| dc.description.abstract | This study offers a contribution to the analysis of the
role of rural-based co-operatives in developing rural areas.
Using the fishing co-operatives and the newly introduced
trading groups by small scale fish systems of Lake Victoria
as an example, it assesses their viability as agents of
poverty alleviation. The argument is that the people of the
fishing regions of Lake Victoria are characterized by the
vicious circle of poverty and the only way out is co-operation
among various business people. Co-operation would act as
a stimulant for scarce resource mobilization through pooling
and borrowing of funds (saving and credit), group fund-raising,
and group borrowings.
The study begins by stressing that the Lake victoria as a
natural resource in the region holds the key to the regions
development. This is because the ecological and human factors
of the region do not favor agriculture or any other gainful
employment opportunities. But it is puzzling to note that
despite engaging in fishing activities, there is stiil an
apparent and persistent po~erty. A condition perpetuated by
the following aspects of the fishing industry:-
(a) Government policies towards lake resource exploitation
are not protective towards the local small scale business
people.
(b) The bureaucratic, universal, and
principles of Kenyan co-operatives
practical relevance to the rural based co-operatives. This
explains why urban-based saving and credit co-operatives
rigid nature make them of little practical perform better than the rural co-operatives.
(c) Business structure, conduct and performance in the industry
favor large scale firms and frustrate small scale
endeavors. The large scale business people do not originate
or reside in the lake regions unlike the small scale business
people. Benefits accruing from the industry therefore largely
benefit areas from where the large scale traders originate.
This inequality between the two sectors is caused by
input and technological differences. The large scale sector
uses modern-icing and freezing technology which is too expensive
and complex for the local business people to adopt.
The small scale sector on the other hand uses traditional
smoking and
competitive
analyzing the
we conclude
sun-drying technology which cannot fit in the
environment within which it operates. After
comparative benefits of the two technologies,
that the small scale sector is vital for the
development of the region and that with simple changes,the
traditional technology can be efficient enough to improve
earnings from the industry. It is hence the most approprfate
technology for the industry.
Opponents of this appropriate technology (large scale
firms), are egoistic, capitalists, well financed, strategically
placed, and indirectly protected by Government officers.
They are thus able to dominate and dictate terms of the
industry at the expense of its potential beneficiaries who
are financially poor, unknown and unorganized. They are
conscious and disappointed about such inequality, willing but
unable to individually correct the situation.
The solutions to these problems lie with change. There
should be change in participants attitudes towards business,
change from sole holdings to group holdings, change in technology,
change in structure of fishermen co-operatives, and
change from lack of commitment to dedication towards group
savings and team work. But social commitment and economic
viability are only necessary but not sufficient conditions
for such ideals. Performance of co-operatives are very much
dependent on the political circumstances prevailing in that
country and more particularly as they affect the area in
question. Such reorganization should therefore be followed by
relevant political will in the form of policy intervention
to regulate and protect the small scale sector. | en |
