Leveraging Cooperatives for Community Development

Abstract

This paper examined the role of cooperatives in community development through the lenses of Asset-Based Community Development (ABCD), Social Capital Theory, and Resilience Theory, with a focus on cashew nut farmers in the Mtwara and Lindi regions of Tanzania. The objective was to assess how local resources, social networks, and community resilience influenced farmer welfare, particularly in the context of the negative impact of climate change on rainfed agriculture. Utilising a cross-sectional data approach, the study analysed responses from 384 farmers through detailed surveys. Data analysis employed descriptive statistics (frequencies, means, standard deviations), T-tests to compare welfare across categorical variables, and quantile regression models to evaluate the effects of various factors on welfare at different levels. Findings revealed that for under-resourced and underprivileged communities, access to fertilisers and farm size were crucial assets, while access to extension services, market information, and credit played significant roles. For better-resourced communities, the most influential factors were extension services, market information, and cooperative membership. The policy implications suggested a multi-faceted approach: enhancing access to fertilisers and supporting farm size expansion were vital for improving welfare in under-resourced and underprivileged communities, reflecting the importance of leveraging local resources amidst the challenges posed by climate change. Simultaneously, strengthening extension services, providing comprehensive market information, and promoting cooperative membership were essential for boosting welfare in better-resourced communities, underscoring the value of social networks and collective action. Tailored interventions that addressed specific welfare needs effectively utilised cooperatives to build community resilience and drive overall prosperity in the face of environmental stresses.