Co-operatives, Policy and Law in Tanzania with Special Reference to Multi-Purpose Co-operative Societies

Abstract

This study was an attempt to discuss the effects of national policy on the development of cooperatives and law in Tanzania in a historical perspective. It was imperative to study co-operative development in a historical perspective because a discussion on ideas, policies and institutions outside the realm of history could not reveal their true nature and meaning. The study focused mainly on the attributes made by the various policies which had affected the nature, structure and organisation of co-operatives from the pre-colonial to post-independence era. Most of these developments culminated in the establishment of multi-purpose co-operative societies under the Villages and Ujamaa Villages (Registration, Administration and Designation) Act of 1975. Given the policy and development strategies of Tanzania and the role assigned to the co-operatives (i.e. as stepping stone towards socialism and self-reliance), the aim of this study remained confined to the examination of the effects of 'villagisation' and 'communalisation' on the development of cooperatives and law in Tanzania. A special reference was made to the multipurpose co-operatives having Same District as a case study. In particular, the study sought to assess the extent to which the policy of villagisation and communalisation was affecting the development of cooperatives and law in Tanzania. It examined whether and how the multi-purpose co-operatives could effectively assist in the implementation of the said policy. Through0Ut this study, an attempt was made to test the following hypotheses that: i) Multi-purpose co-operatives were a further development on the traditional cooperatives and, thus, they were superior. ii) Multi-purpose co-operatives allowed a higher degree of participation and involvement of the people than the traditional co-operatives. 2 iii) It was the socio-economic development and development strategy which led to the formation of multi-purpose co-operatives. iv) In Tanzania, multi-purpose co-operatives were received as being inevitable given the policy objectives. v) The problems of multi-purpose co-operatives were attributable to the shortcomings of the Villages Act 1975 and the inefficiencies of Crop Authorities, and not the villagers. A total of four villages were studied. The choice was based on purposive sampling with the help of the District Co-operative and Ujamaa Development officer. As a result, the following villages were picked (with reasons in brackets): Marindi (where the first co-operative society was started), Masinde (the best village during that season), Ntenga (virtually no communal activity) and Makanya (which had incorporated Nkwini - an Ujamaa village). In each of the villages, stratified sampling was used to select interviewees. From each village, four ten cells were picked and three people were interviewed. The interviewees were selected from among farmers and traders. In total, therefore, 60 people were interviewed. This included 12 villagers from each village and their respective village leaders. The study started by examining forces which initially led to the formation of co-operatives during the pre-colonial period. It pointed out that in traditional African societies, there were some traditional customs and norms of co-operation based on reciprocity whereby people would help each other in times of need. According to the study, 'modern' co-operatives began in England among industrial workers and were established in Tanzania, just like in other colonies, after the introduction of cash crops.