of Anambra state the activities of capitalist businessmen and the problem it passes against the growth and development of cooperative societies is discoursed.

Cooperative societies are faced with many problem in a capitalist economy which hinders the growth and development of cooperative such problems which the cooperative societies have to contend with in a capitalist economy include:

a.  Stiff and cat throat competition

b.  Lack of enough financial resources

c.  Lack of adequate government support

d.  Lack of people interest in cooperatives

e.  Lack of proper legislation.

These problems mentioned above are among the numerous problems which faces cooperative societies in capital economy.

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